Investor questions value of Smithfield deal
Smithfield Foods Inc. may be worth less as a whole than its separate parts, according to an activist investor asking the Virginia pork giant to reconsider its recent $4.7 billion sale to a Chinese meat producer. Last month, Shuanghui International Holdings agreed to pay $4.7 billion, sans debt, for the full Smithfield package. The Hong Kong company offered $34 a share. But Starboard Value, a New York-based investment adviser, said in a letter to Smithfield's board that breaking up the meat company and selling it in parcels would likely earn investors $44 to $55 a share.
Homebuilder confidence highest since 2006
A gauge of confidence among homebuilders jumped in June, hitting the highest level since 2006, on more optimism about future and current sales. The National Association of Home Builders/Wells Fargo housing-market index rose to 52 in June — the first time the index has reached above a key reading of 50 since 2006 — from 44 in May. Readings above 50 signal that builders, generally, are optimistic about sales trends. The 8-point jump in June is the index's largest increase since 2002.
Netflix to get DreamWorks Animation content
Netflix Inc. announced a new deal for original TV series with DreamWorks Animation, escalating its rivalry with Amazon.com Inc. in the battle for streaming video content online and animated programming in particular. Most of the content is expected to be geared toward children and based on DreamWorks' stable of characters and animated franchises. Under terms of the deal, which Netflix called "the largest deal for original first-run content" in its history, the company will get more than 300 hours of new, original programming from DreamWorks, with the first series expected to debut in 2014.
Google settles lawsuit over stock split plan
Google Inc. has settled a lawsuit filed by shareholders opposed to the tech giant's plan to create a new class of nonvoting stock. Google said it signed a memorandum of understanding with a group of investors who sought to block a stock split that would lead to a creation of Class C shares, according to a filing with the Securities and Exchange Commission. Google said the move was intended to give the company more options when it comes to employee compensation and acquisitions, but it was criticized for the protections it offers to founders Larry Page and Sergey Brin to maintain control of the company.
J&J set to acquire Aragon Pharmaceuticals
Johnson & Johnson, the world's biggest maker of health care products, has agreed to pay as much as $1 billion to buy Aragon Pharmaceuticals Inc. and gain the closely held company's experimental prostate cancer drug. Aragon will receive an initial cash payment of $650 million, New Brunswick, N.J.-based J&J said. Additional payments totaling as much as $350 million may follow if San Diego-based Aragon's prostate cancer program achieves certain milestones, J&J said. The company's lead compound, ARN-509, is in the second of three stages usually required for U.S. regulatory approval.
Lowe's to acquire California chain for $205M
Lowe's Cos., the second-largest U.S. home-improvement retailer, has agreed to pay $205 million to add at least 60 Orchard Supply Hardware stores in California after Orchard filed for bankruptcy protection. The acquisition will provide the retailer with a smaller store format and give it access to new customers in California, where it already operates 110 outlets, Lowe's said. In addition to the cash purchase price, it will assume amounts owed to almost all of Orchard's supplier partners. Lowe's, based in Mooresville, N.C., said it wants to add stores in California as the housing market recovers.
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