Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) shares plummeted nearly 14 percent on Wednesday after the company announced that it will acquire Plains Exploration & Production (NYSE: PXP) and McMoRan Exploration (NYSE: MMR) in two separate deals estimated at $9 billion both in cash and stocks, as the company looks to expand its traction in energy sector. The deal would create a company with gold, oil and natural gas assets across the world.
Freeport said that it would pay $25 cash and 0.6531 shares of its common stock for each Plains share held, which makes offer of $50 per share, or a total deal value of $6.9 billion.
In another deal, Freeport will pay $14.75 cash for each McMoRan share, or $2.1 billion, after taking into consideration shares in McMoRan that Freeport and Plains already hold.
Meanwhile, Plains Exploration & Production shares rallied nearly 26 percent and McMoRan Exploration shares skyrocketed almost 83 percent.
Shares of Apple Inc. (NASDAQ: AAPL) fell nearly 4.50 on Wednesday after COR Clearing raised Apple’s margins requirement to 60 percent from 30 percent. The Company has now slumped about 20 percent from Septmeber, when Apple stock touched its historic high of $705.
Citigroup Inc. (NYSE: C) shares gained nearly 6.50% after the financial giant announced that it will be downsizing its global headcount by 11,000 in next as a part of its restructuring efforts aimed at enhancing efficiency and lowering cost. The job cuts are expected to save $900 million. The bank also said that its fourth quarter pre-tax charges will total about $1 billion while annual expense savings are expected to be more than $1.1 billion, starting 2014.
Shares of Mattress Firm Holding Corp. (NASDAQ: MFRM) plunged over 20% after specialty retailer of mattresses and related products provided lackluster outlook on fiscal fourth quarter results and slashed its guidance on fiscal 2012 earnings despite fiscal third quarter results beat Street’s estimate.
The Company reported net income for the third quarter of $12.5 million or $0.37 per share, up from $12.3 million or $0.55 per share in the year earlier quarter.
Adjusted net income or NON-GAAP income for the latest third quarter stood at $15.7 million or $0.47 per share, a penny more than analysts’ consensual estimate.
Pandora Media Inc. (NYSE: P) shares plummeted nearly 18% after the internet radio company, following the closing bell on Tuesday, surprised the Wall Street by announcing that it could swing into loss for the fiscal fourth quarter as advertisers were pulling back due to fear surrounding spending cuts The company, though, reported better-than-expected fiscal third quarter earnings. Revenue during the period leaped 60 percent from year-earlier quarter to $120 million.
For the fiscal fourth quarter, the Company is expecting revenue in the range of $120 million to $123 million while analysts polled by Thomson Reuters were expecting revenue of $130.3 million.
Shares of Chelsea Therapeutics International Limited (NASDAQ: CHTP) nosedived over 30 percent after the company said its Parkinson’s disease treatment failed to demonstrate any statistically-significant drop in the rate of patient falls during its Phase III study.
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