Ahead of the June jobs report, due out tomorrow before the open of U.S. markets, stocks rose thanks to some other positive employment data. The S&P 500 lost 0.09% while the Dow Jones Industrial Average dropped 0.13%. The Nasdaq Composite rose 0.36%.
The ADP National Employment Report showed private employers hired 172,000 workers in June, beating market expectations for a 159,000 gain. Private payrolls rose 168,000 in May. Last month, small businesses hired 95,000 workers, up from 84,000 in May,” according to Reuters.
Takeover talk and improved earnings guidance made BioMarin Pharmaceutical Inc. (NASDAQ:BMRN), Western Digital Corp (NASDAQ:WDC) and WhiteWave Foods Co (NYSE:WWAV) three of Thursday’s best performers.
BioMarin Pharmaceutical Inc. (BMRN)
Biotechnology firm BioMarin Pharmaceutical Inc soared 9.1% following a report that the company could be acquired by Swiss pharmaceuticals giant Roche Holdings. Roche has long believed to be a suitor for BMRN and some market observers believe the Swiss company was close to acquiring BMRN three years ago.
The U.K. financial blog Betaville reported that Roche is again “studying” a possible takeover of BMRN. The blog reported that Roche would have to pay $130 to $150 a share to acquire BMRN.
Western Digital Corp (WDC)
Shares of NAND chip maker Western Digital Corp rose 4.8% after the company announced Mark Long will replace Olivier Leonetti as chief financial officer. WDC also boosted its fiscal fourth-quarter guidance.
WDC now expects fiscal fourth-quarter revenue of $3.46 billion, up from a previous estimate of $3.35 billion to $3.45 billion. WDC also raised its EPS guidance to 72 cent a share from 65 cents to 70 cents.
“The last time that the company had updated its fourth-quarter outlook was on May 26, when it raised the revenue guidance to $3.35–$3.45 billion from $2.6–$2.7 billion,” reports Zacks.
WhiteWave Foods Co (WWAV)
Packaged foods makers WhiteWave Foods Co surged 18.6% on volume that was 30 times above the daily average on news that French food giant Danone will acquire WWAV for $10.4 billion. Danone’s deal for WWAV is the French company’s largest acquisition in nine years.
Danone is offering $56.25 a share for WWAV, “a 24 percent premium to WhiteWave’s 30-day average closing price,” according to Reuters.
While that premium seems lofty, a note by Jefferies analyst Akshay Jagdale cited by Reuters indicates the typical takeover premium for a company such as WWAV is 30%, meaning it is possible another suitor will emerge for WWAV.
At the time of this writing, Todd Shriber did not own any of the aforementioned securities.
