Oil prices rose on speculation the Organization of Petroleum Exporting Countries (OPEC) will attempt to bring some stability to prices, giving a lift to emerging markets equities, but U.S. stocks did not respond.
Mattress Firm Holding Corp (MFRM)
Shares of Mattress Firm Holding Corp more than doubled, rising 114.4% on more than 30 times the average daily volume after South African retailer Steinhoff said it pay $3.8 billion for MFRM. Steinhoff’s deal for Mattress Firm values the latter at $64 per share, a 115% premium to where MFRM shares closed last Friday.
Steinhoff’s acquisition of MFRM creates the largest mattress retailer in the world and gives the South African company an entry into the U.S. market for the first time.
Analysts were surprised by the rich premium Steinhoff is paying for MFRM, indicating they do not expect a competing bid to emerge. MFRM operates in 48 states.
Auction house Sothebys surged 13% on more than six times the usual turnover after the company released second-quarter results that topped Wall Street estimates. On an adjusted basis, BID earned $1.51 a share during the second quarter, easily beatings analysts’ estimates which called for BID to earn $1.05 per share.
BID’s sales dropped 10% to $298.7 million. As the Wall Street Journal reports, a Chinese life insurance company is the largest BID shareholder, followed by Dan Loeb’s Third Point hedge fund and Steven Cohen’s Point72 Asset Management.
Shares of BID are up more than 40% year-to-date.
Vail Resorts, Inc. (MTN)
Ski resort operator Vail Resorts, Inc. climbed almost 8% on about five times the average daily volume after announcing a takeover of rival Whistler Blackcomb Holdings Inc. MTN will pay $1.06 billion for the Canadian company.
“Whistler Blackcomb is the largest and most visited ski resort in North America,” according to the Associated Press.
Colorado-based MTN owns some of the most popular ski resorts in the U.S. MTN’s deal for Whistler Blackcomb is expected to close in the fall.
At the time of this writing, Todd Shriber did not own any of the aforementioned securities.