Early in trading Monday morning, Asian shares were slipping as Wall Street took a hit on tax reform uncertainty. Meanwhile, the euro slowed down as German coalition talks have been lagging.
Plenty of companies made headlines over the weekend due to pending acquisitions and new shares, including Boeing Co (NYSE:BA), Marvell Technology Group Ltd. (NASDAQ:MRVL) and Toshiba Corp (USA) (OTCMKTS:TOSYY).
Boeing Co (BA)
Avolon announced over the weekend that it’d be buying Boeing jets.
The Chinese-owned aircraft leasing company revealed that it was in talks with the aircraft maker to acquire 75 Boeing airplanes. Avolon added that it might buy 20 more.
The price of the deal has yet to be announced, but published prices suggest that the deal would net Boeing $8.7 billion at list values. However, buying in bulk may reduce the deal by at least 50%, according to analysts.
With the additional 20 jets, Avolon might end up acquiring $11 billion worth of aircrafts at list prices. The delivery of the aircrafts may arrive between 2021 and 2024.
The announcement was confirmed through a memorandum of understanding that Avolon signed at the Paris Airshow in June, netting it the Boeing 737 MAX 8 aircrafts. Avolon looked at MAX 10 planes originally.
BA shares are up 68.5% year-to-date.
Marvell Technology Group Ltd. (MRVL)
Marvell is reportedly close to acquiring Cavium Inc (NASDAQ:CAVM).
Semiconductor maker Marvell has inked a deal with the integrated semiconductor processors developer in order to acquire it for $6 billion, according to sources close to the matter.
The deal will help Marvell to move away from its traditional storage devices, a change that was prompted by the company’s Starboard Value LP acquisition from last year that added three new directors to its board from the hedge fund.
The agreement is expected to be a cash-and-stock acquisition that Marvell is slated to announce on Monday. Neither company has confirmed the deal at the moment.
Since CEO Matt Murphy took over as Marvell boss, the company has been moving towards a new look that has caused it to reduce its workforce, while adding services in its data centers and wireless communications segments.
MRVL shares have gained 46.3% in 2017. CAVM stock is up 21.4% over the same period.
Toshiba Corp (USA) (TOSYY)
Toshiba is reportedly raising 600 billion yet ($5.4 billion) worth of shares.
The Japanese automotive company saw its shares fall roughly 5% Monday morning on the news. Toshiba is making the move through a sale of new shares that would help it continue to trade publicly.
The company got together on Sunday to approve the plan, which came about in order to steer its balance sheet back to profitability following its failed U.S. nuclear power business.
The Toshiba shares will be sold to about 60 investors overseas, making up roughly half of its current market value. The company’s tax write-offs will help bring its assets back to above liabilities.
The company is slated to issue 2.28 billion new shares at a price of 262.8 yen ($2.35) per share and payments will be completed on Dec. 5.
TOSYY stock is up 1.7% YTD.
As of this writing, Karl Utermohlen did not hold a position in any of the aforementioned securities.
