An Acquisition, a GDP Cut, and H-P Gets Sued: Mid-Day Buzzers
Stock futures are mixed on Tuesday afternoon, with the Nasdaq inching up about four points and the Dow and S&P down a fraction. The Organization for Economic Co-operation and Development cut it’s GDP growth estimates for members nations in 2013 to 1.4 percent, followed by 2.3 percent growth in 2014.
The third time’s the charm for the Troika, Greece’s three financial musketeers. Officials reached an agreement on Monday that will cut Greece’s debt to 124 percent of GDP by 2020 and release the next round of emergency funding.
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Shares of ConAgra Foods (NYSE:CAG) traded up as much as 4.35 percent in the afternoon following news that it will acquire Ralcorp (NYSE:RAH), the largest private label food manufacturer in the U.S., for approximately $6.8 billion. Shareholders will receive $90 per share, a 28.2 percent premium on Monday’s closing price. Ralcorp’s stock price climbed as much as 26.46 percent to $88.81 Tuesday.
Many observers saw it coming: Hewlett-Packard Co. (NYSE:HPQ) is being sued by an investor over losses associated with the company’s $8.8 billion write down of Autonomy Corp. Hewlett-Packard’s stock price dropped nearly 12 percent when the write-down was announced.
The patent wars rage on, this time with Apple (NASDAQ:AAPL) and LG Electronics Inc. (066570) defending themselves over claims that they infringed on video-compression technology patents owned by Alcatel-Lucent SA (NYSE:ALU).
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