Wall Street Brief: Starbucks INNOVATIVE Deal, Home Depot GUIDANCE
Chesapeake Energy (NYSE:CHK) is conducting advanced talks with Global Infrastructure to sell its 45.2 percent limited partnership interest in Chesapeake Midstream (NYSE:CHKM) and other pipeline assets for over $4 billion. The deal comes from Chesapeake’s strategy to sell assets as it deals with a cash-flow shortfall. Alembic analyst James Sullivan thinks this may hit $22 billion by the end of 2013.
On Tuesday, a U.S. federal judge ruled that Barclays (NYSE:BCS) is entitled to recover around $1.5 billion in disputed assets from Lehman’s bankruptcy. This represents a partially reversed decision from February 2011.
Coinstar (NASDAQ:CSTR) has a deal with Starbucks (NASDAQ:SBUX) to introduce thousands of Rubi coffee kiosks that include Seattle’s Best Coffee drinks in grocery stores, drugstores and mass merchants. From the agreement, it will add another distribution channel for Seattle’s Best Coffee. Coinstar is expected to begin the roll out in the summer.
Ancestry.com (NASDAQ:ACOM) jumped 24 percent in premarket trading after a Bloomberg story reported that it is mulling a sale and has asked for help from infamous technology banker Frank Quattrone to find buyers. A source is confident that private equity firms will be interested in Ancestry even though its valuation has dropped to historically low levels from worries on slowing subscriber growth.
Home Depot (NYSE:HD) affirmed its 2012 sales and earnings per share guidance and set new targets for fiscal year 2015 with an operating margin of 12 percent and return on invested capital at 24 percent. On Wednesday, the company will host an investor conference beginning at 9:00 AM ET.