Warnaco and PVH Corp. Enter Merger and 2 Stocks Reaching 52-Week Highs
UBS (NYSE:UBS) and certain other competitors might have pulled back from investment banking, but Barclay’s (NYSE:BCS) new chief executive, Antony Jenkins, will now have to make a decision as to whether to go after new business opportunities created by the retreats of his firm’s rivals or follow suit, according to Reuters. Shares closed up 13.87 percent on the day at $15.02, having been traded in a 52-week range of $9.78 to $14.78.
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Warnaco Group (NYSE:WRC) and PVH Corp. (NYSE:PVH) have entered into a definitive merger agreement through which PVH will purchase Warnaco. Holders of Warnaco common stock will receive $51.75 in cash and .1822 of a share of PVH common stock in exchange for each share of Warnaco common stock. This transaction values Warnaco at about $2.9 billion, and the buyer expects around $100 million of annual run rate synergies from the acquisition, which will be fully realized over three years. To obtain these synergies, PVH should incur one-time costs of about $175 million over three years. The company anticipates that the transaction should be 35 cents per share accretive to earnings in the first full year, if one-time integration costs and transaction expenses are subtracted, but including the impact of the potential loss of a license. Shares closed up 38.72 percent on the day at $70.58, but have been traded in a 52-week range of $39.19 to $60.69.
Yahoo! (NASDAQ:YHOO) and Wenner Media have reached a cross-promotional content deal which is designed to improve the user experience on the Yahoo!’s omg!, Rolling Stone, Yahoo! Music, Us Weekly, and Men’s Journal franchises. Through the terms, editorial teams from both firms will collaborate to co-produce a new style of online editorial franchises surrounding the entertainment topics in which users are most interested. Shares closed up 0.24 percent on the day at $16.83, having been traded in a 52-week range of $14.35 to $16.80.