Orexigen Therapeutics Inc. (OREX) stock price balloons for diet pill maker

Posted on Wednesday, June 1st, 2011

Orexigen Therapeutics Inc. (Nasdaq: OREX) shares jumped 17.7% to $3.33 Wednesday, after the diet-pill developer said it would make a regulatory announcement about its obesity treatment in two days. Volume for the stock was 8.2 million shares, or more than six times its daily average.

The San Diego-based Orexigen has announced a regulatory update on Friday, June 3, before the markets open. The announcement will be followed by a live webcast and conference call at 8:00 a.m. Eastern time. No one from Orexigen management was immediately available for comment.

The company’s lead product, Contrave®, has completed Phase 3 clinical trials and has received a Complete Response Letter from the FDA for its New Drug Application. The Company is in the process of determining the next steps for Contrave.

The Company’s second product, Empatic™, has completed Phase 2 clinical development. Each product candidate is designed to act on a specific group of neurons in the central nervous system with the goal of achieving appetite suppression and sustained weight loss, through combination therapeutic approaches.

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Telvent GIT SA (TLVT) darts higher on French sale

Posted on Wednesday, June 1st, 2011

Telvent GIT SA’s (Nasdaq: TLVT) U.S.-listed shares rose 15.2% to $39.70, after France’s Schneider Electric said it would acquire the Spanish software maker for $2 billion. Volume for the stock totaled 4.4 million shares, compared to an all-day average of 141,632.

Abengoa, the international company that develops innovative technology solutions for sustainable development in the energy and environment sectors, has reached an agreement to sell its 40% stake in Telvent to Schneider for $40.00 U.S. per share. The transaction is subject to approvals from the European and U.S. competition authorities. The sale will be made as part of a tender offer that Schneider Electric will be launching within 10 business days.

Manuel Sanchez Ortega, CEO of Abengoa, said, “I believe this is a highly satisfactory transaction for Abengoa. We are strengthening our balance sheet from the sale of assets at a very attractive valuation, so we can continue to develop innovative solutions for sustainable development, and creating value for our shareholders. For us, it is equally important that the offer has been made by a company like Schneider Electric, which is presenting a solid and attractive project for Telvent, which in turn creates a great professional opportunity for Telvent employees.”

Telvent is a leading real-time IT solutions and information service provider, which employs more than 6,000 professionals in 19 countries. It was organized as a subsidiary of Abengoa in 1969. At the time of its initial public offering in 2004, Telvent was the first Spanish company to undertake a primary listing of its ordinary shares on the NASDAQ stock market.

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Yongye International Inc. (YONG) stock soars after major investment

Posted on Tuesday, May 31st, 2011

Yongye International Inc. (Nasdaq: YONG) U.S.-listed shares rose 51.7% to $5.69 after the Chinese reverse-merger company announced a $50-million investment from Morgan Stanley’s Asian private-equity unit. Volume for the stock totaled nearly 8.5 million shares, or about seven times its full-day average.

Yongye intends to use the proceeds from this investment for capacity expansion, repayment of commercial bank debt, working capital, and general corporate purposes.

Yongye Chief Executive Officer, Zishen Wu commented, “We are pleased that MSPE Asia, one of the leading private equity investors in the region, has decided to make a significant investment in our company. Yongye and MSPE Asia have structured a long-term cooperation based on our mutual belief in the strong prospects for our products and nationwide distribution network.”

Wu continued, “Specifically, we are providing multi-year profit commitments to MSPE Asia which, upon their achievement, results in up to a $15.00-per-share conversion price for the convertible preferred stock we are issuing. This investment will assist us in strengthening our balance sheet and positioning us to meet the growing demand for our Shengmingsu agricultural nutrient products.”

Yongye International is a leading agricultural nutrient company headquartered in Beijing, with its production facilities located in Hohhot, Inner Mongolia. Yongye produces and markets two lines of organic nutrient products: a liquid nutrient product which is sprayed on plants and a powder nutrient product which is added to animal feed.

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Central Vermont Public Service Corp. (CV) hikes on Fortis buyout

Posted on Tuesday, May 31st, 2011

Central Vermont Public Service Corp. (NYSE: CV) shares surged 40.1% to $34.06, a day after Canadian utility Fortis Inc. said it would acquire the electricity distributor for about $470 million. Volume for the stock neared 406,000 late Tuesday morning, more than 10 times its full-day average.

The all-cash transaction will provide CVPS shareholders $35.10 per share, a 44% premium over the CVPS common share closing price of $24.32 on Friday, May 27.

“CVPS is a well-run utility whose operations and operating philosophy are very similar to those of our Canadian regulated utilities,” said Fortis CEO Stan Marshall.

“The commitment of CVPS to customers, as evidenced by the company’s stellar customer service record, is very much aligned with the operating philosophy of Fortis — to provide our customers with safe, reliable service in the most cost-efficient and environmentally responsible manner possible,” he explained.

CVPS will remain headquartered in Rutland, Vermont with Larry Reilly as President and CEO, and Marshall added “There are no job losses anticipated with this transaction.”

“Fortis and CVPS share a deep commitment to the environment, our workers and the people and places that host our businesses,” Reilly said. “While the share offer price by Fortis was a critical consideration by the CVPS Board, the fact that CVPS would essentially be preserved as a stand-alone autonomous company within the Fortis Group was also an important consideration for the CVPS Board.

The Fortis Group of Companies has regulated utility companies operating in five provinces of Canada — British Columbia, Alberta, Ontario, Prince Edward Island and Newfoundland — and three Caribbean countries.

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Syms Corp. (SYMS) shares soar as Board seeks options

Posted on Thursday, May 26th, 2011

Syms Corp. (Nasdaq: SYMS) saw its shares surge by 25.9% Wednesday afternoon to $9.38, after the operator of Filene’s Basement stores and its own namesake chain said it has hired Rothschild Inc. to explore strategic options for the company. Volume for the stock topped 148,000 shares, or more than 12 times its full-day average.

The company, based out of Secaucus, New Jersey, said its Board of Directors has initiated a process to explore and evaluate various potential strategic alternatives, which may include a possible sale of the Company. The Company has retained Rothschild Inc. as its exclusive financial advisor to assist the Company in connection with the strategic review process.

There is no defined timeline for this strategic review and there can be no assurance that the review of strategic alternatives will result in any specific action or transaction. Syms does not intend to comment further regarding the evaluation of strategic alternatives, unless a specific transaction is approved or review process is concluded, or it otherwise deems further disclosure is appropriate or required by law.

Management was not available for comment.

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Posted in Consumer Discretionary Stocks by Glenn | No Comments »


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