Thursday Briefing-May 26, 2016: Emotion Day for Investors of M&S and Toyota

May 26, 2016

By HV

Disappointment and excitement fill Sentifi Top Attentions list today, as Marks & Spencer upset its investors with full-year earnings and a new turnaround plan, whereas Toyota kept the excitement in the crowd with its investment in Uber. And then there’s Bayer worrying about a start of a bidding war for Monsanto. Read on to find out more on the top stories on Sentifi today.

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1/ Marks & Spencer: Investors disapprove of CEO’s turnaround plan [827% increase in voices in the last 24h]

M&S decides to focus on the older demographic in its turnaround plan, shocking investors. (Andy Rain/EPA)

The company released its full-year earnings today, featuring an increase of 2.4% in group revenues, a rise of 4.3% in underlying earnings, yet a fall of 18.5% in pre-tax profits. The investors were further disappointed after CEO Steve Rowe decided to put a focus on the 50-year-old demographic, something they had seen before with the former CEO Marc Bolland’s turnaround plans which proved to be fruitless. The company’s shares ended up falling 9%.

 

 

 

2/ Toyota Motor Corp: The partnership with Uber still excites the crowd [660% increase in voices in the last 24h]

Toyota and Uber continue the trend of partnership between car companies and ride-hailing services. The Japanese automaker made a small investment in Uber, under $100 million, to expand its auto leasing program. Now Uber can rent cars for its drivers in hopes of encouraging more drivers to sign up for the service.

3/ Comp Sciences Corp: Shares soar further on merger with HP Enterprise’s IT services business [616% increase in voices in the last 24h]

Since the announcement of HP Enterprise spinning off its IT services business and merging it with Comp Sciences, Comp shares have risen 42.10%. Coupled that with the better-than-expected fourth-quarter earnings, and Comp is having a good day.

4/ Monsanto Company: Investors place possible deal with Bayer under investigations [570% increase in voices in the last 24h]

After the company rejected the $62 billion offer from Bayer, an investigation on behalf of Monsanto investors is announced. The purpose is to determine whether the board of directors will act in shareholders’ best interests in the deal. Everything will be placed under scrutiny, including bot not limited to whether the board will undertake an adequate sales process, shop the company before entering into the transaction and negotiate to get the best price.

5/ Bayer: Worries about a bidding war for Monsanto [544% increase in voices in the last 24h]

Bayer canceled investors’ meeting scheduled this week as the company is worried about BASF joining the fray and igniting a bidding war for Monsanto. At the moment, the company is conducting research into BASF and its bidding capabilities.

6/ New York Times Co: Offers buyout packages for employees [491% increase in voices in the last 24h]

buyout

One of the most prestigious newspapers in the U.S. announces buyout packages for employees as part of its plan to move forward with its digital expansion. The newspapers also plans to cut costs and rearrange resources, but it has no plan for layoffs this year.

7/ Tech Mahindra Ltd: Shares rally on strong earnings [448% increase in voices in the last 24h]

The company’s shares rallied 14% in total after reporting strong earnings for the fourth quarter. The investors are seeing signs of the company slowly making its way back to recovery as it won $300 million in new deals in the first quarter of 2016, which is an improvement from the previous quarters.

8/ Ruchi Soya Industries Ltd: Partners to create India’s leading FMCG company [431% increase in voices in the last 24h]

Ruchi Soya announced a partnership with Adani Wilmar Ltd for the purpose of creating the leading fast-moving consumer goods company in India. Adani Wilmar will hold 66.66% in equity stake in the new company, and Ruchi Soya will hold the rest of 33.34%. The venture is expected to raise the efficiency in products handling and sales realization, as well as aim to increase the variety of high-quality finished products and optimize the distribution networks.

9/ TNT Express: Acquired by FedEx Corporation [414% increase in voices in the last 24h]

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The FedEx-TNT marriage is beneficial to both companies in European operations. (BidnessEtc)

In a move that will make FedEx the largest air express network in the world, the company acquired Netherlands-based TNT Express in an all-cash, $4.9 billion deal. The companies made it clear the merger won’t lead to any layoffs. The combined companies will have 400,000 employees and aim to increase activities primarily in Europe.

 

 

10/ EU Bailout: Greece reaches bailout deal [367% increase in voices in the last 24h]

The EU reached an agreement to release fresh bailout funds worth $12 billion to Greece in hopes of averting the threat of a Greek default. Greece will use the funds to pay back loans to the European Central Bank and the IMF.

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