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GLOBAL MARKETS LIVE: Sprint, T-Mobile, Refinitiv, Pfizer…

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07/29/2019 | 10:05am EDT

Several major merger operations are under discussion: after the green light to the Sprint / T-Mobile US project, it is the LSE that should merge with Refinitiv, while Pfizer wants to marry its generics with Mylan and Takeaway eyes Just Eat. US equity-index futures are little changed, while stocks are up in Europe and most Asian markets declined.


S&P 500 futures little changed at 3,023.50
Brent Futures down 0.3% to $63.29/bbl
Gold spot little changed at $1,419.19
US Dollar Index up 0.1% to 98.06


Earnings season. Sanofi, Heineken, Siemens Healthineers, Traton, CNP Assurances, Galp Energia, Ryanair, Hiscox, Bankia, Solocal and Maisons du Monde are among companies reporting earnings today in Europe. Illumina, NXP Semiconductors, SBA Communications, Dish Network in the United States.

Birth of a telecom giant. The proposed merger between Sprint and T-Mobile US was approved on Friday by the US authorities after the transfer of certain assets, including prepaid telephony to Dish Network. The US national market would thus be reduced from four to three operators, which is criticized by opponents of the project, who see it as a risk for the prices offered to consumers. If five states that opposed the rapprochement joined the decision, the other nine could continue the proceedings against marriage. The court has yet to validate the operation.

Sanofi is dropping the Zynquista. Sanofi is abandoning the Zynquista (sotaglilfozine) program in diabetes and will terminate its agreements with Lexicon, which is studying the legality of the decision and whose price was in free fall after the Wall Street session. The agreement to develop this oral treatment for diabetes dates back to 2015. It provided for $300 million in upfront payments by Sanofi, and up to $1.4 billion in milestone payments for Lexicon, which could also have received a percentage on future sales. Analysts anticipated an annual sales potential of around €700-800 million at the peak for this treatment, which had already experienced several setbacks before the FDA. The group also published higher than expected results and raised its forecasts.

The LSE will be able to afford Refinitiv. The London Stock Exchange has confirmed that it is negotiating a merger with Refinitiv, after the project was announced by the Financial Times. The LSE is discussing with the owners, Blackstone and Thomson Reuters, on the basis of an offer valuing the data provider $27 billion, honored in securities. Refinitiv's shareholders would ultimately own 37% of the new entity's capital. This would be a very large transaction for the London stock exchange operator, which would become a major provider of financial data. More details in the LSE press release.

Justakeaway. Just Eat and Takeaway have reached an agreement for a share merger, which would confer 52.2% of the new entity's capital to Just Eat shareholders and 47.8% to Takeaway shareholders. The terms value Just Eat GBP 731 per share based on Takeaway's closing price (EUR 83.55). The new entity will be registered in Amsterdam and mainly listed in London. Final discussions are ongoing.

A marriage of reason? Pfizer is discussing a merger of its generics business with Mylan. If the transaction is successful, it could involve the creation of a new entity owned 57% by Pfizer shareholders and 43% by Mylan shareholders, with headquarters in the United States.The new publicly traded company will have sales of about $19 billion to $20 billion in 2020, the drugmakers said in a statement.

In other news. Exact Sciences is negotiating the purchase of Genomic Health for $2.8 billion, according to Bloomberg. The Novartis Entresto narrowly misses its main criterion in Phase III in the HFpEF.

Stocks mentioned in the article
ChangeLast1st jan.
BANKIA 0.00%End-of-day quote.0.00%
CNP ASSURANCES 0.44% 18.27 Real-time Quote.-1.35%
DISH NETWORK CORPORATION -2.54% 34.54 Delayed Quote.38.33%
DJ INDUSTRIAL -0.59% 26935.07 Delayed Quote.16.15%
EXACT SCIENCES CORPORATION 0.55% 103.97 Delayed Quote.64.77%
GALP ENERGIA 0.72% 13.925 Delayed Quote.0.94%
GENOMIC HEALTH, INC. 0.24% 70.97 Delayed Quote.10.15%
HEINEKEN 0.25% 97.02 Delayed Quote.25.67%
HISCOX LTD -0.84% 1643 Delayed Quote.1.36%
ILLUMINA, INC. 1.43% 309.57 Delayed Quote.3.21%
JUST EAT 0.00%End-of-day quote.0.00%
LONDON BRENT OIL -0.43% 64.62 Delayed Quote.17.36%
MAISONS DU MONDE -2.07% 15.13 Real-time Quote.-9.46%
NASDAQ 100 -0.99% 7823.553294 Delayed Quote.24.83%
NASDAQ COMP. -0.80% 8117.674437 Delayed Quote.23.32%
NOVARTIS 0.44% 86.26 Delayed Quote.15.60%
NXP SEMICONDUCTORS -3.29% 104.8 Delayed Quote.43.01%
PFIZER 0.49% 36.69 Delayed Quote.-15.95%
RYANAIR HOLDINGS 0.75% 10 Delayed Quote.-7.67%
S&P 500 -0.49% 2992.07 Delayed Quote.19.36%
SANOFI 2.33% 83.32 Real-time Quote.10.12%
SBA COMMUNICATIONS CORPORATION 2.21% 256.77 Delayed Quote.58.61%
SIEMENS HEALTHINEERS -0.69% 35.805 Delayed Quote.-2.02%
SOLOCAL GROUP -3.21% 0.785 Real-time Quote.55.91%
SPRINT CORP -2.37% 6.58 Delayed Quote.13.06%
T-MOBILE US -0.51% 80.59 Delayed Quote.26.69%
TAKEAWAY.COM -1.61% 73.3 Delayed Quote.24.66%
TRATON SE INH O.N. 0.81% 26.09 End-of-day quote.-2.94%
US DOLLAR INDEX 0.25% 98.513 End-of-day quote.1.89%

Romain Fournier
© MarketScreener.com 2019
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