U.S. stocks are in the green, leaving behind last week's losses, in which it registered the worst weekly drop since early 2016.
Shares of CSRA Inc. (CSRA, Financial) skyrocketed more than 30% in today's pre-market trading on news that General Dynamics said it will buy the company for $6.8 billion, or all outstanding shares for $40.75 in cash, for $9.6 billion, including debt.
The acquisition will be accretive to General Dynamics' GAAP EPS and to free cash flow per share next year. It will also generate an estimated annual pre-tax cost savings of approximately 2% of the combined company's revenue by 2020.
Phebe Novakovic, chairman and CEO of General Dynamics said, “The acquisition of CSRA represents a significant strategic step in expanding the capabilities and customer base of GDIT." He highlighted the company´s management team that created a provider of innovative, next-generation IT solutions with industry-leading margins. He added that the more innovative, the more leading solutions they will provide to their customers.
Gainers
· Cboe Global Markets Inc. (CBOE, Financial)
· Under Armour Inc. (UA, Financial)
· Marathon Oil Corp. (MRO, Financial)
· Apple Inc. (AAPL, Financial)
Losers
· Ulta Beauty Inc. (ULTA, Financial)
· SCANA Corp. (SCG, Financial)
· Ventas Inc. (VTR, Financial)
· Expedia Inc. (EXPE, Financial)
· TripAdvisor Inc. (TRIP, Financial)
Global Markets
The main European stock markets closed in positive territory. The U.K.'s FTSE gained 1.19%, France's CAC advanced 1.20%, Germany's Dax jumped 1.45% and Spain's Ibex added 1.46%.
In Asia, Japan's Nikkei lost 2.32% and Hong Kong's Hang Seng declined 0.16%, while India’s BSE Sensex advanced 0.87% and China´s SSE Composite jumped 0.78%.
Disclosure: The author holds no positions in any stocks mentioned.
