The top pre-market NASDAQ Stock Market gainers are: Tower Bancorp, SunPower, Rex Energy, Logitech International, Zalicus, Baidu, and Apple. The top pre-market NASDAQ Stock Market losers are: Susquehanna Bancshares, Prospect Capital, Express Scripts, and Sify Technologies.
Tower Bancorp Inc. (TOBC) stock jumped 33.53 percent to $27.20 in the pre-market trading. Susquehanna Bancshares Inc. (SUSQ) said it has agreed to acquire Tower Bancorp for about $343 million in a stock and cash transaction. The transaction is expected to be completed in the first quarter of 2012. Tower shareholders will have the option of receiving either 3.4696 shares of Susquehanna common stock or $28.00 in cash for each share of Tower common stock, with $88 million of the aggregate consideration being paid in cash.
Upon completion of the transaction, Samuel will become president and chief revenue officer of Susquehanna. Additionally, Samuel and two other current Tower directors will be appointed to the Susquehanna board. Jeffrey Renninger, Tower president and chief operating officer, and Janak Amin, Graystone Tower Bank CEO, will each assume senior management positions at Susquehanna Bank.
SunPower Corp. (SPWRA) stock grew 6.77 percent to $17.50 in the pre-market trading, while its class B stock trading under SPWRB ticker gained 5.68 percent to $16.75. Total and SunPower announced the final results of Total's all-cash tender offer on SunPower and confirmed the success of the transaction. As a result of completing the tender offer, Total owns 60 percent of both SunPower's Class A and Class B common stock. Based on the final count by Computershare Trust Company, N.A., the depositary for the offer, 37,009,624 shares of Class A common stock and 38,732,300 shares of Class B common stock were validly tendered and not properly withdrawn (including shares validly tendered pursuant to guaranteed delivery procedures).
Accordingly, Total has accepted for payment an aggregate of 34.76 million shares of Class A common stock and 25.22 million shares of Class B common stock (including 30.22 million shares of Class A common stock and 25.22 million shares of Class B common stock previously announced as having been accepted) at a purchase price of $23.25 per share, for a total cost of about $1.4 billion. The depositary has calculated the final proration factor to be about 93.9 percent for the Class A common stock and 65.1 percent for the Class B common stock (including shares validly tendered pursuant to guaranteed delivery procedures). The depositary will promptly issue payment for the shares validly tendered and accepted for purchase under the tender offer and will return all other tendered shares.
Rex Energy Corp. (REXX) stock gained 4 percent to $10.40 in the pre-market trading. The company said its management will be participating in a Denver E&P tour organized by Key Banc. The company's presentation used at the tour location is currently available on the company's website and will remain posted for 30 days.
Logitech International SA (LOGI) stock increased 3.02 percent to $11.61 in the pre-market trading.
Zalicus Inc. (ZLCS) stock rose 2.42 percent to $2.12 in the pre-market trading.
Baidu, Inc. (BIDU) stock gained 2.11 percent to $120.77 in the pre-market trading. China Real Estate Information Corp. (CRIC) said it entered into a new strategic partnership agreement with Baidu. As per the agreement, CRIC will become Baidu's premier strategic online real estate partner and will have the exclusive right to sell Baidu's real estate brandlink product, which is one form of keyword advertising, during the next three years. Besides, the two companies will continue their previous cooperation in several other Baidu products, including Baidu Website Promotion, Baidu Encyclopedia, Baidu Knows and Baidu Map, to further expand the online search-based advertising market for the real estate industry. The expanded strategic agreement will take effect in August 2011. Under the terms of the agreement, CRIC will pay Baidu a total of 180 million Chinese yuan over the three-year term, in addition to 200 million Chinese yuan over four years under the 2010 agreements.
Apple Inc. (AAPL) stock moved up 0.55 percent to $317.05 in the pre-market trading. Component manufacturers have begun to receive orders for Apple's iPhone 4S and the production ramp is expected to start in July for an iPhone 4S launch in September/October 2011, Jefferies said in a note to clients.
Susquehanna Bancshares, Inc. (SUSQ) stock fell 7.07 percent to $7.75 in the pre-market trading. The company said it has agreed to acquire Tower Bancorp for about $343 million in a stock and cash transaction. The transaction is expected to be completed in the first quarter of 2012. Tower shareholders will have the option of receiving either 3.4696 shares of Susquehanna common stock or $28.00 in cash for each share of Tower common stock, with $88 million of the aggregate consideration being paid in cash.
The transaction, unanimously approved by the boards of both companies, will enhance Susquehanna's presence in central and southeastern Pennsylvania, and will significantly increase its market share in the Pennsylvania counties of Chester, Dauphin and Franklin. Including Susquehanna's pending acquisition of Abington Bancorp, the combined company will have about $17.8 billion in assets, and will be the largest bank in deposit market share and branch count among independent banks that have more than 90 percent of their deposits in Pennsylvania, Maryland and New Jersey. Susquehanna expects the transaction to be immediately accretive to earnings per share and 10 percent accretive to 2013 earnings per share.
Prospect Capital Corp. (PSEC) stock slid 5.34 percent to $10.11 in the pre-market trading. The company said it offers 10 million shares of its common stock pursuant to an effective shelf registration statement in an underwritten public offering. Barclays Capital Inc. is acting as sole book-running manager in this offering and Prospect will grant the underwriter a 30-day option to purchase up to 1.5 million additional shares. The securities are being offered by Prospect pursuant to a shelf registration statement previously filed with and declared effective by the Securities and Exchange Commission on March 16.
Express Scripts Inc. (ESRX) stock declined 2.26 percent to $53.55 in the pre-market trading. Walgreens (WAG) said the contract renewal negotiations with pharmacy benefit manager Express Scripts have been unsuccessful, and as a result the company is planning not to be part of Express Scripts' pharmacy provider network as of Jan. 1, 2012. Moving forward, Walgreens said Medicare Part D patients who use its pharmacies would continue to have the option during the open enrollment period near the end of the year to choose a Part D plan that includes Walgreens. Beginning next year, Express Scripts' network would no longer include Walgreens 7,700 pharmacies nationwide, including Walgreens over 250 Duane Reade pharmacies in the New York City area.
Under the terms proposed by Express Scripts, it would not make good business sense for the strategic direction of our company to continue our relationship with them. Walgreens is committed to providing quality, convenient and cost-effective pharmacy services to our patients, but we cannot continue to deliver these services under the terms and rates Express Scripts offered, said Greg Wasson, chief executive of Walgreens.
Sify Technologies Ltd. (SIFY) stock moved down 0.50 percent to $3.98 in the pre-market trading.