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U.S. stocks edged lower on Thursday as concerns over global growth spurred investors to take profits following a massive advance in the previous session. The Dow Jones industrial average was down 0.61 percent at 16,890.33, the S&P 500 was down 0.56 percent at 1,957.96 and the Nasdaq Composite was down 0.49 percent at 4,446.86.
** AUXILIUM PHARMACEUTICALS INC, $32.91, +10.58 pct
** ENDO INTERNATIONAL PLC, $68.75, -3.17 pct
** QLT INC, $4.14, +2.48 pct
Auxilium agreed to be bought by Endo for $1.67 billion and terminated its deal to buy Canadian eye-drug maker QLT Inc . Auxilium accepted Endo’s offer of $33.25 per share in cash and stock, almost a month after rebuffing a previous offer of $28.10 per share, saying it significantly undervalued the company.
** GENTIVA HEALTH SERVICES INC, $19.64, +17.53 pct
** KINDRED HEALTHCARE INC, $21.18, +7.29 pct
Kindred said it would buy Gentiva in a cash and stock deal valued at $1.8 billion, including the assumption of net debt, ending its months-long pursuit of the home-healthcare provider. Kindred said the deal, which it valued at $19.50 per share, would enhance its position as a provider of post-acute care and rehabilitation services.
** HUBSPOT INC, $30.38, +21.52 pct
The online marketing and sales software company’s shares rose as much as 32 percent in debut, valuing the company at just over $1 billion. The IPO raised $125 million after shares were priced at $25, above the expected price range.
** KOFAX LTD, $6.03, -22.49 pct
The customer management software maker estimated first-quarter revenue of $67 million-$69 million, below analysts’ average estimate of $72.2 million. CEO Reynolds Bish said six- and seven-figure core capture software license revenue transactions slipped into future quarters.
Canaccord Genuity cut its price target to $9 from $10.
** LAKELAND INDUSTRIES INC, $17.2, +48.02 pct
The spread of the Ebola virus is expected to boost demand for company’s safety garments and accessories. “The company announced adding capacity in response to the increasing demand for specialty protective suits to be worm by healthcare workers and others being exposed to Ebola,” H.C. Wainwright & Co analyst Amit Dayal said.
** USD PARTNERS LP, $16.09, -5.35 pct
The midstream master limited partnership’s shares fell as much as 7.1 percent in debut, valuing the company at $161.4 million. The offering raised $155 million after its units were priced at $17, below the expected price range.
** OM ASSET MANAGEMENT PLC, $14.3, +2.14 pct
The asset manager’s shares fell as much as 3.1 percent in their debut to $13.56, valuing the company at $1.63 billion. The IPO raised $308 million after shares were priced at $14, below the expected price range.
** DESTINATION MATERNITY CORP, $14.895, -3.59 pct
The maternity apparel retailer said it estimated fourth-quarter adjusted loss in the range of 5-10 cents per share, citing a 5 percent drop in same store sales and higher-than-planned discounting. The company had previously forecast adjusted profit of 4-14 cents per share.
** GAP INC, $36.96, -11.79 pct
The apparel retailer’s CEO Glenn Murphy will retire in February and hand over the reins of the company to its digital business head Art Peck.
The company’s September same-store sales were flat, hurt by weak sales at the Gap brand, compared with analysts’ expectations of a 1.1 percent rise. At least three brokerages cut their ratings on the stock to “hold” on Thursday.
“The inflection at the Gap brand is not progressing as we expected, leading to significant pressure on both sales and margins. Making matters worse, CEO Glenn Murphy announced his resignation,” Sterne Agee analysts said.
For a Breakingviews column,
** APPLE INC, $102.08, +1.27 pct
Billionaire activist investor Carl Icahn said Apple shares could double in value and urged the company’s board to buy back more shares using its $133 billion cash pile.
“We believe Apple is dramatically undervalued in today’s market, and the more shares repurchased now, the more each remaining shareholder will benefit ...,” Icahn said in a letter to Apple’s board.
** GT ADVANCED TECHNOLOGIES INC, $1.2, +9.09 pct
The Apple supplier told a U.S. court it was barred from disclosing why it filed for bankruptcy, saying the company was “tied up in knots” by a confidentiality agreement. A lawyer for the company told the court on Thursday it could not reveal its bankruptcy game-plan as a result.
** IMPAX LABORATORIES INC, $26.72, +12.08 pct
The company said it gained access to an emergency anti-allergen injection, epinephrine, by acquiring two privately held Pennsylvania drugmakers for $700 million. Impax said it bought Lineage Therapeutics Inc, which sells a generic epinephrine drug administered through its USP auto-injector system, and Tower Holdings Inc.
** ADVANCED MICRO DEVICES, $3.08, -6.10 pct
The chipmaker named Chief Operating officer Lisa Su as president and chief executive, replacing Rory Read, effective immediately.
Wedbush Securities analysts said timing of the appointment so close to AMD’s Q3 earnings report next week and the fact that Su and Read are still negotiating their compensation are signs that the company’s turnaround may be taking longer than anticipated.
** RIVERBED TECHNOLOGY INC, $18.76, +3.76 pct
The network equipment maker said it would review its alternatives and started a restructuring program to cut costs, three days after activist investor Elliott Management reaffirmed its offer to buy the company.
** VODAFONE GROUP PLC, $31.883, -4.14 pct
Nomura cut its rating on the company’s stock to “reduce” from “neutral”, seeing scope for its competition to increase. Nomura said it expects new entrants into markets in the UK, the Netherlands and India.
** RUBY TUESDAY INC, $7.01, +18.41 pct
The restaurant chain operator swung to a first-quarter profit after five straight quarters of losses as more customers visited its casual dining restaurants, driving better-than-expected same-restaurant sales.
** VERITEX HOLDINGS INC, $13.6, +4.62 pct
The bank holding company’s shares rose as much as 7.7 percent to $14 in their debut, valuing the company at about $127 million. The IPO raised $35.1 million after the shares were priced at $13, mid-point of the expected price range. (Compiled by Amrutha Gayathri in Bangalore; Editing by Sriraj Kalluvila)