Yahoo Finance Trending tickers: AstraZeneca | Ocado | Coca-cola HBC | FedEx
The latest investor updates on stocks that are trending on Monday
AstraZeneca (AZN.L)
AstraZeneca is considering spinning off its business in China and listing it in Hong Kong or Shanghai to shield the multinational drugmaker against mounting geopolitical tensions.
Citing people familiar with the situation, the Financial Times said the British-Swedish drugs giant has been in talks with bankers for several months.
The plan would separate Astra’s Chinese operations into a separate company whose shares would be traded on the Hong Kong or Shanghai stock exchanges. Astrazeneca would keep control over the business, the report said.
It comes amid increasing geopolitical tension between Western countries, including the US and many in Europe, and China.
By separating off its Chinese arm, the drugs giant hopes to be better protected against political reprisals from Beijing against foreign companies.
An AstraZeneca spokesman said: “We do not comment on rumours or speculations around future strategy or M&A.
Ocado (OCDO.L)
Ocado shares were down after reports that a robotics start-up backed by the online retailer was on the brink of collapse.
Karakuri, which developed technology capable of assembling ready-meals for food industry clients, is on the brink of filing a notice of intention to appoint administrators, Sky News reported.
Ocado bought a near-20% stake in Karakuri in 2019 for £4.75m ($6.09). The start-up also raised funding from a group of venture capital funds.
Karakuri was founded in 2018 by digital media enthusiast, Barney Wragg, who remains its CEO.
The start-up is lining up the accountancy firm RSM to act as administrators after failing to secure new funding.
Coca-cola HBC (CCH.L)
Coca-Cola HBC has agreed to acquire the owner of Finlandia vodka for $220m (£172m), as the bottler expands its premium spirits business.
“The market reacted negatively to Coca-Cola HBC’s $220m acquisition of Finlandia vodka, unsure about a deal which feels a bit of a departure from its core activity of bottling Coke,” AJ Bell investment director Russ Mould, said.
Established in 1970, Finlandia is a leading vodka brand in Central and Eastern Europe with annual volumes of 2.7 million 9L cases globally, of which more than 60% is being generated within Coca-Cola HBC's geographic footprint.
The business is being bought from Brown-Forman Corporation's wholly-owned subsidiary, Brown-Forman Netherlands BV.
“We view this as an attractive investment and a natural evolution of our role as one of Finlandia's distribution partners, further attesting to the strength of our time-tested and wide-ranging partnership with Brown-Forman,” said Zoran Bogdanovic, CEO of Coca-Cola HBC.
The deal is expected to close in the second half of 2023.
FedEx (FDX)
On the corporate calendar, earnings out of FedEx (FDX) after the close on Tuesday will serve as the week's top highlight across the pond. The shipping giant is seen as a bellwether of economic activity given its exposure across industries.
UBS believes that the logistics company will report a positive earnings surprise when it posts its fourth quarter and full-year results.
Analysts at the investment bank is maintaining its 4Q earnings forecast of $5.11 a share for the global delivery firm.
“While FDX is still facing weak demand, we expect a slight easing in the pace of y/y decline in volume,” the analysts wrote in a client note.
“We model Domestic Express volume of -10% in 4Q compared to -12.5% y/y in 3QF23. In the Ground business we are modelling a 7% decline in volume and 130 bp (basis points) of y/y margin improvement.”
US stock and bond markets are closed this Monday in observance of Juneteenth National Independence Day.
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