Wall Street Breakfast

Boeing shifts to stock deal to acquire Spirit Aerosystems

Boeing (BA) offers to buy Spirit Aero (SPR) for $35 a share mainly in stock - WSJ. (00:28) Novo Nordisk (NVO) to spend $4.1B to build new plant for obesity drugs in N.C. (01:12) Oracle (ORCL): TikTok (BDNCE) ban in U.S. would 'adversely' impact earnings. (02:04)

Episode transcripts seekingalpha.com/wsb.

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Duration:: 6m
Broadcast on:: 25 Jun 2024
Audio Format:: mp3

Welcome to Seeking Alpha's Wall Street Breakfast, where we cover the top news for investors every morning. Good morning! Today is Tuesday, June 25. I'm Julie Morgan. Boeing goes from cash to stock, and it's offered for Spirit Arrow systems. Novo Nordisk is doubling down on injectables, and Oracle is warning that a ban of TikTok would hurt more than just TikTok and its users. Boeing has offered to acquire Spirit Arrow systems in a mainly stock deal that values the supplier at about $35 a share. According to a Wall Street Journal report late Monday which cited people familiar with the matter, Boeing was closing in on an all-cash deal for Spirit over the weekend when the company switched to an offer that consisted mainly of stock. A $35 price represents a premium of about 6% to Spirit's closing price on Monday. Under the proposed deal, Spirit will shed operations that make parts for Boeing's rival, Airbus. This latest update comes after reports on Thursday that Spirit made substantial progress in separate talks with Airbus. Novo Nordisk will invest more than $4 billion to build a second fill and finish manufacturing facility in Clayton, North Carolina. Focused on injectable medications including current and future ones for obesity. This development comes as Novo, which makes the weight loss drug WeGoV and rival Eli Lilly, which market Zepbound are both experiencing supply constraints due to high demand for the treatments. The Danish drug maker said the new plant will add 1.4 million additional square feet of production space. Once the plant is finished between 2027 and 2029, the building is expected to add 1,000 new jobs. Novo already has 2,500 employees in the area. The drug maker noted that this year it plans to invest $6.8 billion to increase production overall. Oracle is warning investors that the law that could potentially ban TikTok in the U.S. may hurt its earnings. President Biden in April signed into law a bill that would ban TikTok in the U.S. unless it is divested from its China-based parent company ByteDance and finds new ownership. Oracle said in its annual report that this would make it unlawful to provide Internet hosting services to TikTok. The company went on to say that if they are unable to provide those services to TikTok and if they cannot redeploy that capacity in a timely manner, their revenues and profits would be adversely impacted. TikTok is said to be one of Oracle's biggest customers and its cloud infrastructure stores the app's U.S. user data. I'd like to tell you about a few other articles that you can find on Seeking Alpha. It's also being reported that Uber is cutting out idle time for NYC drivers by enacting lockout periods. And Google is reportedly working on a product that can be used to create customizable chatbots modeled on celebrities. We have a full catalyst watch for the day. Shareholders with apartment income REIT will vote on a buyout offer from Blackstone. Shareholders with model N will vote on the buyout offer from Vista Equity Partners. Notable investor events include Trinity Industries Investor Day and Arthur J. Gallagher's Investor Meeting. Data Dog will hold its annual Dash event in New York City. Bank of America has the event circled as a catalyst due to new product announcements and integrations that could further entrench Data Dog into the AI theme. Crocs, PVH, On Holding, Deckers Outdoor, and Golden Goose will all have representative speak at the Footwear News Summit in New York City. The National Transportation Safety Board will hold its final board meeting on the Norfolk Southern 2023, trained to relevant and subsequent hazardous material release. 5 NTSB members will hear presentations from investigators. Deliberate over the draft reports and vote on the proposed findings, probable cause and safety recommendations. And FedEx will hold its Fiscal Q4 Earnings Conference call at 5 p.m. The stocks with the highest trading correlation with FedEx on its earnings day are UPS, Expeditors International, and Land Star System. Now for a look at the markets today, as of 6 a.m., Dow, S&P, and NASDAQ futures are in the green. Crude Oil is down 0.4% at 81 dollars a barrel. Bitcoin is down 0.7% at 60,000 dollars. In the world markets, the FTSE 100 is down 0.1% and the DAX is down 1%. On today's economic calendar, at 7 a.m., the FTSE Michelle Bowman will speak on the topic, "Perspectives on U.S. Monetary Policy and Bank Capital Reform at the Policy Exchange Event in London." At 10 a.m., consumer confidence, and at 12 p.m., the FTSE Lisa Cook will speak on the economic outlook at the Economic Club of New York. That's it for today's Wall Street breakfast. Thanks for listening. For a full offering of news, analysis, ratings, and data on stocks and ETFs, become a premium subscriber. Learn more at seekingalpha.com/subscriptions. I'm your host, Julie Morgan. Go out and make it a great day! [MUSIC] [BLANK_AUDIO]