International Distribution Services (IDS.L)
The owner of Royal Mail International Distribution Services said it had agreed to a £3.57 billion ($4.56 billion) takeover bid from Czech billionaire Daniel Křetínský’s EP Group.
The offer consists of 360p in cash plus a final dividend of 2p per share and a special dividend of 8p per share. Including debt, the deal values IDS at £5.28bn.
IDS said that if the deal goes through Royal Mail, it will continue its universal service commitment to provide first-class mail at one price, anywhere, six days a week and maintain the company’s brand and UK headquarters.
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It also said it would protect the existing employment rights of all IDS employees and that it “does not intend to make any material changes to the overall workforce or reduce the number of frontline workers” beyond existing plans.
Nvidia (NVDA)
Heavyweight chipmaker Nvidia surged nearly 7% to a new high in the latest session and tops trends in premarket trading as the AI darling trails Apple ( AAPL ) as the world’s second-most valuable company by market capitalization , for Microsoft (MSFT).
Shares of Nvidia soared to a record high on Tuesday, coming close to overtaking Apple, with Nvidia now worth $2.8 trillion, just shy of Apple’s $2.9 trillion. Shares ended the day above $1,140.
The milestone comes after Elon Musk’s artificial intelligence startup xAI said on Sunday it had raised $6 billion in a Series B funding round, sending Nvidia shares up as much as 8% the following trading day.
“The market is struggling to keep up with the company’s ever-improving growth trajectory. At a forward earnings multiple in the mid-thirties, it still doesn’t look like bubble territory,” said Derren Nathan, head of equities analysis at Hargreaves Lansdown.
The stock has now jumped a third since the start of May and 137% since the start of the year.
Anglo American (AAL.L)
BHP ( BHP.L ) has called for a further extension to the bid deadline to allow further talks on its £39 billion takeover of rival Anglo American.
Under UK takeover rules, the Sydney-based company has a deadline of 5pm UK time on Wednesday to make an offer for Anglo or leave for 6 months.
“BHP believes that a further extension of the deadline is necessary to enable further involvement in its proposal,” it said.
The mining company said it was prepared to offer Anglo American a break-up fee if the deal is blocked on antitrust grounds or if it fails to win regulatory approval.
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“BHP is confident that the measures it has proposed to Anglo American’s board provide a viable route to resolving the matters raised by Anglo American and will support South African regulatory approval,” he added.
Anglo previously argued that the bids were too risky and complex. The latest bid valued it at £38.6bn. It comes after BHP submitted two previous bids which valued Anglo at £31.1bn and £34bn.
American Airlines (AAL)
Shares of American Airlines fell more than 15% after the company cut its second-quarter profit guidance as weaker demand is expected to drag down revenue.
The Texas-based carrier now expects second-quarter adjusted earnings in the range of $1.00 to $1.15 per share, compared with its previous forecast of between $1.15 and $1.45 per share.
It estimates that total revenue per available mile, an indicator of pricing power, will be down 5% to 6% from a year ago. This compares with a previously expected decline of 1% to 3%.
The airline also announced that its Chief Commercial Officer Vasu Raja will leave the company next month. He has been in this role since April 2022.
American Airlines said its vice chairman and chief strategy officer, Stephen Johnson, will take over for Raj, effective immediately.
Jefferies, which upgraded the company earlier this year due to cost controls, said it was downgrading the stock to “hold” because “the strategy did not go as planned.”
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