Reuters Insider - Trading at Noon: Twitter soars; Sysco grabs US Foods

Sheng Yu Steel

09/12/2013 17:23

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 Source:             Thomson Reuters                                   
                                                                       
 Description:        Sysco says it would buy rival US Foods for about  
                     $3.5B to cement its position as the biggest U.S.  
                     food distributor                                  
 
 
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Transcript (May be auto-generated)

 A major deal and -- prior stock is soaring -- up to read them up that he covered
-- it's covering this big deal Cisco not to tech company but the food 
distribution company right and I asked. Buying US foods 3.5. Billion dollars why
is Cisco's stock as the fire up about 12%. And opportunities so basically the 
company out there buying US foods ascending to before interest tax depreciation 
and amortization of it haven't been six million dollars. Now -- athletes for 
your time. They see synergies of at least economy and dollars. 

You -- just like that so that's -- you should just a growing up this image will 
be in supply -- administration. And will basically solidify. The position of 
discourse the number one. Put distributor out there. OK so US food owned by 
which PE firms and tell us what they're getting out of this KKR and CB NR day at
a board used those in 2007 from apple force seven point one. I've been in bonus 
that you now including debt. By news. Yes foods eight point two billion dollars 
still waiting to have the exact potential BP firms they're getting -- -- to -- 
extent. In fact you know -- that the 3.5 million dollar in equity that is 
changing hands. Three billion dollars he seems to -- ball. And you know up 
private equity firms are -- you know like to be paid mostly shares -- 

This is that token of their faith now in the synergies that we discussed and 
they wanna participate in outside so they will -- about 30% of Cisco. In this 
transaction and we have to get exactly -- before this deal. Yes foods what's 
marked a Mac security balance sheet at one point three times its investment 
cost. We have to see exactly out what the -- is now but even that is what's at 
2007 deal at that peak of the leveraged buyout boom. The -- preference would 
become thing -- -- the thing that strategic right and change that's that's the 
that's going to be the most strategic companies -- -- private equity firms. 
Buying back company from one another all the times we reported last week on 
that. Bet food distribution company cool that they expect food that is 
negotiation to be quiet. By Timothy T -- partners that is. Mostly went from an 
equity -- that strategic that the strategic and capitalize on the scene and he's
with a record company and apple -- about. OK so assuming this gets passed an 
anti trust issues because these are the top two right so this creates a biggie. 
Does this embolden other buyers out there watching what's Cisco stock is doing 
today yes. So it hasn't been the big -- -- by the great financing conditions. 
And that the that writes in the stock market -- right now. Corporate emanates 
you know what people expected to be. And send an investment bank has private 
equity firms many people in the industry will be hoping that this area action 
today. And we have to see basically how. The combined company desolate long term
-- people will hope that deals like that is where companies moving into by a 
rival to take advantage of such huge synergies would embolden other companies' 
CEOs to basically do some -- Up to you know SPE you know a big deal is permanent
here later thanks so much. Let's look at some stocks other stocks that are on 
the move today and let's start with organic food because this is such a hot 
category -- wave. Foods is up three and a half percent and it's another buyer 
here -- -- benefiting from buying organic food brand earth ballot. Farms lettuce
and other packaged -- -- in the restaurants that's 600 million dollar deal. Now 
this gives white wave too big organic brands because it also owns horizon 
organic another one that you may have seen out there just -- aside earth bound 
by it. 

Founded by -- and mine were good in 1984 Manhattan night who moved at the -- 
about California and they are signs of state. So and that's the deal there in 
the works Barnes & Noble up 6% today and out from maxim group today. Saying that
the SEC investigation into Barnes and -- restatement of results in July should 
not impact ongoing cash flow. Instead -- and says look the same store. A 
comparable sales. That come out January 9 also look at how it digital business 
is doing going forward at that hardware -- Business is on the decline let's move
on -- Abercrombie & Fitch. 

A retailer that's been in so much trouble of lay it down 3% today the company 
announced that it's going to extend CEO Mike -- contract. For another year of 
the contract expires in February. But investor engaged capital actually more 
recently sounded like in raids capital because they sent a note to the -- saying
this guy's got to go. But he gets at least another year according to the company
and back down 3% and Twitter to put up about six and a half percent and let's 
take a look. Even more than that Twitter has been climbing all morning look like
up almost 8% today. It's having a great day definitely can make it stuck up 
rising it's been lightening it up about 8%. Don't know exactly why that we 
thought we should point that out Q it's getting good good today that it -- with 
that will affect all of us on Twitter. Reuters Insider get more great media 
players dot com slash PP. And we've -- cart this is right