These Stocks Are in Spotlight on M&A-Related News

With the stock market losing ground on the back of expectations of a possible interest rate hike by the Fed next month, fueled by strong non-farm payroll and unemployment data. However, ahead of a new trading week, several stocks are making moves based on some particular developments, such as earnings or Mergers & Acquisitions-related news. Therefore, on Monday morning, Apache Corporation (NYSE:APA), Plum Creek Timber Co. Inc. (NYSE:PCL), Weyerhaeuser Co (NYSE:WY), Perrigo Company plc Ordinary Shares (NYSE:PRGO), and Mylan NV (NASDAQ: MYL) are in the spotlight on the back of some M&A activity. Let’s take a closer look.

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Apache Corporation (NYSE:APA) has jumped by nearly 10% after Bloomberg reported that the company had been approached by an unidentified buyer regarding a takeover. Apache Corporation (NYSE:APA), an $18 billion independent energy company, declined the offer, according to the source, citing people familiar with the matter. The company hired Goldman Sachs to examine a defense strategy and it is not certain whether or not further negotiations will take place. Amid a slump in oil prices, Apache’s stock is down by over 31% in the last 52 weeks and has witnessed a decline of the smart money sentiment. Among over 730 funds that we track, a total of 32 held around 6% of the company’s outstanding stock at the end of June, down from 37 a quarter earlier. However, in the third quarter, Richard S. Pzena‘s Pzena Investment Management added 1.33 million shares to its stake in Apache Corporation (NYSE:APA), taking it to 1.89 million shares.

Next in line are two companies, Plum Creek Timber Co. Inc. (NYSE:PCL) and Weyerhaeuser Co (NYSE:WY), which earlier today announced signing a definitive merger agreement. Weyerhaeuser will acquire Plum Creek, offering 1.60 shares for each share of Plum Creek. After the deal is closed, shareholders of Weyerhaeuser will hold around 65% of the combined company’s common stock, with Plum Creek Timber Co. Inc. (NYSE:PCL) shareholders, owning the other 35%. On the back of the news, Plum Creek’s stock has jumped by over 15%, while, shares of Weyerhaeuser are trading around 4.5% lower. Among the funds from our database, 14 investors held around 8% of Plum Creek Timber Co. Inc. (NYSE:PCL), while 29 funds reported holding some 7% of Weyerhaeuser Co (NYSE:WY)’s shares at the end of June.

Shares of Perrigo Company plc Ordinary Shares (NYSE:PRGO) have inched down by around 2% after the company issued a letter sent to its shareholders, in which it urged them to vote against the hostile bid received from Mylan NV (NASDAQ:MYL) earlier this year. Since April and till September, Mylan NV (NASDAQ:MYL) had been trying to pursue the board and the management into accepting the takeover, but the offers were rebuffed. In September, the company took the matter to Perrigo Company plc Ordinary Shares (NYSE:PRGO)’s shareholders. Mylan’s offer includes $75 in cash and 2.3 Mylan shares for each share of Perrigo, which valued the company at around $27 billion. The takeover bid expires on November 13. However, it seems that many shareholders of Perrigo could support the sale of the company to Mylan NV (NASDAQ:MYL). During the second quarter, the number of funds bullish on Perrigo Company plc Ordinary Shares (NYSE:PRGO) surged to 83 from 37 (among those we track), while in aggregate these funds held nearly 18% of the company at the end of June. In the current round of 13F filings, billionaire Ken Fisher‘s Fisher Asset Management reported holding 217,661 shares of Perrigo as of the end of September.

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