Stock Alert: Rexnord Shares Up 8%

Shares of Rexnord Corp. (RXN) are currently trading at $44.89, up $3.37 or 8.12%, with trading volume rising over 380K versus an average volume of 740K shares. The stock has been trading between $18.87 and $49.08 for the past one year.

The company’s December-quarter net income was $37 million or $0.30 per share compared to $46 million or $0.39 per share last year. Adjusted net income was $48.3 million or $0.39 per share versus $59 million or $0.48 per share in the prior year period. Net sales for the quarter declined to $490 million from $492 million generated a year ago. Wall Street analysts estimate earnings of $0.38 per share on revenue of $448.97 million for the quarter.

Separately, Regal Beloit Corp. and Rexnord have reached a definitive agreement under which Rexnord will separate its Process & Motion Control segment by way of a tax-free spin-off to Rexnord shareholders and then immediately combine it with Regal in a Reverse Morris Trust deal. Regal shareholders will own 61.4% and Rexnord shareholders will own 38.6% of the combined entity. The transaction values Process & Motion Control segment at $3.69 billion. Regal shareholders would be expected to receive a dividend of about $7 per share. The transaction is expected to be accretive to cash EPS in year one after closing.

Citigroup loses its bid to recoup the $500 million it accidentally paid Revlon

NEW YORK (Reuters) – A federal judge on Tuesday said Citigroup Inc cannot recoup half a billion dollars of its own money that it mistakenly wired lenders of cosmetics maker Revlon Inc.

U.S. District Judge Jesse Furman in Manhattan said the Aug. 11, 2020 wire transfers at issue were “final and complete transactions, not subject to revocation.”

The case stemmed from an incident where Citigroup, acting as Revlon’s loan agent, wired $893 million to Revlon’s lenders, appearing to pay off a loan not due until 2023.

Read more: The real reasons behind outgoing Citigroup CEO Mike Corbat’s retirement

Citigroup had intended to send a $7.8 million interest payment, and blamed human error for the gaffe.

But while some lenders returned money they were sent, 10 asset managers refused, prompting Citigroup’s lawsuit to recoup the estimated $501 million they received.

Read more: Citigroup is stepping up its war with the hedge funds that refuse to return Revlon money by ignoring their Bloomberg chats and cutting off pricing information on bonds

(Reporting by Jonathan Stempel in New York)

Stock Alert: Peridot Acquisition Touches New 52-week High

Shares of Peridot Acquisition Corp. (PDAC), a special purpose acquisition company Carnelian Energy Capital, are rising more than 4 percent or $0.61 in Tuesday’s morning trade at $14.46, after hitting a new 52-week high of $15.68.

Tuesday, Li-Cycle Corp., a Toronto-based lithium-ion battery recycler, and Peridot Acquisition said they have agreed to a definitive business combination that will result in Li-Cycle becoming a public company. Upon closing of the transaction, the combined company will be renamed Li-Cycle Holdings Corp. and will be listed on the New York Stock Exchange under the new ticker symbol “LICY”.

The business combination includes a pre-money equity valuation for Li-Cycle of $975 million. When combined with the transaction proceeds, this represents a combined company pro forma equity value of $1.67 billion. The transaction is expected to close in the second quarter of 2021.

Peridot Acquisition has traded in a range of $9.60 to $15.68 in the past 52 weeks.

Stock Alert: Ondas Holdings Rises 20%

Shares of Ondas Holdings Inc. (ONDS) are gaining over 20% on Tuesday morning despite no stock-related news to drive the shares.

ONDS is currently trading at $15.97, up $3.05 or 23.61%, on the Nasdaq.

Sunnyvale, California-based Ondas, through its subsidiaries, designs, develops, manufactures, sells, and supports FullMAX software defined radio platform in the US and internationally.

The sibling rivalry behind Adidas versus Puma

London (CNN Business)Adidas (ADDDF) says it will offload struggling US fitness brand Reebok as part of a strategic overhaul.

The German sportswear company said in a statement on Tuesday that it has decided to begin a formal process “aimed at divesting Reebok” following a review of the business.
“After careful consideration, we have come to the conclusion that Reebok and Adidas will be able to significantly better realize their growth potential independently of each other,” CEO Kasper Rorsted said. “We will work diligently in the coming months to ensure a successful future for the Reebok brand and the team behind it,” he added.

The decision to sell Reebok was made as part of a new five-year strategy that Adidas will unveil on March 10.
Adidas said it will focus efforts on strengthening its own brand in the global sporting goods market. “The long-term growth opportunities in our industry are highly attractive, particularly for iconic sports brands,” Rorsted said.

Adidas, which acquired Reebok in 2006 for $3.8 billion, will report the brand as “discontinued operations” from the first quarter of 2021.
— This is a developing story and will be updated.

Stock Alert: Peridot Acquisition Touches New 52-week High

Shares of Peridot Acquisition Corp. (PDAC), a special purpose acquisition company Carnelian Energy Capital, are rising more than 4 percent or $0.61 in Tuesday’s morning trade at $14.46, after hitting a new 52-week high of $15.68.

Tuesday, Li-Cycle Corp., a Toronto-based lithium-ion battery recycler, and Peridot Acquisition said they have agreed to a definitive business combination that will result in Li-Cycle becoming a public company. Upon closing of the transaction, the combined company will be renamed Li-Cycle Holdings Corp. and will be listed on the New York Stock Exchange under the new ticker symbol “LICY”.

The business combination includes a pre-money equity valuation for Li-Cycle of $975 million. When combined with the transaction proceeds, this represents a combined company pro forma equity value of $1.67 billion. The transaction is expected to close in the second quarter of 2021.

Peridot Acquisition has traded in a range of $9.60 to $15.68 in the past 52 weeks.