The Carl Icahn playbook worked like a charm, once again. The famous and freckled investor has accumulated 11% of Forest shares since 2009, and Tuesday is his $2.7 billion payday. He infiltrated, by putting two of his Icahn Enterprises henchman on the board of Forest. Then he attacked, by trimming and prepping the company like a cocker spaniel to be bought by a bigger corporate suitor. This acquisition is the finale of a 209% return for those who first touched Forest in 2009 with Icahn.
Forest shareholders will get $26 in cash and .3306 of an Activus share for being taken over. That's equivalent to $89.48 a share based on Tuesday's Activus share price, so Forest shares jumped 27% to $91. The sugar on top for investors -- Forest profits will be taxed at Ireland's lower corporate tax rates. It goes down like a pint of Guinness.
Move over, Angry Birds, because the blindingly colorful smartphone game Candy Crush is bringing its talents to Wall Street. The game's developer, King Digital Entertainment, plans an IPO soon to raise $500 million by offering its stock to the public. Let the trading games begin.
3. Coca-Cola earnings are OK but revenues shrink
It was a bunch of 1% moves that caused Coca-Cola's (NYSE:KO) earnings to fall flat. The company that's No. 1 on former Mayor Bloomberg's most-hated list fell down 3.8% in trading on Tuesday. Global sales volumes rose 1%, but volumes in North America and Europe fell 1%. Is soda on the out for developed countries?
Coke stock was flat for all of 2013, making investors wonder: Are there enough Chinese to keep Coke sweet? On the upside though, Coke stock is as consistent as it gets with dividends (about 3% of the total stock value is returned every year in dividends), so a flat stock price won't make the Coke polar bears lose their Christmas spirit.
- Minutes from the Federal Reserve's last policy meeting are released
- Fourth-quarter earnings reports: Tesla Motors, Marriott Hotels