Ardea Biosciences Soars on Acquisition (STI, RDEA, AZN, AMLN, DB, CEDC)
SunTrust Banks, Inc. (NYSE:STI) reported a 38.80% in its first-quarter on lower loan charge-offs and delinquencies and moderately improved new lending.
The bank earned $250 million, or 46 cents a share, compared with $180 million, or 38 cents a share in the first quarter of 2011, well above analysts’ estimates by 13 cents.
Revenue during the latest quarter grew 3% to $2.2 billion. Revenue at SunTrust, as at several other large regional banks that reported last week, was boosted by higher mortgage income that totaled $63 million in the first quarter compared with losses of $62 million in the last quarter of 2011 and of $1 million in last year’s first quarter.
Noninterest expenses fell from the fourth quarter, when the bank set aside $120 million for a tentative mortgage servicing settlement, but rose 5 percent from a year ago on higher compensation and benefit costs and operating losses related to legal and mortgage servicing costs.
Shares of STI were trading higher by over 25 in the pre-market session.
Ardea Biosciences, Inc. (NASDAQ:RDEA) shares soared 51.40% as the company has been agreed to by acquired by AstraZeneca plc (ADR)(NYSE:AZN) for $1.26 billion. Net of the existing cash held by Ardea, the $32 a share acquisition is valued at $1B and is a 54% premium to Ardea’s Friday close. Shares of AZN were down over 1%.
Amylin Pharmaceuticals, Inc. (NASDAQ:AMLN) shares jumped 11.21% to $25.49 on reports that the company is seeking a buyer after rejecting an unsolicited bid from Bristol Myers Squibb Co. (NYSE:BMY) (BMY).
Deutsche Bank AG (USA)(NYSE:DB) shares slid 5% as Germany’s largest bank was said to probably book an additional charge of as much as 400 million euros ($528 million) tied to the sale of Actavis Group hf.
Central European Distribution Corp (NASDAQ:CEDC) shares climbed 16.50% as the company agreed to form an alliance with major shareholder Russian Standard Corp. that will help address its near-term financial obligations. In a deal that follows months of talks, Russian Standard will invest $100 million in the company by purchasing a combination of newly issued common stock and notes.