AsiaInfo Jumps On Buyout Rumors (KMI, LNG, XOM, SHLD, ASIA)
Kinder Morgan Inc (NYSE:KMI) is up 1.21% to $31.85 as the stock is reinstated with a Buy rating and a $37 price target by Goldman Sachs, which cities KMI’s “strong general partner cash flow outlook, which should drive double-digit dividend growth from a higher proportion of stable, fee-based natural gas pipeline assets.” The firm also reinstates KMP, KMR and EPB at Neutral with respective price targets of $86, $83 and $38.
Cheniere Energy, Inc. (NYSEAMEX:LNG) surged 3.76% to $13.73 after Standard & Poor’s raises its rating on Cheniere Energy by two notches to B+ from B-, saying the liquified natural gas company has effectively reduced its debt burden. S&P believes LNG will be able to repay its $205M convertible senior unsecured notes by the Aug. 2012 maturity.
Exxon Mobil Corporation (NYSE:XOM) climbed 0.26% to $82.33. ExxonMobil and Rosneft agree to begin drilling in western Siberia in 2013 as the two oil majors continue a collaboration begun last year. XOM will own ~33% of the development and contribute technology and expertise under a new agreement to develop tight oil reserves. The two companies will set up an Arctic research and design center for offshore development.
Sears Holdings Corporation (NASDAQ:SHLD) rose 1.17% to $50.18. The company is using open source software to correlate large amounts of data relevant to pricing in a bid to maximize margins. The big picture: The retailers with the most sophisticated algorithms increase their ability to incorporate real-time data such as weather and buying trends and become more efficient.
AsiaInfo-Linkage, Inc. (NASDAQ:ASIA) soared 11.50% on a Reuters report claiming TPG Capital, Silver Lake, and other P-E firms have shown interest in buying the company for over $1B. Even after today’s rally, AsiaInfo’s market cap stands at $903M. The company, a provider of infrastructure software to Chinese telcos and cable providers, received a buyout offer in January from China’s CTIC Capital.