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Late Movers: PG&E tumbles on plans to file for Chapter 11 bankruptcy after devastating fire

Goldcorp rallied after Newmont agreed to acquire it in a stock deal valued at $10 billion
A forest fire
Plans to file for bankruptcy protection after the devastating fires in California pushed PG&E's shares down more than 50%

PG&E Corp (NYSE:PCG) tumbled Monday after saying it plans to file for bankruptcy protection after the devastating California wildfires. The company said it plans to file petitions to reorganize under Chapter 11 of the US Bankruptcy Code on or about January 29. PG&E said in a press release that it remains committed to providing safe natural gas and electric service to customers.

Shares fell more than 50% to $8.38.

READ: Canadian miners Goldcorp and New Gold both report misses on revenue and earnings per share

Goldcorp Inc (NYSE:GG) (TSX:G) increased after Newmont Mining Corp (NYSE:NEM) agreed to acquire it in a stock deal valued at $10 billion. Under the terms of the deal, Newmont will acquire each Goldcorp share for 0.3280 of a Newmont share, which represents a 17% premium based on the companies' 20-day, volume-weighted average share prices.  

Goldcorp advanced 7.1% to $10.48 while Newmont fell 8.9% to $31.78.

Citigroup Inc (NYSE:C) climbed after posting earnings that beat analysts' forecasts. The bank's stock fell in premarket trading on revenue that missed Wall Street estimates. 

The stock advanced 4.1% to $58.93.

Gannett Co Inc (NYSE:GCI) rallied after MNG Enterprises Inc, a hedge-fund-backed media group that owns newspapers including The Denver Post and The San Jose Mercury News, offered to buy it for $12 per share in cash. Under the deal, outlined in a letter from MNG’s board, the transaction would represent a cash premium of 41% to Gannett’s stock price as of December 31. Gannett, according to the letter from MNG, has not demonstrated that it is capable of effectively running it as a public company, with the stock having lost 41% of its value since its debut as a public company 2.5 years ago.

Shares of Gannett climbed 21% to $11.82. 

Lululemon Athletica Inc. (NASDAQ:LULU) gained after raising its guidance for the fourth quarter ending February 3. The Vancouver-based athletic apparel company said it now expects net revenue in the range of $1.140 billion to $1.150 billion, compared with the previous guidance of $1.115 billion to $1.125 billion. It now expects diluted earnings per share of $1.72 to $1.74 for the fourth quarter based on a 30% effective tax rate. This compares with the previous diluted earnings per share guidance of $1.64 to $1.67 based on a 30% effective tax rate.

The stock rose 5.7% to $139.73.

Contact Dennis Fitzgerald at [email protected]


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