- Spain's Grifols picks up Talecris. Spanish healthcare company Grifols agreed to buy Talecris (TLCR) for $4B including debt. Both companies produce treatments based on blood plasma, and Grifols expects the deal to create around $230M in annual synergies. The acquisition is good news for Cerberus Capital Management, which holds a significant stake in Talecris and previously tried to sell the company. Premarket: TLCR +38.4% (7:00 ET).
- Pru denies revised AIA bid. Prudential (PUK) doesn't plan to revise its bid for AIG's (AIG) Asian unit, the company said in an emailed statement, denying earlier reports that Prudential CEO Tidjane Thiam was considering a "daring attempt" to resurrect his failed AIA bid. The company remains committed to the region through its existing "very successful business," and AIA rumors are "misguided and inaccurate." At the annual general meeting today, Thiam will have to convince investors calling for his resignation that he has an alternate plan for Asian expansion.
- AT&T relies on international growth. AT&T (T) has reportedly held informal talks with Reliance Communications about potentially taking a large minority stake in the Indian cellphone company. Talks are still in early stages, but a deal would give AT&T an international lift as the domestic market heads towards saturation. Reliance said yesterday that its board had approved the sale of up to a 26% equity stake to raise money for debt reduction and network upgrades; the stake could be worth nearly $2B at current market levels.
- G-20 back away from global bank tax. After tense weekend negotiations, G-20 finance ministers agreed to drop the idea of a global bank tax, bowing to pressure from Canada and other critics of the levy. Officials reported progress on tightening global banking standards, but the requirement for banks to increase their capital cushions could take years to implement because it conflicts with the current goal of increasing lending. Conflicts also abounded over prescriptions for growth, with European nations pushing for lower budget deficits and the U.S. warning against relying on exports instead of domestic demand. Premarket: GS +0.45%, C +1.6%, JPM +0.35%, BAC +1%, MS +0.2%, HBC +1.6%, UBS +2.5%, BCS +1.5%, CS +1.8% (7:00 ET).
- Signs of progress in Gulf spill. BP (BP) was finally able to report some success in its efforts to stem the Gulf of Mexico spill, as its containment cap collected more than 10,000 barrels of oil on Saturday. The company hopes to increase the amount captured over the next few days. Despite the progress, the Coast Guard warned "there will be oil out there for months to come" and clean-up efforts could extend into the fall. Lawmakers will hold another hearing on the spill's impact this morning, this time heading down to Louisiana for a field hearing. Premarket: BP +3.8%, RIG +3.1% (7:00 ET).
- Airlines bounce back to profit. The airline industry will post a $2.5B profit this year thanks to a rebounding economy, according to the IATA, reversing a recent prediction of a $2.8B deficit. A profit would be the industry's first since 2007, and only its third profitable year in a decade as airlines struggled with the fallout from terrorist attacks and the financial crisis, among other problems. The IATA expects it will now take two years, not three, for sales to rebound to peak levels.
- Hungary downplays default comments. "It is blatant that Hungary is not Greece," Hungarian Economy Minister Gyorgy Matolcsy said today, and "there is no need for new austerity plans." His comments followed recent remarks from other government officials suggesting that Hungary could face a possible default. The conflicting comments have sent Hungary's currency, the forint, down against the euro, while bond yields have risen.
- Friday's failures. Three more banks were closed on Friday, bringing this year's failures to 81 so far. The failures in Nebraska, Mississippi and Illinois are expected to cost the FDIC's insurance fund at least $312M.
- In Asia, Japan -3.8% to 9520.8. Hong Kong -2.0% to 19378. China -1.6% to 2512. India -2.0% to 16781.
- In Europe, at midday, London -0.4%. Paris -0.6%. Frankfurt -0.1%.
- Futures: Dow +0.1%. S&P +0.2%. Nasdaq +0.2%. Crude -0.2% to $71.37. Gold -0.25% to $1214.60.
- 10:00 Employment Trends Index
11:00 SF Fed Conference: Asia and the New Financial Landscape
11:00 Hearing: Local Impact of the Gulf Spill
3:00 PM Consumer Credit
6:15 PM Bernanke: Keynote Address at Woodrow Wilson Center Dinner
Seeking Alpha editors Eli Hoffmann and Jason Aycock contributed to this post.
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