Catch up on the weekend's top five stories with this list compiled by The Fly: 1. United Technologies (UTX) and Rockwell Collins (COL) have announced that they have reached a definitive agreement under which United Technologies will acquire Rockwell Collins for $140 per share, in cash and stock. The transaction is projected to close by Q3 of 2018, subject to approval by Rockwell Collins' share owners, as well as other customary closing conditions, including the receipt of required regulatory approvals. The purchase price implies a total equity value of $23B and a total transaction value of $30B, including Rockwell Collins' net debt. 2. Volkswagen (VLKAY) has put the $1.8B sale of Ducati motorcycles on hold after resistance from German trade unions and internal rifts on strategy, according to a report by Reuters, citing sources familiar with the matter. Ducati is wholly controlled by Volkswagen's luxury brand Audi, which is at odds with the parent over strategy, and a decision to sell the 91-year old business, the publication noted. 3. Hurricane Harvey may be one of the costliest disasters for property and casualty insurers, but it probably will not change weak commercial and reinsurance pricing, or will it be enough to dent the industry's huge capital base, Andrew Bary wrote in this week's edition of Barron's. The bulk of the industry's losses should come from commercial policies, while losses on homeowner's insurance are expected to be moderate, since policies exclude flood coverage, he noted. Bary argued that Chubb (CB) looks like one of the better industry plays, with double the market value of Allstate (ALL) or Progressive (PGR), and with probably more growth opportunity than the largely domestic Travelers (TRV). 4. In the worst Labor Day in 20 years, Lionsgate' (LGF.A) action comedy "Hitman's Bodyguard" benefited from lack of competition, grossing $10.5M from 3,370 theaters for the three days and $13.4M for the four. The movie's domestic total through Monday is an estimated $58.1M. 5. Nathan's Famous (NATH), Honda (HMC), Sony (SNE), Wal-Mart (WMT), BlackRock (BLK), New Relic (NEWR), Ansys (ANSS), and Flex (FLEX) saw positive mentions in Barron's, while Papa John's (PZZA), DaVita (DVA) and American Renal (ARA) were mentioned cautiously.
Nathan's Famous has gobbled up share in the premium hot-dog market, while its stock has done well, compounding at 17% a year in the past decade, but the stock is not followed by Wall Street analysts and the company is "poorly understood," Adam Seessel writes in this week's edition of Barron's. At a recent $58, Nathan's trades at a 40%-45% discount to his estimate of intrinsic asset value, he notes.Reference Link
Six Flags Entertainment (SIX) announced a new multi-year marketing partnership and food service program with Nathan's Famous (NATH). The new agreement makes Nathan's Famous the "Official Hot Dog of Six Flags" across the United States. Six Flags will serve Nathan's Famous frankfurters exclusively at food locations in 15 of the U.S. theme and water parks in 2017, adding the Chicago market in 2018. The partnership will be supported across Six Flags media networks, featuring Nielsen-measured Six Flags TV, in-park activations, integrations into the Six Flags mobile app, and through in-park signage.