Headlines this morning include progress on the merger of U.S. Airways and AMR Corp, resistance for Dell's going-private transaction, Google's chairman planning to sell millions of shares, a setback for Novo Nordisk and a new wake-up drink from Pepsi.
US Airways Group (LCC) and AMR Corp. are reportedly getting closer to finalizing an $11 deal to combine the two companies into the world's largest airline. Valuation and management structure are among the last issues to be discussed. The boards of the two airlines are expected to meet this week to vote on the proposal. An official announcement could come as soon as the end of this week.
Computer maker Dell Corp. (DELL) which announced a going-private transaction last week, is facing some resistance from Southeastern Asset Management, one of the company's major shareholders. Southeastern has threatened to lead a shareholder revolt unless the company can find an alternative offer.
Search-engine giant Google's (GOOG) executive chairman Eric Schmidt plans to sell up to 3.2 million shares, or more than 40 percent of his holdings in the company. Schmidt held 7.6 million shares at the end of December. The sale would return about $2.5 billion to Schmidt.
Snack and beverage company Pepsico (PEP) is launching a new breakfast drink called Kickstart this month. The drink will be flavored like Mountain Dew, but will contain 5 percent juice, vitamins B and C as well as extra caffeine. The company said the drink will have less caffeine than Red Bull or offerings from Monster Beverage (MNST).
Drug maker Novo Nordisk (NVO) got a request for more information from the FDA in regards to Tresiba and Ryzodeg. Regulators want to see more information about cardiovascular health before moving forward on the drugs that both use a long-acting insulin known as degludec. The company said that it will provide the information, but will likely not be able to do so this year.