by ZeroHedge News Staff at ZeroHedge
Kimberly-Clark shares remain down around 14.5% in late-afternoon trading. If the losses hold into the close, it would mark the company’s steepest one-day drop since October 16, 1987, or just days before the Black Monday crash on October 19, 1987. Earlier, the Kleenex maker unveiled plans to acquire Tylenol producer Kenvue in a $48.7 billion cash-and-stock deal. The announcement sent Kenvue soaring, up 20%.
Shares of Kimberly-Clark are at their lowest point since late 2019.
Wall Street analysts are divided on the proposed merger between Kimberly-Clark and Kenvue. Some expect short-term pressure on the stock, while others praised the merger as “strategically transformative”…
Commentary from Wall Street desks (courtsey of Bloomberg):
Continue ReadingRBC Capital (Nik Modi)
- Says the deal is strategically transformative for Kimberly-Clark in the long run as it adds significant positive diversification to its business mix
- “We believe it will take investors some time to process the long-term implications and would expect KMB shares to come under pressure today and likely trade sideways until investors get more context around recent KVUE regulation/litigation headlines as well as confidence that Kimberly-Clark can turn Kenvue’s business around“
Vital Knowledge (Adam Crisafulli)…