HomeNewsMarket Highlight: These three stocks are trending on acquisition reports

Market Highlight: These three stocks are trending on acquisition reports

Ruchi Gupta
  • Ed Yardeni says the US is in stagflation
  • Google wants to purchase Mandiant, and CD&R wants to buy Cornerstone Building Brands
  • Chewy Co-founder wants Bed Bath & Beyond to split or sell the business

US crude oil rose to hit a 14-year high at $130 per barrel on Monday as Washington continues to lobby for a ban on Russian natural gas and oil, raising concerns that the worst of inflation is yet to come.

Yardeni Research president Ed Yardeni told CNBC's "Halftime Report" that the US is currently in stagflation because of the Ukraine war. However, with the third round of Ukraine and Russia peace talks completed without progress, Yardeni expects the Fed to be less forceful in addressing inflation.

Google plans to acquire Mandiant for $4.5 billion

Mandiant Inc. (NASDAQ: MNDT) shares were up 20% following an anonymous report that Alphabet Inc.'s (NASDAQ: GOOGL) Google wants to buy the cybersecurity firm for $4.5 billion. The reporter that broke the news, Josh Sisco, told CNBC's "Closing Bell" that the purchase will make Google a big competitor to Microsoft Corp in the cloud security sector.

If the $4.5 billion acquisition goes through, it will be Google's second-largest acquisition to date. However, any potential deal could face regulatory scrutiny considering tech firms have faced antitrust scrutiny in recent times.

CD&R to buy Cornerstone Building Brands 

Cornerstone Building Brands Inc. (NYSE: CNR) was up almost 15% after Clayton, Dubilier & Rice LLC stated that it would acquire the company for $5.8 billion. The transaction cost values Cornerstone Building Brands at $24.65 per share, representing a 16% premium from Friday's close. The companies anticipate closing the transaction in the second quarter.

Already CD&R has a 49% interest in Cornerstone, and now the company will acquire the remaining outstanding shares.

Chewy Co-founder wants Bed Bath & Beyond to split or sell business 

Bed Bath & Beyond Inc. (NASDAQ: BBBY) shares lost 3.4% after Chewy Inc. (NYSE: CHWY) co-founder Ryan Cohen stated that the company should consider selling the business as part of its business strategy rationalization. Cohen, who holds 9.8% interest in the houseware retailer, questioned the company's business turnaround strategy.

According to the letter sent to the company's Board and seen by WSJ, Cohen suggested that the company should consider splitting the Buybuy Bay business or selling the whole company or narrowing the focus of the strategy, and maintaining the right inventory to meet demand.