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The Markets
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The Markets
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The Markets
by Proactive
Proactive UK has moved.
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Pharma & Biotech

EARLY MOVERS: American Railcar Industries glides higher after ITE Rail Fund deal, while toy giant Hasbro loses ground due to Toys 'R' Us woes

Also in the frame in pre-market deals is more consolidation in the construction world with the Jacobs Engineering Group Inc/WorleyParsons deal

There were a number of corporate stories doing the rounds Monday.

One of the most-read concerned US firm Jacobs Engineering Group Inc (NYSE:JEC), which has agreed to sell its energy, chemicals and resources business to Australian group WorleyParsons for a massive $3.3 billion.

Shares in Jacobs advanced 2.42% before the New York bell, while WorleyParsons (ASX:WOR) shares were unchanged at A$17.84.

Commentators noted that the deal continued the trend of consolidation in the engineering sector.

Jacobs acquired CH2M Hill Cos ltd for $3.3 billion last year and Amec Foster Wheeler took over John Wood Group for some $2.9 billion around the same time.

Meanwhile, also in pre-market, toy and gaming titan Hasbro Inc (NASDAQ:HAS) saw shares lose over 7% to stand at $91 .

It came after it reported a drop in earnings for the third quarter compared with the same quarter a year earlier as Toys “R” Us was liquidated.

Net earnings fell to $263.9 million, or $2.06 per share, in the three months from $265.6 million, or $2.09 per share, a year earlier.

In other news, American Railcar Industries Inc (NASDAQ:ARII), which is majority-owned by the famous billionaire investor Carl Icahn, is selling itself to ITE Rail Fund in a $1.75 billion deal.

Shares in American Railcar leapt up over 50% to stand at $69.53 before the bell.

Elsewhere, Kimberly Clark Corp (NYSE:KMB) shares advanced nearly 3% to stand at $113.50 each as its third-quarter adjusted earnings beat estimates.

Not including items, the firm reported adjusted earnings of $596 million or $1.71 per share for the three months. Analysts had expected the company to earn $1.64 a share.

Also on Monday, the Kleenex tissue maker named Michael Hsu as its new CEO with effect from January 1 next year.

He will replace Thomas Falk, who has held the post of CEO since 2002 and who will now become executive chairman.

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