Mergers continue in 2016, Johnson controls and Tyco tie up

One of the main motives behind the transaction for Johnson Controls was thought to be its desire to offset its exposure to the slowdown in China, both through its building solutions and automotive experience businesses. The 50-day moving average is $31.54 and the 200 day moving average is recorded at $35.22.

As of 13:05 shares in Johnson Controls were up 1.12% to $36 in pre-market trading, alongside gains of 6.24% to $32.5 in those of Tyco Intl. Johnson Controls will report full earnings January 28, Tyco on January 29. The company reported $0.61 earnings per share for the quarter, hitting the Thomson Reuters’ consensus estimate of $0.61. During the same quarter in the prior year, the business posted $1.04 earnings per share. In the last quarter Tyco earned $0.61 per share, which was in line with estimates. This represents a $1.16 dividend on an annualized basis and a yield of 3.26%. The ex-dividend date was Wednesday, December 9th.

Other institutional investors have also bought and sold shares of the company. Tyco’s shares were up 10 percent at $33.65. They issued a “neutral” rating on the stock.

Tyco International plc (NYSE:TYC): On Friday heightened volatility was witnessed in Tyco International plc (NYSE:TYC) which led to swings in the share price. Ten analysts have rated the stock with a hold rating and five have given a buy rating to the company’s stock.

Tyco shareholders will likely see a huge gain, since the company would be valued at a premium to the current share price in any deal. The stock had a trading volume of 4,566,112 shares. Janus Capital Management now owns 369,678 shares of the company’s stock valued at $15,290,000 after buying an additional 333,430 shares during the period. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Baird analyst David Leiker said in a note that the additions of Tyco’s fire-safety and security products and services are attractive with meaningful customer and geography overlap, coupled with significant revenue and cost synergies.

The company previously announced this fall it would spin off its seating and interior production into a separate public company called Adient. Ltd. and its subsidiaries that form and operate the South Korean security business to The Carlyle Group.