Zacks Analyst Blog Highlights: Air Products and Chemicals, Airgas, Aeroportuario del Sureste, S.A.B. de C.V., Grupo Aeroportuario del Pacífico S.A.B. de C.V. and Aeroportuario del Centro Norte S.A.B. de C.V - Press Releases

For Immediate Release

Chicago, IL – September 8, 2010 – Zacks.com Analyst Blog features: Air Products and Chemicals Inc. (APD), Airgas Inc. (ARG), Aeroportuario del Sureste, S.A.B. de C.V. (ASR), Grupo Aeroportuario del Pacífico S.A.B. de C.V. (PAC) and Aeroportuario del Centro Norte S.A.B. de C.V. (OMAB ).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Tuesday’s Analyst Blog:

Air Products Ups Airgas Offer Again

Air Products and Chemicals Inc. (APD) has made a third revision to its take-over offer price for rival Airgas Inc. (ARG). Air Products is now offering $65.50 per share in cash, up 9% from the initial offer price of $60 per share (all in cash). The new offer values Airgas at $5.48 billion and represents a 50% premium over the closing price of Airgas’ shares on February 4, 2010, the day before Air Products announced its proposal to acquire Airgas. Air Products claims that the deal at $65.50 per share would be immediately accretive to earnings.

However, Air Products stated that it would withdraw the offer if Airgas’ shareholders do not elect the scheduled board and approve the proposed bylaws. At its annual meeting on Sept. 15, 2010, Air Products wants Airgas shareholders to elect its three nominees to its board and approve some bylaw proposals, which include some alterations to director eligibility requirements and cancellation of all the bylaw amendments done after April 7th of this year. The transaction would also require Airgas to conduct annual meetings in January.

In October last year, Air Products had made a hostile bid for rival Airgas for an all-stock deal of $60.00 per share. Upon Airgas’ rejection, Air Products revised the tender offer to a “cash and stock” proposal with an implied value of $62 per share. On rejection again by Airgas, Air Products upgraded its proposal for a second time to an all-cash deal of $60 per share of Airgas representing a premium of 38% from the closing price of $43.53 on February 4, 2010 and an 18% cash premium over the 52-week high. The total value of the transaction was about $7 billion, including $5.1 billion of equity and $1.9 billon of assumed debt. However, Airgas rebuffed the proposal stating that the offer grossly undervalues the company.

Airline Traffic Shoots Up in Mexico

Aeroportuario del Sureste, S.A.B. de C.V. (ASR), a top Mexican airport operator, recorded a 8.9% increase in passenger traffic for August 2010 in comparison with the same period of fiscal 2009.

Domestic traffic rose 2.5% while International traffic shot up by 15.1% year over year. In July 2010, Aeroportuario del Sureste recorded a 16.2% year-over-year increase in its traffic with a 3.5% increase in domestic traffic and 29.8% International traffic.

In the second quarter of fiscal 2010, passenger traffic grew 26.8% year over year with an increase of 37.8% in international traffic and 13.8% in domestic traffic. However, in the first quarter of fiscal 2010, total traffic declined 3.6% year over year with domestic traffic and International traffic declining 3.9% and 3.5%, respectively.

Mexican airport operators, Grupo Aeroportuario del Pacífico S.A.B. de C.V. (PAC), Aeroportuario del Centro Norte S.A.B. de C.V. (OMAB ) and ASR have been experiencing an increase in passenger traffic since the second quarter of fiscal 2010 compared to the huge drop in traffic during the same period in fiscal 2009.

The decrease in passenger traffic from the second quarter of fiscal 2009 through March 2010 was based on the H1N1 flu, which broke out in April 2009, and the difficult business environment due to the economic instability since the second half of fiscal 2008.

However, markets are now gradually picking up and are expected to show some decent results in the coming years. Fuel prices have also reduced to their mid-70s from the peak of nearly $150 per barrel. The International Air Transport Association (IATA) expects the airline industry to make a profit of $2.5 billion in 2010.

We maintain our long term Neutral recommendation on ASR, PAC and OMAB. For the shorter term, all the ADRs currently retain their Zacks #3 Rank, equivalent to short-term Hold rating.

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Follow us on Twitter: http://twitter.com/zacksresearch

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts.

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Contact:
Mark Vickery
Web Content Editor
312-265-9380
Visit: www.zacks.com

 

 

 
AIR PRODS & CHE (APD): Free Stock Analysis Report
 
AIRGAS INC (ARG): Free Stock Analysis Report
 
GRUPO AEROP-ADR (ASR): Free Stock Analysis Report
 
GRUPO AEROP-ADS (OMAB): Free Stock Analysis Report
 
GRUPO AEROP-PAC (PAC): Free Stock Analysis Report
 
Zacks Investment Research