Dividend.com: Baxter Slips on Downgrade

Baxter Downgraded Amid FTC, Plasma Industry Pressure

Pharma- and medical-device maker Baxter International(BAX Quote) was downgraded by Soleil analysts Monday, following FTC pressure and claims of price collusion in the blood plasma industry.

Soleil downgraded Baxter to a "Hold" from a previous "Buy" rating, and also lowered its price target for the stock from $66 to $49 per share.

The FTC on Monday rejected a merger between Baxter's rival CSL Ltd. and smaller plasma maker Talecris Biotherapeutics, amid antitrust concerns. The FTC ruled that such a merger could substantially reduce competition in the market for plasma-derivative protein therapies.

Baxter shares fell 70 cents, or -1.5%, in afternoon trading Monday.

The Bottom Line: We removed shares of BAX back on Oct. 7, when they were trading at $64.64. The company has a 2.19% dividend yield, based on Friday's closing stock price of $47.56. The stock has technical support in the $38-$40 price area. If the shares can firm up, we see overhead resistance in the $55-$58 price area. We would remain on the sidelines for now.

Baxter International is not recommended at this time, holding a Dividend.com DARS Rating of 3.4 out of 5 stars.

Pepsi Bottling Group to Buy Ab-Tex Beverage Ltd. for $200M

According to reports, The Pepsi Bottling Group(PBG Quote) said Monday that it will buy Abilene, Texas-based Ab-Tex Beverage Ltd. for about $200 million.

Unnamed PBG officials said the deal will give the company an additional $100 million in sales annually.

The Pittsburgh-based Pepsi bottler is currently battling PepsiCo's attempts to complete an unsolicited acquisition of the company. PBG feels the $4 billion offer is grossly undervalued, and is urging shareholders to continue to reject the offer.