Top Midday Stories: Honeywell Mulls Separation of Aerospace Business; Starbucks Expands Parental Leave for US Store Workers

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All three major US stock indexes were trading in positive territory around midday on Monday with the Nasdaq Composite leading the march upward, as investors prepare for the Federal Reserve's latest decision on interest rates later this week.

In company news, Honeywell International (HON) said Monday it is evaluating a potential separation of its aerospace business as part of its effort to optimize its portfolio. Honeywell said its board continues to explore strategic alternatives to unlock shareholder value, and it has made "significant progress" so far. Shares of the company were up 3.2% near noon.

Starbucks (SBUX) will increase paid parental leave for US store employees working at least 20 hours per week, Chief Executive Brian Niccol said Monday in a post on the company's website. Starting in March, the company will allow fully paid leave of up to 18 weeks for birth parents and up to 12 weeks for non-birth parents, Niccol said. Shares of Starbucks were down 3.3%.

President-elect Donald Trump's transition team is recommending changes in order to cut off support to electric vehicles and charging stations, and it is looking to boost measures that block cars, components and battery materials from China, Reuters reported Monday, citing a document it viewed.

Goldman Sachs' (GS) investment arm, Goldman Sachs Asset Management, has agreed to acquire drugmaker Synthon from BC Partners for over 2 billion euro ($2.10 billion), the Financial Times reported Monday, citing people familiar with the matter. Shares of Goldman Sachs were down 0.8%.

Procter & Gamble (PG) promised a group of shareholders it would disclose more details on its audit practices for wood pulp suppliers, Reuters reported Monday, citing the investors. Certain shareholders have been pushing the company to source forest products more sustainably, the report said. Procter & Gamble shares were up 0.7%.

Berkshire Hills Bancorp (BHLB) and Brookline Bancorp (BRKL) said Monday they have entered into a definitive agreement through which Brookline will merge with and into Berkshire in an all-stock deal valued at about $1.1 billion. Berkshire also said it entered into subscription agreements with investors to raise capital and will issue $100 million of its common stock at $29 per share to support the merger. Berkshire Hills shares were down 1.1%, while those of Brookline were up 0.4%.

Catalent (CTLT) and Novo Nordisk (NVO) said Monday that they have completed all regulatory closing conditions for Novo's pending acquisition of Catalent. The deal to take Catalent private under Novo is now expected to close in the coming days, the companies said. Separately, Novo Nordisk said Monday it is planning to invest 8.5 billion Danish kroner ($1.2 billion) to establish a new production facility in Odense, Denmark. Novo shares were up 1.9%, while those of Catalent were up 0.6%.

Price: 234.79, Change: +7.17, Percent Change: +3.15

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