11:57 AM EST, 12/03/2024 (MT Newswires) -- The Dow Jones Industrial Average and the S&P 500 Index were both down in late-morning trading on Tuesday, while the Nasdaq Composite Index was up slightly as stocks take a break after a major rally in recent days.

In company news, BlackRock ( BLK ) said Tuesday it agreed to acquire credit investment manager HPS Investment Partners in an all-stock deal worth about $12 billion with the goal of creating an integrated private credit franchise with about $220 billion in client assets. BlackRock ( BLK ) will pay 100% of the deal's consideration in company equity, which will be issued by a subsidiary of the asset manager and exchangeable on a one-for-one basis into BlackRock ( BLK ) stock. Under the terms of the deal, BlackRock ( BLK ) will pay about 9.2 million equity units at the deal's completion and roughly 2.9 million units in about five years, depending on closing conditions. BlackRock ( BLK ) could pay up to an additional 1.6 million units based on financial performance milestones in five years. Up to $675 million of the total consideration will be used to fund an equity retention pool for HPS employees. The deal is expected to be completed in the middle of 2025, the companies said in a joint statement. BlackRock ( BLK ) shares were up 1.2% around midday.

AT&T ( T ) said Tuesday it expects over $50 billion of free cash flow over the next three years and will return at least $40 billion to shareholders through dividends and buybacks. The company said it plans to maintain its current annualized dividend of $1.11 per share, which will result in over $20 billion in total dividend payments and leave about $20 billion for share repurchases. AT&T ( T ) shares were up 3.9%.

Intel ( INTC ) has created a shortlist of candidates for the role of chief executive, including former board member Lip-Bu Tan, Reuters reported Tuesday, citing people familiar with the matter. Tan was approached in recent days by Intel's ( INTC ) board to gauge his interest in replacing ousted CEO Pat Gelsinger, the sources told Reuters. Meanwhile, Gelsinger is set to receive severance pay of about $10 million, according to a Tuesday filing with the US Securities and Exchange Commission. Intel ( INTC ) shares are down 5.3%.

Nippon Steel's proposed acquisition of United States Steel ( X ) will be opposed by President-elect Donald Trump when he takes office, Trump said in a Truth Social post. The post was lauded by United Steelworkers union President David McCall, who said that "President Trump understands the vital role a strong domestic steel industry plays in our national security, as well as the importance of the jobs and communities the industry supports." Shares of US Steel were down 8.2%.

Tesla (TSLA) Chief Executive Elon Musk is not entitled to receive a $56 billion compensation package even after the company's shareholders voted to reinstate it, a Delaware judge ruled Monday. Delaware Chancellor Kathaleen McCormick issued a full opinion after issuing an initial opinion in January that the package should be rescinded. Tesla had urged the court to consider that its shareholders voted in June in favor of the pay package, but McCormick said Tesla's board cannot hit "reset" on the decision through a stockholder vote. Tesla shares were down 1.7%.

Apollo Global Management's ( APO ) Novolex is weighing a potential takeover offer for Pactiv Evergreen (PTVE), Bloomberg reported Tuesday, citing people familiar with the matter. Apollo shares were up 0.4%, while those of Pactiv Evergreen were up 7.4%.

General Motors ( GM ) is recalling up to 132,037 vehicles with power-unlatching tailgates that may short-circuit due to water intrusion, causing the tailgate to inadvertently unlatch while the vehicle is in park, the National Highway Traffic Safety Administration said Monday. The affected models include the 2024 Chevrolet Silverado HD 2500 and 3500 and the GMC Sierra HD 2500 and 3500. Shares of General Motors ( GM ) were down 1.7%.

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