ELANCO NOW 2ND LARGEST IN ANIMAL HEALTH

» Elanco Animal I ND I ANAPOLI S Health will spend $7.6 billion to acquire Bayer AG’s veterinary medicines business, which would make it the second-largest animal health company.

Elanco said Tuesday it will pay $5.3 billion — about 70% of the total price — in cash and the rest in stock. The deal would mean that half of Elanco’s overall business would be in the lucrative pet products market.

Company shares fell nearly 4% in early morning trading.

Elanco was spun off from the Indianapolis drugmaker Eli Lilly and Co. The company makes antibiotics and feed additives for livestock and flea and heartworm treatments for pets.

Analyst shines spotlight on WeWork’s IPO filing.

WeWork’s IPO prospectus lacks the information needed to create a financial model of the company, according to an analyst who specializes in new listings.

The We Co., which is expected to raise about $3.5 billion in what would be 2019’s second-biggest initial public offering, must have put in a great effort to conceal the unit economics underlying the co-working space provider, said Triton Research Inc. chief executive officer Rett Wallace.

Using what it calls an obfuscation index as one component of its ratings, Triton has built a strong track record predicting the winners and losers among technology IPOs. Since January 2018, listings that won an above-average score from Triton have risen about 92% from their offering prices, nearly triple the return of those scoring below average.

Home Depot cuts outlook, citing tariffs and lumber prices.

Home Depot cut its sales expectations for the year as lumber prices slid and the company braces for the potential impact of tariffs on its customers.

The Trump administration delayed most of the tariffs it planned to impose on Chinese goods last week and dropped others altogether, responding to pressure from businesses and growing fears that a trade war is threatening the U.S. economy.

Lumber prices are falling because of weakness on the home construction. The Commerce Department said Friday the pace of U.S. home construction fell 4% in July. So far this year, housing starts have declined 3.1%.

Still, the company handily beat second-quarter profit expectations with Americans capitalizing on falling mortgage rates.