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Dollar Tree Agrees to Buy Family Dollar for $74.50 a Share

Bank of America, BJ’s, Nike, Shaw Group: U.S. Equity Preview

Shares of the following companies may have unusual moves in U.S. trading. Stock symbols are in parentheses, and prices are as of 7:45 a.m. in New York.

Bank of America Corp. (BAC) jumped 6.2 percent to $11.49. The biggest U.S. bank by assets agreed to settle claims over soured mortgages for $8.5 billion after a group of bondholders including BlackRock Inc. (BLK) demanded refunds.

BJ’s Wholesale Club Inc. (BJ) gained 4.7 percent to $50.35. The warehouse-club operator said it has entered into a definitive agreement to be acquired by affiliates of Leonard Green & Partners LP and funds advised by CVC Capital Partners in an all-cash transaction of $51.25 a share, or about $2.8 billion.

Build-A-Bear Workshop Inc. (BBW) slipped 0.8 percent to $6.55. Crescendo Partners II LP said in a securities filing that it reduced its stake in the chain of make-your-own stuffed animal stores to 4.4 percent from 5.79 percent.

Family Dollar Stores Inc. (FDO) fell 1.1 percent to $52.45 The North Carolina-based discount retailer posted third- quarter earnings of 91 cents a share, missing the 95 cent average of analyst forecasts in a Bloomberg survey. The company revised the projection for its fiscal 2011 profit to no more than $3.16 a share from as much as $3.23.

General Mills Inc. (GIS) declined 1.9 percent to $36.50. The maker of Cheerios cereal said fiscal 2012 profit will be no more than $2.62 a share, less than the average analyst estimate of $2.68. The company said it faces “significantly” higher costs for ingredients and energy.

Nike Inc. (NKE) increased 0.4 percent to $90.25. Chief Financial Officer Donald Blair forecast the world’s largest sporting-goods company’s gross margin will fall at least 100 basis points in 2012. The company also said earnings will grow at about 15 percent and revenue will climb at a rate of almost 10 percent through 2015.

Progress Software Corp. (PRGS) lost 6 percent to $21.89. The maker of business programs forecast third-quarter earnings of no more than 36 cents a share, falling short of the 41-cent average analyst projection. Revenue also will miss estimates, the company said.

Shaw Group Inc. (SHAW) dropped 13 percent to $28. The Baton Rouge, Louisiana-based builder of power plants forecast 2012 sales of $6.2 billion to $6.5 billion, below the $7.22 billion average of analysts tracked by Bloomberg.

Synnex Corp. (SNX) decreased 1.5 percent to $31. The distributor of computer products said third-quarter earnings won’t be higher than 92 cents a share, lower than the average analyst estimate of 94 cents. The company also forecast revenue of $2.54 billion to $2.64 billion, compared with $2.64 billion projected by analysts.

TransDigm Group Inc. (TDG) : The Cleveland-based aircraft-parts manufacturer said revenue from continuing operations will be as much as $1.192 billion for its 2011 fiscal year, compared with the previous forecast of up to $1.189 billion. The company’s revenue from continuing operations was $828 million in fiscal 2010.

United States Steel Corp. (X) rose 2.7 percent to $44.50, while AK Steel Holding Corp. (AKS) gained 2.4 percent to $15.10. The steelmakers were raised to buy from hold by David Martin, an analyst at Deutsche Bank AG.

To contact the reporters on this story: Victoria Stilwell in New York at; Cecile Vannucci in New York at

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