Enron in Talks with Banks for Credit Line
Enron Corp (ENE ) is negotiating with banks for a new credit line of between $1 billion to $2 billion. Separately, Moody's placed all long-term debt obligations of Enron on review for a downgrade.
The U.S. Postal Service will use Surebeam Corp.'s (SURE ) electron beam systems to eliminate the threat of anthrax in the U.S. mail system. The company will get about $26 million for its eight systems.
Goldman Sachs removes Sprint PCS (PCS ) from its recommended list, down from rated market outperform.
Integrity Inc (ITGR ) posts Q3 EPS of $0.10 compared with $0.12 as higher general and administrative expenses offset a 47% sales rise.
EchoStar (DISH ) will merge with General Motors Hughes Electronics (GMH ) in a $26 billion deal. The merged company will take the EchoStar name. S&P reiterated its accumulate rating on EchoStar. CIBC World downgraded GM Hughes to hold.
After the close of trading Oct. 26, Lockheed Martin (LMT ) was awarded an estimated $200 billion defense contract to develop and build the Joint Strike Fighter (JSF), beating out rival Boeing Corp. (BA ).
United Technologies' (UTX ) Pratt & Whitney unit was awarded a contract valued at more than $4 billion to develop its F135 engine for Lockheed Martin's JSF aircraft. AT&T Corp (T ) is considering a bond offering of $5 billion to $7 billion in the next two weeks to help raise cash. The company is re-evaluating plans to sell its cable-TV unit, according to news reports.
Semco Energy (SEN ) posted a third-quarter loss of $0.37 compared with $0.26 loss despite a 15% rise in operating revenues. The company plans to divest certain engineering and contruction operations. It says that 2001 results will be "considerably" lower than anticipated. Merrill downgraded its rating of the stock.
Meridith Corp. (MDP ) posted first-quarter EPS of $0.17 compared with $0.32 on 2.2% lower revenue, citing television interuptions due to the September 11 attacks. The company sees second-quarter EPS of $0.13-$0.17. The company does not have enough visibility to comment on fiscal 2002 results and sees no clear rebound.
Gilead Sciences (GILD ) received FDA approval for its antiretroviral agent Viread for the treatment of HIV infection when taken with combo with other antiretroviral agents. Robertson Stephens upgrades its rating to buy.
FedEx (FDX ) sees second-quarter EPS of $0.40-$0.45, excluding any government assistance but including other financial effects from the September 11 attacks. With $101 million in government compensation FedEx expects EPS to be $0.61-$0.66.
Cabot Indus Trust (CTR ) agreed to be acquired by CalWest Industrial Properties LLC for $24 cash per Cabot share in a $2.1 billion deal.
Skywest (SKYW ) posted second-quarter EPS of $0.23 compared with $0.34 from operations as higher costs offset 12% higher operating revenue.