Mandalay Resorts Soars on MGM Bid
ImClone Systems (IMCL ) shares surged after the company said its Erbitux medicine helped patients with head and neck cancers live twice as long as those getting standard treatment. ImClone is developing the drug with Germany's Merck KGaA Merck KGaA and Brisol-Myers (BMY ). Citigroup upgraded to buy from hold. S&P keeps buy.
MGM Mirage (MGG ) offered to purchase Mandalay Resort (MBG ) for $68 per share cash, or about $7.65 billion, which includes the assumption of $2.8 billion in debt. Mandalay shares surged on the news, while MGM Mirage shares were slightly lower. Prudential upgraded Mandalay to neutral from underweight. S&P downgraded to hold from buy. Boyd Gaming (BYD ), among other gaming stocks, are trading higher on news of the possible merger. Meanwhile, Banc of America upgraded shares of casino operator Caesars Entertainment (CZR ) to buy from neutral.
Landry's Restaurant (LNY ) CFO Paul West reportedly resigned to pursue other interests.
Celadon Group (CLDN ) is seen higher on a Supreme Court ruling that will allow Mexican trucks to start shipping to destinations across the U.S. without environmental analysis.
McDonald's (MCD ) posted a 7.9% U.S. May same-store sales increase and a 8.6% U.S. total sales rise.
General Motors (GM ) plans to continue aggressive growth of its business in China. Pending government approval, the total amount of new investment is expected to exceed $3 billion over the next three years.
Roth Capital upgraded Salix Pharmaceuticals (SLXP ) to strong buy from buy.
Genentech (DNA ), Biogen IDEC (BIIB ), and Roche announced positive data from a large, randomized Phase III trial evaluating Rituxan in Europe in combination with chemotherapy as a front-line treatment for aggressive non-Hodgkin's lymphoma.
Titan (TTN ) received a Wells Notice from the Securities and Exchange Commission in connection with a previously announced SEC investigation regarding certain payments to foreign countries.
Shuffle Master (SHFL ) terminated CFO Gerald Koslow for failing to immediately disclose to the company his arrest for domestic disturbance in mid-April, and for failing to disclose the arrest in several regulatory filings.
Honeywell (HON ) settled shareholder litigation pending against it and three former officers relating to the 1999 AlliedSignal/Honeywell merger and other matters. Honeywell will pay into a $100 million escrow fund: $85 million will come from its insurers, and $15 million will come from the company.