Time Warner Drops MGM Bid
Time Warner (TWX ) dropped its bid for Metro-Goldwyn-Mayer (MGM ) after a group of investors led by Sony (SNE ) increased its offer to nearly $5 billion, or $12 a share, and the assumption of $2 billion in debt, according to The Wall Street Journal . Time Warner Inc. gave a cash and stock offer on July 1 that valued MGM at about $4.7 billion.
Banc of America upgraded Mercury Interactive (MERQ ) to buy from neutral.
DigitalNet (DNET ) agreed to be acquired by BAE Systems North America for $30.25 cash per share.
Broadcom (BRCM ) sees third-quarter revenue flat to up slightly vs. the second quarter. S&P trimmed its estimates, and keeps hold.
US Airways (UAIR ) filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code. S&P dropped STARS coverage, and recommends investors sell Mesa Air (MESA ). US Air accounts for about one-third of Mesa's revenues.
ST Robinson Humphrey upgraded ImClone Systems (IMCL ) to buy from neutral.
Campbell Soup (CPB ) posted 17 cents, vs. 18 cents fourth-quarter earnings per share from operations on 2% lower net sales.
International Steel (ISG ) raised the third-quarter earnings per share guidance to $2.00 to $2.10, vs. the previous $1.70 consensus, citing the continuing strength of the steel market resulting in higher prices.
On Semiconductor (ONNN ) says based on weaker-than-anticipated end-market demand and sell-through revenue by distributors, it now expects revenues for the third quarter to decline by about 6%, vs. the previous 2% to 5% increase guidance.
Krispy Kreme Doughnuts' (KKD ) auditor, PricewaterhouseCoopers LLP, refused to complete a review of the company's financial statements for the latest quarter until an outside law firm hired by Krispy Kreme's board is finished performing "certain additional procedures" requested by auditors, according to The Wall Street Journal .
Gateway (GTW ) plans to announce that it is retreating from the consumer-electronics world and returning to its original mission of marketing personal computers,
Grey Global (GREY ) agreed to be acquired by a wholly-owned subsidiary of London-based advertising firm WPP Group PLC in a cash and stock deal valued at about $1.5 billion. Terms: $1,005 cash or 21.746 WPP ADSs per Grey share.
CKE Restaurants (CKR ) posted lower-than-expected 17 cents, vs. 11 cents second-quarter earnings per share (excluding charges) on a 6% rise in consolidated revenue.
CIBC World initiated coverage of Google (GOOG ) with sector perform, and says search-engine expectations are still too high. CIBC set a $115 price target.