IBM Sale of PC Unit Hits Snag

HP reportedly considering management reorganization; Infineon slips on earnings warning; plus more of Monday's stocks in the news

IBM Corp.'s (IBM ) sale of its PC unit to Lenovo Group has raised some security concerns, according to news wire reports. S&P reiterates strong buy.

Hewlett-Packard (HPQ ) directors are considering a management reorganization that would distribute some of CEO Carly Fiorina's day-to-day responsibilities among other executives, according to the Wall Street Journal. S&P reiterates hold.

German chipmaker Infineon Technologies (IFX ) posted 0.19 euro (25 cents), vs. 0.05 euro (7 cents) first-quarter earnings per share on a 12% revenue rise. The company notes sequential revenue decreased due to reduced sales volumes. It sees a continued slowdown in demand in overall worldwide semiconductor market in the second quarter.

General Motors (GM ) says the mediation process between GM and Fiat, initiated by GM on Dec. 16, 2004, will conclude Feb. 1, 2005. The company notes that the mediation relates to GM's assertion that Fiat committed material breaches of the Master Agreement between the two companies.

Pilgrim's Pride (PPC ) posted 73 cents, vs. 20 cents first-quarter earnings per share on a 31% sales rise. The company cites successful integration of the ConAgra Food's chicken unit acquisition, strong performance in prepared foods, fresh chicken units, and lower feed ingredient costs.

Pfizer's (PFE ) Viagra reportedly has potential for treating enlarged hearts.

Tommy Hilfiger (TOM ) is to streamline its U.S. wholesale buisness. As a result, the company plans to take charges between $10 million to $14 million in fiscal 2005. It is to reduce 20% of U.S. positions and close its Young Men's division.

Johnson & Johnson (JNJ ) says health authorities have raised safety concerns regarding its Alzheimer's treatment, Reminyl, which J&J developed with Shire Pharmaceuticals (SHPGY ).

Caesars Entertainment (CZR ) announces Park Cattle company, owner of the land where Caesars Tahoe casino resort is located, has decided not to buy the property. As a result, Ceasars will continue the planned sale to the other hotel for $45 million.

Monsanto (MON ) agrees to acquire Seminis, Inc. for $1.4 billion in cash, debt assumption, plus a performance-based payment of up to $125 million payable by the end of fiscal 2007.

Eaton (ETN ) posted $1.16, vs. 72 cents fourth-quarter earnings per share on a 26% revenue rise. It sees $1.10 to $1.20 first-quarter earnings per share, and $4.90 to $5.10 2005 earnings per share. The company raises its quarterly dividend 15% and sets a $250 million stock buyback.

E-Loan (EELN ) is in a deal with eBay (EBAY ) to provide eBay's consumers with financing for automobiles and motorcycles purchased on eBay Motors.

Citigroup upgrades Fair Isaac (FIC ) to buy from hold. The company notes first-quarter results are due out Wednesday after the market closes.

Deutsche Bank upgrades Corn Products (CPO ) to buy from hold.

Legg Mason (LM ) posted 98 cents, vs. 71 cents third-quarter earnings per share on a 26% revenue rise.

Banc of America downgrades Autodesk (ADSK ) to sell from neutral, and cuts its target to $25.

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