Elan, Biogen Tumble

Federated agrees to buy May; Qwest reportedly willing to revise offer for MCI; plus more of Monday's stocks in the news

Elan Corp. (ELN ) and Biogen Idec (BIIB ) announced the voluntary suspension in the marketing of Tysabri, a treatment for multiple sclerosis. The decision is based on recent reports of two serious adverse events; one fatal and one suspected case of PML.

May Department Stores (MAY ) agrees to be acquired by Federated Department Stores (FD ) in a $17 billion deal, including debt assumption. Terms of the agreement give each May share will be converted into a right to receive $17.75 cash and 0.3115 of Federated share.

Qwest Communications (Q ) is willing to revise its latest stock-and-cash offer for MCI (MCIP ), but only if MCI indicates it is willing to engage in discussion with Qwest, according to the Wall Street Journal.

XM Satellite Radio (XMSR ) says it is expanding its basic service package and that monthly subscription price for its basic service will increase to $12.95 beginning Apr. 2, 2005.

Banc of America downgrades General Motors (GM ) and Ford (F ) to sell from neutral.

H.J. Heinz (HNZ ) posted 43 cents, vs. 57 cents third-quarter earnings per share as asset impairment charge offset a 7.8% revenue rise. The company says it remains on track with $2.32 to $2.42 fiscal 2005 earnings per share target, with an expectation toward the lower end of the range.

Circuit City (CC ) announces the resignation of executive vice president and COO John W. Froman, effective March 1, 2005.

USF Corp. (USFC ) agrees to be acquired by Yellow Corp. (YELL ) in deal valued at approximately $1.47 billion, including debt assumption. Terms of the agreement give investors $45.00 in cash or 0.9024 Yellow Corp. shares (fixed ratio) per USF share.

JP Morgan upgrades Best Buy (BBY ) to overweight from underweight.

Williams Companies (WMB ) catious investors may want to take some profits. Williams could fall back to $15 or so if gas prices retreat from recent $6.43 per mBtu to the $4 area, according to Barron's.

Prudential downgrades Novell Inc. (NOVL ) to underweight from neutral.

Medtronic (MDT ) voluntarily recalled a limited number of Lifepak 500 automated external defibrillators (AEDs). The company says the AED may not analyze patient's heart rhythm even when the electrodes are properly connected.

Tiffany & Co. (TIF ) posted $1.48, vs. 74 cents fourth-quarter earnings per share on 5% higher same-store sales and 11% higher total sales (excluding foreign exchange). The company says operating performance did not meet objectives. It sees $1.45 to $1.55 fiscal 2006 earnings per share on 8% to 10% net sales growth.

Pathmark Stores (PTMK ) is in talks to be sold to C&S Wholesale Grocers, according to the New York Post.

Lehman upgrades Maxim Integrated (MXIM ) and Linear Technology (LLTC ) to overweight from equal-weight. The commpany raises the semiconductor group to positive from neutral.

Mylan Labs (MYL ) and King Pharmaceuticals announce that they have mutually agreed to terminate agreement pursuant to which Mylan was to acquire King. The companies were not able to agree upon terms for a revised transaction.

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