ChevronTexaco to Buy Unocal

AIG shares rise; HSBC reportedly mulling a bid for Morgan Stanley; plus more of Monday's stocks in the news

Unocal Corp. (UCL ) agreed to be acquired by ChevronTexaco (CVX ) in a stock and cash deal valued at $18 billion, or about $62 per share. Unocal shareholders can elect to get either 1.03 ChevronTexaco shares or $65 per share cash, subject to proration.

Shares of American International Group (AIG ) were higher on Monday on reports tha New York Attorney General Spitzer said a civil resolution to the investigation into the company's financial transactions is achievable. S&P upgraded the shares to buy from hold.

Britain's Independent reported on Sunday HSBC Holdings PLC (HBC ) is mulling a bid for Morgan Stanley (MWD ). News comes amid a recent handful of management changes.

Jefferies downgrades Best Buy (BBY ) to hold from buy. Friday the company posted $1.55, vs. $1.40 fourth-quarter earnings per share from continuing operations on 2.8% higher same-store sales.

The Wall Street Journal reports that Federal National Mortgage's (FNM ) books are being examined by regulators to determine if the company properly accounted for trusts it uses to issue mortgage-backed securities. S&P upgrades, based on valuation.

Inamed Corp. (IMDC ) receives a letter from the FDA with respect to its Style 410 cohesive gel-filled breast implants premarket approval application, outlining additional information which must be provided before the FDA can complete its review.

Pfizer, Inc. (PFE ) is widely discussed in this weekend's media ahead of its Apr. 5 analyst meeting. It is expected the company will announce a strategic plan. Some reports say analysts expect the company to set a cost-cutting plan of at least $2 billion and reduce staff.

Key Energy Services (KEG ) says it has been notified by the New York Stock Exchange (NYSE) that its common stock will be suspended prior to opening of trading on Fri., Apr. 8, 2005. Key Energy Services has advised the NYSE that it will be quoted on the Pink Sheets following suspension.

Josesph A. Bank Clothiers (JOSB ) posted preliminary 88 cents, vs. 68 cents fourth-quarter earnings per share on a 9.4% same-store sales rise and 27% total sales rise. The company sees at least $2.00 to $2.05 fiscal 2006 earnings per share.

Lions Gate Entertainment (LGF ) requests access to due diligence info from HIT Entertainment PLC because it is considering making an offer. Separately, HIT reportedly says it got two further takeover approaches following a deal with private equity firm Apax.

Cognos Inc. (COGN ) posted 58 cents, vs. 50 cents fourth-quarter earnings per share on a 27% revenue rise. The company sees 22 cents to 25 cents first-quarter earnings per share on revenue of $202 million to $210 million and $1.55 to $1.62 fiscal 2006 earnings per share on revenue of $930 million to $950 million.

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