MGM Mirage Jumps on Deal News

Fremont General agrees to sell its commercial real estate lending business to iStar Financial, and more stocks in the news

Kirk Kerkorian's Tracinda Corp. says it plans to enter into talks with MGM Mirage (MGM) to purchase Bellagio Hotel & Casino and City Center properties. Tracinda also plans to explore alternatives with respect to its MGM stake; this could include all or part of the rest of MGM.

Fremont General (FMT) says it agrees to sell its commercial real estate lending business and outstanding loan portfolio to iStar Financial (SFI) for $1.9 billion and participation interest. Fremont also announces a minority investment by an investor group.

BP Plc ADS (BP) reportedly shut down 100,000 barrels per day of output from its Prudhoe Bay field in Alaska yesterday due to a leaking water line.

Tech Data Corp (TECD) posts 18 cents, vs. 16 cents a year ago, first-quarter GAAP EPS from continuing operations on a 9.3% sales rise. It sees $5.20-$5.35 billion in second-quarter sales. The company sees additional costs in the second quarter to complete closure of its UAE subsidiary, other operations, and European logistics center.

Staples (SPLS) posts 29 cents, vs. 25 cents a year ago, first-quarter EPS on 8.3% sales rise. It sees second-quarter and fiscal year 2008 EPS growth at the low end of its 15%-20% guidance. It sees $1.43-$1.49 fiscal year 2008 EPS.

Children's Place (PLCE) posts 4% higher first-quarter consolidated net sales and 12% higher total consolidated net sales. It reports $13.1 million first-quarter net income (including items, subject to adjustment).

Pacific Sunwear (PSUN) posts 7 cents first-quarter GAAP loss per share, vs. 16 cents EPS a year ago, on 1.2% lower total company same-store sales and 6.9% higher total sales. The apparel retailer still sees second-quarter operating EPS of 18-20 cents on low single digit rise in comps. S&P keeps sell.

American Eagle Outfitters (AEO) posts 35 cents, vs. 28 cents a year ago, first-quarter EPS on 6% higher same-store sales and 17% higher total sales. It sees 34-36 cents second-quarter EPS. The company sets additional 23 million share buyback.

BJ's Wholesale Club (BJ) posts 21 cents, vs. 23 cents a year ago, first-quarter EPS as lower interest income and absence of gain offset a 2.3% same-store sales rise and 7.6% revenue rise.

Kongzhong Corp (KONG) posts 4 cents, vs. 24 cents a year ago, first-quarter GAAP earnings per ADS on a 28% revenue decline. It expects a tough operating environment to continue for some time. S&P downgrades to sell from strong buy.

STMicroelectronics (STM), Intel (INTC), and Francisco Partners plan to create a new independent semiconductor business that will focus on supplying flash memory solutions; STM will hold 48.6% stake in the new company, Intel will hold 45.1%, and Francisco Partners will own 6.3%.

United Natural Foods (UNFI) posts lower-than-expected 32 cents, vs. 29 cents a year ago, third-quarter EPS on a 15% revenue rise. It lowers fiscal year 2007 GAAP EPS guidance to $1.20-$1.22.

Merrill Lynch upgrades Shaw Group (SGR) to buy from neutral.

Cowen downgrades Lockheed Martin (LMT) to neutral from outperform.

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