Movers: Commerce Bancorp, Palm, Dean Foods
Commerce Bancorp (CBH) agrees to be acquired by TD Bank Financial (TD) in a deal valued at $8.5 billion. Terms: 0.4142 TD shares and $10.50 in cash per CBH share.
Palm (PALM) posts $0.01 first quarter loss (GAAP) per share, vs. $0.16 EPS a year ago, as narrowed gross profit, higher total operating expenses offset 1.4% revenue rise. It sees a second quarter loss (GAAP) of $0.01-$0.03 on $370-$380 million revenue. S&P maintains hold.
Dean Foods (DF) cuts EPS guidance to about $0.15 for the third quarter and to about $1.25 for 2007, citing rapidly increasing and record high dairy commodity costs. Also, plans to cut 600-700 jobs, which will affect workers in its Dairy Group across the country. In relation to the job cuts, expects to take a restructuring charge in the third quarter.
Nasdaq Stock Market (NDAQ) agrees to acquire The Boston Stock Exchange in a deal valued at about $61 million.
IntercontinentalExchange (ICE) posts a 22% rise in average daily volume (ADV) at ICE Futures U.S. in Sept., 34% rise in average daily volume for ICE Futures Europe.
Pepsi Bottling Group (PBG) posts $1.12, vs. $0.86 a year ago, third quarter EPS (both include gains) on 7.8% revenue rise. It raises 2007 EPS forecast to $2.15-$2.18 from $2.02-$2.07.
Walgreen (WAG) posts 4.7% higher September same-store sales, 9.5% higher total sales.
Hershey Company (HSY) announces that Chairman, President, and CEO Richard H. Lenny intends to retire at the end of 2007.
Valspar (VAL) sees $0.47-$0.50 fourth quarter adjusted EPS, $1.67-$1.70 fiscal year 2007. It cites continuing weakness in the U.S. housing market, impact on company's Paints segment and related industrial markets in its Coatings segment. Goldman reportedly downgrades to sell from neutral.
Printronix (PTNX) agrees to be acquired by Vector Capital, a private equity boutique, for $108 million, or $16.00 in cash per share.
EFJ (EFJI) expects "significant" operating loss in the third quarter on revenue of $32-$33.5 million. It expects 2007 revenues of $160-$170 million, vs. previous forecast of $185-$195 million. It sees 2007 operating income/loss between income of $1 million and a loss of $2 million.
PDL Biopharma (PDLI) says its board of directors has recently decided to actively seek offers for the sale of the company as a whole or of its key assets. Also announces resignation of CEO, director Mark McDade, effective immediately; board elects L. Patrick Gage as interim CEO. Wachovia reportedly upgrades to outperform from market perform.
R.H. Donnelley (RHD) plans to offer an additional $500 million of its 8.875% Series A-4 senior notes due 2017 to certain institutional investors. It says a portion of the net proceeds from the offering is expected to be transferred to Dex Media East LLC, an indirect unit of RHD.
Noble Energy (NBL) will be added to S&P 500 after the close of trading on Oct. 5, replacing Archstone-Smith Trust, which is being acquired by affiliates of Tishman Speyer and Lehman Brothers (LEH).
Lamar Advertising (LAMR) will be added to S&P MidCap 400 after close of business on Oct. 5, replacing Noble Energy, which is being added to the S&P 500.