Movers: Business Objects, United Industrial, Ryder System, Vonage
Business Objects (BOBJ) agrees to be acquired by SAP AG (SAP) for €42.00 per ordinary share and for American Depositary Shares (ADS) at the US$ equivalent based on the euro-dollar exchange rate as of the settlement of the tender offers. The deal is valued at €4.8 billion. Separately, Business Objects sees third quarter GAAP EPS of $0.04-$0.06 on revenue of $366-$370 million.
United Industrial (UIC) agrees to acquired by Textron for approximately $1.1 billion or $81 per share.
Ryder System (R) cuts $1.20-$1.23 third quarter EPS guidance to $1.12-$1.14. It cites lower-than-expected results in its U.S. Fleet Management Solutions business segment.
Vonage (VG) surged 113% to $2.47 after the company and Sprint Nextel (S) said they settled a patent suit. Vonage will pay Sprint $80 million, and Sprint agreed to license Vonage a portfolio of more than 100 patents.
Bank of America (BAC) and JP Morgan (JPM) are expected to reveal losses of about $3 billion on holdings of mortgage securities and leveraged loans when they report third-quarter results this month, according to the Financial Times.
Credit Suisse reportedly downgrades Merrill Lynch (MER) to neutral from outperform. On Friday, Merrill said it expects a third quarter loss of as much as $0.50 per share due to challenging credit market conditions.
OM Group (OMG) agrees to acquire all of Rockwood Holdings' (ROC) Electronics business, excluding its French entity, for approximately $265 million in cash. Says Rockwood's French electronic chemicals business is subject to a put option for an additional purchase price of about $50 million. OM Group expects dthe eal, which is subject to standard closing conditions, to be accretive to earnings in 2008.
Isis Pharmaceuticals (ISIS) revises 2007 pro forma net operating loss (NOL) guidance downward from mid to high $40 million range to mid to high $20 million range, excluding non-cash compensation expense. The company's initial guidance for its 2007 NOL was in the mid to high $60 million range.
Embraer-Empresa Brasileira de Aeronautica (ERJ) reports that its firm order backlog for the Commercial Aviation, Executive Aviation, and Defense and Government segments increased by $1.8 billion during the third quarter, totaling a record $17.4 billion.
ABM Industries (ABM) agrees to acquire OneSource Services Inc. for $365 million in cash. It expects the deal to be accretive to EPS on a GAAP basis beginning in the second quarter after closing - excluding one-time implementation costs of between $12-$15 million, all of which will be incurred in fiscal year 2008.
Novatel (NGPS) agrees to be acquired by Hexagon AB for $50 per share.
Talbots (TLB) falls after Friedman Billings downgrades to underperform from market perform.
Scansource (SCSC) expects first quarter sales of $546-$554 million compared to $496.2 million for the same period one year ago.
Aeropostale (ARO) falls after Caris downgrades to average from above average.