Movers: EDS, HP, AIG, FedEx, Cablevision, AnnTaylor
Electronic Data Systems (EDS) shares are up 5.27 to 24.13 on word that Hewlett-Packard (HPQ) was close to a deal to acquire EDS for between $12 billion and $13 billion, according to the WSJr. The terms of the deal were not immediately clear but an announcement was expected as early as Tuesday, the newspaper said.
American International Group's (AIG) is down 1.48 to 38.80 aftef former AIG CEO Maurice Greenberg reportedly sent letter to AIG board outlining the company's problems, and urging postponement of this week's annual meeting. Newswires report Greenberg saying AIG in "crisis" and that he's concerned over deterioration of a great company. Earlier today, WSJ reported one of AIG's most-profitable units, an airplane-leasing giant run by one of the insurer's largest shareholders, is considering a split from the company as concerns mount that it will be weakened by its parent's financial woes. S&P maintained hold.
Clear Channel Communications (CCU) is up 2.80 to 32.80 after WSJ.com reports Thomas H. Lee and Bain Capital are "finally, imminently" nearing an agreement with six lenders over the buyout of CCU. The report says Thomas H. Lee and Bain are discussing a roughly $36 a share price with CCU's banks and, in return for the lower price, the sponsors agreed to take a higher interest rate, according to a person familiar with the deal.
Alcoa (AA) is up 2.22 to 41.26 after Citigroup raises estimates, maintains buy, and 50 price target.
FedEx (FDX) cuts $1.60-$1.80 fourth quarter EPS guidance to $1.45-$1.50. It cites fuel costs and a weak economy.
Cablevision Systems (CVC) and Tribune (TXA) agree to form a new partnership through which CVC will buy about 97% of Newsday Media Group in deal valued at $632 million.
Sprint Nextel (S) posts $0.18 first quarter loss per share, vs. $0.07 loss a year ago, on 7.5% revenue drop. It notes revenue and EPS drop due to lower contribution from Wireless. Sees continued downward pressure on adjusted OIBDA, post-paid gross additions, post-paid ARPU over next few quarters. S&P maintains hold.
AnnTaylor Stores (ANN) sees $0.45-$0.47 first quarter EPS, excluding previously announced restructure charge, vs. previous guidance range of $0.35-$0.40. Cites stronger results at AnnTaylor Loft stores, better overall expense, inventory management. Says based upon preliminary figures, net sales in first quarter increased 2%, comp sales declined 4.3%.
One of American International Group's (AIG) most-profitable units, an airplane-leasing giant run by one of the insurer's largest shareholders, is considering a split from the company as concerns mount that it will be weakened by its parent's financial woes: WSJ.
MBIA (MBI) posts $13.03 first quarter loss per share, vs. $1.46 EPS, on 43% drop in net premiums written. Notes $3.6 billion in unrealized losses on insured derivatives. Says it received subpoenas or informal inquiries from variety of regulators on variety of subjects, including disclosures made by the company to underwriters, issuers of certain bonds.
Hecla Mining (HL) posts $0.10, vs. $0.07, first quarter EPS on 16% sales drop. Current quarter EPS is below estimates.
Calpine (CPN) posts 18% higher first quarter adjusted EBITDA on 17% higher operating revenue.
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