Movers: UBS, GM, Standard Pacific, Chemtura, Anheuser-Busch
UBS AG (UBS) shares dropped after the Wall Street Journal reported the Swiss bank warned it may have to record losses on non-U.S. real estate as it seeks nearly $16 billion from shareholders to repair a damaged balance sheet.
General Motors (GM) falls 0.40 to 17.20 after Citigroup downgrades to hold from buy. Friday, in an 8-k filing, GM said that the final UAW local union ratified a new labor agreement with American Axle (AXL) on May 22, 2008, ending a work stoppage that affected about 30 GM plants in North America. In the second quarter, GM said the AXL strike is expected to result in the loss of an additional 230,000 production units, which is estimated to have an earnings impact of about $1.8 billion.
The Blackstone Group (BX) and Apollo are reported to be discussing a possible deal to buy Chemtura (CEM), CNBC Business News said.
Standard Pacific (SPF) inks a deal with MatlinPatterson Global Advisers LLC, on behalf of its affiliated funds, under which MatlinPatterson is committed to invest more than $530 million in equity in SPF. MatlinPatterson will purchase about $381 million of a new series of senior convertible prefered stock representing 125 million common shares at a conversion price of $3.05 per share. MatlinPatterson will also exchange about $128.5 million of senior and subordinated debt for warrants to acquire preferred stock representing 89.4 million common shares at exercise price of $4.10 per share. S&P reiterates hold.
Belgian giant InBev (INBVF.PK) is weighing an unsolicited bid for Anheuser-Busch Companies (BUD), according to people familiar with the matter. Industry analysts say an offer likely would top $45 billion, making it the largest beer acquisition ever: WSJ. Deutsche Bank reportedly downgrades BUD to hold from buy.
Zymogenetics (ZGEN) announces that the FDA approved a Prior Approval Supplement application for a 20,000 international unit (IU) vial of RECOTHROM Thrombin, topical (Recombinant) and also approved co-packaging of the 20,000-IU vial with the ZymoGenetics Spray Applicator Kit.
Flotek Industries (FTK) cuts $1.50-$1.60 2008 EPS forecast to $1.12-$1.22, citing first quarter performance which is below management's estimates and other factors.
Pediatrix Medical Group (PDX) sees $0.77-$0.80 second quarter EPS if neonatal intensive care unit (NICU) patient volume (down approximately 2% through the first 6 weeks of the quarter) remains at current levels for the rest of the period. In addition, at this time, doesn't expect to meet its previously issued 2008 EPS guidance, as a result of lower NICU patient volume during 2008 to date. Sets $100 million stock buyback.
Louisiana-Pacific (LPX) says it has adopted a new stockholder rights plan. The plan is not intended to deter offers that are fair and otherwise in the best interest of the Company's stockholders.