Movers: Fannie Mae, Freddie Mac, Lehman, Waste Management, Anheuser-Busch, Yahoo
The Board of Governors of the Federal Reserve System announces it has granted the Federal Reserve Bank of New York the authority to lend to Freddie Mac (FRE) and Fannie Mae (FNM) should such lending prove necessary. S&P maintains strong sell on FRE and FNM.
Lehman Brothers (LEH) falls 1.15 to 13.28 after The Wall Street Journal, citing people familiar with the matter, reports that LEH is examining a handful of options, including a strategic alliance with a partner that it hopes will help restore investor confidence, an asset sale or possibly some sort of stock buyback. S&P maintains hold.
ATMI (ATMI) is down 4.51 to 22.81. It sees second quarter revenues down 3% vs. year ago, $0.30 EPS, which is below consensus. It cuts $400-$420 million full 2008 revenue guidance to $375-$400 million, $1.32-$1.48 EPS to $1.25-$1.40 due to delay in shipment of some SDS products, reduced sales into the memory sector, and slower-than-anticipated new product adoption. Separately, ATMI, PRAXAIR resolves matters that have been in litigation between the two companies since 2003, including those related to ATMI's VAC technology and PX's UpTime technology. No material settlement payments are being made by either party.
Waste Management (WMI) says it made a proposal to the board of Republic Services (RSG) to acquire all of RSG's outstanding common stock for $34.00 per share in cash. Notes the proposal represents a premium of about 22% over the closing price of RSG stock on July 11, the last trading day prior to public disclosure of WMI's proposal.
Anheuser-Busch Companies (BUD) says it has agreed to be acquired by InBev (INBVF.PK) for $52 billion, or $70 per share, in cash, with the combined company will be called Anheuser-Busch InBev. The deal, which is subject to shareholder approval, is expected to be completed by the end of the year.
Yahoo (YHOO) confirms it has rejected a joint proposal from Microsoft (MSFT) and Carl Icahn for a complex restructuring of YHOO that would include the acquisition of YHOO's search business by MSFT. S&P reiterates hold on YHOO.
G. Willi-Food International (WILC) expects second quarter revs to increase approximately 41% vs. same period a year ago. Also expects first half 2008 revenues to increase approximately 45% as compared to same period a year ago. Says increase in revs was primarily due to the consolidation of the financial results of Shamir Salads and the Danish dairy distributor division into the company's balance sheet.
Canadian Solar (CSIQ) forecasts a second quarter gross profit of $33-$35 million on revenue of $210-$214 million, including about $6 million of silicon and other sales. Sees $750-$870 million 2008 revenue.
Republic Airways Holdings (RJET) plans to reduce its workforce by approximately 500 employees or 10% of its current employment levels. Says action is in response to changing market conditions and expected reductions in its small jet contract flying.
Allegheny Technologies (ATI) expects second quarter EPS of $1.65-$1.67 (including $0.11 one-time net tax benefit). ATI had previously said that it expected second quarter EPS to be somewhat higher than $1.40 achieved in first quarter 2008.
Regency Energy Partners LP (RGNC) raises $220-$240 million 2008 adjusted EBITDA guidance to $255-$270 million.
United Capital (AFP) says its chairman, president and CEO, A.F. Petrocelli has proposed to acquire the company for $23 cash per share, a 17.7% premium over the average closing price of AFP's common stock for the last five trading days.