Seagate to Buy Maxtor

Google to buy $1 billion stake in AOL; Tyco to sell units to Apollo Management; plus more stocks in the news Wednesday

Maxtor (MXO ) agreed to be acquired by Seagate Technology (STX ) in $1.9 billion deal, at 0.37 Seagate shares for each Maxtor share. Seagate shareholders will own 84% of the new company, while Maxtor shareholders will own 16%. co., MXO shareholders will own 16%. S&P raised Maxtor to strong buy from hold.

Time Warner (TWX )'s America Online and Google (GOOG ) announced an expansion to their current alliance in a deal whereby Google will purchase 5% of AOL for $1 billion.

Tyco (TYC ) reached a definitive agreement to sell its Plastics, Adhesives, and Ludlow Coated Products businesses to an affiliate of the private investment firm Apollo Management, L.P. for $975 million in cash.

Inamed (IMDC ) agreed to be acquired by Allergan (AGN ), at either $84 cash or 0.8498 Allergan share per Inamed share. Inamed terminated its deal with Ipsen Ltd., pursuant to which Ipsen will take back rights to the botulinum toxin product Reloxin.

Electronic Arts (ERTS ) expects third quarter and fourth quarter revenue and earnings per share (EPS) to be well below guidance provided by the company on Nov. 1, as well as below current consensus estimates. It cites unanticipated market declines in both North America and Europe.

Nike (NKE ) posted $1.14 vs. 97 cents second quarter EPS on a 10% revenue rise. It reports worldwide futures orders totaled $5.2 billion, 2.5% higher than a year ago; but says changes in forex significantly reduced this growth relative to recent quarters.

Jabil Circuit (JBL ) posted 37 cents vs. 27 cents first quarter EPS (GAAP) on a 31% revenue rise. It sees second quarter revenue of $2.1 billion to $2.3 billion, and GAAP EPS of 30 cents to 34 cents.

Warnaco Group (WRNC ) is to acquire 100% of shares of companies that operate licenses, related wholesale, and retail businesses of Calvin Klein jeans, as well as accessories in the Europe, Asia, and CK Calvin Klein "bridge" line in Europe from Fingen SPA for $286 million.

All of the views expressed in this research report accurately reflect the research analyst's personal views regarding any and all of the subject securities or issuers. No part of analyst compensation was, is or will be, directly or indirectly related to the specific recommendations or views expressed in this research report.
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