Movers: Advanced Medical Optics, Alcoa, Citigroup, Morgan Stanley

Stocks in the news Monday

From Standard & Poor's Equity Research

Abbott Laboratories (ABT) agrees to acquire Advanced Medical Optics (EYE) for $22 cash per share, for total deal value of approximately $2.8 billion, including estimated net debt at time of closing. ABT confirms 2008 EPS guidance of $3.31-$3.33, excluding specified items. Sets 2009 EPS guidance at $3.65-$3.70 on GAAP, non-GAAP bases.

Alcoa (AA) - Deutsche Bank reportedly downgrades AA to sell from hold. AA set to release fourth quarter earnings after today's close.

Citigroup (C) - WSJ reports that Robert Rubin, the former Treasury Secretary who has been sharply criticized over his role in the financial turmoil at Citigroup Inc. (C), plans to leave the bank and has submitted a letter of resignation, according to a person familiar with the situation. Rubin is senior counselor and a director. Separately, WSJ said Citi is in talks to sell its Smith Barney brokerage and asset-management unit, according to people familiar with the situation. S&P maintains hold.

Morgan Stanley (MS) and Citigroup are in focus on various media reports stating that the two companies are in talks to merge their brokerage units, which would create the largest retail brokerage in the world.

Satyam Computer Services Limited (SAY) announces India's Ministry of Corporate Affairs has appointed 3 members to a newly formed board of directors of the company. SAY had announced late Fri. it had received a notification from the Company Law Board, Government of India, that it intended to appoint 10 nominees as directors of SAY to replace the current board. Shares rallied in India, but ADSs have yet to trade following the company's announcement last week that it had overstated cash balances by more than $1 billion.

Harley-Davidson (HOG) - RBC Capital cuts target price on HOG. Goldman reportedly downgrades to sell from neutral. Friday, HOG announced president of its Harley-Davidson Financial Services (HDFS) unit resigned.

Landry's Restaurants (LNY) terminates previously announced going private transaction due to unusual circumstances with Jefferies Funding LLC, Jefferies & Co. Inc., Jefferies Finance LLC and Wells Fargo Foothill and the Securities and Exchange Commission and is pursuing the alternative financing as set forth under a commitment from the lead lenders to refinance its existing approximately $400 million in senior notes.

Aladdin Knowledge Systems (ALDN) agrees to be acquired by an investor group lead by Vector Capital in a transaction valued at approximately $160 million, or $11.50 per share cash.

Rio Tinto PLC (RTP) postponed a $2.15 billion expansion of the Corumba iron-ore mine in Brazil because of a decline in demand for the ingredient used to make steel.

Hologic (HOLX) sees first quarter fiscal year 2009 revenues 3% below previously issued guidance, however, it expects first quarter non-GAAP adjusted EPS to meet or exceed initial expectations, be in a range of $0.30-$0.31, due to number of cost reduction initiatives it implemented in the first quarter. Notes its prior guidance for non-GAAP adjusted EPS was $0.29-$0.30.

Calamos Asset Management (CLMS) reduces its staff by about 12%, or more than 40 positions across the company.

Wipro Ltd. (WIT) says that in connection with revised disclosure policies, it, World Bank are disclosing that in June 2007 World Bank determined WIT to be ineligible to contest direct contracts from the World Bank for 20'07-2011. Notes to date, WIT's revenue from World Bank is insignificant. Says its inability to get future business from World Bank will not adversely affect its business and results of operations.

Medtronic (MDT) agrees to acquire privately held Ablation Frontiers for initial payment of $225 million plus potential additional payments contingent upon achievement of certain clinical milestones.

Simcere Pharmaceutical Group (SCR) sees 2008 net income about 10% below previously stated range of RMB 390 million-RMB 400 million. Says demand for drugs not covered by China's national, and some provincial, medical insurance declined in fourth quarter as macro economic conditions impacted the ability of self-pay patients to afford such treatments. Also notes its interest income, forex gain declined materially compared to previous quarters.