Markets & Finance

Cendant Adds Galileo to Its Orbit


Galileo International (GLC) agreed to be acquired by Cendant Corp. (CD) in a deal valued at about $2.9 billion, or $33 per share.

Purina Mills (PMIL) agreed to be acquired by Land O' Lakes for $23 cash per share.

Barron's says although Capstone Turbine's (CPST) sales have risen, some hoped for more and predict competition in the alternative energy sector will heat up. S&P maintains buy.

West Marine (WMAR) sees better than expected $0.71-$0.73 Q2 EPS, citing improved gross margins, tight expense controls and a conservative sales plan.

A Delaware judge ruled that Tyson Foods (TSN) improperly broke off its $3.2B pact to acquire IBP Inc. (IBP), and recommended the acquisition be completed. S&P maintains hold. USB Piper downgraded to neutral from buy.

CS First Boston cut estimates and the price target on New Focus Inc. (NUFO).

CS First Boston downgraded Lucent Technologies (LU) to hold from buy. SG Cowen downgraded to neutral from buy.

Goldman cut estimates Metromedia (MFNX) on the belief that the company was exposed to macro weakness in the Internet Infrastructure services sector.

Ledger Capital (LEDG) agreed to be acquired by Anchor Bancorp Wisconsin Inc. (ABCW) in a deal valued at

$42.5M, which represents $16.26 per Ledger share.

SFBC International (SFC) announced it's stock will begin

trading on NASDAQ on June 19 under the "SFCC" symbol.

Dole Food Co. (DOL) sees $0.88-$0.93 Q2 EPS from operations. He notes continued growth in the packaged salad business, and improved

earnings in its banana and fresh pineapple operations.

Robinson Humphrey downgraded Tellabs Inc. (TLAB) to outperform from buy.

Kaufman Bros. downgraded Antec Corp. (ANTC) to hold from accumulate.

Robertson Stephens cut estimates on Nortel Networks (NT) after the company on Friday forecast a $0.48 Q2 loss per share from operations,

and a net loss including charges of $19.2B. Goldman also cut estimates.

Applied Innovation (AINN) sees $14M-$16M Q2 revenues compared to

$18.3M revenues for the same period in 2000, citing slower sales

due to a continued slowdown in capital spending throughout

the telecom industry. The company will cut its workforce by about 15%.

Charlotte Russe (CHIC) expects Q3 comps in the negative mid-single digit area and sees Q3 EPS at least equal to year ago, but less than expected. Robertson Stephens and CIBC World cut estimates.

Standard Microsystems (SMSC) posted a $0.10 Q1 loss from continuing operations vs. $0.14 EPS on 19% lower revenues.

Avert Inc. (AVRT) agreed to be acquired by Automatic

Data Processing (ADP) for $22 per share cash.

Wit SoundView downgraded Openwave System (OPWV) to hold from strong buy.

Lehman and Goldman cut estimates on Exodus Communications (EXDS).

Level 3 Communications (LVLT) says communications cash revenue

is expected to be $2.1B in 2001, $2.5B-$2.6B in 2002,

and $3.5B-$3.6B in 2003. The company cited an economic slowdown, and still sees Q2 results in line with projections. Merrill downgraded to near-term neutral. Salomon SB downgraded to neutral.

J.P. Morgan downgraded Dendrite (DRTE) to market underperform from market perform. Goldman cut estimates.

Lehman initiated coverage of Neurocrine Bioscience (NBIX) with strong buy and a $60 target.

Gene Therapeutic (GENE) recieved milestone payments from

Wyeth-Ayerst, a unit of American Home Products, for the completion of a major advancement in a genomics-based alliance to develop novel therapeutics for osteoporosis. Friedman Billings upgraded to accumulate from market perform.

CIBC World reiterates buy and raised the estimates and target on Ameristar Casino (ASCA).

Snap-On (SNA) sees $0.40 Q2 EPS from operations and about a 4% sales decline, citing margin compression, expenses, and foreign exchange.

AOL Time Warner (AOL) and Microsoft (MSFT) said talks related to Windows XP broke down. The collapse means AOL software won't be included directly in Microsoft's XP operating system: The Wall Street Journal.

Salomon SB upgraded Lam Research (LRCX) to buy from outperform.

CS First Boston reiterates buy on THQ Inc. (THQI) and raised the $50 target to $70.

Teva Pharmaceutical (TEVA) says the FDA awarded final approval for Lovastatin Tablets in 10, 20 and 40 milligrams. Lovastatin Tablets are the generic version of Merck's (MRK) anti-hyperchlesterolemic drug, Mevacor.

Alliant Techsystems (ATK) says it is considering filing with the SEC to offer up to 10% of its shares outstanding during Q2.

Lifepoint Hospital (LPNT) will be added to the S&P MidCap 400 after the close of trading Monday, replacing Westpoint Stevens.


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