Markets & Finance

Pfizer Shares Skid in Pharmacia Deal


Armor Holding (AH) lowered its Q2 EPS guidance to $0.16, vs. previous $0.28 guidance, citing underperformance of its ArmorGroup Services Division. Separately, Armor retained Merrill to sell its ArmorGroup Services Division.

Ballard Power (BLDP) has nearly a $1.6B market cap on a projected 2002 loss of $1.53; sales of $82M, which can be reached only on significantly stronger second half sales; and just $360M in cash, which is dwindling fast: Barron's. HC Wainwright reiterates sell.

Goldman and Morgan Stanley downgraded Duke Energy (DUK). On Friday the company received subpoenas from regulators regarding its trading activities.

Pharmacia (PHA) is trading higher after agreeing to be acquired by Pfizer (PFE) in a $60 billion deal. Terms: 1.4 Pfizer shares for each Pharmacia share. Pharmacia will proceed with its planned spin-off of its remaining 84% ownership of Monsanto. Pfizer shares are off in afternoon trading; Merrill says it sees "very little overlap" in the deal. Separately, Pfizer posted $0.33 vs. $0.29 Q2 EPS from continuing operations on a 5.4% revenue rise, and refined its 2002 EPS from continuing operations guidance to $1.58.

Seven ImClone System ( IMCL) bigwigs sold millions in stock in the weeks following a meeting last Dec. 4, at which an FDA official tipped off an ImClone vice president that its cancer drug, Erbitux, might not be approved, according to an article in the New York Post.

El Paso Corp. (EP) received a subpoena for the production of documents from the Houston office of the U.S. Attorney regarding "round-trip" or "wash" trades of natural gas.

Coca-Cola (KO) will expense the cost of all stock options it grants, beginning with options to be granted in Q4 2002. If options in 2002 are granted at a similar level to 2001, the impact would be about $0.01 per share for 2002.

Krispy Kreme (KKD) will be added to S&P MidCap 400 after close of trading on a date to be announced, replacing North Fork Banc (NFB).

FleetBoston (FBF) posted $0.60 vs. $0.67 Q2 EPS from operations, citing a poor operating environment in Argentina, and $70 million in additional writedowns. FleetBoston will wind down investment banking operations of Robertson Stephens.

Salomon SB reportedly downgraded PeopleSoft (PSFT) to neutral from outperform.

CS First Boston upgraded Cablevision (CVC) to buy from hold.

Invision Technology (INVN) sees Q2 EPS of at least $0.48, significantly ahead of previous guidance, on revenues nearly double Q1 levels, citing continued effective operating leverage.


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