Markets & Finance

Elan Slips


Irish drugmaker Elan plans to file with the SEC a Form 12b-25 to extend to a July 15, 2003, filing date for its annual report due to current talks among Elan and the SEC regarding appropriate accounting treatment.

Circuit City (CC) rejected an $8 per share takeover offer by Carlos Slim Helu Group, which holds a 9.2% stake in the consumer electronics chain. S&P upgraded to hold from avoid. Lehman raised its target, but remains cautious.

ImClone Systems (IMCLE) received $3 million from Merck KGaA for the achievement of an Erbitux clinical-development milestone. Erbitux is a treatment for non-small cell lung cancer.

American Airlines parent AMR Corp. (AMR) reported positive cash flow from operations in May due to reduced costs and improved unit revenues; AMR says it would expect similar results in June if a favorable environment continues. CS First Boston upgraded to outperform. S&P upgraded to hold.

Nextel Communications (NXTL) says it's achieving improved customer satisfaction, is continuing to scale capital spending, and is on track to meet or exceed its 2003 guidance. S&P reiterates strong buy.

ConAgra Foods (CAG) posted 42 cents vs. 34 cents fourth-quarter earnings per share on a 34% net sales rise. It declined to give fiscal 2004 guidance.

Snap-On (SNA) expects a 5%-10% 2003 earnings increase, vs. the earlier 10%-15% growth estimate. The tools maker sees 36 cents to 40 cents second-quarter earnings per share, citing continued weak economic conditions.

The FTC cleared a transaction to combine Dreyer's Grand Ice Cream (DRYR) and Nestle Ice Cream Co. Dreyer's is acquiring Nestle's U.S. frozen dessert business for about 55 million Class B Dreyer shares of the newly formed Dryer's Grand Ice Cream Holdings.

Lehman Brothers (LEH) is in advanced talks to buy investment manager Neuberger Berman (NEU) for about $3 billion, in an effort to expand beyond the bond business, according to The Wall Street Journal.

Research In Motion (RIMM) posted an 11-cent first-quarter loss vs. a 14-cent loss (GAAP) on a 19% revenue rise. S&P reiterates avoid.

Walter Industries (WLT) sees 14 cents to 16 cents second-quarter earnings per share, below the previous 27 cents to 32 cents guidance, citing reduced production at two of Jim Walter Resources' coal mines. Walter lowered the 2003 earnings per share guidance to $1.50-$1.65.

Avista (AVA) says a FERC judge denied a request to resolve an investigation of Avista, and reinstated a procedural schedule that calls for further testimony and hearings in the case that Avista is accused of improper trading strategies.

Kana Software (KANA) sees a 40-cent to 45-cent second-quarter loss on $11 million to $12 million revenue.

Symbol Technology (SBL) now expects to file a 2002 10K report in the second-half of July, vs. the previous goal of June 30. Symbol now sees a restatement impacting 12% of the total revenue previously recorded for 1999 and 2000. S&P reiterates avoid.

Williams Companies (WMB) and Energy Partners (ENP) mutually agreed to terminate an agreement for the sale of certain Williams assets to Energy Partners.

BP (BP) plans to reduce by nearly $1 billion the amount it will pay to buy a 50% stake in a joint venture with Russian oil producer TNK International, a revised deal would value BP's investment at about $5.75 billion, according to The Wall Street Journal.

Panera Bread (PNRA) posted 3% higher total system same-store sales for the four weeks ending June 14.

Biovail (BVF) says the FDA issued an approvable letter for its antidepressant Wellbutrin. Approval is expected in the second half of the year.


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