Markets & Finance

Horizon Organic Rises on Dean Foods Deal


Dean Foods (DF) will acquire the remaining 87% of organic dairy-products manufacturer Horizon Organic (HCOW) it does not already own in a $216 million deal. Terms: $24 cash per Horizon share, plus debt. AG Edwards downgraded Horizon to sell, from hold.

Corixa (CRXA) said the FDA approved Bexxar, which was developed by Corixa and GlaxoSmithKline for the treatment of CD20 positive, follicular, non-Hodgkin's lymphoma.

Sina (SINA), a web portail aimed at Chinese users, raised the fiscal 203 earnings per share (GAAP) guidance to 13 cents to 15 cents, and upped the revenue guidance to $24 million to $25 million.

J.P. Morgan downgraded grocer and food distributor Supervalu (SVU) to neutral from outperform.

InterMune (ITMN) CEO Scott Harkonen, M.D., resigned. William Ringo was appointed as CEO. Separately, Wachovia upgraded the stock to outperform from market perform, citing the potential for Intermune's Actimmune drug for the treatment of pulmonary fibrosis.

International Game Technology (IGT) agreed to acquire Acres Gaming for about $130 million. Terms: $11.50 per Acres Gaming share in cash. IGT sees the deal being neutral to slightly accretive to full-year earnings.

Roth Capital upgraded Checkers Drive-In Restaurants (CHKR) to buy from neutral.

Lockheed Martin (LMT) reportedly won a $77.9 million contract modification for the multi-year purchase of 40 U.S. Air Force CC-130J and 20 U.S. Marine Corps KC-130J aircraft.

Boeing (BA) confirmed All Nippon Airways has finalized its agreement to purchase 45 Boeing 737-700 airplanes. All Nippon will take delivery of its new 737s starting in 2005.

Citigroup upgraded chipmaker Intel (INTC) to outperform from in-line. Citigroup also downgraded National Semiconductor (NSM) to in-line from outperform.

Seagate Technology (STX) raised the quarterly dividend by 33%. It sees $1.53 billion to $1.56 billion fourth-quarter revenue, and 30 cents to 33 cents earnings per share. Seagate anticipates its investment in property and equipment to increase to about $700 million in fiscal 2004. Late Friday the company said it filed a registration statement with the Securities and Exchange Commission for the sale of 60 million shares held by its parent company new SAC.

Information Resources (IRIC) agreed to be acquired by a newly formed corporation owned by Symphony Technology II-A, L.P. Terms: $3.30 cash per Information Resources share, plus the right to a portion of potential lawsuit proceeds.

RealNetworks (RNWK) will be providing Vodafone with technology to enable audio and video offerings, according to The Wall Street Journal. RealNetworks' Helix software will be licensed for an undisclosed sum. S&P reiterates avoid.

BB&T Capital reportedly upgraded Atlantic Coast Airlines (ACAI) to strong buy from buy.

Nexmed (NEXM) presented positive Phase III results for its Alprox-TD at the second International Consultation on Erectile and Sexual Dysfunction.

Vical (VICL) won a three-year, $5.7 million grant from the National Institute of Allergy and Infectious Diseases, a division of the of National Institutes of Health, to partially fund the development of its non-viral DNA vaccine against anthrax.

Indevus Pharmaceuticals (IDEV) says the FDA accepted for review its new-drug application for trospium, for the treatment of an overactive bladder.

Electronic Data Systems (EDS) expects to receive $98 million due from MCI in respect of pre-bankruptcy receivables from that client later this year. As result of the delayed payment, EDS expects second-quarter free-cash flow to be less than the previous $75 million to $125 million guidance.

Cendant (CD) plans to begin paying an initial 7-cent cash dividend in the first quarter of 2004. Separately, the company expects to meet or exceed previous 35-cents second-quarter earnings guidance.

Metro-Goldwyn-Mayer (MGM) agreed to sell its stakes in a group of cable networks to Cablevision (CVC) for $500 million to improve its financial position as it competes to buy the U.S. entertainment assets of Vivendi Universal.

Neuberger Berman (NEU) confirmed that it is in preliminary talks concerning a possible business combination.

Construction contractor Ashland (ASH) will sell the net assets of its electronic chemical business and certain related subsidiaries to Air Products in a transaction valued at roughly $300 million before tax. Ashland will use the proceeds to reduce debt.

Unova (UNA) settled a patent dispute with Fujitsu and Fujitsu PC Corp., regarding Unova's smart battery-management technology. The terms are confidential.

Toy-maker Mattel (MAT) announced a multi-year worldwide licensing agreement with Screenlife to manufacture, distribute, and market the first DVD-based board game, Scene It?. The deal gives Mattel exclusive rights to Scene It?.

PetSmart (PETM) initiated a 2-cents quarterly dividend and plans to pay regular quarterly dividends going forward.

Graco (GGG) will be added to the S&P MidCap 400 Index after the close of trading on July 1, replacing First Virginia Banks, which is being acquired.

Odyssey Healthcare (ODSY) will be added to the S&P SmallCap 600 Index after the close of trading on July 1, replacing Graco.


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