Markets & Finance

Legg Mason Gains on Acquisition News


Legg Mason (LM) shares gained Friday on news the company is to acquire Citigroup's (C) asset management operations in exchange for Legg Mason's privte client and brokerage business, in a deal valued at $3.7 billion. S&P reiterates its buy opinion on Legg Mason.

Shares of medical device maker Guidant Corp. (GDT) were sharply lower after the company voluntarily advised physicians they should discontinue implants of certain devices pending further notice: Contak Renewal 3 and 4, Renewal 3 and 4 AVT, and Renewal RF. The FDA may classify this action as a recall.

A.O. Smith (AOS) shares were lower after the company cuts $1.45 to $1.65 2005 earnings per share guidance range to $1.25 to $1.45. The electric motor manufacturer sees 15 cents to 20 cents second-quarter earnings per share. It cites falling shipments in the water heater industry.

Heart device company Abiomed, Inc. (ABMD) says the Circulatory System Devices Panel of FDA requested additional information on Abiomed's AbioCor total artificial heart.

Chipmaker Micron Technologies (MU) posted a 20-cent third-quarter loss, vs. 13 cents earnings per share on a 5.6% sales decline. The company says ASP for memory products decreased about 30% vs. year ago.

Tektronix Inc. (TEK) posted 25 cents, vs. 31 cents fourth-quarter earnings per share from continuing operations despite 1.2% sales rise. The company sees 20 cents to 26 cents first-quarter earnings per share from continuing operations on $230 million to $240 million in sales.

Software company Cognos Inc. (COGN) posted 25 cents, vs. 22 cents first-quarter earnings per share on a 15% revenue rise. The company sees 28 cents to 31 cents second-quarter earnings per share on $207 million to $215 million in revenue, and $1.52 to $1.58 fiscal 2006 earnings per share on $915 million to $930 million in reveue. Results and guidance are lower than the Street view. S&P keeps a strong buy.

Inkine Pharmaceutical (INKP) agrees to be acquired by Salix Pharmaceutical (SLXP) in a stock deal valued at about $190 million, or $3.55 per Inkine share.

Maverick Tube (MVK) sees lower-than-expected 58 cents to 62 cents second-quarter earnings per share, excluding any impact from the previously announced sale of its industrial HSS (hollow structural sections) business. The company sees weakness in industrial products.

Eon Labs (ELAB) receives final approval for Bupropion HCl, ER 200mg tablets, the generic equivalent of Wellbutrin SR 200mg tablets. The company will begin shipping immediately.

Gilead Sciences (GILD) seeks to terminate its 1996 Development and License Agreement with F. Hoffmann-La Roche for Tamiflu, an antiviral pill for treatment and prevention of influenza. The termination could result in rights to Tamiflu held by Roche reverting to Gilead.

Telecommunications circuit manufacturer PMC-Sierra Inc. (PMCS) sees second-quarter revenue in the high end of its $70 million to $72 million guidance range. The company sees book-to-bill ratio over 1.1. It will eliminate 63 positions in addition to 26 previously reported and expects restructuring to save ongoing $10 million to $12 million per year.

Alcoa Inc. (AA) to record second-quarter after-tax profit of $219 million on the sale of its shares in Norwegian metals company Elkem. The company sees $100 million to $120 million in net tax benefit and after-tax charges of $220 million to $250 million as part of a plan to streamline operations.

Tibco Software (TIBX) posted 10 cents, vs. 5 cents second-quarter earnings per share (GAAP) on a 25% revenue rise.

Omnivision Technologies (OVTI) posted 30 cents, vs. 34 cents earnings per share despite a 3.3% revenue rise. The company sees $90 million to $100 million in first-quarter revenue and 22 cents to 27 cents earnings per share.

A.G. Edwards (AGE) says its poison pill will expire by its own terms on June 25. It has determined not to renew the plan, but reserved the right to adopt a stockholder rights plan without prior stockholder approval.

Medtronic (MDT) raises its quarterly dividend 15%.


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