Markets & Finance

MBNA Gains on Acquisition News


Bank Of America (BAC) agrees to acquire MBNA (KRB) in a deal valued at $35 billion, or $27.50 per share. Terms of the agreement give MBNA shareholders get 0.5009 Bank of America share and $4.125 cash per share. Bank of America sees annual cost savings of $850 million and a restructuring charge of $1.25 billion.

3M (MMM) says Robert Morrison has been named interim chairman and CEO, effective immediately, replacing W. James McNerney, Jr. Mr. McNerney has accepted top job at Boeing (BA).

Morgan Stanley's (MWD) board is expected to meet to elect John Mack as CEO, according to the Wall Street Journal.

Research In Motion (RIMM) posted 67 cents, vs. 28 cents first-quarter earnings per share (GAAP) on a 68% revenue rise. The company sees 57 cents to 63 cents second-quarter earnings per share (GAAP) on revenue of $465 million to $490 million, and 62 cents to 68 cents third-quarter earnings per share on revenue of $525 million to $550 million.

Merck & Co. (MRK) says the FDA has accepted for a review of its Biologics License Applications for two investigational vaccines, Rotateq (rotavirus vaccine, live, oral, and pentavalent) and Zostavax (herpes zoster vaccine, live).

Constellation Brands (STZ) posted 32 cents, vs. 22 cents first-quarter earnings per share (reported) on an 18% revenue rise. The company sees 35 cents to 37 cents second-quarter earnings per share and $1.46 to $1.52 fiscal 2006 earnings per share.

Conagra Foods (CAG) posted 20 cents, vs. 32 cents fourth-quarter earnings per share on a 3.6% sales decline.

BMC Software (BMC) posted 7 cents, vs. 16 cents fourth-quarter earnings per share on a 16% license revenue decline and a slight total revenue decline. The company sees fiscal 2006 non-GAAP earnings per share of 86 cents to 92 cents on revenue of $1.48 billion to $1.5 billion.

Merix Corp. (MERX) posted a 9-cent fourth-quarter loss (GAAP), vs. an 8-cent loss as higher operating costs offset a 16% sales rise. The company sets a restructuring plan, including workforce reduction. It sees a 5-cent to 6-cent first-quarter loss (non-GAAP) on $51 million to $52 million in sales.

PalmSource (PSRC) posted $1.15 fourth-quarter earnings per share (GAAP), vs. a 23-cent loss as extraordinary gains offset a 2.3% revenue decline. The company posted a 4-cent non-GAAP loss. It sees a first-quarter GAAP loss of 23 cents to 26 cents on revenue of $14.3 million to $14.8 million.

Brookstone (BKST) says same-store sales for the eight weeks ended June 25 declined 11% and total sales fell 6.5%. It now expects a 20-cents to 22-cent second-quarter loss on 10% to 11% same-store sales decline. It plans to sell Gardeners Eden operations.

Musculoskeletal medical products maker Biomet (BMET) posted 41 cents, vs. 31 cents fourth-quarter earnings per share on a 13% sales rise. The company remains comfortable with a range of analysts' first-quarter earnings per share estimate of 39 cents to 41 cents.

American Greetings (AM) posted 35 cents, vs. 4 cents first-quarter earnings per share on a 2.2% sales rise and lower selling, general, and administrative costs. The company raises $1.46 to $1.51 fiscal 2006 earnings per share estimate to $1.52 to $1.57.

3Com (COMS) posted a 15-cent fourth-quarter loss, vs. a 5-cent loss on a 4% revenue decline. The company sees first-quarter revenue of $170 million to $175 million.

Digital systems maker Harmonic (HLIT) sees lower-than-expected $56 million to $60 million second-quarter sales due to a result of slower orders of digital headend systems in May and June from domestic cable operators. It expects to incur a second-quarter loss on both GAAP and non-GAAP basis.


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