Markets & Finance

Spinnaker Agrees to Buyout


Spinnaker Exploration (SKE) agreed to be acquired by affiliates of Norsk Hydro (NHY) in a $2.6 billion deal, at $65.50 cash per Spinnaker share.

TBC (TBCC) agreed to be acquired by Sumitomo Corp. of America in a $1.1 billion deal, at $35 cash per TBC share.

The U.K.'s The Business newspaper reported that Tesco has sent a team to the U.S. to consider bidding for Albertson's (ABS).

Cisco Systems (CSCO) said in its 10-K financial filing that compensation charges from its adoption of accounting rules could reduce its fiscal year 2006 earnings per share by 12 cents to 14 cents.

NIKE (NKE) posted $1.61 vs. $1.21 first quarter earnings per share on a 8.4% revenue rise. The company said worldwide futures orders for its athletic footwear and apparel scheduled for delivery from September 2005 to January 2006 were up 11% from a year ago.

Industrial Services of America (IDSA) said that Home Depot (HD) has notified the services company that it has allowed its management contract with Industrial Services to expire. For the first two quarters of 2005, the Home Depot contract accounted for 3.4% of Industrial Service's net income, or 59% of total gross revenues.

Guess (GES) and Fossil terminated their negotiations for a global license deal for Fossil (FOSL) to produce and distribute Guess watches. Guess and Fossil were unable to reach a deal regarding certain material terms.

Due to information technology infrastructure upgrades, Overstock.com (OSTK) says it was unable to post fresh inventory, which slowed its sales "sharply" and caused inefficiencies that added to gross margin pressure in the third quarter. Legg Mason reportedly cut the company to hold.

Russell (RML) cut its third quarter earnings per share estimate to between 50 cents and 60 cents, its 2005 estimate to between $1.25 and $1.35 (does not include the direct negative impact of 16 cents to 20 cents from Hurricane Katrina for 2005). The company cited ongoing operational issues, Katrina, and the delay of full implementation of CAFTA.

Integrity Financial (IFCB) agreed to be acquired by FNB (FNB) in a $123.9 million deal, at 0.8743 per FNB share, or $5.20 cash for each Integrity Financial share. The combination will create a $1.8 billion new bank holding company.

Hartford Financial Services (HIG) received a subpoena from the New York attorney general's office, relating to the purchases of, or exchanges into its variable annuity products by New York residents during the past five years.

Trident Microsystems (TRID) said in its 8-K that some of its past financial statements should no longer be relied on because a past gain was underreported.

PXRE Group (PXT) estimated that the net impact from Hurricane Katrina will be in the $235 million to $300 million range, after tax and reinsurance recoveries; the company now expects to report a net loss of $85 million to $165 million in 2005, assuming no additional material catastrophes occur.

Steelcase (SCS) posted 9 cents vs. 5 cents second quarter earnings per share on a 8% revenue rise. The company noted second quarter revenue that was lower than expected due to a higher than expected percentage of incoming orders for North America scheduled to ship in the third quarter. Steelcase sees 10 cents to 15 cents third quarter earnings per share a 8% to 12% revenue rise.

Viacell (VIAC) suspended its enrollment in a Phase I clinical trial of CB001. Viacell noted that of 8 patients who completed treatment in the study, two experienced Grade IV acute graft-vs-host-disease, a known potential side effect in transplantation.

Nalco Holding (NLC)sees $25 million in Katrina-related impacts in 2005. The company also said its European operations performed below expectations. Energy-related surcharge notices and price increases being issued to customers are not expected to fully offset expected shortfalls.

CapitalSource (CSE) approved a plan to elect to be taxed as a real estate investment trust for the year commencing Jan. 1 2006. The company estimated that it will pay dividends of about $2.15 per share in 2006, and $2.90 in 2007.

Centennial Communications (CYCL) said it has engaged Lehman Brothers and Evercore Partners as financial advisors to assist it in evaluating a range of possible strategic and financial alternatives.

RightNow Technologies (RNOW) said that drugstore.com has deployed RightNow's voice and customer self-service solutions to support its multiple websites. JMP Securities reportedly upgraded the stock to strong buy from market outperform.

Centex (CTX) announced the sale of Fairclough Homes, its U.K. home building operations, to The Miller Group. Although terms were not disclosed, Centex estimated that the net proceeds of the sale, after projected foreign and domestic taxes, will be about $290 million.

Apollo Group (APOL) said it sees 72 cents fourth quarter earnings per share on $635 million to $640 million revenue (outlook excluding stock option expensing and impact from Katrina).

Blockbuster (BBI) shares fell after the Wall Street Journal reported that the company is facing new pressures as signs increase that a sharp decline in the video-rental market is putting a strain on the company's finances.


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