Markets & Finance

NRG Energy to Buy Texas Genco


NRG Energy (NRG) is to acquire Texas Genco in a $5.8 billion deal, consisting of $4 billion cash and $1.8 billion in common and preferred stock.

Dollar General (DG) set a 10 million share buyback.

A jury in the U.S. District Court awarded $51 million to Medtronic's (MDT) Navigation unit in its dispute with BrainLAB involving four patents related to image-guided surgical techniques and devices.

Delphi (DPH) confirmed that it did not make a voluntary repayment of portion of its outstanding borrowings so that it could continue to maintain additional liquidity as it continued working on its transformation strategy.

Orthofix International (OFIX) settled litigation with its Novamedix unit, Kinetic Concepts (KCI), which will pay Novamedix $75 million by September 30 2005 and give Novamedix the option to receive either the assignment of, or a license to, certain Kinetic Concepts foot pump patent rights.

Forest Oil (FST) estimated its liability, under its retention, for the repair of its facilities was damaged by hurricanes in the third quarter at $10 million.

Dynavax Technologies (DVAX) plans a public offering of 4 million common shares.

Optibase (OBAS) said it will sell its non-linear editing product line to Boris FX. Optibase and Boris FX will share revenues from any future sales of these products, as well as services of up to $2 million; Optibase will supply Boris FX with manufacturing services for Media 100 HD boards.

Beazer Homes (BZH) will be added to the S&P MidCap 400 after the close of trading on Oct. 3, replacing Lennar (LEN), which is being added to the S&P 500.

Lennar (LEN) is to be added to the S&P 500 after the close of trading on Oct. 3, replacing Gillette (G), which is being acquired. Separately, Lennar raised its annual dividend by 16%.

Prentiss Properties Trust(PP) agreed to be acquired by Brandywine Realty Trust (BDN) in $3.3 billion deal at $21.50 cash, or 0.69 per Brandywine share for each Prentiss share.

ConocoPhillips(COP) said its third quarter production on a barrel-of-oil equivalent basis, including Syncrude, is expected to be slightly lower than in the previous quarter.

On Friday, one of the largest shareholders of VNU, which plans to acquire IMS Health Incorporated (RX), said it did not support a proposed merger.

Lexar Media (LEXR) said that a California judge ruled he will let stand a jury's erdict that Toshiba (TOSBF.PK) must pay the company $465 million in a trade secrets case. JP Morgan upgraded the stock to overweight from underweight.

Syntroleum (SYNM) said that Lundin Petroleum announced its appraisal well Aje-3 in Block OML 113 reached its target depth, and the Aje-3 well will be plugged and abandoned. Lundin and Syntroleum are among participants in the Block OML 113 project.

School Specialty (SCHS) Received notice from LBW Holdings, purchaser of School Specialty under a May 31 deal, that lenders under a debt commitment letter in the merger deal have terminated the agreement. The company said its merger will not close as anticipated during this week.

Hoku Scientific (HOKU)said the US Navy has officially exercised its two options in the company's US Navy Polymer electrolyte membrane (PEM) fuel cell demonstration contract. The company noted that the total amount of options is $2.5 million in addition to $2.1 million already under contract.

Hollis-Eden Pharmaceuticals (HEPH)said the Department of Health and Human Services issued a Statement of Work for therapeutics to treat neutropenia associated with Acute Radiation Syndrome. Jefferies downgraded the stock to underperform from buy.

Aspen Insurance Holdings (AHL) widened its assessment of estimated losses from Hurricane Katrina and the New Orleans flood; the company now estimates its losses will likely be between $325 million and $400 million on an after-tax basis.

Cavalry Bancorp (CAVB) Agreed to be acquired by Pinnacle Financial Partner (PNFP) for $175.5 million. Cavalry shareholders will receive 0.95 Pinnacle shares for each share held.

Affiliated Computer Services (ACS) Announced that CEO Jeff Rich is leaving the company to pursue other business ventures. It says President and Chief Operating Officer Mark King is selected as CEO. Legg Mason is cautious on the senior management changes.

First Marblehead (FMD) In a Securities and Exchange Commission filing, says Bank of America had withdrawn as underwriter for a $1.68 billion bond deal. S&P tied the stock's weakness to investor concerns about potential client losses stemming from last week's resignation of the company's CEO.

Applied Digital (ADSX) VeriChip Corp., a unit of Applied Digital, said that during September, 49 new hospitals nationwide have agreed to adopt VeriMed System for patient identification.

Gasco Energy (GSX) said that estimated cumulative net production for the third quarter was 468.2 million cubic feet equivalent, an increase of 56% over second quarter 2005, 239% above the year-ago third quarter.

Hollis-Eden Pharmaceuticals (HEPH) said the Department of Health and Human Services issued a Statement of Work for therapeutics to treat neutropenia associated with Acute Radiation Syndrome. Jefferies downgraded the stock to underperform from buy.

Royal KPN(KPN) shares rose after the Wall Street Journal said that Telefonica (TEF) and KPN are preparing for talks as Telefonica eyes the purchase of its Dutch counterpart for about $24 billion.


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