Markets & Finance

Barrick Gold to Buy Placer Dome


Barrick Gold (ABX) said it will offer to acquire all outstanding shares of Placer Dome (PDG) in a deal valued at about $9.2 billion, at $20.50 in cash or 0.7518 of Barrick Gold shares plus 5 cents per share cash per Placer share.

Novartis (NVS) agreed to acquire all Chiron( CHIR) shares it does not already own for $45.00 per share cash, or a total of about $5.1 billion.

Cumulus Media (CMLS) formed Cumulus Media Partners with private-capital partners to acquire the radio broadcasting business of Susquehanna Pfaltzgraff (SUSQ) for about $1.2 billion in a transaction expected to be completed in the second half of 2006.

Comcast (CMCSA) and Susquehanna Pfaltzgraff (SUSQ) agreed to sell Susquehanna Communications (SusCom), to Comcast, which already owns 30% of SusCom, for $775 million in a transaction expected to close in the second half of 2006 after regulatory approvals.

Saks (SKS) agreed to sell its Northern Department Store Group to Bon-Ton Stores (BONT) for $1.1 billion cash plus the assumption of about $85 million of liabilities, including about $35 million in capitalized leases. Northern Department Store Group consists of 142 stores located in twelve states. The deal is expected to close in the first quarter of 2006 and be immediately accretive to earnings.

Humana (HUM) posted 30 cents vs. 52 cents third quarter earnings per share as settlement charge and hurricane-related expenses offset a 19% revenue rise. It sees 2005 earnings per share of between $1.86 and $1.88, including items. It still sees earnings per share for 2006 of at least $2.70, including stock option expenses.

Brightpoint (CELL) sees $545 million third quarter revenue and 30 cents earnings per share from continuing operations. It sees predominately non-cash loss from discontinued operations of between 52 cents and 58 cents per share, which include a $13.8 million non-cash impairment charge to the value of goodwill and other intangibles.

Bristol-Myers Squibb (BMY) and Imclone Systems (IMCL) announced that the Food and Drug Administration accepted for filing a supplemental Biologics License Application (sBLA) for Erbitux in the treatment of Squamous Cell Carcinoma of Head & Neck. It grants it priority review.

Valero Energy (VLO) posted $4.37 vs. $1.57 third quarter earnings per share on a 62% revenue rise. It says the current $3.67 fourth quarter consensus earnings per share estimate was significantly too low. It estimates that in October alone it will earn around $2.30 per share.

Chicago Bridge & Iron (CBI) said its third quarter results are being delayed due to a memo from a senior member of its accounting department alleging accounting improprieties. It believes the magnitude of the claim recognition and cost to complete issues represents 9 cents to 11 cents per share in the third quarter.

Max Re Capital (MXRE) posted 92 cents third quarter loss vs. 22 cents loss despite 2.6% higher gross premiums written.

United Therapeutics (UTHR) posted 61 cents vs. 27 cents third quarter earnings per share on a 65% revenue rise.

Global Industries (GLBL) As a result of Hurricane Rita, the company delayed its third quarter earnings per share release, as well as the anticipated filing date for its quarterly report on Form 10-Q.

Dr. Reddy's Labs (RDY) posted 72% higher second quarter net profit on a 7% revenue rise.

Davita (DVA) posted 53 cents vs. 59 cents third quarter earnings per share as higher operating costs and higher debt expense offset a 14% revenue rise. It sees 2006 operating income of between $600 million and $700 million, before the impact of the accounting rule FASB No. 123R related to stock option expensing.

Hartmarx (HMX) set a 2 million share buyback.

Desarroladora (HXM) for 2006, expects volumes to grow 15%, an 18% to 20% revenue rise, and operating margin of about 23%. It expects to become free cash flow positive.

PMC-Sierra (PMCS) will acquire the storage semiconductor business of Agilent Technologies (A) for $425 million in cash.

Alliance Imaging (AIQ) R. Brian Hanson resigned as CFO to pursue other opportunities.

Ipsco (IPS) raised a quarterly cash dividend of 14%.

Cognizant (CTSH) posted 28 cents vs. 18 cents third quarter earnings per share on a 52% revenue rise. It sees at least $252 million fourth quarter revenues and 29 cents earnings per share. It also sees at least $881 million 2005 revenue and $1.03 earnings per share.

Inter Parfums (IPAR) said that due to the reassignment of certain sales from the third quarter to the fourth quarter, it now sees $75.5 million third quarter net sales and $207.9 million for the nine months ended September 30, 2005. It reaffirms guidance for 2005 sales of $274 million and 71 cents earnings per share.

Integra LifeSciences Holdings (IART) posted 33 cents third quarter earnings per share vs. 25 cents loss on a 17% revenue rise. It says it may incur significant costs over the remainder of the year in connection with employee severance, legal, and other items.

RTI International Metals (RTI) posted lower-than-expected 38 cents third quarter earnings per share vs. 10 cents loss on a 59% sales rise.

Arch Chemicals (ARJ) posted 28 cents vs. 7 cents third quarter earnings per share from continuing operations on a 14% sales rise.

Kellogg (K) posted 66 cents vs. 59 cents third quarter earnings per share on a 7.3% sales rise. It raised $2.30 to 2.33 2005 earnings per share guidance to between $2.32 and $2.34. It also sees $2.50 to $2.55 in 2006. It noted third quarter gross profit margin decreased and said it expects to significantly increase investment in 2006.


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