Markets & Finance

Dollar General Falls on Profit Warning


From Standard & Poor's Equity ResearchDollar General (DG

) expects second quarter EPS of 14 cents to 15 cents, which is below the company's previous guidance of 18 cents to 22 cents. It cites lower-than-expected gross margin.

Glenborough Realty Trust (GLB

) agrees to be acquired by funds managed by Morgan Stanley Real Estate in a deal valued at about $1.9 billion, at $26 per share cash.

Lowe's (LOW

) posts 60 cents vs. 52 cents second quarter earnings per share (EPS) on 3.3% higher same-store sales and 12% higher total sales. It sees third quarter EPS of 45 cents to 48 cents and fiscal year 2007 EPS of $2.00 to $2.07. It raises its current share buyback program by $2 billion through fiscal year 2008.

Pilgrim's Pride (PPC

) offers to acquire Gold Kist (GKIS

) in a deal valued at about $1 billion, plus assumption of $144 million in debt, at $20 cash per Gold Kist share. Gold Kist says it plans to carefully examine the proposal.

Freddie Mac (FRE

) says a proposed settlement is reached resolving the Employee Retirement Income Security Act (ERISA) class action litigation following the company's restatement of its 2000-2002 financial results, which include a payment of $4.65 million.

Citadel Broadcasting (CDL

) Citadel is agitating to renegotiate some terms of its $2.7 billion deal to buy most of Disney's radio assets, spurred by a 27% slide in its stock price because of poor performance by ABC radio, according to the Wall Street Journal.

Inter-Tel (INTL

) Steven Mihaylo, founder, former Chairman, CEO, and the largest shareholder of Inter-Tel, says he and Vector Capital Corp. are prepared to raise its bid for Inter-Tel to $23.25 per share in cash.

Iconix Brand Group (ICON

) announces the planned acquisition of the London Fog brand from London Fog Group Inc., subject to certain conditions, for $30.5 million in cash and $7 milion in Iconix Brand stock.

Safenet (SFNT

) says it received a letter from the Nasdaq Stock Market stating that the company might be delisted for failing to file its quarterly report for the period ended June 30. It plans to request a hearing on the matter.

Scottish Re Group (SCT

) Moody's downgrades the company's senior debt to Ba3 from Ba2. It cites liquidity concerns.


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