From Standard & Poor's Equity ResearchHarrah's Entertainment (HET
) shares jump after the casino operator receives a proposal from Apollo Management and Texas Pacific Group to acquire the company for $81 per share in cash. S&P reiterates hold.
Boyd Gaming (BYD
) heads higher after Harrah's received a buyout proposal. Boyd inked a deal with Harrah's to exchange Barbary Coast Hotel and Casino for 24 acres of Las Vegas Strip property.
Gilead Sciences (GILD
) agrees to acquire Myogen (MYOG
) in a $2.5 billion deal. Terms: $52.50 for each Myogen share.
) cuts 2006 EPS guidance to $1.60-$1.70 from $1.80-$1.90, and expects second-half revenue growth to be in the 25%-30% range. The company announces the resignation of President Kevin Hassey, effective Oct. 6.
Citigroup downgrades Apple Computer (AAPL
) to hold from buy.
Wal-Mart Stores (WMT
) shares fell after the retailer says September same-store sales growth estimated at approximately 1.8%. S&P says comp sales were below its 2.2% growth estimate, but near the midpoint of Wal-Mart's prior 1%-3% guidance range.
Pacific Sunwear (PSUN
) names Sally Frame Kasaks as interim CEO following the resignation of Seth Johnson. The apparel retailer posts 2.4% lower September same-store sales and 4% higher total sales. The company remains comfortable with 22-30 cents (excluding a one-time charge) third-quarter forecast.
Optimal Group (OPMR
) fell after the U.S. Congress passed legislation to end Internet gaming in the U.S. The company says the enactment of the Unlawful Internet Gambling Enforcement Act of 2006 will have a significant negative impact on business and results of operations of FireOne Group, which the company has a 76% stake.
Boston Beer (SAM
) fell after Prudential downgrades to neutral from overweight.
Borg Warner (BWA
) acquires the European Transmission and Engine Controls product lines from Eaton Corp. for an undisclosed amount.
) cuts $240-$250 million third-quarter revenue guidance to $230-$232 million, 13-15 cents EPS to 11-13 cents, and 18-20 cents cash EPS to 16-18 cents. Credit Suisse downgrades to neutral from outperform.
) submits a New Drug Application with the FDA for its investigational estradiol drug, EvaMist, being developed for treatment of vasomotor symptoms associated with menopause.
Energy Partners (EPL
) lowers third-quarter production guidance to 25,000 to 26,000 Boe per day primarily as result of equipment delays and mechanical issues associated with production coming on line which have been resolved.
) says HIV-infected patients who failed antiretroviral therapy and were resistant to oral antiretroviral drugs maintained greater antiretroviral suppression after 24 weeks of therapy with MK-0518 vs. patients to received a placebo.