Stocks to Watch: Sabre Launches Hostile Bid for Travelocity

Updated from 10:59 a.m. EST

Sabre Holdings (TSG Quote) launched a hostile bid to acquire the shares of Travelocity.com (TVLY Quote) it doesn't already own. The move came after Travelocity decided that Sabre's $23-a-share offer was inadequate. Sabre owns about 70% of Travelocity, and will now take its offer directly to shareholders of the online travel services company.

Earnings Reports & Outlooks

Chico's FAS (CHS Quote) posted fourth-quarter earnings of 23 cents a share, 3 cents ahead of the estimate. Sales climbed 38.6% to $101.4 million. Same-store sales for company-owned stores increased 17.9% for the quarter.

CVS (CVS Quote) said same-store sales for the four weeks ended Feb. 23 rose 9.5%. Pharmacy same-store sales increased 11.6%, while front-end comparable sales climbed 5.7%. Total sales for the period rose 10% to $1.87 billion. Pharmacy sales represented 66.3% of the company's total sales in February.

Gart Sports (GRTS Quote) reported fourth-quarter earnings of 95 cents a share, excluding items, topping estimates by 5 cents. Sales for the quarter rose 36.4% to $316 million. For the coming fiscal year, the company expects earnings of about $1.85 a share, while the consensus estimate is $1.67.

Mylan Laboratories (MYL Quote) forecast earnings of $2.05 to $2.09 for fiscal 2003. According to First Call, analysts are expecting a profit of $2.08.

OfficeMax (OMX Quote) said sales for the fourth quarter, which had one less week than the year-earlier period, totaled $1.27 billion, compared with $1.42 billion a year ago. Same-store sales fell 3%. The company matched expectations by losing 12 cents a share, excluding items, in the quarter. Including charges and a reserve for deferred tax assets, the company lost $1.95.

Miscellaneous News

Cray Inc. (CRAY Quote) said Michael P. Haydock resigned as president and chief executive because of differences with the board of directors. James E. Rottsolk, formerly president and CEO, has reassumed the positions.

KB Home (KBH Quote) said preliminary orders for February rose 7.5% to 3,009 homes. For the year to date, the company's orders are up 0.7% to 6,453 homes. Last month, orders rose on the West Coast and in the central U.S., but orders in the southwestern part of the country were down.

PanAmSat (SPOT Quote) signed a new 10-year, multitransponder sales agreement with Television & Radio Broadcasting Services of Australia. The companies plan to launch a new direct-to-home television platform in the U.S. PanAmSat is 81%-owned by Hughes Electronics (GMH Quote), itself part of General Motors (GM Quote).