Is China Interested in Seagate?

Editor's Note: In this feature from Stockpickr, we highlight lists of stocks that have been upgraded by analysts or are experiencing activist situations or some other market moving events.

Rumors of the Day: According to reports this weekend in The New York Times, a Chinese technology firm has expressed interest in acquiring a U.S. disk-drive maker. The CEO of Seagate Technology(STX) disclosed the unnamed firm's overtures, which sparked national security concerns among U.S. government officials. Seagate shares gained 4 cents at $25.

According to various media reports, Home Depot(HD) will accept $1.8 billion less from a group of private equity firms to acquire its wholesale distribution business, as the recent credit squeeze and building industry slowdown nearly killed the deal. The revised deal calls for Home Depot to receive $8.5 billion, vs. $10.3 billion, the original price. Home Depot will also be guaranteeing $1 billion of the debt for the buyers. The stock jumped 71 cents to $35.39.

Today's Hot List: The Food and Drug Administration denied approval to IDM Pharma(IDMI) for a drug treating nonmetastatic osteosarcoma, a rare and often fatal bone tumor that typically affects children and young adults. The FDA has requested data from additional clinical trials for mifamurtide, formerly known as Junovan, to demonstrate benefits. Additionally, the FDA has requested information or clarification with respect to other sections of the new drug application. Shares plunged 35 cents, or 17.3%, to $1.67.

Acer has entered into a definitive agreement to acquire Gateway (GTW). Gateway is the fourth largest PC company in the U.S. Under the terms of the agreement, Acer will commence a cash tender offer to purchase all the outstanding shares of Gateway for $1.90 per share, which represents total equity value consideration of approximately $710 million. Shares of Gateway closed at $1.21 on Friday. Shares rocketed 59 cents, or 48.8%, to $1.80 Monday.

Analyst Downgrades: Merrill Lynch downgraded Safeway(SWY) to sell from neutral. The firm said the supermarket could underperform through 2008, especially in its California stores. Shares fell 93 cents to $32.01.

Analyst Upgrades: Bernstein upgraded Amazon.com(AMZN) to outperform from market perform. The firm, which gives the stock a $95 price target, said Amazon's platform in Europe and Japan should continue to drive top-line growth, while cost-cutting could help boost margins. Shares are better by 37 cents at $79.62.

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