Wednesday: Western Resources Drops ADT Bid

Compiled by John J. Edwards III
Staff Reporter

With the Dow Jones Industrial Average up more than 34% in the last 12 months, some strategists say a summer slowdown is almost inevitable. Others say the recent leveling-off is just storing up power for an assault on 8000 and beyond. But at least nobody's talking about irrational exub-- sorry, almost mentioned it. And now, your post-close intelligence:

Western Resources (WR Quote - Cramer on WR - Stock Picks) dropped its $3.5 billion hostile bid for electronic-security company ADT (ADT Quote - Cramer on ADT - Stock Picks), clearing the way for Tyco International (TYC Quote - Cramer on TYC - Stock Picks) to complete its $5.4 billion merger with ADT.

Overseas Shipholding Group (OSG Quote - Cramer on OSG - Stock Picks), co-owner of Celebrity Cruise Lines with privately held Chandris Group, said Royal Caribbean International (RCL Quote - Cramer on RCL - Stock Picks) increased its offer for Celebrity to $515 million from $500 million. Royal Caribbean boosted the cash portion of the deal to $245 million from $230 million. Rival Carnival (CCL Quote - Cramer on CCL - Stock Picks) has offered $510 million for Celebrity.

"Frosted Lucky Charms ¿ they're expensively delicious!" General Mills (GIS Quote - Cramer on GIS - Stock Picks) said it would boost its cereal prices by an average of 2.6% after cutting prices four times since 1993.

IBM (IBM Quote - Cramer on IBM - Stock Picks) is exercising its option to sell its 30% stake in automated teller maker InterBold to Diebold (DBD Quote - Cramer on DBD - Stock Picks), which owns the rest of the venture. The companies are assessing the value of the stake.

Speedfam International (SFAM Quote - Cramer on SFAM - Stock Picks) reported fourth-quarter earnings of 46 cents per share, matching the year-ago number and beating the four-analyst First Call consensus estimate of 37 cents.

Mylex (MYLX Quote - Cramer on MYLX - Stock Picks) said it expects to report a second-quarter loss of 5 cents to 8 cents per share, well under the five-analyst First Call expectation of a profit of 14 cents and the year-ago 21 cents.

Inso (INSO Quote - Cramer on INSO - Stock Picks) said it expects to report second-quarter earnings of less than 10 cents per share, missing by far the First Call three-analyst view of 36 cents. The company earned 29 cents a year ago.

Computer Network (CMNT Quote - Cramer on CMNT - Stock Picks) said it expects to report a second-quarter loss, citing delays in original-equipment-manufacturer pacts and soft international and new-product sales. The two-analyst First Call expectation was a profit of 5 cents per share, matching the year-ago number.

Republic Industries (RII:NYSE) unit National Car Rental is the subject of a racial-discrimination lawsuit filed by 10 Florida employees.

Price Enterprises (PREN Quote - Cramer on PREN - Stock Picks) said it plans to restructure and split into two companies, a merchandising outfit called PriceSmart and a real estate investment trust.

Dollar Tree Stores (DLTR Quote - Cramer on DLTR - Stock Picks) said its second-quarter sales rose to $129.3 million from $102.7 million a year earlier. The company also set a 3-for-2 stock split.

Eagle Point (EGPT Quote - Cramer on EGPT - Stock Picks) said it expects its fourth-quarter loss to exceed the two-analyst First Call view of a 1-cent-per-share shortfall. The company earned 8 cents a year ago.