Midday Movers: Legato Systems, Nokia, American National Can and Charles Schwab

Settlement talks between the government and Microsoft (MSFT Quote) in the antitrust case against the software giant ended Saturday. Judge Richard Posner, the court-appointed mediator, in a statement said he ended his efforts to bring the government and Microsoft together. Judge Thomas Penfield Jackson already has issued findings of fact in the case that harshly criticized Microsoft. Jackson is expected to issue his verdict as early as this week.

CIBC World Markets sliced its rating on the stock to hold from buy, while SG Cowen reiterated its strong buy rating and 140 price target on the tech giant. Microsoft sank 14 1/2, or 12.6%, to 91 3/4.

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Anadarko Petroleum (APC Quote) fell 3 7/8, or 9.9%, to 34 13/16 after it said it is buying Union Pacific Resources (UPR Quote) for $4.4 billion in stock. Union Pacific Resources added 7/8, or 6%, to 15 3/8. Under terms of the deal, UPR shareholders will receive 0.4550 shares of Anadarko for each UPR share they own, or $17.60 a share in stock, a 21% premium to UPR's closing price of 14 1/2 on Friday. ...