Debt Issues Snag PHH Takeout
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.
: Shares of
PHH
(PHH)
-- a company that provides mortgage and vehicle fleet management services -- sunk on news its merger with
General Electric
(GE) - Get Report
hit a snag. One of the conditions of the merger calls for
Blackstone Group
(BX) - Get Report
affiliate Pearl Acquisition to buy the attendant mortgage business from GE, but due to debt financing issues Pearl is "not optimistic" that it will ultimately succeed in obtaining the necessary funding. PHH shares plunged $4.57 or 16% at $23.93.
Business Objects
( BOBJ) surged after
Le Figaro
reported over the weekend that the business-software company hired Goldman Sachs to explore a sale. The French newspaper report said there are five potential bidders for Business Objects, with
SAP
(SAP) - Get Report
seen as the most likely acquirer. Business Objects increased $2.62, or 6%, to $45 in recent trading.
:
ITT
(ITT) - Get Report
has inked a deal to acquire
EDO
( EDO) by purchasing all outstanding shares for $56 each in cash. The deal, including about $120 million of net debt and the anticipated conversion of convertible notes, values EDO at $1.7 billion. ITT shares were down 76 cents, or 1.2%, at $63.53 while EDO surged $3.39, or 6.6%, to $54.90.
Monsanto
(MON)
raised its full-year earnings outlook to $2 a share before one-time items. The company's most recent earnings-per-share projection called for $1.75 to $1.80. Shares gained 2.8% to $75.54.
: Morgan Stanley downgraded
Marsh & McLennan
(MMC) - Get Report
from equal weight to underweight and lowered its 2008 EPS estimates. The stock dropped $1.49, or 5.7%, to $24.69.
: JPMorgan upgraded
Advanced Micro Devices
(AMD) - Get Report
to neutral from underweight based on the release of a new server chip, and valuation. The firm said improved performance should help AMD gain back market share. AMD shares added 22 cents, or 1.7%, to $12.91.
: According to StreetInsider.com's 13D Tracker page, Carl Icahn and affiliated funds disclosed an 8.5% stake in
BEA Systems
( BEAS). The 33.4 million shares include underlying call options. StreetInsider reports that in the regulatory filing, "Icahn said he believes a sale of the company to a strategic acquirer will maximize the price of the shares. Icahn seeks talks with management to discuss possibilities of a deal. Icahn also said he may seek to nominate members for election to the board of directors. BEA Systems has long been a rumored buyout target." The company's stock is hugging the flatline at $13.25.
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