Stocks to Watch Monday: American Electric Power, Nanophase, Trikon, Great Lakes Chemical
After the close of the markets Friday,
American Electric Power
(AEP) - Get Report
said it has completed its purchase of the stock of
Houston Pipe Line
, an intrastate natural gas pipeline subsidiary of
Enron
(ENE)
. The deal, which was announced in January, includes inventory and a 30-year prepaid lease related to the operation of the Bammel Storage Facility. The company said it will raise the needed $726.6 million needed for the transaction by issuing a noncontrolling, preferred equity interest to private investors.
"The acquisition of HPL complements our existing Louisiana natural gas assets and will contribute to our continued growth in natural gas marketing and trading,'' the company said in a statement.
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Earnings/revenue reports and previews
Nanophase Technologies
(NANX)
said on Friday it is lowering its second-quarter and full-year revenue forecasts, blaming the shortfall on the cancellation of a proposed relationship with a European company.
Nanophase said it expects second-quarter revenue to be between $1.1 million and $1.2 million and yearly revenue to be $2 million to $2.5 million less than the $10 million it had previously forecast for the year.
Nanophase reported that the company it had set up the relationship with said it could not fulfill a purchasing commitment in the second quarter of fiscal 2001. As a result, second-quarter revenue should be about $500,000 less than anticipated and nearly flat with year-ago totals.
Trikon Technologies
(TRKN)
, a semiconductor production equipment company, said Friday that it expects to reduce its quarterly operating costs by 10% through a cost-cutting initiative, including a workforce reduction.
The plan calls for cuts in expenditures and payroll costs. The company said it will reduce its headcount by 12%, mostly from temporary and contract personnel used for manufacturing.
"These are prudent measures for the depressed and uncertain market conditions in which we are presently operating," the company said in a statement. "Our aim is for profitable operations during the lower revenue levels we are now expecting in the second half of this year. At the same time we are also strategically positioning ourselves for high growth when market conditions allow."
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Offerings and stock actions
Great Lakes Chemical
(GLK)
, a specialty chemicals maker, and
OSCA
(OSCA)
, a provider of oil and gas well completion fluids, said OSCA has registered with regulators to exchange its class B stock for common stock of Great Lakes.
The pair said Great Lakes shareholders will be given an opportunity to exchange their shares for OSCA class B common stock held by Great Lakes. Details of the offering will be made by the offer's dealer manager, investment bank
Morgan Stanley Dean Witter
, the companies said.
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Miscellany
StarMedia Network
(STRM) - Get Report
has appointed Enrique Narciso its president, effective immediately.
The media company, which targets Spanish- and Portuguese-speaking audiences, said Narciso will be responsible for managing the company's operations and executing its global strategy.
Jack Chen, StarMedia's former president, will now serve as vice chairman of the company's board of directors. He will retain responsibility for overseeing the company's strategic development.
"Enrique has consistently anticipated market trends and has successfully executed on strategies to capture new opportunities," the company said in a statement.
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