Updated from 10:07 a.m.

Private firm

Forstmann Little

said it intends to purchase

Citadel Communications

(CITC)

for $26 a share and take the company private. Citadel, which operates radio stations, is the nation's sixth-largest radio broadcasting company, when ranked by revenue, according to the company's press release. The transaction is valued at $2 billion, financed by Forstmann itself and bank financing from

J.P. Morgan Chase

.

Citadel's shares closed at $17.50 Friday, but today closed up $7.25, or 41.4%, to $24.75.

Mergers, acquisitions and joint ventures

Biopharmaceutical company

Gilead Sciences

(GILD) - Get Gilead Sciences, Inc. (GILD) Report

said it and

GlaxoSmithKline

(GSX) - Get GSX Techedu, Inc. Sponsored ADR Class A Report

have altered their license agreement for cancer drug NX 211 to give Gilead exclusive rights to the drug. Gilead closed up $5.55, or 9.3%, to $65.19; Glaxo et al ended the day up 63 cents, or 1.2%, to $53.38.

After Friday's Close

Allete

(ALE) - Get ALLETE, Inc. Report

and its automotive subsidiary, Adesa, agreed to buy all the outstanding stock of

ComSearch

and all of the assets of Auto Placement Center in a deal worth about $62.4 million.

The acquisition expands Allete's existing auto salvage business with Auto Placement Center's eight auto salvage auctions. ComSearch provides Internet-based parts location and insurance adjustment audit services nationwide. Allete closed down 50 cents, or 2.4%, to $20.75.

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Earnings/revenue reports and previews

Automatic Data Processing

(ADP) - Get Automatic Data Processing, Inc. Report

said it will take a $45 million charge as a result of a $90 million stake in

Bridge Information Systems

, an investment that is losing money. ADP closed up 19 cents, or 0.3%, to $62.

Investment management company

Blackrock

(BLK) - Get BlackRock, Inc. Report

reported earnings of 38 cents a share, beating the 7-broker consensus for 36 cents a share. Blackrock closed up $1, or 2.7%, to $38.

Cooper Cameron

(CAM)

, which makes pressure control equipment for energy companies, said fourth-quarter earnings would be in line with estimates but first-quarter results would fall short of expectations.

The company said fourth-quarter earnings of 45 cents to 48 cents a share are expected; the 20-broker

First Call/Thomson Financial

consensus was expecting earnings of 46 cents a share. However, first-quarter earnings of 30 cents a share are expected, well short of analyst expectations for 46 cents a share. Cooper closed up $1.25, or 2.2%, to $57.81.

Exar

(EXAR)

reported earnings of 21 cents a share, beating the eight-broker consensus by a penny. The company earned 8 cents a share for the same time period a year ago. Exar closed up 56 cents, or 2.2%, to $25.75.

Parametric Technology

(PMTC)

reported earnings of 7 cents a share, beating the eight-broker estimate looking for 5 cents a share. The company earned 4 cents a share for the same time period a year ago. Parametric Tech closed down 88 cents, or 5.4%, to $15.25.

Parker-Hannifin

(PH) - Get Parker-Hannifin Corporation Report

reported quarterly earnings of 68 cents a share, missing the 15-broker consensus looking for 73 cents a share. The company also said fiscal third-quarter results would fall below forecasts. Earnings per share of 88 cents to $1 are expected, and for the full year, earnings of $3.30 to $3.35 are expected. Consensus estimates were for earnings of 99 cents and $3.61. Parker-Hannifin closed up 38 cents, or 0.9%, to $43.88.

Pepsi Bottling Group

(PBG)

said earnings will grow 21% to 23% for the fourth quarter, affirming analysts' guidance this morning. It also said earnings per share for the year will fall somewhere between $1.49 and $1.53. The stock closed flat at $34.38.

Southwest Airlines

(LUV) - Get Southwest Airlines Co. Report

, the nation's largest low-fare carrier, said fourth-quarter earnings rose 65%, earning 29 cents a share on revenue of $154.7 million. The 13-broker First Call consensus was looking for earnings of 28 cents a share.

The company earned 18 cents a share on revenue of $93.8 million at this time a year ago. The company said first-quarter revenue growth will not be a strong as the fourth-quarter rate of 7.8%, although officials said revenue should be strong, despite hefty increases in fuel prices. Southwest closed down 85 cents, or 2.8%, to $29.82.

Valspar

(VAL) - Get Valaris PLC Class A Report

said it expected first-quarter earnings to be in the range of 10 cents a share, well short of the 22 cent estimate expected by the five-broker consensus. The company earned 26 cents a share for the same period a year ago. Valspar closed up 85 cents, or 2.9%, to $30.64.

After Friday's Close

Papa John's

TheStreet Recommends

(PZZA) - Get Papa John's International, Inc. Report

announced that its

same-store sales for the six weeks ended Dec. 31 rose 2.6%.

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Analyst actions

Wasting no time,

Goldman Sachs

analyst Romitha Mally downgraded the shares of

Ralston Purina

(RAL)

to market perform and removed the shares from the company's recommended list. This morning, it was announced that Ralston would be

purchased by Swiss foodmaker

Nestle

(NSRGY) - Get NSRGY Report

for $33.50 a share. Ralston shares jumped today, closing up $6.88, or 27.9%, to $31.50; Nestle closed flat at $105.25.

Upgrades

AvalonBay Communities

(AVB) - Get AvalonBay Communities, Inc. Report

: UP to buy from outperform at

Lehman Brothers

. AvalonBay closed down 94 cents, or 1.97%, to $46.56.

Black & Decker

undefined

: UP to buy from hold at CSFB. B&D closed up $2.81, or 6.8%, to $44.

Centex

(CTX)

: UP to buy from hold at CSFB. Centex closed up $1.88, or 4.8%, to $41.

Office Depot

(ODP) - Get ODP CORPORATION Report

: UP to buy from hold at

Credit Suisse First Boston

. Office Depot ended the day at the trading depot up by 81 cents, or 10.2%, to $8.81.

Downgrades

ADC Telecommunications

(ADCT) - Get ADC Therapeutics SA Report

: DOWN to buy from strong buy at

Deutsche Banc Alex. Brown

. The stock ended down 94 cents, or 5.2%, to $17.19.

Advanced Fibre Communications

(AFCI)

: DOWN to buy from strong buy at Alex. Brown. Advanced Fibre (Brett Farv ruh) closed down $3.94, or 16.1%, to $20.50.

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Offerings and stock actions

Fidelity National Financial

(FNF) - Get Fidelity National Financial, Inc. - FNF Group Report

said it will sell 6 million shares of its stock to repay debt. Fidelity closed down 63 cents, or 1.9%, to $32.38.

After Friday's Close

Paetec

, a communications services provider, withdrew its filing for an IPO of 7 million class A shares, citing (surprise, surprise!) unfavorable market conditions. The company was planning to sell the shares for $12 to $14. Paetec applied for a

Nasdaq listing under the ticker "PAET."

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Miscellany

Mead

(MEA)

plans to close its coating facility in Indiana. Mead closed up 81 cents, or 2.8%, to $30.06.

After Friday's Close

"Another one bites the dust ..." Online music service

EMusic.com

(EMUS)

, hearing the music, laid off 66 employees, or 36% of its workforce, as part of a restructuring to -- what else? -- reduce expenses. The focus now will be on making money off advertising and promotions.

Also, the company announced that CFO Joseph Howell and COO Peter Astiz will resign. Corporate controller and Vice President Emily Rupp was appointed CFO. EMusic.com closed down 16 cents, or 20.8%, to 59 cents. Whoa! Turn that beat around, babies.

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By the Numbers

The data on NYSE and Nasdaq percent winners and losers are filtered to exclude stocks whose previous day's volume was less than 25,000 shares; whose last price was less than 5; and whose net change was less than 1/2.

Dow point gain and loss data are based on New York closing prices and do not reflect late composite trading.

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