Litton Bids for Both Newport News and Avondale
Litton Industries
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made an unsolicited bid for both
Newport News Shipbuilding
(NNS)
and its merger partner
Avondale Industries
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in a combined deal valued at more than $2 billion. Avondale said Litton is offering $38 a share for the company; Newport News said it's being offered 0.55 of a Litton share for each Newport share. Last month,
General Dynamics
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tried to acquire Newport News but the
Defense Department
rejected the proposal.
Sterling Commerce
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posted second-quarter earnings of 36 cents a share, in line with the 24-analyst
First Call
forecast and higher than the year-ago 29 cents.
Inflow into U.S. equity funds for the week ended yesterday totaled $124 million, according to
AMG Data Services
. Large-cap growth funds posted inflow of $1.1 billion, while international funds posted outflow of $633 million even though Latin America and Japan received inflow. Among other fund categories, $515 million flowed into taxable bond funds, with most going into corporate bonds; $78 million flowed into municipal bond funds; and $6.35 billion flowed into money market funds.
In other postclose news (earnings estimates from First Call; earnings reported on a diluted basis unless otherwise specified):
Earnings/revenue reports and previews
Hearst-Argyle
(HTV)
reported a first-quarter pro forma loss of a penny a share vs. the year-ago loss of 3 cents. The company said the actual profit for the quarter was 4 cents vs. an actual year-ago loss of 8 cents. The two-analyst forecast called for an operating loss of 1 cent. Hearst-Argyle also said is sees second-quarter results coming in weaker than the year-ago profit of 39 cents due to lower national advertising. Analysts are calling for a second-quarter profit of 23 cents.
3DO
(THDO)
posted fourth-quarter earnings of 9 cents a share, topping the two-analyst outlook for 3 cents and the year-ago loss of 25 cents. Shares of 3DO lifted 5/16 in after-hours trading to 7 3/16.
In other earnings news:
Mergers, acquisitions and joint ventures
Libbey
(LBY) - Get Libbey Inc. Report
said it will consider sweetening its $500 million offer for
Oneida
(OCQ)
after the company rejected its bid last week. Libbey's CEO also said the company aimed to increase sales to $450 million and net income to $44 million in 1999.
Federal Communications Commission
Chairman William Kennard urged his staff to expedite final negotiations with
SBC Communications
(SBC)
and
Ameritech
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so that conditions can be imposed on the companies' pending merger.
Offerings and stock actions
Expeditors
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set a 2-for-1 stock split.
Credit Suisse First Boston
priced
Latitude Communications'
(LATD:Nasdaq) 3 million-share IPO top-range at $12 a share. Latitude is a provider of integrated voice and data conferencing solutions.
Priority Healthcare
(PHCC)
filed with regulators for a secondary offering of 2.6 million Class B shares.
Miscellany
Equity fund
Baker Fentress
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said its board approved a plan to sell most of the company's investments and distribute the proceeds to shareholders.
CellNet Data Systems
(CNDS)
named John LaMacchia CEO.
Kennametal
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elected Markos Tambakeras president and CEO, succeeding Robert McGeehan.
