held merger talks that ended up not going anywhere. Investors wonder whether those talks might rev up on again with Glaxo out of the way.
Glaxo stock will take more of a hit, after rising 16.6% since the merger talks were first reported at the beginning of the month. SmithKline, probably still seen in play, won't be hit as hard, analysts said.
Others in the group may take a breather, including
, which in the week through Monday's close added nearly 11 points to 130 5/8. Rumors that the company will authorize a stock split and anticipation of Monday's
Food and Drug Administration
approval of the asthma drug Singulair -- which everyone knew about months ago -- have sent the stock up.
"I'm shocked," said Riccardo. "I think people want to buy the group and they are saying, 'Let's not worry about 2000,' " when Merck starts to suffer patent expirations.
* * * * *
Franklin Mutual Advisors
First Union Real Estate Equity & Mortgage Investments
isn't making the most of its cushy paired-share REIT status.
In a document filed Monday with the
Securities and Exchange Commission
the advisory unit of Price's Mutual Series funds says it expects to use its 9.3% stake in the company to support the solicitation of proxies by another large shareholder calling for sweeping changes.
Franklin stated in the filing that since its clients first became shareholders in October 1996, First Union has "failed to implement a coherent business plan and strategic direction which fully takes advantage of the issuer's unique structure." The fund advisors compared the decline of First Union's stock price during this period with the significant rise in the stock prices of similarly structured REITs
, which have "embarked upon aggressive asset acquisition strategies which have seen their stock prices appreciate more than 16% and 45%, respectively."
The favored tax status of paired-share REITs, which unlike regular REITs are able to both own and operate companies with shares that trade in tandem, came under scrutiny in a recent proposal by
that could limit their tax benefits. For an earlier report on how these REITs might fare in the event they lose some of their tax benefits, click
* * * * *
In other post-close news (earnings estimates from
will cut 700 jobs, or 5% of its global workforce, according to a
Dow Jones News Service
said it will lay off 600 employees, or 10% of its global workforce.
Petco Animal Supplies
apparently doesn't understand that because its fourth quarter ended Jan. 31, the just-concluded year was fiscal 1998 and it is now the company's fiscal 1999. But sorting through the company's mistaken references to fiscal 1998 as fiscal 1997 and so on, Petco warned that it expects fiscal 1999 earnings to be just 30% higher than the three-analyst fiscal 1998 estimate of 88 cents per share. That would mean 1999 earnings of about $1.14, missing the expectation of $1.39.
filed a lawsuit charging that
engaged in "a continuing campaign of fraud and interference" in its efforts to acquire Computer Sciences. CSC last week rejected CA's unsolicited $9.8 billion bid for the company.
reported fourth-quarter earnings of 76 cents per share, 2 cents better than the 20-analyst consensus estimate and up from the year-ago 53 cents.
warned that its fourth-quarter earnings will fall short of the third quarter's 36 cents per share. That also was the 10-analyst projection for the fourth quarter, compared with 26 cents in the year-earlier fourth quarter. The company cited fallout from the Asian economic crisis.
-- isn't that where they keep that UFO? -- reported fourth-quarter earnings of 34 cents per share. That was a nickel better than the four-analyst outlook and up from the year-ago 19 cents.
Great Atlantic & Pacific Tea
warned that it expects to report lower-than-forecast earnings for the fourth quarter ending February. The six-analyst estimate called for earnings of 64 cents per share versus the year-ago 60 cents. A&P cited food price deflation, high promotional costs and "intense" competition.
reported third-quarter earnings of 2 cents per share, 13 cents short of the three-analyst forecast and down from the year-ago 21 cents.
closed its antitrust review of the planned merger of
said it agreed to buy three companies that operate the
patient statement processing and printing services business for 3.5 million shares of its stock. The privately held companies are
Professional Office Services
and the affiliated company
Automated Revenue Management
agreed to acquire privately held
for undisclosed terms.
reported a fourth-quarter loss of $2.37 per share, 23 cents better than the 13-analyst estimate but down from the year-ago loss of $1.17.
reported fourth-quarter earnings of 10 cents per share, 6 cents below the three-analyst view but up from the year-ago 1 cent.
reported fourth-quarter earnings of 17 cents per share, 2 cents better than the four-analyst outlook and up from the year-ago 11 cents.
reported fourth-quarter earnings of 29 cents per share, a cent better than the three-analyst expectation and up from the year-ago 23 cents.
reported fourth-quarter earnings of 25 cents per share, a penny better than the two-analyst prediction and up from the year-ago 16 cents.
reported first-quarter earnings of 6 cents per share, a cent better than the three-analyst estimate and up from the year-ago 2 cents.
reported fourth-quarter earnings of 10 cents per share, in line with the five-analyst forecast and up from the year-ago loss of 72 cents.
reported first-quarter earnings of 24 cents per share, in line with the three-analyst prediction and up from the year-ago 20 cents.
set a 3-for-2 stock split.
adopted a shareholder rights plan with a 15% trigger, saying the move was not in response to any known takeover effort.
set a buyback of up to $10 million worth of its shares.