warned investors that it could post fourth-quarter earnings as low as 33 cents a share, which would greatly miss the five-analyst
First Call/Thomson Financial
estimate of 44 cents a share. Pimco blamed the disappointing outlook on costs associated
acquisition of Pimco. Pimco said that also sees additional costs in the first quarter of 2000 as a result of the German-based insurer taking a majority interest in the investment management firm. Pimco also said that continued net outflows of managed assets at
significantly cut Pimco's revenues and net earnings and expects softer performance fees at
Pacific Investment Management
In other postclose news (earnings estimates from First Call/Thomson Financial; earnings reported on a diluted basis unless otherwise specified):
Mergers, acquisitions and joint ventures
Lawyers for proposed merger partners
held talks with
Federal Trade Commission
staff to discuss a "litigation schedule," a company spokesman told
. Spokesman Tom Koch said that starting tomorrow, the FTC has 20 days to either sue or approve the merger plans. If the FTC opts to block the merger, five commissioners must favor filing a complaint claiming that the $27 billion merger infringes upon the U.S. antitrust laws. According to sources, the FTC is concerned that the deal would hike gasoline prices on the West Coast.
Earnings/revenue reports and previews
said its December same-store sales increased 1.7%.
Separately, the pizza chain said that it would assume a fourth-quarter charge as a result of a court's decision in legal conflict with
unit. The litigation began in 1998 when Pizza Hut filed suit, alleging that Papa John's slogan used in TV and print ads was false advertising. In November, a court sided with Pizza Hut but also found some of its ads attacking Papa John's to be misleading. Papa John's said it sees pretax litigation compliance costs between $12 million to $15 million, with roughly $5 million, or 10 cents a share, being taken as a fourth-quarter charge.
Papa John's also said that it has made a motion to stay the court's injunction against slogan's use pending a possible appeal of the ruling. According to the company, if the stay is permitted, the litigation costs would be lower than expected.
Offerings and stock actions
said it set a share repurchasing program for up to 5 million shares.
said it has axed cash tender offer to purchase all shares of
for $8. A special committee of Kinnard's board of directors turned down the offer from Stockwalk.com and said that it would examine other strategic options. Stockwalk.com and its
unit said it would take part in examining other alternatives for Kinnard. Last week, Stockwalk.com upped its initial offer for Kinnard to $8 from $7.50 a share.
The Pentagon said
has won a $1.34 billion contract from Israel to build 50 F-16D fighter jets.
said it would raise its U.S. cigarette prices by 13 cents a pack.
For a look into this evening's after-hours trading action, please check out
The Night Watch.