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Greece, Alcoa: Monday's Headlines

Greece received a rescue pledge of 30 billion euros from fellow eurozone nations, while Alcoa preps its first-quarter earnings report.



) -- Here are the top stock market headlines for the morning of Monday, April 12, 2010.

Monday's Early Headlines

  • Greece Gets 30 Billion Euro Rescue Pledge -- Eurozone governments pledged 30 billion euros of loans to debt-laden Greece this year, if Greece asks them for help, according to an Associated Press report. In an emergency video conference, foreign ministers of the eurozone nations said they had agreed on a complex three-year financing plan that guarantees an interest rate of about 5%, the report said. The International Monetary Fund is ready to give Greece another 10 billion euros, said Olli Rehn, the European Union's monetary affairs chief, according to the report.
  • AIG, Goldman Unwind CDS Positions: Report -- American International Group (AIG) - Get Free Report realized a $1.5 billion to $2 billion loss last year after the insurer's Financial Products unit unwound credit-default swaps insuring about $3 billion of mortgage-asset pools with Goldman Sachs (GS) - Get Free Report, according to a report in The Wall Street Journal. AIG still has outstanding credit-default swaps with Goldman on $1.3 billion in Abacus CDOs, some of which are tied to the performance of commercial-real-estate bonds, people familiar with the trades told the Journal.
  • Palm Reportedly Seeking Buyer -- Palm (PALM) gained ground in Monday's premarket session following a Bloomberg report that said the handset maker plans to seek bids as early as this week. Palm is working with Goldman Sachs and Qatalyst Partners to find a buyer, the report said, citing three people familiar with the situation. Shares of Palm rallied more than 30% last week on speculation the company would be acquired.
  • UBS Expects First-Quarter Pretax Profit of $2.4 Billion -- Swiss banking giant UBS (UBS) - Get Free Report said it expects to announce a first-quarter pretax profit of at least 2.5 billion Swiss francs (US$2.36 billion), which would be the second consecutive quarterly profit for the bank and the highest in two years. UBS also said that net withdrawals from its wealth management units were slowing. The announcement comes days ahead of the bank's annual shareholder meeting.
  • Microsoft to Debut Project Pink Phones -- Microsoft (MSFT) - Get Free Report is expected to launch two colorful phones at an event in San Francisco later today, one of which is said to be a clamshell phone while the other will use a candy bar form factor, TheStreet's James Rogers reports. Both phones are expected to focus on social networking features and will likely be aimed at young adults.
  • Mirant, RRI Energy Agree to Merge -- RRI Energy (RRI) said it is merging with Mirant (MIR) in a $1.61 billion stock-swap deal. Mirant stockholders will receive a fixed ratio of 2.835 shares of RRI Energy common stock for each share of Mirant common stock they own.
  • Halliburton Buys Boots & Coots -- Boots & Coots (WEL) should rally Monday after Halliburton (HAL) - Get Free Report said it will acquire the company in a cash and stock deal worth $240 million. Boots & Coots shareholders will receive about $3 for each share of Boots & Coots they hold, consisting of $1.73 in cash and $1.27 in Halliburton stock.

Earnings Roundup

  • Alcoa (AA) - Get Free Report will unofficially kick off the first-quarter earnings reporting season when it posts results after Monday's closing bell. Analysts are forecasting a profit of 10 cents a share, compared with a year-ago loss of 59 cents a share, on revenue of $5.23 billion.

-- Written by Robert Holmes in Boston


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