Updated with Covidien acquisition, Cal-Maine earnings




) -- Here are the top stock market headlines for the morning of Monday, Sept. 28, 2009.

Monday's Early Headlines

  • Abbott to Buy Solvay Drug Unit -- Abbott Laboratories (ABT) - Get Report signed a definitive agreement Monday to acquire the pharmaceuticals business of Belgium's Solvay for $6.6 billion in cash in a bid to expand its presence in Eastern Europe and Asia and emerging markets. Abbott said the transaction adds more than $3 billion in annual sales and also about $500 million to its annual pharmaceutical research and development investment.
  • J&J Buys 18% Stake in Crucell -- Johnson & Johnson (JNJ) - Get Report has purchased 14.6 million shares of Dutch biotech company Crucell (CRXL) for 301.8 million euros ($441 million). J&J said the transaction, which will see the joint development and commercialization of a universal monoclonal antibody product (flu-mAb) for treating and preventing the flu, is expected to dilute 2009 adjusted earnings by 2 cents to 4 cents a share.
  • Xerox to Acquire Affiliated Computer for $6.4 Billion -- Xerox (XRX) - Get Report said it has signed a definitive agreement to acquire Affiliated Computer Services (ACS) in a cash and stock deal that values ACS shares at $63.11. Under the terms of the agreement, ACS shareholders will receive a total of $18.60 per share in cash plus 4.935 Xerox shares for each ACS share they own. Xerox will also assume ACS's debt of $2 billion and issue $300 million of convertible preferred stock to ACS's Class B shareholder. On an adjusted earnings basis, the transaction is expected to be accretive in the first year, Xerox said.
  • Covidien to Buy Aspect Medical for $210 Million. -- Covidien (COV) said it will purchase brain monitoring technology company Aspect Medical Systems (ASPM) for $210 million, or $12 a share, representing a 56% premium over the stock's closing price Friday. Covidien said it expects an impact to earnings in 2010 because of charges related to the acquisition.
  • Kraft Could Launch Hostile Bid for Cadbury. -- U.K.'s Observer reports that Kraft Foods (KFT) is readying a hostile bid for Cadbury (CBY) that would value the company at 11 billion pounds ($17.4 billion). Kraft is putting the final touches on a financing package that will allow it to offer about half the consideration in cash, the Observer adds, with the rest in Kraft stock. The report added that Kraft could bid 800 pence a share for Cadbury, and it could up that bid to 850 pence a share as the battle reaches a climax over the 60-day limit set by the panel for takeovers.
  • Pomeroy IT Solutions to Be Taken Private -- Late Friday, Pomeroy IT (PMRY) said it will be acquired by private-equity firm Platinum Equity LLC for $6.50 a share, or $60.6 million in total. The deal is expected to close in the fourth quarter, the companies said.
  • Goldman Sachs Hiring Asset Management Staff -- The Financial Times reports that Goldman Sachs (GS) - Get Report plans to hire up to 200 employees across all regions in an effort to build its asset management business. Meanwhile, Rochdale Securities analyst Dick Bove on Saturday reduced his full-year earnings estimates for Goldman's 2009, 2010 and 2011, arguing that equity underwriting and hedge fund activity have declined and that Goldman will not continue to see wide margins as it has in the past. Still, Bove said that seasonally weaker earnings in the third quarter should not deter buyers of the firm's stock.

Monday's Earnings Roundup

  • Cal-Maine Foods (CALM) - Get Report said it swung a first-quarter loss of $3.8 million, or 16 cents a share, reversing a year-ago profit. Analysts were looking for earnings of 26 cents a share, according to Thomson Reuters. Sales fell 9% from a year ago to $187.7 million.