bebe stores ( BEBE) said it expects first-quarter earnings to be at or below the consensus due to lower-than-expected August and September same-store sales. The company cited overall poor sales performance due in part to 20% lower inventory levels. bebe expects August same-store sales to be in the negative high-to-mid teens and September's to be in the negative mid-to-high single digits. The company previously forecast a rise in the low single digits. Separately, the company named Jamel Bennoui, former director of production and sourcing for Victoria's Secret. Morgan Stanley lowered its investment rating on United Parcel Service ( UPS) to equal-weight from overweight, citing valuation concerns and a belief that the company has less upside potential than railroad and trucking companies. The shares were recently falling 91 cents, or 1.4%, to $64.37 and are trading at a price-to-earnings ratio of about 31. Swiss food giant Nestle reportedly is offering $11.5 billion to purchase Hershey Foods ( HSY). Nestle made a preliminary bid of $82 to $85 a share for the nation's No. 1 candy company after touring the company's factories and reviewing its finances, according to USA Today. The bid would represent a sweet premium on Hershey's Friday closing price of $75.03, which has since traded up 2.2% to $76.65. The trust that controls 77% of Hershey's shares put the company up for sale a few weeks ago and is likely to attract additional offers from Philip Morris' ( MO) subsidiary Kraft Foods and Britain's Cadbury Schweppes before a final decision is made. Hershey would qualify as Nestle's biggest acquisition to date, exceeding its $10 billion purchase of pet food manufacturer Ralston-Purina. Accredo Health's ( ACDO) fourth-quarter earnings rose sharply from a year ago despite a big restructuring charge, easily beating First Call/Thomson Financial estimates. The addition of new products contributed to the company's increased earnings. Looking ahead, Accredo confirmed that it expects to have $1.45 billion to $1.5 billion in revenue for the year and an EPS of $1.87 to $1.97 a share. Terayon's ( TERN) shares rose 27% Monday after Cox Communications ( COX) said it would use its TJ715 cable modem on its network and make Terayon its primary broadband vendor.