Movers: Genzyme, Target, Microsoft, CBOT
Genzyme («www.businessweek.com») falls after it announces that tolevamer liquid, its experimental therapy for patients with diarrhea linked to a severe bacteria, failed to meet main goal of a Phase 3 study. S&P reiterates strong buy on the stock.
Target («www.businessweek.com») rises on a report that an activist shareholder could push for a sale of the company’s credit card business.
Golden Telecom («www.businessweek.com») climbs on news that Vimpelcom is reportedly in talks to buy a stake in Golden Telecom. S&P reiterates hold on the stock.
CBOT Holdings («www.businessweek.com») and Chicago Merchantile Exchange («www.businessweek.com») announce they have revised the terms of merger agreement to increase the exchange ratio from 0.350 to 0.375 shares of CME common stock for each BOT share.
Interactive Brokers Group («www.businessweek.com») sees lower-than-expected $0.26-$0.28 second-quarter EPS (pro forma) on revenue of $281-$299 million.
Advanced Medical Optics («www.businessweek.com») offers to acquire Bausch & Lomb («www.businessweek.com») for $45.00 in cash and $30.00 in EYE stock per BOL share. The deal is subject to termination of Bausch & Lomb’s merger agreement with affiliates of Warburg Pincus LLC.
Microsoft («www.businessweek.com») expands Xbox 360 warranty coverage — hardware failures will now be covered by 3-year warranty from date of purchase. It plans to take a $1.05-$1.15 billion pre-tax charge in the June quarter for costs under current, enhanced Xbox 360 policies.
Wendy’s International («www.businessweek.com») posts 0.7% higher June average same-store sales at U.S. company restaurants, 0.4% higher average same-store sales at U.S. franchise restaurants. It notes second-quarter sales growth weakened vs. the first quarter as the chain continues its market-based pricing strategy.
Healthways («www.businessweek.com») posts $0.29 vs. $0.26 third-quarter EPS on a 57% revenue rise. It cuts fiscal year 2007 guidance to $1.21-$1.22 EPS on revenue of $618-$630 million. It plans to continue Medicare Health Support Pilot. It sets $100 million stock buyback.
Parametric Technology («www.businessweek.com») sees third-quarter revenue of about $225 million, vs. previous guidance of $235-$240 million. It cites lower-than-expected license revenue of about $62 million. It expects to lower its fourth-quarter revenue and EPS guidance. S&P keeps hold.
Travelers Cos. («www.businessweek.com») is in a settlement to resolve asbestos-related claims relating to ACandS. Travelers will contribute $449 million to a trust. Travelers expects to cede $84 million to its reinsurers for net settlement of $365 million. It sees no impact on EPS.
Material Sciences («www.businessweek.com») posts $0.02 first-quater loss, vs. $0.15 EPS a year ago, on 20% lower sales. It cites production cuts at its three largest North American automobile makers and weakness in construction markets. It expects the U.S. auto market slowdown to continue through fiscal year 2008.
Bristol-Myers Squibb («www.businessweek.com») says results from a study demonstrate ixabepilone, a BMY investigational compound, has activity in patients with metastatic breast cancer whose tumors were resistant to 3 types of standard chemotherapy.
