Making use of the strong Swiss franc as a takeover tool, chemicals maker Lonza Group AG (LONN.VX) Monday said it will buy U.S. biocides firm Arch Chemicals ($47.15, +$4.98, +11.81%) for $1.2 billion in cash to broaden the Switzerland-based firm's product portfolio, extend its emerging-markets footprint and improve its natural currency hedge.
Australian coal miner Macarthur Coal Ltd. (MCC.AU) said Monday it received a takeover offer from Peabody Energy Corp. ($57.91, -$2.04, -3.40%) and ArcelorMittal (MT, $33.15, -$1.25, -3.63%) that values the target at A$4.68 billion (US$5.01 billion).
Sanofi ($38.19, -$1.58, -3.97%) reported that the first of two late-stage trials of its multiple sclerosis drug Lemtrada was positive, though not as strong as earlier-stage data. The drug was a key part of Sanofi's more than $20 billion deal for Genzyme, but Deutsche Bank says the outcome is disappointing and long-term safety could still be an issue.
Bank stocks fell Monday, pressured by growing fears about the possible spread of the euro-zone debt crisis to nations such as Italy and Spain, and its potential for big losses for Europe's creditors. Deutsche Bank AG (DB, $53.97, -$3.16, -5.53%), Citigroup Inc. (C, $40.70, -$1.34, -3.18%), J.P. Morgan Chase & Co. (JPM, $39.56, -$1.18, -2.90%) and Bank of America Corp. (BAC, $10.40, -$0.30, -2.80%) were among the biggest decliners.
Platinum and palladium producer Stillwater Mining Co. (SWC, $19.48, -$4.24, -17.88%) announced a cash-and-stock deal to acquire Canada's Peregrine Metals with the aim of exploiting an undeveloped open-pit property in Argentina believed to have significant resources of copper and gold. Separately, the company said Monday it has increased its 2011 annual forecast for mined palladium and platinum production to 515,000 ounces, from its original guidance of 500,000 ounces, on higher-than-anticipated output in the first two quarters.
Other Stocks In Focus:
Northcoast Research cut its stock-investment rating on A. Schulman Inc. (SHLM, $23.85, -$1.03, -4.14%) to neutral from buy, citing slower earnings-per-share growth for the supplier of plastic compounds and resins. The firm added that volume growth is nonexistent as Schulman continues to weed out low-margin business, which may take one to two more years before the process is fully completed.
JMP cut its stock-investment rating on Advanced Micro Devices Inc. (AMD, $6.83, -$0.12, -1.73%) to market underperform from market perform, and trimmed its earnings estimates. The firm says "checks and indications" suggest Advanced Micro's Accelerated Processing Unit initiatives are falling flat," and JMP believes its "long-standing role as a second source alternative to Intel...is rapidly becoming irrelevant due to the rise in ARM-based alternatives and the rise of tablets." The firm adds that "AMD's problems are compounded by management turbulence both internally and at its foundry spin-out; as well as by its consumer-centric business model where there has been ample evidence of weakness."
Late Friday, Standard & Poor's announced changes in its S&P MidCap 400 and S&P SmallCap 600 indexes. Effective after the close of trading on July 12, Esterline Technologies Corp. (ESL, $81.53, +$0.96, +1.19%) will replace Bucyrus International Inc. in the S&P MidCap 400 index, and Rubicon Technology Inc. (RBCN, $17.58, +$0.66, +3.90%) will join the S&P MidCap 400. And at the close of trading on July 13, SonoSite Inc. (SONO, $36.30, +$1.05, +2.98%) will replace Kendle International Inc. (KNDL, $15.24, +$0.01, +0.07%) in the S&P SmallCap 600 index.
Gulfport Energy Corp. (GPOR, $30.04, -$1.60, -5.06%) launched a public offering of at least three million common shares to repay debt, fund the acquisition of oil and gas assets and for general corporate purposes.
Hertz Global Holdings Inc. (HTZ, $15.63, -$0.64, -3.93%) said it will extend to August its exchange offer to acquire fellow car-rental company Dollar Thrifty Automotive Group Inc. (DTG, $73.56, -$0.39, -0.53%) amid weak investor interest. In May, Hertz launched an exchange offer directly to Dollar Thrifty shareholders that valued the company at $2.08 billion, or $72 a share, and consisted of 80% cash and 20% Hertz stock. It represented a counter-offer to rival Avis Budget Group's (CAR, $16.94, -$0.56, -3.20%) own pursuit of Dollar Thrifty.
After 21 months at sell, Citigroup upgraded its stock-investment rating on Lam Research Corp. (LRCX, $44.99, +$0.82, +1.86%) to buy, saying the chip-equipment maker and others should benefit from Samsung Electronics Co. (005930.SE) placing delayed orders. Citi moved Lam Research to its top sell list in April on Samsung impacts, and the stock has fallen 20%. But with the chip giant placing orders again, Lam Research should be "a significant near-term beneficiary," the firm said.
While Las Vegas Strip properties saw gambling winnings surge in May, Rodman & Renshaw says all isn't well. Gambler losses were a net $580.4 million, up 29%, but that growth was in large part due to Strip casinos seeing their baccarat winnings more than double to $140 million amid a month that included the latest fight of Manny Pacquaio, one of the world's best boxers. "Fight fans tend to be gamblers, and major boxing cards bring high-rollers into town," notes Rodman. But the baccarat success could divert attention from slot play rising just 1%, which the investment bank calls "slightly disappointing." That "could put a damper on enthusiasm for a quick turnaround in Las Vegas." Wynn Resorts Ltd. (WYNN, $156.95, -$4.20, -2.61%), MGM Resorts International (MGM, $14.14, -$0.82, -5.48%) and Las Vegas Sands Corp. (LVS, $44.14, -$1.87, -4.06%) all traded down.
Local.com Corp. (LOCM, $4.06, +$0.27, +6.99%) acquired Screamin' Media Group Inc., operator of daily deals websites, for $12.5 million in cash, stock and debt.
Biopharmaceutical company Micromet Inc. (MITI, $6.10, +$0.34, +5.90%) has struck a deal to partner with Amgen Inc. (AMGN, $56.88, -$0.76, -1.32%) in the research of cancer therapies in a deal valued at as much as EUR695 million.
Oppenheimer raised its stock-investment rating on Microsemi Corp. (MSCC, $21.37, +$0.50, +2.40%) to outperform from perform, saying the recent pullback in shares, driven by what the firm views as exaggerated concerns over defense spending, creates a compelling buying opportunity. The firm added that the company stands out by offering investors a "rare combination of best-in-group visibility, steadily growing backlog and margin expansion."
Mosaic Co. (MOS, $66.93, -$3.66, -5.18%) said a Florida district court issued another injunction Friday that prevents the fertilizer company from extending its phosphate mine in South Fort Meade, Fla., into Hardee County.
Baird upgraded its stock-investment rating on Navigant Consulting Inc. (NCI, $11.10, +$0.59, +5.61%) to outperform from neutral. The firm cited survey data pointing to an uptick in disputes and litigation engagements, which it sees creating upside to guidance and current expectations for the specialty consulting firm.
News Corp.'s (NWS, $16.14, -$1.20, -6.90%) (NWSA, $15.55, -$1.20, -7.16%) attempt to take full control of pay-TV operator British Sky Broadcasting Group PLC (BSYBY, $45.55, -$2.62, -5.44%) (BSY.LN) is now expected to take longer to complete, a fallout from the phone-hacking scandal in the U.K. The government there said Monday that the deal would be referred to the Competition Commission after the company withdrew concessions it had offered earlier and prepared to argue its case directly with regulators. News Corp. also owns Dow Jones & Co., publisher of this newswire and The Wall Street Journal. Macquarie also downgraded News Corp. to underperform and cut its price target 18% amid regulatory uncertainty in the U.K. and U.S. as the phone-hacking scandal continues.
Dougherty & Co. cut its stock-investment rating on energy company Northern Oil & Gas Inc. (NOG, $21.69, -$1.72, -7.35%) to neutral from buy, saying because the months of April and May were hurt by bad weather, such as flooding, closed roads and mud, the firm believes it is unlikely that actual production growth for the quarter falls within its targeted range.
Nvidia Corp.'s (NVDA, $14.94, -$0.49, -3.18%) new discrete graphics processor for desktop PCs is late, Evercore says. The chip, code-named Kepler, was originally scheduled to launch later this year, but the firm's checks indicate an initial ramp in January or February trailing the new processor from rival AMD by about three months. Nvidia wasn't immediately available to comment.
Exchange stocks are taking a pounding along with everyone else on the latest euro zone fears Monday, but NYSE Euronext (NYX, $33.68, -$1.76, -4.97%) is faring worse than peers as investors sell the stock on concerns that the strengthening dollar will weigh on profits. The Big Board parent runs markets in both the U.S. and Europe, and it doesn't hedge currency impacts on revenue--NYSE sees such efforts as too expensive and time-consuming. If a weaker euro persists, it could show up in NYSE Euronext's third-quarter results.
Shares of PDL BioPharma Inc. (PDLI, $6.18, +$0.43, +7.48%) rose Monday after the company announced that on July 7 a U.S. District Court in Nevada ruled in favor of the company in its ongoing patent dispute with Roche Holding AG's (RHHBY, ROG.VX) Genentech unit.
Concerns about Amazon.com Inc.'s (AMZN, $211.74, -$6.54, -3.00%) growing influence in the pet medicine category spurred William Blair to downgrade its stock-investment rating on PetMed Express Inc. (PETS, $11.81, -$0.47, -3.83%) to market perform from outperform, while dropping its long-term EPS growth projection to 13% from 17%. "A significant share of the items on 1800PetMeds.com can be found more cheaply on Amazon.com," the firm said.
Shares of Ruth's Hospitality Group Inc. (RUTH, $6.60, +$0.20, +3.11%) gained after a positive mention in Barron's. Same-store sales, or sales at stores open at least a year, have risen nicely for the past four quarters, after three straight years of declines caused by a combination of reduced traffic and lower check sizes, Barron's reports. Ruth's shares fell to single digits in recent years from a 2007 high around $23, but Barron's writes that the stock could rally to $10 or so as the company is awarded higher multiples of earnings and Ebitda.
Baird Equity Research cut its stock-investment rating on engineering and construction company Shaw Group Inc. (SHAW, $26.93, -$1.41, -4.98%) to neutral from outperform, citing near-term risk from what it sees as still-high consensus estimates, limited backlog and earnings visibility, and concerns that the unexpected addition of Texas to the U.S. Environmental Protection Agency's Cross-State Air Pollution Rule will open the door to potential litigation.
Shares of gambling-equipment maker WMS Industries Inc. (WMS, $29.82, +$0.78, +2.69%) are rising after the Illinois Supreme Court unanimously overturned an appeals-court ruling that among other things allows video-gaming machines at bars and restaurants in the state. "This ruling is a very positive event for gaming-equipment suppliers as will likely add new demand for about 35,000 gaming devices," says Roth Capital. It sees WMS Industries among the beneficiaries. For the latest updates PRESS CTR + D or visit Stock Market news Today
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