Stocks in the news: Sprint Nextel, Delta, AES, Corus
Some of the companies making headlines today:
Sprint Nextel (S) no doubt will be in focus after The Sunday Telegraph reported that German group Deutsche Telekom has hired Deutsche Bank to advise on a possible bid. Sprint shares soared 20 percent on the report in pre-market trading.
Delta Airlines (DAL) and American Airlines (AMR) are considering rival investments in struggling Japan Airlines, whose shares jumped 8 percent on the report Monday. DAL shares climbed 1.5 percent while AMR shares declined about 2 percent ahead of the bell. JAL shares jumped 8 percent in Tokyo.
Cadbury (CBY) turned up the heat in its defense against a takeover bid from Kraft (KFT) on Saturday as its Chairman Roger Carr said it was an "unappealing prospect" being absorbed into Kraft's low growth conglomerate business model.
Johnson & Johnson (JNJ) is in talks to reduce the price of a $1.5 billion Elan (ELN) deal by roughly $100 million, The Wall Street Journal reported, after a federal judge ruled that part of the deal breached a partnership between Elan and Biogen Idec (BIIB).
AES Corp (AES) could be a target of China's sovereign wealth fund, which may want to take a minority stake in power company, the Wall Street Journal said, citing people familiar with the matter. Shares were 3 percent higher before the bell.
Chevron Corp (CVX) and its partners gave the go ahead to building the Gorgon liquefied natural gas project in Australia, the world's biggest new development, at a lower than estimated cost of $37 billion.
Alcon (ACL) agreed to acquire EsbaTech AG for $150 million cash plus as much as $439 million of additional payments based on milestones.
CA Inc. (CA) said Monday that it will acquire privately-held NetQoS Inc. for $200 million in cash.
EMC Corp. (EMC) has hired Patrick Gelsinger, head of Intel's (INTC) core chip business, to run its storage-products operations and some smaller software units, the Wall Street Journal reported.
Teva Pharmaceutical Industries Ltd. (TEVA) shares were lower after Mylan Inc. (MYL) said the FDA accepted its generic version of Teva's flagship drug, the multiple-sclerosis treatment Copaxone. TEVA shares fell 2 percent.
Salix Pharmaceuticals, Ltd. (SLXP) shares jumped over 55 percent in pre-market after it said the outcome of two Phase 3 trials designed of its rifaximin treatment for irritable bowel syndrome was successful.
Select analyst calls:
- Citigroup downgraded shares of fertilizer giants Potash Corp. of Saskatchewan Inc. (POT) and Mosaic Co. (MOS) to Hold from Buy. Shares fell 2 percent and 3 percent respectively.
- Credit Suisse upgraded UPS (UPS) from Underperform to Neutral and upped the price target from $48 to $61.
- HSBC initiated Alcoa (AA) at Underweight with $11 price target. Shares were 2.5 percent lower in pre-market.
- Soleil downgraded First Solar (FSLR) from Hold to Sell and cut the price target from $170 to $96. Shares fell nearly 4 percent.