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Amazon, Boeing, IPC, Limited, United Tech, VTech
By MarketWatch
Last Update: 7:56 AM ET Jun 15, 2009
TEL AVIV (MarketWatch) - Stocks expected to move significantly in Monday's trading include Amazon.com, Boeing, IPC, Limited Brands, United Technologies and VTech.
Amazon.com Inc. AMZN settled with Toys R Us on a breach-of-contract lawsuit the toy retailer filed in 2004. Toys R Us had accused Amazon of breaking a deal by selling over its Website certain toys to which Toys R Us claimed to have exclusive rights. In a Securities and Exchange Commission filing, Amazon said it agreed to make a one-time payment of $51 million to settle the case. The payment will be charged against the company's second-quarter results. Separately, the Times of London reported that the U.K. DVD-rental firm Lovefilm, of which Amazon.com owns 32%, has been put up for sale.
AstraZeneca: azn Citigroup upgraded the drugmaker to buy from hold, citing the potential for a strong second quarter at the group. Citi said sales of the group's Crestor Rx have accelerated and that the continuing absence of generic versions of Toprol XL and Casodex in the U.S. are also beneficial. The broker also said there is potential for U.S. and E.U. approval for the group's Onglyza drug by the end of July.
Boeing Co. BA commercial-airplane Chief Executive Scott Carson said Monday that the company's commercial aircraft unit continues to run at the right production rate following announced cuts to its 777 program and ramp-up delays for its 767 and 747-8 jets. Regarding the 787, Carson said the new plane will be up in the air before the end of June, and that the first customers for the jet are well financed by groups other than Boeing.
Cemex, CX the Monterrey, Mexico, cement producer, agreed to sell its Australian operations to Holcim Group, hcmlf the Zürich cement producer, for 2.02 billion Australian dollars ($1.63 billion).
Dean Foods Co. DF will buy the Alpro division of Vandemoortele N.V., Belgium's largest closely held food company, for about 325 million euros. The food and beverage company expects the deal to add modestly to full-year earnings, excluding transaction-related costs. Alpro, which makes branded soy-based beverage and food products, had 2008 net sales of about 260 million euros and employs about 750.
IPC Holdings Ltd.; IPCR Validus Holdings Ltd. VR will seek to replace the board of reinsurer IPC if it cannot reach a deal in a timely way. Validus had offered to buy IPC, topping a bid from Max Capital Group Ltd. MXGL On Friday, Max withdrew its bid after a majority of IPC investors voted against it.
Limited Brands Inc. LTD is seeking to raise $500 million through an institutional private placement of senior notes due 2019. The notes will be guaranteed by certain of the company's subsidiaries.
Lincoln Financial Group LNC will sell up to $600 million of common stock as part of a broader capital raising plan that also includes raising $500 million in senior debt and around $950 million in preferred stock. The common shares are being sold in a public offering, while any preferred stock would be issued as part of the U.S. Treasury's Capital Purchase Program. Lincoln said it intends to contribute around $1 billion of the proceeds to its principal insurance subsidiary, Lincoln National Life Insurance Co., with the remaining $1 billion held at the holding company for general purposes, including repayment of short-term debt.
Pepco Holdings POM named Anthony Kamerick senior vice president and chief financial officer. He succeeds Paul Barry, who resigned, the energy delivery company said.
Rio Tinto: RTP Chinese authorities could use a new antitrust law to block Rio Tinto's planned iron-ore joint venture with BHP Billiton, BHP while a government spokesman said concern over the planned tie-up was understandable, according to media reports Monday. Read the full MarketWatch report.
United Technologies Corp., UTX the Hartford, Conn., building and aerospace giant, said that at a Monday meeting with investors at the Paris Air Show, President and Chief Executive Louis Chenevert and Senior Vice President and Chief Financial Officer Greg Hayes will affirm that in 2009, the company expects to earn $4 to $4.50 a share on revenue of about $55 billion. Cash flow from operations less capital expenditures should equal or exceed net income attributable to common-share holders, UTX said.
Vedanta Resources Plc vdnrf is expected to raise its bid to buy the copper producer Asarco LLC out of bankruptcy court, countering a bid by Grupo Mexico SAB, The Wall Street Journal reported on Monday.
VTech Holdings vtkhy profit attributable to holders for the year ended March 31 fell 34% to $143.2 million as revenue declined 6.7% to $1.45 billion. VTech said profit was hit by the drop in sales, increased price promotions and unfavorable moves in exchange rates. The group, which makes cordless telephones and electronic learning products for children, said consumer sentiment is expected to remain weak throughout the current year and that top-line growth will therefore be very difficult to achieve. It added it is "cautiously optimistic" that profitability will improve as the euro, sterling and Renminbi show stability and raw-materials prices decline.
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