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Spotlight Stocks: Blockbuster, Delta, Ericsson, Wachovia


Monday's top stories and stocks with potential to move.


Stocks to watch for Monday, April 14, 2008:

  • Blockbuster (BBI) said it made an offer to buy Circuit City (CC) for between $6 to $8 a share, a 50%-105% premium over Friday's closing share price of $3.90. The bid is worth a total of $1 billion to $1.3 billion. Chairman and CEO Jim Keyes said the "new" Blockbuster would be "the most convenient source for media entertainment".
  • Delta Airlines (DAL) could officially announce its completed merger deal with Northwest Airlines (NWA) as early as tomorrow. The deal could value NWA at about $3 billion, though negotiations are ongoing. The deal has been delayed as seniority programs for the companies' unionized pilots need to be reworked.
  • Deutsche Bank (DB) plans to sell as much as $20 billion of debt related to leveraged buyouts to investors that include private equity firms, reported the Wall Street Journal. The firm will sell its debt in parcels. The goal, similar to Citigroup (C), is to offload at a loss a big swath of debt that is clogging up its balance sheet and keeping it from making new loans.
  • Ericsson (ERIC) signed two deals in China worth a combined $1.44 billion. According to MarketWatch, the contract with China Mobile (CHL) is worth $1.3 billion and the China Unicom (CHU) is worth $140 million. ERIC will be a top supplier of core and radio network equipment for China Mobile and will be the main supplier and help expand GSM networks in 10 regions across China for China Unicom.
  • Mantiwoc (MTW) has agreed to buy Enodis for $1.9 billion, reported Reuters. Enodis makes restaurant equipment such as deep friers, as Mantiwoc hopes to create one of the largest foodservice businesses globally.
  • Wachovia (WB) reported a 1Q net loss of $393 million, or 20 cents a share, compared with a profit of $2.3 billion, or $1.20 a share a year ago, citing credit losses. The bank said it will cut its dividend 41 percent to 37.5 cents per share from 64 cents, preserving $2 billion of capital a year. It also plans to raise $7 billion in capital.

Market Recap

  • Asian trading closed with the Hang Seng -3.47%, Nikkei -3.05%, Sensex +0.72%, Taiwan -0.19% and Shanghai -5.62%.
  • A quick check across the pond finds the CAC -0.71%, DAX -1.01%, FTSE -0.72%, ATX -1.05%, Swiss Mkt. -1.70% and Stockholm -1.23%.
  • Crude oil is trading higher +0.16 to 110.30 while gold is lower -8.0 to 915.6 this morning.
No positions in stocks mentioned.

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