Jun 30, 2010 (Dow Jones Commodities News Select via Comtex) --Among the companies whose shares are expected to actively trade in Wednesday's session are Argon ST Inc. (STST), Abraxis BioScience Inc. (ABII) and General Mills Inc. (GIS).
Aerospace giant Boeing Co. ( BA ) has agreed to buy defense-equipment maker Argon for about $775 million, with the deal coming as the sector shuffles operations amid belt-tightening and shifting priorities at the Pentagon. Boeing will pay $34.50 a share, a 41% premium to Argon's closing price Tuesday. Argon shares soared 40% to $34.22 premarket, while Boeing was up 16 cents to $63.20.
Celgene Corp. (CELG) agreed to acquire Abraxis BioScience for at least $2.9 billion in cash and stock, broadening its cancer-drug portfolio. Abraxis' primary treatment is Abraxane, a breast cancer injection approved in the U.S. and Europe. Abraxis shares jumped 20% to $20.34 premarket, while Celgene slid 2.9% to $51.71.
General Mills' fiscal fourth-quarter profit slid 41% as the company reported higher costs and lower sales, while year-earlier results benefited from an extra week and mark-to-market gains. The packaged-food giant sees earnings for the new year below analysts' projections. Shares dropped 4.5% to $35.24 in after-hours trading.
Mela Sciences Inc. (MELA) said it plans to sell shares of common stock to pursue the pre-market approval application and eventual commercialization of MelaFind, to help identify skin lesions to be considered for biopsy to rule out melanoma. The drug company didn't provide details about the stock sale. Shares fell 8% to $7.64 premarket.
Sealy Corp. (ZZ) swung to a fiscal second-quarter profit as sales grew for the third quarter in a row after a string of declines. The mattress maker's revenue fell short of Wall Street's expectations, though adjusted earnings matched analysts' estimates. Shares fell 3.1% to $2.85 in late trading.
American Greetings Corp.'s (AM) fiscal first-quarter profit more than tripled following prior-year results hurt by the sale of the greeting-card maker's retail stores business. Despite stronger results, shares slid 6.6% to $18.22 in light premarket trading.
Omnova Solutions Inc.'s (OMN) fiscal second-quarter earnings nearly tripled, sending shares in the specialty-chemicals company up 5.2% at $7.65 after hours.
Shares of EnteroMedics Inc. (ETRM) fell 16% to 41 cents in premarket trading after the developmental medical-device maker company unveiled plans for a 1-for-6 reverse stock split to comply with Nasdaq trading standards.
An investor group stacked with former Bank of America Corp. (BAC) executives agreed to invest $175 million in TIB Financial Corp. (TIBB), a Naples, Fla., bank, in the latest example of industry veterans looking to pour money into ailing U.S. banks. The deal would give the investment group, North American Financial Holdings Inc., up to 99% ownership of TIB, which has $1.7 billion in assets and 28 branches in Florida. TIB shares dropped 42% to 40 cents in premarket trading.
Energy Inc. (EGAS) said it will sell up to 2.5 million shares to raise funds to expand its distribution systems as well as for working capital and general corporate purposes. The natural gas utility's shares slid 9.4% to $10.37 in after-hours trading as the offering would increase the number of shares outstanding by 42%.
Watch List:
Standard & Poor's Ratings Services warned it was mulling a downgrade on peer Moody's Corp.'s (MCO) short-term rating, saying recent U.S. legislation could lower margins and increase litigation-related costs.DELiA*s Inc. (DLIA) said it has had "no substantive discussions" with Thesis Fund Management LLC, which a day earlier made public a letter regarding a potential sale of the retailer, which it claims could realize "meaningful" value for its shareholders.
FirstCity Financial Corp. (FCFC) announced it has refinanced credit lines and reached a deal to team up with fellow distressed-asset investor Varde Investment Partners LP.
Moody's Investors Service raised its ratings outlook on Host Hotels & Resorts Inc. (HST) to stable, citing the recovery in the lodging industry and expected continued improvement in the hotel operator's revenue per available room, an important industry metric.
Packaging-product company Sonoco Products Co. (SON) said Wednesday it has bought Associated Packaging Technologies Inc., a maker of containers for the frozen-food industry, for $120 million including debt assumption.
State Street Corp. (STT) appointed a new chief risk officer, Andrew Kuritzkes, after his predecessor departed in March. Kuritzkes most recently was a partner and head of Public Policy at Oliver Wyman, an international management consulting firm. The move fits with the money manager's goal of increasing its risk oversight.Playboy Enterprises Inc. (PLA, PLAA) said it would cut an unspecified number of jobs as it restructures its organization to become a brand-management company. It expects to record a $3 million second-quarter restructuring charge, and the changes are expected to save Playboy $3 million a year.
Anglo-Australian mining giant Rio Tinto PLC (RTP) said it would exercise warrants to purchase shares of Ivanhoe Mines Ltd. (IVN), boosting its stake to 30% for about $393 million. Rio holds a 22% stake in the miner of Mongolian copper and gold deposits. It could take a stake of up to 44% if it exercises all its warrants and converts a $350 million load into shares.
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