General Motors (GM) board gave a cool reception to the idea of acquiring Chrysler LLC after GM's top management discussed the matter at a meeting last week, people familiar with the matter said: WSJ.
Banco Santander S.A. (STD) issues a statement confirming it is in talks to acquire Sovereign Bancorp (SOV) , but notes it is not currently possible to know whether such conversations will lead to an agreement or not.
The WSJ reports that Morgan Stanley (MS) and Mitsubishi UFJ Financial Group (MTU) worked Sunday to finish their $9 billion pact, as both sides pushed to keep the general terms of the deal intact and the U.S. government signaled it was prepared to protect the Japanese investment, according to people familiar with the matter. While some points could change as talks progressed Sunday evening, MS will likely announce early Monday a renewed commitment to sell a 21% stake to MTU for $9 billion, the paper reported.
Lear Corp. (LEA) lowers the 2008 sales outlook from $15 billion to about $14 billion, now sees income before interest, other expense, income taxes, restructuring costs and other special items down about 20% from previous guidance of $500-$600 million. Cites volatile industry and general economic conditions.
BE Aerospace (BEAV) sees $0.58 third quarter EPS, excluding costs, but notes near-term outlook has significantly deteriorated. Now sees fourth quarter EPS of $0.50, excluding one-time costs. Sees preliminary guidance for 2009 revenues of $2.5 billion, EPS of $2.00, excluding costs. Separately, says Airbus has selected BEAV as its supplier of next generation galley systems for new A350 XWB aircraft, in award valued at more than $1 billion.
Group 1 Automotive (GPI) says September sales, third quarter profits were significantly impacted by Hurricane Gustav and Hurricane Ike. As a result, the company now estimates third quarter EPS to be $0.39-$0.44.
Hanover Insurance Group (THG) estimates its pre-tax loss resulting from Hurricane Gustav and Hurricane Ike, and other weather-related catastrophe events, to be in the range of $95-$100 million.
Waste Management (WMI) sees third quarter EPS of $0.62 on revenue of $3.53 billion. Adjusting for certain items, sees EPS of $0.62-$0.63, noting the low end of the range, $0.62, exceeds the Wall Street consensus estimate of $0.60. Additionally, WMI says it is withdrawing its proposal to acquire all of the outstanding shares of Republic Services (RSG) for $37 per share, due to the current state of the financial markets.
Williams Partners L.P. (WPZ) announces that Discovery system, which WPZ owns 60%, sustained hurricane damage and is not accepting gas from producers while repairs are being made. Reaffirms that the partnership continues to expect a reduction in third quarter consolidated segment profit of $6-$10 million.
New York & Co. (NWY) reports 11% lower third quarter same-store sales, which significantly lower than expected. As a result, the company now expects to report $0.08-$0.12 third quarter loss. Says economic environment will continue to be challenging and levels of promotional activity will accelerate throughout the key holiday selling period.
Limited Brands (LTD) sets $250 million stock buyback.
Qimonda AG (QI) plans to sell its 35.6% stake in Inotera Memories, its joint venture with Nanya Technology, to Micron Technology (MU). for $400 million cash, sees one-time loss on its investment in Inotera of about €300 million. To ramp down manufacturing at 200mm facility in Richmond by January 2009; backend component and module manufacturing in Dresden, Germany to be shut down by end of March 2009. Dr. Michael Majerus resigns as CFO, member of management board. COO Thomas Seifert to assume additional duties of CFO for interim.