October 21, 2008

Movers: SanDisk, Exelon, Halliburton, GM, Mattel

SanDisk Corp. (SNDK) announced today that it has entered into a non-binding memorandum of understanding with Toshiba to sell about 30% of the current manufacturing capacity of the parties' joint ventures to Toshiba. The move will significantly reduce SanDisk's capital spending, further strengthen its balance sheet and reduce NAND flash memory production commitments. SanDisk expects to receive cash and reduce equipment lease obligations by about $1 billion through this deal.

Exelon Corp. (EXC) proposed to acquire NRG Energy (NRG) in an all-stock deal with a fixed exchange ratio with a value of $26.43 for each NRG share, or a total value of $6.2 billion based on Exelon's closing price on Oct. 17.

Halliburton (HAL) reported third-quarter earnings per share [EPS] of 76 cents [excluding non-recurring items], vs. 79 cents [including a 15-cent benefit related to U.S. foreign tax credits] one year earlier, despite a 24% revenue rise. Wall Street was looking for EPS of 74 cents.

S&P MarketScope Europe reports that according to the Sunday Times [of London], Prudential PLC (PUK) is in advanced talks with two strategic investors to take a 20% stake in the company and help it mount a US$15 billion bid for the Asian business of American International Group (AIG).

According to a Wall Street Journal report, General Motors' (GM) hopes of buying Chrysler LLC are floundering because it remains unable to secure the necessary financing.

Weatherford International (WFT) reported third-quarter EPS from continuing operations of 55 cents, vs. 43 cents one year earlier, on a 29% revenue rise.

Mattel (MAT) reported third-quarter EPS of 66 cents, vs. 61 cents one year earlier, on a 5.9% revenue rise.

W.R. Berkley (WRB) estimates third quarter operating EPS, including storm losses, to be 70-75 cents, with a GAAP loss per share of 15-20 cents. The company says its estimate includes after-tax storm losses of $41 million, or 24 cents per share, from Hurricanes Ike, Gustav and Dolly as well as an unusually high number of wind and hail storms in the Midwest.

LDK Solar (LDK) signed a seven-year contract to supply multicrystalline solar wafers to Italy-based Helios Technology. Under terms of the deal, LDK will deliver approximately 70 MW of multicrystalline silicon solar wafers commencing in 2009 and extending through 2015.

Landry's Restaurants (LNY) agrees to an amended merger agreement with Fertitta Holdings Inc., a newly formed holding company, wholly-owned by Landry's chairman, CEO, and President Tilman Fertitta, whereby Fertitta agreed to acquire all outstanding common stock of Landry's for $13.50 per share. Fertitta owns about 39% of Landry's outstanding common stock.

Panasonic Corp. (PC) says a media report in Japan about the company's consolidated financial results forecast for the second quarter and first half of fiscal 2009 is not on any official announcements by Panasonic. The company says it currently intends to announce consolidated financial results for the second quarter and fiscal 2009 on Oct. 28, 2008.