BCE Plunges on Privatization Doubts

Mayank Mehta
26 Nov, 2008
New York City

Borders Group dropped 52% after the third quarter net loss widened to $175.4 million. BCE Inc, the largest Canadian telecom operator may not be able to complete its privatization plan. Deere & Company dropped 12% on a drop in fourth quarter earnings. Genworth continues its slide.

[R]1:40 PM New York – Borders Group plunged on wider loss. BCE dropped after the company may not be able to go private.[/R]

Borders Group, Inc ((BGP)) dropped 52.3% or 88 cents to $0.80 after it said that falling sales widened the company’s loss in the third quarter and the company is no longer considering selling its core business. Net loss of $175.4 million or $2.90 per share compared with $161.1 million or $2.74 per share in the same quarter of last year.

BCE Inc ((BCE)) fell 37.4% or $11.72 to $19.55 after the Canada based largest phone company suggested that the proposed privatization of the company may not meet the solvency test.

The Blackstone Group L.P. ((BX)) slid 4.8% or 30 cents to $5.84 after the private equity firm was downgraded by Morgan Stanley from “overweight” to “equal weight” citing risks from write downs.

Coldwater Creek Inc ((CWTR)) added 10.8% or 15 cents to $1.53 after it said third quarter loss from continuing operations rose to $172.2 million or $2.85 a share from a loss of $40 million or 68 cents a share in the same quarter last year.

Deere & Company ((DE)) fell 12.3% or $4.09 to $29.01 after the farming equipment company said sales rose 21% to $7.4 billion. Fiscal fourth quarter net income fell to $345 million or 81 cents a share from $422 million or 94 cents a share in the year ago period.

Genworth Financial, Inc ((GNW)) declined 7.6% or 10 cents to $1.20 and the stock declined more than 96% in the last one year.

General Motors Corporation ((GM)) rose 7.8% or 28 cents to $3.84 after Suzuki Motor Corp chief executive Osamu Suzuki said on Wednesday that GM is not likely file for bankruptcy protection.

J. Crew Group, Inc ((JCG)) gained 10.7% or $1.07 to $11.05 after quarterly net income fell to $19.0 million or $0.30 per share above analysts'' estimates of $0.27 per share. In the same quarter last year the company reported net income of $26.8 million or $0.42 per share. Revenue during the period rose 9% to $363.1 million compared to revenue of $332.7 million in the same quarter of 2007.

LandAmerica Financial Group, Inc ((LFG)) dropped 78.0% or 71 cents to $0.20 after The U.S. title insurer under the terms of the stock purchase agreement, Chicago Title Insurance Company will acquire commonwealth for $158.6 million and Fidelity National Title Insurance Company will acquire lawyers and united for $139.4 million, for a total purchase price of $298.0 million.

Office Depot, Inc ((ODP)) slid 9.6% or 19 cents to $1.78. The company will provide McAfee Internet security solutions to customers through the company’s tech depot services program.

Rambus Inc ((RMBS)) added 19.7% or $1.37 to $8.32 after the designer and licensor of memory chips won a ruling from the U.S. Court of Appeals that overturned the Federal Trade Commission finding that the company engaged in the deceptive trade practice with the standards setting industry group for a chip design. The FTC has asked the U.S. Supreme Court to review the antitrust complaint.

Thomas & Betts Corporation ((TNB)) slid 11.8% or $2.29 to $17.11 after the maker of electronic connectors a day after cut its fourth quarter earnings outlook citing difficult market conditions.

Tiffany & Co ((TIF)) dropped 3.8% or 80 cents to $20.01 after the luxury jewelry maker third quarter sales fell 1% to $618.2 million from $627.3 million a year ago. Net income in the quarter fell 57% to $43.8 million or 35 cents per diluted share compared to net income of $101.5 million or 73 cents per share a year ago.

Wyndham Worldwide Corporation ((WYN)) plunged 9.4% or 39 cents to $3.76 on the worries that weak economic conditions will lower earnings in the latest quarter.