Early Look At The Market – UTR morning view

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Early Look At The Market – UTR morning view

NEW YORK, NEW YORK, Aug. 21 -/E-Wire/-- The economic calendar is very quiet this week. On Wednesday we get existing home sales for July. Thursday brings weekly jobless claims, July durable goods orders, and new home sales for July. The highlight of the week may be Fed Chairman Bernanke's speech at the Fed's annual symposium in Jackson Hole on Friday (although given the topic, "Global Economic Integration: What's New and What's Not?," there may not be any comments related to near-term monetary policy).

Todays Calendar Monday, Aug 21st, 2006

Economic None

Events None

Earnings Before the Open: KNSY LOW. After the Close: BOBE CLZR.

Tomorrow's Calendar( Tuesday, Aug 22nd, 2006)

Economic 10:00am Aug Richmond Fed Manufacturing Index (last 12) Events ICSC/UBSW Chain Store Sales (7:45, last 3.1%). Redbook Retail Sales (8:55, last 3.2%). Fed's Guynn speaks on Economy in Atlanta at 12:40pm. Fed's Moskow speaks on Economy in Illinois at 1:00pm. SNH replaces SHU and MAA replaces ESST in S&P SmallCap 600 after the close of trading. ABC Consumer Confidence (last -15). Earnings Before the Open: CHINA HPOL MYGN PERY TOL. After the Close: APSG BGP INTU JKHY MDT.

*Note all time are EST (GMT-5). ANY AND ALL TIMES AND DATES ARE SUBJECT TO CHANGE WITHOUT NOTICE. INFORMATION HAS BEEN TAKEN FROM SOURCES DEEMED TO BE RELIABLE, BUT NO ASSURANCES CAN BE MADE TO THE ACCURACY OF ANY OF THIS INFORMATION.

Caution was the watchword as stronger gold and crude-oil futures were expected to result in a broadly lower open for U.S. stocks.

U.S. stock market futures declined Monday after last week's gains, with a run-up in commodity prices possibly blocking further gains in equity markets.

S&P 500 futures declined 4.3 points at 1,302.80 and Nasdaq 100 futures declined 10.5 points at 1,574.50. Dow industrial futures weakened 32 points.

U.S. stock markets rose each day last week, with the Nasdaq Composite rising 5.2%, the Dow industrials rising 2.6% and the S&P 500 index improving 2.8%.

But Monday was pointing to a pullback. Crude-oil futures rose 80 cents to $71.94 a barrel after shedding more than 4% last week. Metals futures also were on the way up, with gold futures up nearly $10 an ounce. Iran over the weekend continued to reject calls by the United Nations to stop its uranium enrichment program, setting it on a collision course with the world body as an Aug. 31 deadline approaches for the oil-exporting country to end its nuclear program. The dollar was weaker against rival currencies, particularly the euro on the view that more rate hikes may be coming from Europe later this year. There's wasn't much on the earnings calendar for Monday, save for a quarterly report from Lowe's Companies (LOW : Lowe's Companies, Inc. News , chart, profile, more Last: 29.52+0.07+0.24%

8:01am 08/21/2006

LOW29.52, +0.07, +0.2%) , the home improvement retailer, which reported an 11% profit rise on 12% sales growth. The earnings rise came in just a shade under consensus forecasts. Lowe's shares edged 4% lower in thin pre-open trade. Keeping to the building sector front, the U.S. unit of Ireland's CRH (CRH : crh plc adr News , chart, profile, more Last: 32.88-0.39-1.17%

8:30am 08/21/2006

CRH32.88, -0.39, -1.2%) agreed to buy Ashland Paving and Construction (ASH : ashland inc new com News , chart, profile, more Last: 66.35+1.03+1.58%

4:15am 08/21/2006

ASH66.35, +1.03, +1.6%) for $1.3 billion. Critical broker comments on Ford Motor Co. (F : Ford Motor Company News , chart, profile, more Last: 8.00-0.17-2.08%

8:46am 08/21/2006

F8.00, -0.17, -2.1%) weighed on the automaker, which slashed production on Friday. Citigroup reiterated a sell rating. Ford shares dropped nearly 3% in pre-open trade. Barron's magazine suggested that insurer Aetna (AET : aetna inc new com News , chart, profile, more Last: 36.59+0.39+1.08%

8:01am 08/21/2006

AET36.59, +0.39, +1.1%) may stage a robust recovery in the next year, as an article suggested the company's problems aren't as bad as bears portray. Citadel Broadcasting (CDL : citadel broadcasting corp com News , chart, profile, more Last: 8.75-0.01-0.11%

8:29am 08/21/2006

CDL8.75, -0.01, -0.1%) wants to renegotiate some terms of its purchase of Walt Disney Co's (DIS : Walt Disney Company News , chart, profile, more Last: 29.91+0.01+0.03%

8:01am 08/21/2006

DIS29.91, +0.01, +0.0%) radio assets, The Wall Street Journal reported. Citadel has agreed to pay $1.3 billion in stock and $1.4 billion in cash for the assets, and Citadel's stock has dropped 27% since the deal was agreed. After Friday's close, Pilgrim's Pride (PPC : Pilgrim's Pride Corporation News , chart, profile, more Last: 23.65-0.32-1.34%

4:15am 08/21/2006

PPC23.65, -0.32, -1.3%) offered to buy Gold Kist (GKIS : gold kist inc com News , chart, profile, more Last: 12.93+0.15+1.17%

8:57am 08/21/2006

GKIS12.93, +0.15, +1.2%) , a chicken processor, for about $1 billion, or $20 a share in cash. Anglo American (AAUK : anglo amern plc adr News , chart, profile, more Last: 22.61+0.13+0.58%

8:57am 08/21/2006

AAUK22.61, +0.13, +0.6%) rose after a report from a U.K. newspaper suggested that potential bidders CVRD (RIO : companhia vale do rio doce sponsored adr News , chart, profile, more Last: 22.56-0.04-0.18%

4:27am 08/21/2006

RIO22.56, -0.04, -0.2%) , Rio Tinto (RTP : rio tinto plc sponsored adr News , chart, profile, more Last: 207.18+0.14+0.07%

4:15am 08/21/2006

RTP207.18, +0.14, +0.1%) and Xstrata have all hired bankers to prepare for a possible bidding war. Oil producer BP (BP : bp plc sponsored adr News , chart, profile, more Last: 69.97+0.93+1.35%

8:01am 08/21/2006

BP69.97, +0.93, +1.3%) was upgraded to neutral from sell by Goldman Sachs, while the Financial Times newspaper reported BP is the subject of a probe into whether it tampered with data on its Prudhoe Bay field in Alaska. BP denies those allegations, the newspaper reported. The Nikkei 225 ended 0.9% lower as investors fretted about a Chinese rate hike announced Friday, after Tokyo's stock market had closed. Most European stock markets saw minor losses, with the German DAX 30 losing 0.1%.

Top Stories

CDL, DIS - CDL "is agitating to renegotiate some of the terms of its $2.7B deal to buy the bulk of DIS's radio assets"; One person close to the situation said new negotiations haven't begun yet - WSJ CHL, MICC - China Mobile, the world's biggest wireless operator by subscribers and market capitalisation, is seeking acquisitions in emerging markets despite the last-minute collapse of its recent bid for Millicom International Cellular. - FT Anglo American could get a break-up bid from a group of rivals; according to sources, CVRD, Xstrata, and Rio Tinto are looking at a possible break-up bid of the company and have hired financial advisors ahead of a possible approach; Anglo currently has a market cap of $60B but any deal is likely to be in the $80B range The Guardian VZ is considering an offer for its landlines in 3 New England states (inc. NH, VT, ME) from FRP according to sources; any deal w/FRP is likely to include contributions from private equity firms. VZ is also fielding offers from CTL and CZN. An effort by VZ to sell access lines in Mid Western states appears to be stalled for now. WSJ Oil and Gas Development Company (OGDC) Pakistan's state oil giant is expected to announce a listing on the LSE within the next few months; the co is expected to raise $1.5B in an offering that would value the company at $10B The Business Michelin, Pirelli Barron's discusses recent market speculation of a Michelin buyout of Pirelli says such a deal would make sense. Pirelli has new low-cost production coming on stream but is essentially a European supplier - Michelin's global distribution network could help push the new Pirelli product. Barron's Macquarie and Deutsche Bank are competing to buy a 49% stake in Peel Ports, Britain's ¬second-biggest port company The Business UTV and SMG to switch roles? Ulster TV made a takeover approach to SMG last week, but it is understood that UTV is interested in discussing the possibility of an offer from SMG The Telegraph Private equity to take a look at SMG sources say that 3i and UBS' private equity arm are being sounded out re a possible 300MM pound cash bid for the company The Guardian AIG is bidding in the auction for London City airport - The London Times Morgan Crucible has rebuffed a takeover offer from its smaller German rival, SGL Carbon, but remains in talks w/a mystery private equity bidder The Times of London Prudhoe Bay- the Alaska attorney general issued subpoenas to all companies in the Prudhoe Bay consortium for documents related to pipeline maintenance. An Alaskan regulator called for more state oversight of oil facilities. In addition to BP, Prudhoe Bay leaseholders XOM, COP, CVX and FST. ENI press spec co may cut gas supplies to power stations by 15% and impose limits on supplies in winter as it renews supply contracts. FCC Auction Update. The FCC's auction of a large chunk of the wireless spectrum has already attracted bids of more than $11bn ( 5.85bn) and looks set to become the second most lucrative auction the US government has held. After the first 20 rounds, the US arm of T-Mobile is in the lead. Verizon Wireless (in which Vodafone has a 45% stake) is in second place. Telegraph Cable Sales Focus Shifts to Scatter. Although the skies over the cable marketplace may be a bit grey, both buyers and sellers remain generally optimistic about the next few quarters, thanks in large part to a scatter market that shows no signs of fizzling out. Mediaweek A growing unease in Hollywood. Hollywood is clearly in a transition period, and while Hollywood has undergone periodic shifts like this before, many people here agree that there is something different this time, a permanence to Hollywood's new austerity plan. Executives are facing too many unknowns, among them, changing moviegoer habits, rising costs and the threat of piracy. Weekend NYT BHP presented an improved wage offer to striking workers at the company's 57.5%-owned Escondida copper mine in Chile. As a strike involving around 2,000 workers at the world's biggest copper mine enters its fifteenth day, the company said it offered union leaders a 4% real wage hike plus 17 million pesos, or around US$32,000, in benefits. However, according to the Financial Times the union has already unanimously rejected the offer and that the strike would continue. As a result, copper prices are rising. BHP is expected to announce a $3B stock buyback this Wed The Telegraph Xstrata denies an interest in Anglo Monday morning according to Reuters - Xstrata was not looking at taking part in a possible bid for Anglo American said a source familiar w/the matter; "Xstrata have just bought Falconbridge and are focused on integrating that so they would not be thinking of biting something off as big as that (Anglo)," the source told Reuters. Anglo American could get a break-up bid from a group of rivals; according to sources, CVRD, Xstrata, and Rio Tinto are looking at a possible break-up bid of the company and have hired financial advisors ahead of a possible approach; Anglo currently has a market cap of $60B but any deal is likely to be in the $80B range The Guardian Perelli/ Michelin- The threat of low cost competition might yet drive Italy's Pirelli into the arms of France's Michelin. While talks of any such deal looks premature, Pirelli may yet be at center stage when the next round of tire-industry consolidation comes along. - Barron's TNT NV (TP) is selling its logistics unit to the French private equity firm PAI Partners. According to the people, who declined to be named, the deal between TNT and PAI is almost signed. "It's just a matter of rounding things up now".- DJ NDAQ, NYX - Nasdaq is prepared for a price war with the NYSE if its bigger rival moves to slash tariffs when Reg NMS take effect next year - FT Derivatives regulation - regulators are expected to widen their industry scrutiny from credit derivatives to include equities also at an upcoming meeting; The FSA and other regulators are expected to attend the September 27 meeting at the New York Fed along with 14 leading dealer banks including Deutsche Bank, Goldman Sachs, JPMorgan and Morgan Stanley. FT IRS debt collectors the NYT has a critical article on the IRS' plan to hire private debt collection agencies (of which SLM is one); the article notes that the private companies are projected to bring in $1.4B over the next 10 years and cost $330MM. However, the IRS projects its own collectors could bring in more than $9B each year and cost significantly less. NYT Homebuilders cautious comments; the recent bounce is likely just a brief respite before another move lower; for the homebuilders to embark on a sustainable rally, they usually fall sig. below book value so far they haven't done that. The builders could see additional pressure as the market enters tax loss season. Barron's ABD upgraded to buy from neutral at SunTrust RH AHO upgraded to add from hold at Dresdner Klienwort Wasserstein Woolworth posted strong earnings boosted by acquisitions but expects slower growth in the coming year; shares were up 1.4% AB Foods downgraded to in line from outperform at Cazenove Nutreco sells stake in Hydrotech to Leroy Seafood Group for 25M Euro and will generate a book profit for Nutreco of approx 15M Euro. Leroy Seafood Group already held a 39% in Nutreco. AV upgraded at Outperform at Piper Telecom equipment stocks rose strongly in Chinese trading this morning in anticipation of 3G licenses, which are expected to be issued by the end of the year; ZTE closed +3.8% and Datang Telecom Tech surged 10%. DJ AAPL - CEO Jobs has no plans to deliver a keynote address at next month's Paris Expo; Jobs has failed to deliver a keynote at the show since '03; last year, he used special media events in Sept and Oct to introduce new iPods and the co's fall Mac line. AppleInsider CHL, MICC - China Mobile, the world's biggest wireless operator by subscribers and market capitalisation, is seeking acquisitions in emerging markets despite the last-minute collapse of its recent bid for Millicom International Cellular. - FT SNDK - to up the stakes in its MP3 player fight against AAPL; SNDK will introduce a $249.99 MP3 player, the Sansa e280, w/8G of memory, nearly 2x the capacity of a comparably priced Nano. SNDK is also reducing prices for its other music players by nearly 30%; SNDK is seen introducing a new player for the upcomming holiday season that will cost <$100 - WSJ MSFT said it will ask personal computer makers to offer incentives to customers buying PCs for upgrades of its Windows Vista operating system. 'We'll encourage our partners to provide incentives to promote the sales,' Alex Huang, regional director of Greater China, told reporters in Taipei today - Bloomberg

International Markets

Nikkei loses ~1%, dipping back below 16000 Topix -1% Hang Seng -2% Shanghai Comp flat Sensex +0.5% Singapore -0.65% Mexico (close) +0.3% Brazil (close) flat EEM having trouble with 100 level, index has been above it since 5/16

Top Politics

Israel carried out a raid 60 miles into Lebanon to disrupt a shipment of arms to Hezbollah guerrillas from Iran and Syria. An Israeli source said that country would continue to raids until the flow of weapons was stopped. The same source also the Hezbollah leader, Sheik Hassan Nasrallah, remains a target NYT Cease fire receives another blow - "The shaky, United Nations-brokered cease-fire in Lebanon suffered another blow on Sunday when the European countries that had been called upon to provide the backbone of a peacekeeping force delayed a decision on committing troops until the mission is more clearly defined" - NYT Israeli PM Olmert is trying to open negotiations w/Hezbollah for the release of captured Israeli soldiers; Israel is apparently offering 13 Hezbollah fighters in its custody, along w/the bodies of many more The Telegraph Iran said it would not stop enriching uranium, rejecting the main condition attached to a package of incentives proposed by six western nations, Reuters reported; Iran has promised to provide its formal response to the incentives package by this Tues Aug 22 marketwatch

Energy Markets

The volatility of energy commodities continued to dominate headlines last week. After many on the street thought it was a foregone conclusion that crude would hit $80, a series of events spawned a sell off in crude until it hit resistance at ~$70. Many attribute the weakness to a combination of factors, including sufficient supply, a softening economy, continued ceasefire in the Mid East, and signs that Iran could accept a package of incentives to halt its nuclear program. People have begun to debate whether there is an oil bubble. With an 8% decline in crude prices in the last two weeks, the underlying question is what actually caused the rise in the commodity?- investor inflows into commodities as an asset class, or supply & demand. Twenty of 3 5 analysts and traders surveyed by Bloomberg News said prices will drop this week. Twelve projected an increase and three said futures would be little changed. Energy equities underperformed an surging broad market last week- illustrating that the stocks are again trading in-line with the underlying commodities. Many anticipate the sector to continue to trade with the commodities for the next couple of weeks due to a lack of significant catalysts within the markets. With the increasing uncertainty in the oil markets, some believe that bigger, lower-beta integrated oils names will outperform the higher-beta E&P and services sectors. Some think Investors may gravitate towards names like XOM and MRO which are less sensitive to the volatility of commodities.

Major events to watch in the week ahead

FED SPEAK the major eco data releases won't hit until the week of Aug 28th, although Bernanke will be speaking this coming Friday Aug 25 at the annual Kansas City Fed's symposium at Jackson Hole (10:00am). In the past, this venue sometimes served as a stage for Chairman Greenspan to express his views on the economy, and this occasion will almost certainly attract the attention of the markets', in search of guidance for the next Fed move. Iran the country has promised to respond to a an incentives package presented by the UN Security Council by Aug 22. More earnings MDT, TOL, RGS, LOW, TOL, Nestle, CMOS, TECD Hurricanes so far this season has been a benign one; The National Oceanic and Atmospheric Administration (NOAA) has reported only 3 named storms so far, well off the 9 that had formed this time last year. However, Private weather forecaster Planalytics said weather models indicate that tropical weather activity will pick up next week across the oil- and gas-rich Gulf of Mexico.

Earnings to watch for in the upcoming week

MDT to report on Aug 22 4:30 est. MDT already preannounced on Aug 3rd signaling significant decline in ICD market growth. All eyes are now looking at MDT to provide guidance for FY2007 and FY2008. Nestle positive preview of earnings - Nestle to report 1H-06 results on 23 August. Management should reiterate their full year guidance of 5-6% organic growth and underlying margins improvement. 1H-06 should feature accelerating organic growth of an estimated 6.3% compared to 1H-05 of 5.2%. We expect 1H-06 eps up 10.4% to SFr10.6 compared to consensus eps of Sfr10.5 and reiterate our Outperform stance ahead of the numbers.

Earnings to watch for in the upcoming week

Last Week's Market Wrap

A double dose of tamer US inflation readings (the PPI Tues and CPI Wed), along w/positive inflation readings from around the world (UK and Eurozone inflation readings this week were both lighter than expected) provided the real boost for equities this week, w/some ancillary events chipping in, inc. 1) Mid East cease fire, which many called "tentative" at best, has persisted; 2) comfort on the options back-dating front (XLNX, PMCS, RBAK all resolved this week w/o much issue; 3) continued strength in tech earnings (starting w/CSCO and continuing w/HPQ, NTAP this week). A sense that Bernanke's playbook for the economy is coming to fruition (inflation coming off a boil and eco growth cooling down to a still-adequate level) has gained a lot of traction this week w/the market on the back of inflation (CPI, PPI) and growth (industrial production) readings. Market-based inflation expectations continue to come in (TIPS spreads have compressed 3.3% since recent 8/9 highs and gold is off 2.8% on the week).

Sectors

M&A, Money Raising CDL, DIS - CDL "is agitating to renegotiate some of the terms of its $2.7B deal to buy the bulk of DIS's radio assets"; One person close to the situation said new negotiations haven't begun yet - WSJ Friendster Inc plans to announce today that it has received $10 million in venture-capital funding, the latest move by investors to resurrect the company. DAG Ventures is leading the round, with two of Friendster's original investors, Kleiner Perkins Caufield & Byers and Benchmark Capital, also participating. Friendster's valuation wasn't disclosed. WSJ CHL, MICC - China Mobile, the world's biggest wireless operator by subscribers and market capitalisation, is seeking acquisitions in emerging markets despite the last-minute collapse of its recent bid for Millicom International Cellular. - FT Anglo American could get a break-up bid from a group of rivals; according to sources, CVRD, Xstrata, and Rio Tinto are looking at a possible break-up bid of the company and have hired financial advisors ahead of a possible approach; Anglo currently has a market cap of $60B but any deal is likely to be in the $80B range The Guardian Xstrata denies an interest in Anglo Monday morning according to Reuters - Xstrata was not looking at taking part in a possible bid for Anglo American said a source familiar w/the matter; "Xstrata have just bought Falconbridge and are focused on integrating that so they would not be thinking of biting something off as big as that (Anglo)," the source told Reuters. JNPR - w/shrs sinking to near 3 year lows, JNPR is a prime acquisition target for rivals, according to industry analysts; ERICY and MOT could be potential buyers. However, some think a deal is unlikely in the near-term given JNPR's outstanding options issue and mgmt's reluctance to strike a deal w/the stock near its lows. Reuters SCT - article on Reuters about potential takeout (out ~1pm Friday) - "European reinsurers may look to buy SCT" say industry players and analysts; Leading European reinsurance firms like Hannover Re and Swiss Re will be interested in buying SCT say industry players and analysts. Both companies have said they are willing to consider making acquisitions and Hannover Re said earlier this month it was mulling making a bid for Scottish Re. A senior industry executive said it was doubtful that Scottish Re would attract an investor willing to pump cash into the company, so its only choice may be to sell off all or part of its portfolio. Scottish Re's Chief Financial Officer Dean Miller is also a former senior executive at Swiss Re Reuters Coles Myer bid could face state scrutiny; An overseas bid for Coles Myer could face a tough review by the Australian government, because it would involve the country's leading food retailer and one of its largest companies, analysts warned. FT LogicaCMG - the computer services firm revealed plans to buy Nordic rival WM-data in a deal worth 882 million. Logica will issue up to 409 million new shares to fund the takeover. The Times of London PPC, GKIS PPC made a proposal to buy GKIS for $20/shr cash after the close Friday; the deal is valued at $1B, plus the assumption of $144MM in debt. The $20 price represents a 55% premium to GKIS' Friday close. Its not clear if PPC will succeed in its efforts as it disclosed it had been trying to buy GKIS for 2 years. WSJ VZ is considering an offer for its landlines in 3 New England states (inc. NH, VT, ME) from FRP according to sources; any deal w/FRP is likely to include contributions from private equity firms. VZ is also fielding offers from CTL and CZN. An effort by VZ to sell access lines in Mid Western states appears to be stalled for now. WSJ Porsche AG, Volkswagen AG's largest shareholder, plans 'in the near future' to buy an additional 3.8 percent stake, a level allowing Porsche to block major decisions at Europe's largest carmaker should a law limiting voting rights be overturned. Bloomberg VOLVY is planning a series of acquisitions aimed at achieving its 10% growth target and countering shareholder demands for a stock buyback or higher dividends; mgmt wants to preempt criticisms from activist shareholders who are believed to have been accumulating VOLVY shrs that VOLVY is being too conservative w/its cash - FT Oil and Gas Development Company (OGDC) Pakistan's state oil giant is expected to announce a listing on the LSE within the next few months; the co is expected to raise $1.5B in an offering that would value the company at $10B The Business Indian outsourcing firms, like Tata, INFY, WIT, and Quattro, are in the lead to buy the UK calling center company Vertex; the deal is expected to bring in $950MM for Vertex's parent, United Utilities The Business Michelin, Pirelli Barron's discusses recent market speculation of a Michelin buyout of Pirelli says such a deal would make sense. Pirelli has new low-cost production coming on stream but is essentially a European supplier - Michelin's global distribution network could help push the new Pirelli product. Barron's PHG - Bain Capital and Apax Partners announced they have joined an expanded private equity consortium that has agreed to buy 80.1% of PHG's semi business; the new group inc. KKR, Silver Lake, Apax, Bain, and AlpInvest Macquarie and Deutsche Bank are competing to buy a 49% stake in Peel Ports, Britain's ¬second-biggest port company The Business UTV and SMG to switch roles? Ulster TV made a takeover approach to SMG last week, but it is understood that UTV is interested in discussing the possibility of an offer from SMG The Telegraph Private equity to take a look at SMG sources say that 3i and UBS' private equity arm are being sounded out re a possible 300MM pound cash bid for the company The Guardian AIG is bidding in the auction for London City airport - The London Times Morgan Crucible has rebuffed a takeover offer from its smaller German rival, SGL Carbon, but remains in talks w/a mystery private equity bidder The Times of London

Energy Energy Markets- The volatility of energy commodities continued to dominate headlines last week. After many on the street thought it was a foregone conclusion that crude would hit $80, a series of events spawned a sell off in crude until it hit resistance at ~$70. Many attribute the weakness to a combination of factors, including sufficient supply, a softening economy, continued ceasefire in the Mid East, and signs that Iran could accept a package of incentives to halt its nuclear program. People have begun to debate whether there is an oil bubble. With an 8% decline in crude prices in the last two weeks, the underlying question is what actually caused the rise in the commodity?- investor inflows into commodities as an asset class, or supply & demand. Twenty of 35 analysts and traders surveyed by Bloomberg News said prices will drop this week. Twelve projected an increase and three said futures would be little changed. Energy equities underperformed an surging broad market last week- illustrating that the stocks are again trading in-line with the underlying commodities. Many anticipate the sector to continue to trade with the commodities for the next couple of weeks due to a lack of significant catalysts within the markets. With the increasing uncertainty in the oil markets, some believe that bigger, lower-beta integrated oils names will outperform the higher-beta E&P and services sectors. Some think Investors may gravitate towards names like XOM and MRO which are less sensitive to the volatility of commodities. OGDC Pakistan's state oil giant is expected to announce a listing on the LSE within the next few months; the co is expected to raise $1.5B in an offering that would value the company at $10B The Business HNR- affiliate signs MOU with Corporacion Venezolana del Petroleo S.A. for the addition of three fields to Empresa Mixta Petrodelta, S.A. All of the fields will be developed under a 20-year grant from the Venezuelan government. Prudhoe Bay- the Alaska attorney general issued subpoenas to all companies in the Prudhoe Bay consortium for documents related to pipeline maintenance. An Alaskan regulator called for more state oversight of oil facilities. In addition to BP, Prudhoe Bay leaseholders XOM, COP, CVX and FST. XOM- Chad is setting up a national oil company to sell the African country's crude oil and wants the entity to become part of an existing production consortium led by XOM. Reuters BP: is being investigated by US authorities over employee accusations that the co misrepresented corrosion data over several years at Prudhoe Bay (FT). OIL- WSJ article which debates whether there is an oil bubble. Article explains that there has been 8% decline in crude prices in the last two weeks. The underlying question is what actually caused the rise in the commodity?- investor inflows into commodities, or supply & demand. WSJ ENI press spec co may cut gas supplies to power stations by 15% and impose limits on supplies in winter as it renews supply contracts. ROYAL DUTCH SHELL Business spec co plans to open a call center in Cape Town, will provide support service to its customers in France and the Netherlands. CAIRN ENERGY press spec India's oil ministry has asked MANGALORE & PETROCHEMICALS LTD and CAIRN to settle differences over crude oil pricing. PROSAFE acquires 29.6% stake in PETROJARL for NOK50/ share SUEZ/GDF Les Echos spec co's are ready to sell some assets to satisfy European Commission over their merger plan. Article adds GDF's 25% stake of Belgium SPE is one of the main assets to be sold. Note on Sat EU's competition regulator expressed concerns over planned merger, citing competition probs in Belgium's natural gas an electricity mkts. ENEL press spec co will likely buy energy assets which SUEZ and GDF may be forced to sell because of their planned merger. UNION FENOSA Cinco Dias spec co will invest 700mln this yr and next, finalising gas and electricity projects which are already at advanced stages. RWE Business spec Macquarie is rushing through a sale of South East Water so it can mount a serious bid for RWE's UK unit Thames Water. Article additionally spec Thames Water rising Oper costs may mean bidders will offer less than the 7bln hoped for by RWE.

Media FCC Auction Update. The FCC's auction of a large chunk of the wireless spectrum has already attracted bids of more than $11bn ( 5.85bn) and looks set to become the second most lucrative auction the US government has held. After the first 20 rounds, the US arm of T-Mobile is in the lead. Verizon Wireless (in which Vodafone has a 45% stake) is in second place. Telegraph Weekend Box Office: 1) Snakes on a Plane (New Line) $15.25M. 2) Talladega Nights (SNE) $14.10M. 3) World Trade Center (Paramount) $10.80M. 4) Accepted (Universal) $10.10M. EBAY - discussed in WSJ Heard on the Street - many large investors are willing to give the current mgmt team the benefit of the doubt, although several core EBAY sellers are calling for a drastic shake up among senior ranks. EBAY has assured several investors that Whitman is not going to leave the company anytime soon, recently announced a $2B buyback, and has held meetings w/investors in NY and Boston. EBAY's active base of users however has a greater sense of urgency. WSJ Cable Sales Focus Shifts to Scatter. Although the skies over the cable marketplace may be a bit grey, both buyers and sellers remain generally optimistic about the next few quarters, thanks in large part to a scatter market that shows no signs of fizzling out. Mediaweek A growing unease in Hollywood. Hollywood is clearly in a transition period, and while Hollywood has undergone periodic shifts like this before, many people here agree that there is something different this time, a permanence to Hollywood's new austerity plan. Executives are facing too many unknowns, among them, changing moviegoer habits, rising costs and the threat of piracy. Weekend NYT Two magazines seem to be thriving in turbulent times for newspapers/magazines: AARP:The Magazine, and Consumer Reports. Part of the reason for their success is the not-for-profit nature of their business. Consumers Union, for example, is entirely nonprofit and it eschews any business relationships in particular, selling advertising in its magazines or Web sites that could call the integrity of its vaunted product ratings into question. Weekend NYT CBS's attempt to reintroduce Katie Couric. he network's efforts will put her face on the front of every city bus in New York next month as part of a promotion that would cost in excess of $10 million if the national television commercials featuring her were bought by an outsider. Couric will be competeing against her two main rivals Brian Williams of NBC and Charles Gibson of ABC. Weekend NYT DISH/TIVO ruling. Although a second judge blocked TiVo's injunction, DISH still faces an uphill battle because the court has already ruled that TiVo's patents are valid and that DISH violated them, analysts and lawyers say. As a consequence, DISH may feel compelled to license TiVo's technology. Weekend WSJ Next season's hit shows are already the talk of the web. Now, coverage of the shows begins in May, appearing everywhere from "Access Hollywood" to Entertainment Weekly magazine to televisionwithoutpity.com. The networks offer elaborate sneak peeks at the new series on their Web sites, as well as on DVDs, in custom-published magazines and through other sites like itunes.com. Weekend NYT Time Magazine's move to Fridays is indicative of how weekly mags are trying to balance print/internet. News on the Web has evolved to the point where it is providing a more serious challenge how to use both the Internet and the print publication to enhance both media rather than creating two anemic products. WSJ TRB Peltz's 1.2% stake in TRB has perked up interest in the company. Peltz has bee quoted recently saying "We don't buy a share of stock if we don't have a plan." -LA Times CCU could announce at any time even more changes to its management structure. This follows the announcement Thursday that the company is creating three executive-level posts for oversight of its more than 1,200 radio stations. Radio Ink VZ is considering an offer for its landlines in 3 New England states (inc. NH, VT, ME) from FRP according to sources; any deal w/FRP is likely to include contributions from private equity firms. VZ is also fielding offers from CTL and CZN. An effort by VZ to sell access lines in Mid Western states appears to be stalled for now. -WSJ UTV and SMG to switch roles? Ulster TV made a takeover approach to SMG last week, but it is understood that UTV is interested in discussing the possibility of an offer from SMG The Telegraph Fox TV "Blinks" With Two-Second Radio Spots. Fox Television is breaking ground today with a radio campaign that uses two-second spots, the shortest-length ever, to promote three of its returning network shows, Prison Break, House, and The Simpsons. -Mediaweek Aruze, WYNN - Asia one of the best ways to cash in on the gambling boom may be an over-the-counter stock in Japan called Aruze Holdings which makes pachislot machines. Investors like Aruze because it owns 24.3% of WYNN. Those seeking a low-risk trade could buy Aruze and short WYNN, though WYNN will be announcing good news in coming months, and could be worth a lot more, too. Barron's BetonSports sparking Online Gamers debate. The indictment of BetOnSports prompted a big sell-off in the shares of publicly traded online casinos, but the sector has rebounded. Some industry analysts even call this a buying opportunity. However, that sentiment is not universal. The controversy swirling around BetOnSports has raised questions about whether other companies might soon be in the Justice Department's sights, industry executives and analysts said. NYT

Industrials BHP presented an improved wage offer to striking workers at the company's 57.5%-owned Escondida copper mine in Chile. As a strike involving around 2,000 workers at the world's biggest copper mine enters its fifteenth day, the company said it offered union leaders a 4% real wage hike plus 17 million pesos, or around US$32,000, in benefits. However, according to the Financial Times the union has already unanimously rejected the offer and that the strike would continue. As a result, copper prices are rising. BHP is expected to announce a $3B stock buyback this Wed The Telegraph Xstrata denies an interest in Anglo Monday morning according to Reuters - Xstrata was not looking at taking part in a possible bid for Anglo American said a source familiar w/the matter; "Xstrata have just bought Falconbridge and are focused on integrating that so they would not be thinking of biting something off as big as that (Anglo)," the source told Reuters. Anglo American could get a break-up bid from a group of rivals; according to sources, CVRD, Xstrata, and Rio Tinto are looking at a possible break-up bid of the company and have hired financial advisors ahead of a possible approach; Anglo currently has a market cap of $60B but any deal is likely to be in the $80B range The Guardian Perelli/ Michelin- The threat of low cost competition might yet drive Italy's Pirelli into the arms of France's Michelin. While talks of any such deal looks premature, Pirelli may yet be at center stage when the next round of tire-industry consolidation comes along. - Barron's Porsche AG, Volkswagen AG's largest shareholder, plans 'in the near future' to buy an additional 3.8 percent stake, a level allowing Porsche to block major decisions at Europe's largest carmaker should a law limiting voting rights be overturned. Bloomberg VOLV is planning a series of acquisitions aimed at achieving its 10% growth target and countering shareholder demands for a stock buyback or higher dividends; mgmt wants to preempt criticisms from activist shareholders who are believed to have been accumulating VOLVY shrs that VOLVY is being too conservative w/its cash - FT Homebuilders cautious comments; the recent bounce is likely just a brief respite before another move lower; for the homebuilders to embark on a sustainable rally, they usually fall sig. below book value so far they haven't done that. The builders could see additional pressure as the market enters tax loss season. Barron's HUN/ BF- open $1B plant in Shanghai that will make diphenylmethane diisocyanate, or MDI, a raw material used in foam insulation and plastic chairs, in the factory. WSJ WLM reduces dividend to $0.02 from $0.05 and explores strategic alternatives for non-core businesses EZM/ Lundin Mining Corp- EZM to merge with Lundin Mining Corp- Under the terms of the deal, EuroZinc shareholders will own 56.9% of the new company, to be called Lundin Mining Corp., and Lundin shareholders will own 43.1%, the companies said. On a fully diluted basis, EuroZinc will own 56.7% of the company and Lundin holding a 43.3% stake.- DJ KOP upgraded to buy from neutral at UBS Defense Sector- Despite the war in Iraq and growing fears about other confrontations around the world, the U.S. defense budget is likely to expand at a lower rate in coming years. This could hurt the nation's largest defense conglomerates, but it may be good news for the dozens of smaller contractors. Potential winners: UIC and AH- Barron's Defense Sector- Military sales abroad to reach highest level since first Gulf War after. The London Times says that the war on terror and high oil prices have lead to a banner year for defense contractors. Oil prices which have given producing nations more money to spend on defense contracts, and an unusually high number of contract negotiations being completed, have contributed to the banner year.- London Times IFS Infrasource Services reinstated neutral at Merrill Lynch DCX- will challenge a German court ruling that it should should pay former shareholders of Daimler-Benz AG more money in a dispute over the valuation of their stock during the 1998 merger with Chrysler. DCX said the extra payment of 22.15 euros set by the court was inappropriate and that it would appeal.- DJ TNT NV (TP) is selling its logistics unit to the French private equity firm PAI Partners. According to the people, who declined to be named, the deal between TNT and PAI is almost signed. "It's just a matter of rounding things up now".- DJ BRS files for 4.0M share mandatory convertible preferred stock offering through Credit Suisse EAS Energy East downgraded to hold from buy at Jefferies ASR downgraded to underweight from equal-weight at Morgan Stanley TAC downgraded to sector performer from sector outperformer at CIBC Barron's Commodities Corner analysts say that gold's reaction after recent terror plots signals that gold may no longer be as attractive in tense times, and that it may be so acclimated to geopolitical shocks that it often moves the other way in a crisis. Also, article states that gold will trade up or down with inflation in the medium term. Barron's F downgraded to underperform from neutral at Credit Suisse F Goldman Sachs recommends taking profits believes recent strength is due to investors expecting a rally such as that resulting from GM's restructuring news. However, Goldman says the risk in F is to the downside. SIKA 1H Net CHF100.7mln, cons CHF96mln, EBIT CHF168.3mln, cons CHF157mln, Sales CHF1.83bln, cons CHF1.79bln. Sees FY sales growth above 10% if recovery continues, will try to pass on higher raw material costs to clients LUFTHANSA Zeitung spec. co. has agreed in principle to sell 50% stake in THOMAS COOK to KARSTADT, price is being negotiated, est 800mln THYSSENKRUPP is close to completing its share buyback programme after buying more of its stock in the market BAA Times spec. UK airports physically don't have the capacity to cope with an increase in expansion expected as a result of the 'open skies' treaty between the US and the EU. Note: the open skies treaty would let carriers fly between any EU city and the US, therefore no longer being restrictions on prices or types of aircrafts used. EADS Les Echos spec. A380 test with passengers to be held from 4th-7th Sept THYSSENKRUPP co comments bought back 3.54mln shs last week and is now close to ending its total share buyback prog. SOLVAY signs j/v with Zhejiang Lantian Environmental Protection Hi-Tech Co. Ltd for the production and supply of hydrogen fluoride. J/V expected to start in '07, SOLVAY will own 30%, plant will have capacity of 20K tonnes, no fin dets released. WACKER CHEMIE 2Q EPS 1.35, Net 66.5mln, PBT 93.9mln, Sales 830.4mln. Comments may beat FY financial targets. Sees FY Sales +20% vs prev +10%, EBITDA 730-750mln vs prev 640-680mln

Financials NDAQ, NYX - Nasdaq is prepared for a price war with the NYSE if its bigger rival moves to slash tariffs when Reg NMS take effect next year - FT Derivatives regulation - regulators are expected to widen their industry scrutiny from credit derivatives to include equities also at an upcoming meeting; The FSA and other regulators are expected to attend the September 27 meeting at the New York Fed along with 14 leading dealer banks including Deutsche Bank, Goldman Sachs, JPMorgan and Morgan Stanley. FT IRS debt collectors the NYT has a critical article on the IRS' plan to hire private debt collection agencies (of which SLM is one); the article notes that the private companies are projected to bring in $1.4B over the next 10 years and cost $330MM. However, the IRS projects its own collectors could bring in more than $9B each year and cost significantly less. NYT AMP positive comments stock is cheap, trading at just over 12x next year's earnings and 1.5x BV, more inline w/traditional insurance companies than asset managers. There is a tremendous amount of unrealized leverage in the co's network of financial advisors. Also moves are being made to free up capital, which will help w/buybacks, dividend increases, and acquisitions. AIG is bidding in the auction for London City airport - The London Times SCT - article on Reuters about potential takeout (out ~1pm Friday) - "European reinsurers may look to buy SCT" say industry players and analysts; Leading European reinsurance firms like Hannover Re and Swiss Re will be interested in buying SCT say industry players and analysts. Both companies have said they are willing to consider making acquisitions and Hannover Re said earlier this month it was mulling making a bid for Scottish Re. A senior industry executive said it was doubtful that Scottish Re would attract an investor willing to pump cash into the company, so its only choice may be to sell off all or part of its portfolio. Scottish Re's Chief Financial Officer Dean Miller is also a former senior executive at Swiss Re Reuters Homebuilders cautious comments; the recent bounce is likely just a brief respite before another move lower; for the homebuilders to embark on a sustainable rally, they usually fall sig. below book value so far they haven't done that. The builders could see additional pressure as the market enters tax loss season. Barron's JNS early signs from the turnaround at Janus Fund implemented by David Corkins have been encouraging Barron's HIG cautious comments; increased competition and a saturated market could pressure growth in the co's Japanese market and put a lid on the stock price Barron's

Consumer SKS - Chairman Brad Martin has slashed his stake in the American luxury retailing stores group by 85% - The Business DG cuts its earnings outlook; EPS now seen .14-.15 vs. prior .18-.22. Pilgrim's Pride Corp to acquire Gold Kist Inc for $20.00 per share in cash or approx $1B plus the assumption of approximately $144M in Gold Kist's debt. PHG - Bain Capital and Apax Partners announced they have joined an expanded private equity consortium that has agreed to buy 80.1% of PHG's semi business; the new group inc. KKR, Silver Lake, Apax, Bain, and AlpInvest CAKE estimates reduced at Thomas Weisel. ABD upgraded to buy from neutral at SunTrust RH AHO upgraded to add from hold at Dresdner Klienwort Wasserstein Coles Myer bid could face state scrutiny; an overseas bid for Coles Myer could face a tough review by the Australian government, because it would involve the country's leading food retailer and one of its largest companies, analysts warned. FT Follow up on PEP- PEP shares are up 70% since 2000. Last week's announcement that president and CFO Indra Nooyi will replace Steve Reinemund as CEO affirmed investor confidence that earnings growth will continue, as Nooyi's ties to the Indian government may allow the company to avoid damages from overhanging charges of excessive pesticide use in soft drinks. With PEP trading at 19 times 2007 earnings estimates, many think that the company merits the premium. Barron's notes that KO's increased marketing could ignite competition between the cola companies again. Also, the possibility that PEP will takeover DA may be miniscule as the French government is opposed to foreign takeovers. Barrons PG continues to "fire on all cylinders," says CEO Matt McCormick - PG produced a bang up Q4 with or without including the aid of its Gillette acquisition. Shares jumped over 4% on Q4 earnings day and with shares trading at 18x earnings the stock is well below its historical average of 21x and Gillette's 26x. The defensive stock seems like it has room to grow and can whether economic slowdowns. Analysts expect the cost savings from the Gillette deal to accelerate in FY07 to perhaps $500M from $100M. Note that PG reiterated its commitment to return its earnings growth to its pre-Gillette double digit pace in FY08. Barrons NKE stock has tumbled 16% since its 52-week high in December after being plagued by the resignation of its CEO and soft sales in Europe and Japan. The future outlook seems uncertain as there are signs that the expensive sneaker market is going out of style (FL quarter profits fell 68% in Q2 and FL also cut its FY outlook). However, there is also room for argument that NKE will not drift downwards as the Co guides that long term EPS should climb at a rate in the midteens and NKE does have a 13.7x multiple vs. its 18.2 five yr average. Barrons Woolworth posted strong earnings boosted by acquisitions but expects slower growth in the coming year; shares were up 1.4% AB Foods downgraded to in line from outperform at Cazenove Nutreco sells stake in Hydrotech to Leroy Seafood Group for 25M Euro and will generate a book profit for Nutreco of approx 15M Euro. Leroy Seafood Group already held a 39% in Nutreco.

Healthcare MEDX Shares off about 2% after the co said it may restate financial results from 2000 to 2005 and for the first quarter of 2006 after an independent probe initially found discrepancies in some of its stock option grants AET Co said it will reaffirm Q3 and FY06 earnings view during investor and analyst meetings throughout the summer. AET is looking for .72 and 2.77-2.79, respectively. Separately, Barron's Cover story is pos on the shares. Author/Analysts feel MCR worries - that have taken 23% out of the stock this year are more than accounted for in the present valuation. AET will have to weather the storm created by price competition from small-group insurers across the east coast. Two additional issues that weighed on Q2 results though (stop-loss and higher claims from large, unnamed govt' account) appear to be manageable/temporary. Moreover, 2H06 events such as the entrance of high-profile generics into the mkt, and the ability of mgmt, bode well for future prospects. BMY (out Fri) UNH will offer people better coverage of a generic version of the blockbuster drug Plavix than of the branded version, after negotiations with Plavix's makers fell through. The company, one of the nation's biggest insurers, will require an average $10 co-payment for the generic version, which just came on the market and $50 on average for the branded Plavix. Reuters DCTH - a federal court has temporarily issued an order barring Laddcap Value Partners LP from acting on consents it may have received to replace its board of directors. A federal court has temporarily issued an order barring Laddcap Value Partners LP from acting on consents it may have received to replace its board of directors. AP ALKS Comments on its internal options back-dating investigation: nothing has come to its attention that would cause it to believe that there are any instances where management of the Company or the compensation committee of the Company retroactively selected a date for the grant of stock options during the 1999 through 2002 period we identified certain issues with respect to the measurement date for one grant in each of 2000 and 2005 n both instances, the aggregate amount of options granted decreased after the grant date. No options from either the 2000 or 2005 grant have been exercised the aggregate non-cash, stock based compensation expenses related to the 2000 grant is approximately $9.7 million. With respect to the 2005 grant, since the new measurement date for the 2005 grant had a lower stock price than that used in its original accounting, we do not believe any adjustment to our financial statements is required with respect to this grant IMCL Icahn again raises his stake this time from 10.35MM to 19.655MM (Aug 15). BMY WSJ articles suggests that BMY CEO Peter Dolan should be removed after leading the co's stock to a 10-year low. The three major transactions he oversaw failed in achieving the goals for which they were initiated. BMY (out Fri) UNH will offer people better coverage of a generic version of the blockbuster drug Plavix than of the branded version, after negotiations with Plavix's makers fell through. The company, one of the nation's biggest insurers, will require an average $10 co-payment for the generic version, which just came on the market and $50 on average for the branded Plavix. Reuters AIDS Vaccine Shown Effective in Human Trials Chinese human trials of new AIDS vaccine shows effectiveness to all 39 volunteers with no serious side effects. After a 15-day administration period, all patients were immune to the HIV-1 virus. Researchers say more expanded trials are needed but this is a large step in the fight against AIDS. (Bloomberg) RHHBY Herceptin about to be recommended for government subsidies by the Australian Health Minister for women with early-stage breast cancer. 2,000 women annually will be able to benefit from the treatment. MEDI Files NDA for MT103 BiTE molecule for treatment of B-cell-derived non-Hodgkins lymphoma. Ranbaxy Labs In talks to buy Russian generic co Akrikhin Pharmaceutialcs for around $100MM. (Bloomberg) Mayne Pharma FDA grants tentative approval for epirubicin HCL injection (PFE's Ellence). OXGN COO Steve Young leaves to pursue other interests. SIRO LEH inits at OW, targets $37.

Tech/Telecom AV upgraded at Outperform at Piper Telecom equipment stocks rose strongly in Chinese trading this morning in anticipation of 3G licenses, which are expected to be issued by the end of the year; ZTE closed +3.8% and Datang Telecom Tech surged 10%. DJ AAPL - CEO Jobs has no plans to deliver a keynote address at next month's Paris Expo; Jobs has failed to deliver a keynote at the show since '03; last year, he used special media events in Sept and Oct to introduce new iPods and the co's fall Mac line. AppleInsider CHL, MICC - China Mobile, the world's biggest wireless operator by subscribers and market capitalisation, is seeking acquisitions in emerging markets despite the last-minute collapse of its recent bid for Millicom International Cellular. - FT EBAY - discussed in WSJ Heard on the Street - many large investors are willing to give the current mgmt team the benefit of the doubt, although several core EBAY sellers are calling for a drastic shake up among senior ranks. EBAY has assured several investors that Whitman is not going to leave the company anytime soon, recently announced a $2B buyback, and has held meetings w/investors in NY and Boston. EBAY's active base of users however has a greater sense of urgency. WSJ

SNDK - to up the stakes in its MP3 player fight against AAPL; SNDK will introduce a $249.99 MP3 player, the Sansa e280, w/8G of memory, nearly 2x the capacity of a comparably priced Nano. SNDK is also reducing prices for its other music players by nearly 30%; SNDK is seen introducing a new player for the upcomming holiday season that will cost <$100 - WSJ VZ is considering an offer for its landlines in 3 New England states (inc. NH, VT, ME) from FRP according to sources; any deal w/FRP is likely to include contributions from private equity firms. VZ is also fielding offers from CTL and CZN. An effort by VZ to sell access lines in Mid Western states appears to be stalled for now. WSJ JNPR - w/shrs sinking to near 3 year lows, JNPR is a prime acquisition target for rivals, according to industry analysts; ERICY and MOT could be potential buyers. However, some think a deal is unlikely in the near-term given JNPR's outstanding options issue and mgmt's reluctance to strike a deal w/the stock near its lows. Reuters MSFT said it will ask personal computer makers to offer incentives to customers buying PCs for upgrades of its Windows Vista operating system. 'We'll encourage our partners to provide incentives to promote the sales,' Alex Huang, regional director of Greater China, told reporters in Taipei today - Bloomberg Solar cells - shortages of polysilicon have prompted price rises of solar cells by up to 5%; according to Nikkei.net, KYO and others (inc . Sharp and Sanyo) have raised their solar cell pricing - The Inquirer DELL - Battery Recall Could Cost Dell $246 Million; Dell said the Sony laptop battery debacle won't result in any "material" financial impact, although the recall is expected to cost at least $246 million - CRN.com INTC - speculation is growing within the company that more layoffs could be in the offing - The Inquirer Samsung and LG Corp will purchase more mobile phone components from Taiwan to cut costs, the Commercial Times reported Monday, citing Silitech Technology President Wu Shen-yang. The costs of handset components made in South Korea are 20% higher than those made in Taiwan, leading the two Korean companies to switch to buying more components from the island, the paper reported, citing Wu - marketwatch PHG - Bain Capital and Apax Partners announced they have joined an expanded private equity consortium that has agreed to buy 80.1% of PHG's semi business; the new group inc. KKR, Silver Lake, Apax, Bain, and AlpInvest LogicaCMG - the computer services firm revealed plans to buy Nordic rival WM-data in a deal worth 882 million. Logica will issue up to 409 million new shares to fund the takeover. The Times of London MFE received a grand jury subpoena regarding the company's firing of its top lawyer, his activities related to options and the company's internal probe of option grants WSJ HPQ positive comments; while some are focusing on the growing disparity between the co's top line growth (~5%) and its bottom line increase (44%), HPQ's revs outgrew all its competitors combined. Also the stock is still cheaper than DELL (14x vs. 18x). Barron's DT certain shareholders, including Blackstone and DfW, the German state-owned bank, are pushing for the ouster of Chief Executive Kai-Uwe Ricke. The company's supervisory board is already examining alternatives to

	/SOURCE:	Under The Radar
	-0-	08-21-2006
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