Filed under: Before the bell, Earnings reports, Analyst reports, Deals, Microsoft (MSFT), Yahoo! (YHOO), Time Warner (TWX), Ford Motor (F), Motorola (MOT), Exxon Mobil (XOM), Sprint Nextel Corp (S), Comcast Cl’A’ (CMCSA), PetroChina Co Ltd ADR (PTR), Time Warner Cable (TWC), Tata Mtrs Ltd (TTM)
Before the bell: Futures decline on renewed credit concerns
With reports all over the place yesterday that Ford Motor Co. (NYSE: F) was close to a deal with Tata Motors Ltd. (NYSE: TTM), it is no surprise the deal was announced this morning with Ford selling British automakers Jaguar and Land Rover to India’s Tata for roughly $2 billion.
Comcast Corp. (NASDAQ: CMCSA) and Time Warner Cable Inc. (NYSE: TWC) are discussing a plan to fund a new wireless Internet venture that would be run by Sprint Nextel Corp. (NYSE: S) and Clearwire Corp. (NASDAQ: CLWR) and create a nationwide network using WiMax technology. This would provide faster wireless Web connection speeds for laptops and cell phones than the current networks, according to The Wall Street Journal.
Motorola Inc. (NYSE: MOT) plans to separate its struggling handset business from its other operations. Caving to pressures from activist investor Carl Icahn to make changes, the AP reported that “Motorola stated it will split the handset business from a separate company that’ll encompass its home and networks business, which sells TV set-top boxes and modems, and its enterprise mobility solutions, which sells computing and communications equipment to businesses.” MOT stock is up over 5.7% in premarket trading.
Deutsche Bank (NYSE: DB) stated Wednesday that turmoil in global markets may endanger its annual profit forecast for $13.1 billion. DB stock has declined in Frankfurt trading.
Citigroup’s Mark Mahaney believes Microsoft Corp. (NASDAQ: MSFT) might increase its bid for Yahoo! Inc. (NASDAQ: YHOO) from $31 to $34 a share. The analyst believes Microsoft won’t shy away from the deal, and while there are no other bidders, Yahoo! is pursuing other strategic substitute like getting content from Time Warner (NYSE: TWX). This could entice Microsoft to up the bid. Not only that, the analyst states, but looking at other deals, a higher multiple could be argued, putting the price in the mid $30s. YHOO stock is not really reacting to this analyst note at the moment.
Exxon Mobil Corp. (NYSE: XOM) is once again the world’s biggest company by market value, overtaking PetroChina Co. (NYSE: PTR) as the latter’s shares have slumped 58% since its listing in Shanghai, reducing its market capitalization to $453.1 billion. Exxon Mobil was valued at $455.8 billion on Tuesday after rising 13% in the past year on record energy prices. Rising drilling costs squeezed profits at PTR despite $100 a barrel oil prices. To compare, PetroChina’s refineries lost $54 million a week last year while Exxon Mobil’s refining business had profit of $184 million a week in 2007. Also, PetroChina’s costs for drilling wells and building pipelines jumped 30% in 2007, compared with a 3.1% drop in such expenses at Exxon Mobil.
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