Before the bell: C, NWA, MSFT, YHOO, NWS, SIRI, AUY …

04 04 2008

Before the bell: C, NWA, MSFT, YHOO, NWS, SIRI, AUY …

Posted by: in Latest News

Filed under: Before the bell, Analyst reports, Analyst upgrades and downgrades, Deals, Microsoft (MSFT), Yahoo! (YHOO), Apple Inc (AAPL), Sirius Satellite Radio (SIRI), Citigroup Inc. (C), Gap Inc (GPS), News Corp’B’ (NWS), Yamana Gold (AUY), BHP Billiton Ltd ADR (BHP), Rio Tinto plc ADS (RTP)

Before the bell: Investors await jobs data; MOT, GSK, UBS

As the mega-merger that created Citigroup (NYSE: C) is nearing ten years, the Financial Times interviewed John Reed, one of the masterminds behind the deal. Interestingly, he told the paper that the deal was a mistake and blasted several segments and personnel at the bank.

In other Citi news, the bank has agreed to pay $33 million to settle a discrimination lawsuit involving about 2,500 current and former female brokers at the company’s Smith Barney subsidiary.

A day after ATA ahas filed for bankruptcy, Northwest Airlines Corp. (NYSE: NWA) said it was taking several steps to overcoming higher fuel costs. Among them, Northwest stated it has “raised prices on international flights, plans to freeze new hiring of pilots and flight attendants, and will cut its domestic schedule by 5% beginning in September.”

The Wall Street Journal reports that senior executives of Microsof (NASDAQ: MSFT) and Yahoo! (NASDAQ: YHOO) met this week to discuss Microsoft’s bid for Yahoo!. Already we heard a few days ago that Microsoft is unwilling to raise its offer, and for now at least, Yahoo! continues to refuse to enter formal negotiations without a better offer. While no doubt Microsoft wants Yahoo!, it may be that Yahoo! needs Microsoft. On that basis, it’s possible Microsoft could hold its own, betting Yahoo! would cave in first.

Right after MySpace announced it will sell music and concert tickets to prop up revenue as user growth lags behind its rivals, its parent company Fox Interactive Media, a unit of News.Corp (NYSE: NWS) announced a restructuring and the creation of a new “Audience Network” unit that will be led by Adam Bain. But The Wall Street Journal reported that Fox Interactive Media will miss its fiscal-year revenue goal by at least 10%.

Talking of MySpace music venture, could that affect Apple Inc. (NASDAQ: AAPL)? Well, that’s at least what TheStreet.com thinks. Just as reports of Apple taking over the top spot as a music retailer came MySpace announcement and with its different partnerships could “potentially give Apple’s iTunes service a run for its money.”

Interesting analyst calls this morning include:

Sirius Satellite Radio (NASDAQ: SIRI) was downgraded at Credit Suisse from Outperform to Neutral and the target price lowered from $3.75 to $3.
BHP Billiton (NYSE: BHP) and Rio Tinto (NYSE: RTP) were both upgraded by Bernstein from Market Perform to Outperform.
Yamana Gold (NYSE: AUY) was also upgraded by UBS from Neutral to Purchase.
But The Gap (NYSE: GPS) was downgraded from Outperform to Neutral at Credit Suisse and the target price lowered from $25 to $20.