StreetInsider.com Morning Movers 9/29: Wachovia (WB) Trashed On FDIC Assisted Fire-Sale To Citi (C); Financial Slammed

September 29, 2008 9:32 AM EDT

StreetInsider.com Morning Movers:

Wachovia (NYSE: WB) 91% LOWER; Citigroup Inc. (NYSE: C) will acquire the banking operations of Wachovia in a transaction facilitated by the FDIC. Citigroup will acquire the banking operations of Wachovia in a transaction facilitated by the FDIC. Citigroup Inc. will acquire the bulk of Wachovia's assets and liabilities, including five depository institutions and assume senior and subordinated debt of Wachovia Corp. Wachovia Corporation will continue to own AG Edwards and Evergreen. The FDIC has entered into a loss sharing arrangement on a pre-identified pool of loans. Under the agreement, Citigroup Inc. will absorb up to $42 billion of losses on a $312 billion pool of loans. The FDIC will absorb losses beyond that. Citigroup has granted the FDIC $12 billion in preferred stock and warrants to compensate the FDIC for bearing this risk.

National City Corporation (NYSE: NCC) 21% LOWER; Growing fears after Wachovia's FDIC facilitated fire sale to Citi

Cal-Maine Foods, Inc. (NASDAQ: CALM) 15% LOWER; reports Q1 EPS of $0.47, compared to $0.76 in the same quarter last year. Revenues for the quarter were $206.9 million, compared to $178.6 million in Q108.

Littelfuse, Inc. (NASDAQ: LFUS) 10% LOWER; lowers Q3 sales guidance from $145-$150 million to about $140 million, versus the consensus of $147.13 million. Non-GAAP EPS for the quarter are expected to be in the range of $0.09-$0.14, or $0.30-$0.35 before special charges, versus the consensus of $0.44.

Apple Inc. (NASDAQ: AAPL) 7% LOWER; Morgan Stanley and RBC Capital downgrades

Financial Select Sector SPDR (AMEX: XLF) 5% LOWER; Growing fears after Wachovia's FDIC facilitated fire sale to Citi

Citigroup Inc. (NYSE: C) 5% LOWER; will acquire the banking operations of Wachovia in a transaction facilitated by the FDIC.

Gentex (Nasdaq: GNTX) 5% LOWER; lowers its Q3 sales growth estimates from positive 10% to negative 5%. The company said the lowered guidance was the result of numerous automotive announcements of light vehicle production cuts, extended automotive plant shutdowns, significant declines in vehicle sales in both the United States and Europe, and turmoil in the financial markets.

Freeport-McMoRan (NYSE: FCX) 4% LOWER; Deutsche Bank downgrade

Coeur d'Alene Mines (NYSE: CDE) 4% LOWER; Deutsche Bank downgrade

Pilgrim's Pride Corporation (NYSE: PPC) 3% HIGHER; announced that on September 26, 2008, it successfully completed a definitive written agreement with its lenders to temporarily waive the fixed-charge coverage ratio covenant under its credit facilities through October 28, 2008. The lenders also have agreed to continue to provide liquidity under these credit facilities during this same 30-day period in accordance with the terms of the waiver agreement.

ImClone Systems Incorporated (NASDAQ: IMCL) 3% HIGHER; announced today that the large Pharma company that had made an offer to acquire ImClone at $70 per share, subject to due diligence, but not financing, has informed ImClone that by 11:59 pm on Wednesday, October 1, 2008, they will either make a proposal, that is no longer subject to due diligence, or withdraw. As has been mutually agreed, if they withdraw and negotiations have thus been ended, the name of the company will be disclosed. Last week, Bristol-Myers (NYSE: BMY) raised its offer for ImClone to $62 per share.

Morgan Stanley (NYSE: MS) 1% HIGHER; Mitsubishi UFJ Financial Group and Morgan Stanley (NYSE: MS) announced that the two companies have reached a definitive agreement under which MUFG is investing $9 billion in equity in Morgan Stanley for a 21 percent interest in the Company on a fully diluted basis. MUFG will acquire 9.9 percent of Morgan Stanley's common stock on a primary basis at a price of $25.25 per share, for a total of $3 billion. MUFG will also acquire $6 billion of perpetual non-cumulative convertible preferred stock with a 10 percent dividend and a conversion price of $31.25 per share.

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Related Entities

• Deutsche Bank
• Citi
• Morgan Stanley
• Wachovia
• RBC Capital
• Dividend

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