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Dow Jones News Top Stories Of The Day – February 5, 2007 February 5, 2007

Posted by notapundit in Economic News.
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TRIAD HOSPITALS AGREES TO BE TAKEN PRIVATE FOR $4.7B

Triad Hospitals agrees to be acquired by affiliates of CCMP Capital Advisors and GS Capital Partners at a price of $50.25 a share in cash, a premium of 16% over Friday’s closing price. Deal carries total value of $6.4 billion, including $1.7 billion in debt. Triad shares jump nearly 15%.

US SERVICES GROWTH STRONG IN JANUARY

Institute for Supply Management’s non-manufacturing index increases to 59.0 in January from a revised 56.7 in December. Wall Street had expected a reading of 57.0. ISM says report suggests ‘continued economic growth.’

STATE STREET TO BUY INVESTORS FINANCIAL

State Street agrees to acquire Investors Financial Services for nearly $4.5 billion in stock in deal that combines two firms providing a variety of services to institutional investors. Deal values the company at a 38% premium. State Street falls 6%.

LEAR GETS $36 A SHARE OFFER FROM ICAHN GROUP

Investor Carl Icahn is offering to acquire auto parts maker Lear for $36 a share, or about $2.75 billion, through his affiliate group, American Real Estate Partners. Lear shares jump 12%, topping offer price.

JEFF ZUCKER TO TAKE OVER AS CHIEF OF NBC

GE decides to name Jeff Zucker to succeed Robert Wright, reflecting management’s view that a younger executive is needed to deal with the challenges posed by the Internet. Wright has run NBC since it was acquired by GE in the mid-1980s.

MORGAN STANLEY HIKES BONUSES FOR MANAGERS

Morgan Stanley is adding 10% to bonuses this year for managers who are able to maintain branches’ growth in commissions and fees. Firm will also allow managers to use up to 25% of pretax income to buy company stock.

STUDENT LENDERS FALL ON BUSH PROPOSAL

Bush proposes 50-basis-point cut in student lender rate subsidies and increasing lender risk as part of plan to save $95 billion in entitlement spending by 2012. Shares of Sallie Mae slide 10%; Student Loan Corp. falls 6% and Nelnet drops 9%.

DOE MULLS CREATING ETHANOL RESERVE

As U.S. Energy Dept. looks to expand the nation’s emergency stockpile, officials are also considering whether it would be beneficial to create an ethanol reserve.

GOLDMAN’S RYAN TO RUN SECURITIES AT CREDIT SUISSE

Credit Suisse adds a management layer in its ongoing reorganization of investment banking, hiring Goldman Sachs sales veteran Michael D. Ryan to a new position overseeing fixed income and equities securities.

STUDY SHOWS LOWER DEATH RATE WITH COATED STENTS

Stent heart devices study shows patients who received drug-coated stents experienced a lower rate of death and heart attacks after nine months than patients who received bare-metal stents.

DAIMLER PLANS CLOSER MERCEDES-CHRYSLER COOPERATION

DaimlerChrysler CEO Dieter Zetsche is betting he can turn around the auto maker’s ailing Chrysler arm by tying it even more closely to the company’s Mercedes luxury brand.

NIELSEN TO PAY $327M FOR REST OF NETRATINGS

Television-ratings company formerly known as VNU NV, agrees to pay about $327 million for the 40% of NetRatings it doesn’t own already. Deal is expected to close in 2Q.

NBC RENEWS ENTERTAINMENT CHIEF REILLY’S CONTRACT

NBC renews contract of Entertainment President Kevin Reilly, signaling the company has faith in his ability to continue a nascent turnaround at the network, according to people familiar with the matter.

EXECUTIVES TO LEAVE DISCOVERY COMMUNICATIONS

Four top executives at Discovery Communications are to leave the cable network giant, a result of a shakeup engineered by Discovery’s newly installed chief executive, David Zaslav.

EQUITY OFFICE TO EVALUATE VORNADO’S PROPOSAL

Under the revised terms of Vornado’s offer, Vornado would launch an upfront tender offer to buy up to 55% of Equity Office’s shares for $56 each in cash, and then complete a follow-on merger.

WENDY’S SAYS FINANCIAL PERFORMANCE MUST IMPROVE

No. 3 burger chain says it will emphasize its hamburgers this year as part of a multi-pronged strategy to improve sales as it slowly rolls out a breakfast menu.

MORTGAGE LENDERS FILES FOR CHAPTER 11

Mortgage Lenders, which caters to borrowers with weak credit, files for bankruptcy-court protection, the latest in a string of subprime home-loan providers to be hit by slowing home sales and rising delinquencies.

MILLS SALE HEATS UP WITH SIMON BID; MORE BIDS LIKELY

Simon Property and hedge fund Farallon Capital offer $1.56 billion for Mills Corp., a move designed to derail a $1.35 billion agreement with Brookfield Asset Management. Mills jumps 15%, tops new $24 a share bid.

CME CONFIRMS MEETING WITH TOKYO EXCHANGE

Officials from the Tokyo Stock Exchange visited the Chicago Mercantile Exchange last week, a CME spokesman says, following reports that the two exchanges are discussing a possible alliance.

======= DOW JONES NEWSWIRES ANALYSIS AND COMMENTARIES =======

GETTING PERSONAL
Connecticut Hedge Fund Bill Proposed
Various proposals to oversee hedge funds are percolating in Connecticut, a state with a heavy concentration of the investment vehicles. One bill would require hedge funds to report investments of more than $10 million from pension funds.

NOTICE TO READERS
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============ U.S. MARKETS ACTION ===========
DJIA up 8.33 points to 12661.58
NASDAQ down 3.25 points to 2472.67
S&P 500 up 2.45 points to 1438.39
10-year T-note up 4/32 at 98 18/32 yield 4.827
NYMEX Spot Crude down $0.28 at $58.74/bbl at close
Dollar/Euro down 0.0033 at 1.2927

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