Bankrupt airline holding company AMR Corp. (PINK:AAMRQ) got a jolt of life Thursday after The Wall Street Journal reported Delta Air Lines (NYSE:DAL) and a private equity firm were each exploring the possibility of acquiring the company.
Shares for the American Airline parent — now trading on the pink sheets — jumped as high as 20% in midday trading before settling up about 12% at 40 cents. AMR filed for bankruptcy in November.
According to the report, analysis by Delta — the world�s largest carrier — said the company could get approval for the acquisition if it makes certain concessions. DAL stock gained about 3% on the news to finish Thursday trading at $8.87. TPG Capital, a private-equity firm that previously has had dealings with Continental Airlines (NYSE:UAL) and Qantas Airways, is the other potential bidder. The Journal added a late note saying US Airways (NYSE:LCC) was also mulling a bid.
Also Thursday, Dick�s Sporting Goods (NYSE:DKS) shot up more than 12% to $40.94 after announcing the authorization of a $200 million stock buyback program. Dick�s said in a release that the program will offset stock options issued after the company�s 2002 IPO anticipated to be exercised this year.
In the same release, Dick�s announced it would revising the top end of its fourth-quarter earnings guidance, with the company now expecting a range of 87-88 cents per share compared to previous expectations of 87-89 cents. Analysts polled by FactSet currently expect earnings to hit the bottom end of expectations. Top-line full-year guidance also was lower by a cent but also is in line with Wall Street opinions.
Three Up- Radian Group (NYSE:RDN): Up 10% (27 cents) to $2.967.
- Research In Motion (NASDAQ:RIMM): Up 5.3% (83 cents) to $16.44.
- Broadcom (NASDAQ:BRCM): Up 5.2% ($1.60) to $32.66.
- Rex Energy (NASDAQ:REXX): Down 15.1% ($2.07) to $11.63.
- Williams-Sonoma (NYSE:WSM): Down 12.2% ($4.76) to $34.32.
- Infosys (NASDAQ:INFY): Down 8.8% ($5.02) to $51.85.
As of this writing, Kyle Woodley did not own a position in any of the aforementioned stocks.
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