ANOTHER DAY IN THE MARKETS
(from Briefing)
12:52PM Alpharma discloses SEC investigation (ALO) 16.89 -3.76: Co discloses in today's 8-K that the SEC has informed the co that it has issued a formal Order of Investigation; this investigation relates to the co's revenue recognition practices in connection with the previously-reported revisions to the co's financial results which were completed in 2001.
12:34PM Hearing that TYC reaffirming Q3 and full yr guidance 16.80 -5.15:
12:31PM EP treasurer said to have had health problems 21.41 -4.24: Earlier in the session we were hearing that Treasurer Charles Dana Rice was suffering from severe health problems. Hearing that Reuters is now out with a headline indicating the same. Stock has upticked on this report.
12:20PM El Paso issues statement on death of Treasurer (EP) 20.60 -5.05: -- Update -- "The employees of El Paso Corporation are deeply saddened by yesterday's tragic news of the death of Charles Dana Rice, 47, senior vice president and treasurer."
12:00PM Knight Trading reopens for trading (NITE) 5.51 -0.84:
11:53AM Microsoft confirms SEC agreement (MSFT) 50.12 -0.79: Confirms that it has reached an agreement with the SEC resolving the agency's investigation of MSFT's accounting and documentation for reserves, allowances, and accruals during FY95-98; to conclude this matter, MSFT has consented to the entry of an order that it comply with SEC provisions requiring co's to make accurate filings in conformity with GAAP; the agreement has no impact on MSFT's reported financial results, requires no restatement of any reported financial results, and assesses no penalty.
:28AM El Paso treasurer commits suicide -- Reuters (EP) 22.20 -3.45: -- Update -- Hearing from traders that Reuters has confirmed with company reports that its treasurer is dead; cause of death apparently suicide. EP has plunged to new lows since these reports hit the market.
11:02AM Knight Trading says unusual trading due to software glitch (NITE) 6.35 halted: -- Update -- Co says there are no corporate developments to warrant the unusual trading this morning, but they have identified and are working to correct a software glitch in the NITE trading system that affected only NITE's stock; the glitch generated a large series of sell limit orders in NITE stock, which were routed to various destinations and disrupted trading in the security.
9:51AM Tyco: Solly downgrade details (TYC) 17.91 -4.04: -- Update -- Here are the details on Salomon Smith Barney's pre-market downgrade to Neutral from Buy posted earlier... downgrade follows Kozlowski's resignation (6:53) under the cloud of a criminal tax avoidance investigation in NY (8:25), as well as the following additional concerns: 1) jittery suppliers and customers are likely to be further rattled raising the risk of additional biz disruptions, 2) the potential for other mgmt departures seems likely, and 3) uncertainty and circumstances around Kozlowski's departure may hinder the ability to complete restructuring.
9:46AM TYC plunges 4.30 pts or 19% :
8:48AM Knight Trading rumors flying (NITE) 6.35: -- Update -- Still no news on NITE and the shares are now off more than 50% pre-market on huge volume of 2.5 mln shares; stock actually hit a low of 14 cents this morning before rebounding. As noted earlier, there are many rumors flying but no actual news, so the action in NITE this morning remains a mystery for now. Most of the rumors concern an investigation of the firm, perhaps by the FBI, but still none of this has been confirmed.
8:36AM Knight Trading plunges pre-market (NITE) 6.35: Wild pre-market trading in NITE saw its shares plunge below a dollar on heavy volume before bouncing back to 2.80 in recent action; various dire rumors about investigations and a shutdown of the business are flying on trading floors, thus far without any confirmation or clear source for the information.
8:25AM Tyco's now-former CEO investigated for sales taxes -- NY Times (TYC) 21.95: --Update-- Stock falls $1.70 in pre-market following CEO resignation and NY Times report that Mr. Kozlowski is the under criminal investigation for possible evasion of New York State sales taxes. The investigation supposedly has grown increasingly serious in the last few weeks, with a grand jury issuing subpoenas and taking testimony. Prosecutors are said to believe that Mr. Kozlowski, who has moved hundreds of millions of dollars into family trusts, may have used those trusts to buy goods and services without paying state sales taxes.
8:02AM Peregrine announces management changes (PRGN) 1.38: Announces resignation of board member and audit committee chairman Rod Dammeyer for personal reasons. General counsel Eric P. Deller also resigns. Co hires Gary G. Greenfield as its CEO to fill the position held on an interim basis by Richard T. Nelson.
6:53AM Tyco CEO Dennis Kozlowski resigns (TYC) 21.95: Announces the resignation of CEO/Chairman L. Dennis Kozlowski for personal reasons. Mr. Kozlowski also stepped down from the Board of Directors. At the request of Tyco's Board, former CEO and current director John F. Fort has agreed to assume primary executive responsibilities during an interim period while a search for a permanent replacement is completed. The Board reaffirmed its commitment to the complete monetization of CIT. |
