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Delta Mulling AMR Corp. Bid — Thursday’s IP Market Recap

Also interested in the bankrupt carrier: Private equity firm TPG and US Airways


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.

Three Down

  • 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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