Stocks turn mixed
Stocks are trading mixed this afternoon, after news that a private equity group purchased a majority stake in Chrysler for $7.45 billion. In small cap action, US BioEnergy Corp. (Nasdaq: USBE) missed profit expectations, while consulting company Inforte Corp. (Nasdaq: INFT) is being acquired for $50 million.
At 11:23 a.m. ET the Russell 2000 had lost 2.43 points, or 0.29%, to 827.11. The Dow Jones Industrial Average was up 30.23 points, or 0.23%, to 13,356.45.
Carlsbad, Calif.-based Xenonics Holdings, Inc. (Nasdaq: XNN), which manufactures portable illumination products, has narrowed its net loss. The net loss for the quarter ended March 31 was $0.18 million, or $0.01 per share, compared with a net loss of $0.68 million, or $0.04 per share, a year earlier, the company said before the opening bell. Analyst estimates were unavailable. Chairman Alan Magerman said the current quarter will see a “positive impact” on financial results due to strong sales of Xenonics new night vision device SuperVision. The stock is up $0.15, or 6%, to $2.55.
Shares of US BioEnergy Corp. are trading lower on news the Inver Grove Heights, Minn.-based company reported net income that missed analysts’ expectations. The net income for the first quarter ended March 31 was $5.2 million, or $0.08 per share, compared with a net loss of $1.56 million, or $0.04 per share, in the same period of 2006, the ethanol producer announced before the start of trading. However, that’s below Wall Street’s projected earnings of $0.22 per share. US BioEnergy also said that it has begun construction of a 100 million gallons-per-year ethanol plant near Janesville, Minnesota. Shares are down $0.50, or 4%,to $13.11.
Chicago-based Inforte Corp. will be acquired by Business & Decision Group (Euronext: BND) for approximately $50 million in an all-cash transaction, according to a joint announcement by the two consulting companies before the opening bell. That’s $4.25 per Inforte share, a 33% premium on Friday’s closing price. The acquisition has been approved by both boards and is expected to be completed in 90 days. Shares are up $0.95, or 30%, to $4.15.
DaimlerChrysler (NYSE: DCX) has sold 80.1% of its stake in Chrysler to private equity group Cerberus Capital Management for $7.45 billion, the company said before the start of trading. United Auto Workers, the union representing Chrysler’s factory workers, welcomed the deal.
Members of Ford Motor Co.’s (NYSE: F) founding family are denying news reports this morning that they are considering selling part of their controlling stake in the company. Earlier today some media outlets cited unnamed sources claiming the family is discussing a sale.
