Boeing, Fannie Mae, Teva, UnionBanCal: U.S. Equity Preview

By Jeff Kearns

Aug. 18 (Bloomberg) -- The following companies may have unusual price changes in U.S. markets. Stock symbols are in parentheses after company names, and prices are as of 8 a.m. in New York on Aug. 15, unless stated otherwise.

Mortgage lenders Fannie Mae (FNM US) and Freddie Mac (FRE US) fell after Barron's said it is ``increasingly likely'' the U.S. Treasury Department will recapitalize the home-loan providers, which would ``wipe out'' shareholders. Fannie lost 8.9 percent to $7.21. Freddie lost 8.2 percent to $5.37.

Boeing Co. (BA US) and Northrop Grumman Corp. (NOC US), competing to win a reopened $35 billion refueling tanker contract, said they met with U.S. Department of Defense officials yesterday for the second time in a week to move forward on an amended bid proposal. Boeing fell 32 cents in regular trading to $64.45, while Northrop gained 1.5 percent to $71.13.

Broadcom Corp. (BRCM US) lost 3.4 percent to $28.39. The chipmaker may gain as much as 40 percent as it benefits from demand for its products used in smart phones such as Apple Inc.'s iPhone, Barron's reported, citing analyst Daniel Berenbaum of Cowen & Co.

Hershey Co. (HSY US) dropped 9.3 percent to $37.75. The largest U.S. chocolate maker said it expected price increases to curb sales and profit growth in 2009. Citigroup Inc. cut its rating on the shares to ``hold'' from ``buy.''

R.H. Donnelley Corp. (RHD US) rose 14 percent to $2.15. The yellow-pages publisher, buckling under $9.7 billion in net debt and falling advertising revenue, may rally from its 94 percent decline this year if the directories remain popular, Barron's said, citing no one.

ShengdaTech Inc. (SDTH US) gained 9.2 percent to $10.40. The China-based maker of chemicals reported second-quarter adjusted profit of 18 cents a share, more than the 14-cent average estimate of analysts surveyed by Bloomberg.

Teva Pharmaceuticals Industries Ltd. (TEVA US): Roche Holding AG, the maker of the tumor medicine Avastin, sued Teva and three other companies to block U.S. sales of a generic version of Boniva, a once-a-month treatment for osteoporosis. Teva added 1.3 percent to $48.32 in regular trading.

Time Warner Inc. (TWX US): The media company's Batman saga ``The Dark Knight'' surpassed the original ``Star Wars'' to become the second-highest grossing domestic film of all time with $471.5 million, a month after its release. Time Warner stock rose 2 percent to $16.17 in regular trading.

UnionBanCal Corp. (UB US) rose 12 percent to $73.25. Mitsubishi UFJ Financial Group Inc. (8306 JP), Japan's biggest bank, raised its bid for UnionBanCal by 17 percent to $3.5 billion to gain full control of the California lender that dodged the subprime lending crisis.

To contact the reporter on this story: Jeff Kearns in New York at jkearns3@bloomberg.net.