AIG, Lehman, Merrill, Napster, Take-Two: U.S. Equity Preview

By Lu Wang

Sept. 15 (Bloomberg) -- The following companies may have unusual price changes in U.S. trading. Stock symbols are in parentheses, and share prices are as of 8:30 a.m. in New York unless stated otherwise.

American International Group Inc. (AIG US) plunged 36 percent to $7.83. The largest U.S. insurer failed to present a plan to raise capital and stave off credit downgrades.

Amylin Pharmaceuticals Inc. (AMLN US): Billionaire investor Carl Icahn raised his stake in the maker of the Byetta diabetes drug to 7.33 percent, according to a filing with the U.S. Securities and Exchange Commission. The stock rose 3.6 percent to $20.18 in regular trading Sept. 12.

Caterpillar Inc. (CAT US): The world's largest maker of construction equipment said it won a ruling that may help it block rivals from shipping hydraulic excavators to the U.S. The stock gained 1 percent to $65.46 in regular trading Sept. 12.

Cephalon Inc. (CEPH US) The drugmaker failed to win U.S. approval to expand marketing of its painkiller Fentora to patients who don't have cancer because of concerns that the drug may be misused. The shares fell 0.6 percent to $77.03 Sept. 12.

Lehman Brothers Holdings Inc. (LEH US) plunged 91 percent to 33 cents. The fourth-largest U.S. investment bank succumbed to the subprime mortgage crisis it helped create in the biggest bankruptcy filing in history.

Longs Drug Stores Corp. (LDG US) climbed 3.3 percent to $74. The California retailer that received a $75-a-share offer from Walgreen Co. (WAG US) said it recommends shareholders accept CVS Caremark Corp.'s (CVS US) month-old, $71.50-a-share bid.

Magellan Midstream Partners LP (MMP US): The U.S. oil products distributor said two of its pipelines are shut because of Hurricane Ike. Magellan Midstream rose 3.3 percent to $35.46 in regular trading Sept. 12.

Merrill Lynch & Co. (MER US) surged 29 percent to $22.03. Bank of America Corp. (BAC US), the biggest U.S. consumer bank, agreed to buy Merrill Lynch for about $50 billion as the credit crisis claimed another of America's oldest financial companies. Bank of America will pay $29 a share, or 70 percent more than Merrill's closing price on Sept. 12. Bank of America retreated 14 percent to $28.85.

M&T Bank Corp. (MTB US): The lender said it would take a third-quarter charge on holdings of Fannie Mae (FNM US) and Freddie Mac (FRE US), the mortgage buyers taken over by the government. The stock gained 4.1 percent to $78.17 in regular trading Sept. 12.

McAfee Inc. (MFE US): The security-software developer may gain 30 percent during the next year to $48 as the company posts better-than-estimated earnings and offers protection for corporate networks, Barron's reported, citing Jefferies & Co. analyst Katherine Egbert. The stock fell 3.5 percent to $36.22 in regular trading Sept. 12.

Middleby Corp. (MIDD US): The maker of Toastmaster ovens and Pitco fryers may rise to $95 amid a slowing U.S. economy that curbs Americans' dining-out habits, Barron's reported, citing Roth Capital Partners analyst Anton Brenner. Middleby rose 0.7 percent to $55.89 in regular trading Sept. 12.

Napster Inc. (NAPS US) surged 89 percent to $2.57. The pioneer of digital downloading of music agreed to be acquired by Best Buy Co. (BBY US) for $2.65 a share, or $121 million. Best Buy, the largest U.S. electronics chain, lost 3.3 percent to $43.

Take-Two Interactive Inc. (TTWO US) fell 30 percent to $15.40. Electronic Arts Inc. (ERTS US), the second-largest video- game publisher, said it ended discussions with Take-Two Interactive and won't make a proposal to buy the company. Electronic Arts lost 1.3 percent to $44.99 in regular trading Sept. 12.

Textron Inc. (TXT US): The largest maker of business jets through its Cessna brand won a $250.1 million contract to provide armored security vehicles to the U.S. Army, the Department of Defense said on its Web site. The stock rose 0.4 percent to $38.92 in regular trading Sept. 12.

Washington Mutual Inc. (WM US) retreated 16 percent to $2.30. Its 75 percent slide in market value to $4.7 billion since March leaves the struggling lender valued at just above what JPMorgan Chase & Co. (JPM US) was willing to pay at the time to buy the firm.

To contact the reporter on this story: Lu Wang in New York at lwang8@bloomberg.net