AIG, Allegheny, Odyssey Re, Osiris, QLogic: U.S. Equity Movers

By Lu Wang

Sept. 8 (Bloomberg) -- Shares of the following companies are having unusual moves in U.S. trading. Stock symbols are in parentheses, and prices are as of 10 a.m. in New York.

Allegheny Technologies Inc. (ATI US) rose 5.7 percent to $31.48 for the second-biggest gain in the Standard & Poor’s 500 Index. The specialty-metals producer said it signed a 10-year supply agreement with Rolls-Royce Plc that may bring in as much as $1 billion of revenue.

American International Group Inc. (AIG US) dropped the most in the S&P 500, sliding 7.8 percent to $36.92. The insurer bailed out by the U.S. government was downgraded to “underperform” from “neutral” at Credit Suisse Group AG, which cited a recent increase in the company’s share price.

Apple Inc. (AAPL US) added 1.5 percent to $172.83. The maker of the iPod media player and Macintosh computers will host a “rock and roll” event tomorrow, possibly the first opportunity for Chief Executive Officer Steve Jobs to make a public appearance after his liver transplant.

Costco Wholesale Corp. (COST US) advanced 2.6 percent to $56.92 and rose earlier to $57, the highest intraday price since Oct. 31. The largest U.S. warehouse club was raised to “overweight” from “equal weight” at Morgan Stanley, which said non-food items and improvements in California may lead a turnaround in profit margins. Piper Jaffray Cos. also upgraded the shares to “overweight” from “neutral.”

Deutsche Telekom AG (DT US) rose 3.4 percent to $13.95 and climbed earlier to $13.96, the highest intraday price since Jan. 12. Europe’s biggest telephone company and France Telecom SA plan to merge their U.K. mobile-phone units to create the country’s largest cellular operator.

Gap Inc. (GPS US) added 2.7 percent to $21.69 and increased earlier to $21.76, the highest intraday price since March 2008. The operator of Old Navy and Banana Republic was raised to “outperform” from “neutral” at Credit Suisse Group AG.

General Electric Co. (GE US) climbed 4.4 percent to $14.48 for the biggest gain in the Dow Jones Industrial Average. The world’s largest locomotive maker and owner of NBC Universal was raised to “overweight” from “neutral” at JPMorgan Chase & Co., which cited the company’s potential for an “upside surprise.”

Intellon Corp. (ITLN US) surged the most in Russell 2000 Index, jumping 40 percent to $6.99. Atheros Communications Inc. (ATHR US), the maker of wireless communications chips for Hewlett-Packard Co. computers, agreed to buy Intellon for $244 million in cash and stock, adding digital networking lines as it tries to boost sales.

Kraft Foods Inc. (KFT US) had the steepest loss in the Dow Jones Industrial Average, falling 6 percent to $26.50. The second-largest food company said it will pursue a takeover of Cadbury Plc (CBY US) after the maker of Trident gum and Dairy Milk chocolate rejected a 10.2 billion-pound ($16.7 billion) bid. Cadbury rallied 40 percent to $52.27.

Las Vegas Sands Corp. (LVS US) rose 4.5 percent to $16.21 after advancing earlier to $16.51, the highest intraday price since Nov. 3 The casino company controlled by billionaire Sheldon Adelson said it completed and funded a previously announced $600 million pre-initial public offering-financing transaction.

McDermott International Inc. (MDR US) added 4 percent to $25.75 after rising as much as 5.5 percent, the most intraday since Aug. 13. The owner of Babcock & Wilcox Co., a maker of power- plant parts, was raised to “outperform” from “neutral” at Credit Suisse Group AG.

Odyssey Re Holdings Corp. (ORH US) had the biggest gain in the Russell 1000 Index, rallying 25 percent to $62.41. Fairfax Financial Holdings Ltd. (FFH US) said it will buy stock of the reinsurer it doesn’t already own for $60 a share.

Osiris Therapeutics Inc. (OSIR US) had the steepest decline in Russell 2000 Index, tumbling 35 percent to $8. The developer of therapeutic products for the regeneration of human connective tissues said preliminary results showed neither of two phase III trials evaluating Prochymal for the treatment of acute graft versus host disease reached its primary endpoint.

QLogic Corp. (QLGC US) rose 5.1 percent to $17.19 after climbing earlier to $17.49, the highest intraday price since September 2008. The supplier of chips and switches for corporate networks was raised to “overweight” from “underweight” at Morgan Stanley.

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