2:30PM NY, U.S. Market Movers

Affiliated Computer Services (ACS: chart) shares rose 16.8%. Private-equity firm Cerberus Capital Management has offered to pay roughly $5.6 billion in cash for the company and assume $2.6 billion of its debt as part of the deal.

Alon USA Energy (ALJ: chart) shares surged 7.6% on its management''s prediction that two recent acquisitions will contribute more than originally expected to the company''s future profits. The company expects its Paramount Petroleum and Edgington Oil acquisitions to generate earnings before interest, taxes, depreciation and amortization contribution of $300 million by 2011, up from its previous estimate of $100 million.

Eschelon Telecom Inc. (ESCH: chart) said it agreed to be acquired by privately held Integra Telecom Inc. for about $566 million in cash. Integra said it expects earnings before interest, taxes, depreciation and amortization on a pro-forma basis to exceed $200 million for the combined company. It also sees annual revenue of more than $700 million. Shares climbed 12.7%.

Exide Technologies (XIDE: chart) shares gained 16.7%. The company announced a new battery supply agreement with Toyota Motor Engineering & Manufacturing North America. Exide said it has begun shipping lead-acid starting batteries for the next-generation of Toyota Tundra trucks assembled at Toyota''s facility in San Antonio.

Hirsch International Corp. (HRSH: chart) shares climbed 37.6% after the distributor of embroidery systems reported its fourth-quarter results. Sales climbed 27% to $15.2 million. Operating income increased to $973,000, compared with a year-ago loss of $249,000; net earnings swung to a penny-per-share profit from last year''s loss of 4 cents per share.

Navistar International Corp. ((NAVZ.PK)) increased its fiscal-year outlook for industry volume for the United States and Canada and said its global quarterly shipments were unchanged. That’s why the company’s shares climbed 5%. Navistar forecast industry sales of medium and heavy trucks and school buses at 325,000 units to 347,000 units for the year, a 24% to 28% decline from 2006.

Progress Software Corp. (PRGS: chart) shares rose 7.6% after the software company reported better-than-expected first-quarter results. The company posted adjusted earnings of $16.2 million, or 37 cents per share, on revenue of $115.2 million. Analysts anticipated earnings of 35 cents per share on revenue of $111.5 million. During the year-earlier period, the company earned $12.9 million, or 30 cents a share, on revenue of $103.9 million.

Silicon Motion Technology Corp. (SIMO: chart) shares jumped 10% after the developer of chip components increased its first-quarter revenue outlook. The company now sees revenue of $33.1 million to $34.5 million, which represents a sequential decline of 3% to 7% from the fourth quarter. Previously, the company projected a sequential decline of 15% to 20%.

Verso Technologies (VRSO: chart) shares climbed 13.3% after the company announced its providing general revenue and EBITDA financial guidance to investors. Verso management expects first quarter 2007 revenues to be at least $12 million. In the first quarter of 2006, the company recorded $6.7 million in revenue. Second quarter 2007 revenue is expected to be between $14 and $15 million versus $8.4 million recorded in the second quarter of 2006. Full year 2007 revenue is expected to be between $60 and $70 million. Revenue for 2006 was $42.5 million and in 2005, revenue was $32.8 million.

Delta Air Lines ((DALRQ.PK)) said it has been hired by JetBlue Airways Corp. to be its vice president of operations at John F. Kennedy International Airport in New York. The staffing announcement comes a month after weather-related problems at the airport left hundreds of JetBlue passengers stuck on planes for up to 11 hours, attracting considerable negative publicity. Shares fell 5%.

Hancock Fabrics (HKF: chart), struggling fabric retailer, said it will close 104 more stores and will look into alternatives for the company''s future. The announcement brings the total number of closings to 134. Shares fell 28.2%.

3Sbio Inc. (SSRX: chart), biotechnology company, said that the company has received approval from the PRC State Food and Drug Administration for licenses to produce and sell pre-filled syringe erythropoietin products in 2,000 IU, 3,000 IU, 4,000 IU and 10,000 IU strengths under its brand name, EPIAO. The Company plans to launch pre-filled syringe EPIAO products within 2007. Shares jumped 8.3%.


1:00PM NY European markets advanced, lifted by merger speculation.
European stocks closed on a positive note Tuesday, reversing from earlier losses. Markets were given a boost by gains in the U.S. market, strength in the financial sector and bid speculation which helped offset disappointing earnings from Deutsche Post. Dutch banking group ABN Amro shares gained 3.5% after confirming the takeover talks. Barclays shares were also higher, up 3.7%. U.K. insurer Prudential climbed 3.3% to 731.50 pence amid merger consolidation. In other deal news, U.K. leisure group Whitbread climbed 11% amid rumors of private-equity bid interest. Among companies releasing earnings results, Deutsche Post shares fell 4.8% after it said that its sales should increase slightly in 2007. Also on the negative side, shares in chemicals group Lanxess lost 3.2% after the company posted sales decline. The U.K. FTSE 100 index added 0.5% at 6,220.30, the German DAX 30 gained 0.4% at 6,700.29 and the French CAC-40 climbed 0.8% at 5,503.27.

Crude oil prices hovered round $57. Light, sweet crude April delivery traded at $56.78. Heating oil rose to $1.7027. Natural gas jumped 10 cents to $6.944 per 1,000 cubic feet. London Brent rose 30 cents to $60.82. The U.S. dollar traded mixed against its major currency rivals. The euro was quoted at $1.3289, down from $1.3301. The dollar bought 117.22 yen, down from 117.59. The British pound traded at $1.9580, up from $1.9443. European gold prices rose. In London gold traded at $659.50 per troy ounce, up from $653.50. In Zurich, the precious metal traded at $652.85, up from $654.10. Silver rose to $13.34, up from $13.15.


11:30AM Wall Street traded modestly higher. Deal talk gave a boost.
U.S. stocks traded modestly higher, awaiting the Fed Reserve''s interest-rate decision. Investors received well the Commerce Department''s report that construction of new homes and apartments rose by 9%. However, homebuilders declined on the prospect of fewer permit applications. Toll Brothers (TOL: chart), D.R. Horton (DHI: chart), Centex (CTX: chart), KB Home (KBH: chart) and Hovnanian Enterprises (HOV: chart) moved to the downside. Some deal talk also generated positive sentiment. Affiliated Computer Services (ACS: chart) climbed 17% after an investment group said it is offering $5.93 billion in cash to take it private. Speculation arose over media reports on several other deals. Palm (PALM: chart) gained 4.5% on reports that cell phone manufacturer Nokia Corp. (NOK: chart) is trying to buy the company. American International Group (AIG: chart) was reportedly considering an acquisition of Prudential PLC.

Investors found comfort in news that Accredited Home Lenders (LEND: chart) received a $200 million term loan from Farralon Capital Management. The troubled lender surged 23% after falling 18% on Monday. The Dow was led by gains for Caterpillar (CAT: chart), up 1.5% and Wal-Mart Stores (WMT: chart), up 1.2%. In late morning trading, the Dow Jones industrial average rose 29.32, or 0.24%, to 12,255.49. The Standard & Poor''s 500 index was up 4.33, or 0.31%, at 1,406.39, and the Nasdaq composite index rose 10.40, or 0.43%, to 2,404.81. Bonds rose, as the Treasury markets shrugged off the housing data and an announcement from China that the country doesn''t intend to build up its reserves.

10:30AM London equities were lower on Tuesday. Whitbread surges on M&A.
The UK market was lower on Tuesday. In mid-morning trade, the FTSE 100 was down 7.5 points to 6,181.7.