3:00PM NY, U.S. Market Movers

DaimlerChrysler, Kronos, Paxar, Smithway Motor Xpress and Bel Fuse rise on bids. Bookham jumped on arranging financing for the operations.

Bel Fuse (BELFA), maker of magnetics-based components, received an unsolicited $480 million cash bid to acquire by electronics components producer Technitrol Inc. Technitrol said it would pay for the deal using cash on hand and debt. Shares of the company jumped 31.3%.

DaimlerChrysler (DCX) shares jumped 6.2% on increased speculation that it was close to selling its Chrysler Group, despite a company spokesman did not confirm any rumors.

ImClone Systems Inc. (IMCL), which makes the colon-cancer drug Erbitux, was lifted 11.6% on news of its competitor''s setback.

Kronos Inc. (KRON) said that it has agreed to be acquired by private equity firm Hellman and Friedman LLC for about $1.8 billion. Hellman and Friedman would pay $55 a share in cash. JMI Equity, a private equity firm focused on the software and business services industries, would participate in the deal alongside lead investor Hellman and Friedman. Shares climbed 13.6%.

New Century Financial ((NEWC.PK)) said it expects a $46 million loss from the termination of a $900 million financing agreement with Barclays Plc. Shares jumped 30.1%.

Paxar Corp. (PXR) shares jumped 18.7% after the maker of tags and labels agreed to be acquired by Avery Dennison (AVY). Avery Dennison expects the transaction to result in annual cost savings of about $90 million to $100 million. The deal is expected by the end of the year, and after that is projected to add to Avery Dennison''s earnings within one year.

Power-One Inc. (PWER) said a U.S. district court ruled in its favor by rejecting a defense raised by Artesyn Technologies that Power-One''s patents are invalid. Power-One, which said in the litigation that Artesyn infringes 82 claims in four patents, said it will now take the patent infringement suit to a jury trial scheduled for August. Shares of the company jumped 10.4%.

Smithway Motor Xpress Corp. (SMXC) said it agreed to be acquired by Western Express Inc. for $10.63 a share in cash, or about $54 million. Including debt, the deal is valued at about $90 million, the company said in a statement. For the fourth quarter, the company reported a loss of $42,000, or 1 cent per share, compared with a profit of $755,000, or 15 cents per share, in the year-ago period.

Synnex Corp. (SNX), an information technology supply chain services company, shares jumped 12% on the company''s better-than-expected forecast for the second quarter. Synnex estimated net income of $14 million to $14.7 million, or 43 cents to 45 cents per share in the quarter. It expects revenues of $1.6 billion to $1.65 billion. The company also said first-quarter profit climbed 30% with net income of $13.9 million, or 43 cents per share, exceeding Wall Street expectations. Revenue for the quarter rose to $1.59 billion from $1.5 billion in the same period a year earlier.

Urban Outfitters (URBN), which reported flat fourth-quarter profit earlier this month, saw shares rise 5.4% after Goldman Sachs and Wachovia analysts upgraded the retailer on signs of a turnaround at its namesake and Anthropologie chains.

Bookham Inc. (BKHM) slumped 10% after the telecom-equipment company said it will sell about 13.6 million shares of stock for $28.6 million in a private placement. The company will also issue warrants to buy about 4.1 million shares of stock. The warrants will have an exercise price of $2.80 a share. Bookham plans to use proceeds from the offering to fund its working capital needs.

Jabil Circuit Inc. (JBL) slumped 10% after the electronics-services provider gave a disappointing guidance for the third and fourth quarters, despite stronger-than-expected second-quarter revenue. For the second quarter the company posted revenue of $2.9 billion, up from $2.3 billion a year earlier. Jabil didn''t release earnings because of an ongoing investigation into its stock-option practices. The company forecast third-quarter adjusted earnings of 17 cents to 23 cents a share, with revenue of $2.9 billion to $3 billion. Wall Street had targeted earnings of 44 cents a share and revenue of $3.04 billion. For the fourth quarter, Jabil sees adjusted earnings of 29 cents to 34 cents a share, well below analysts'' forecast of 50 cents. The company predicts revenue of $2.9 billion to $3 billion, compared with Wall Street''s projection of $3.18 billion.

Orient-Express Hotels Ltd. (OEH) shares surged 2.20% following a news report that the operator of hotels, restaurants, tourist trains and river cruises may be purchased for more than $3 billion. Chairman James Sherwood''s scheduled departure in June increases the likelihood of a transaction.

2:30PM NY – Daimler Chrysler trades higher on possible sale of Chrysler unit to Magna of Canada led group.

Daimler Chrysler stock is trading 6% higher at mid-day trading in New York on possible sale of Chrysler unit. According to a report circulated by Brett Hosleton, KeyBanc Capital Markets analyst the company is in discussion to the Chrysler unit to with various companies including General Motors, several private equity groups and Canadian auto part maker. Magna makes auto parts for Chrysler and builds Chrysler cars in Europe.

General Motors is in discussion with Chrysler and looking for ways to build engines and other components together. However, General Motors has its own operational problems and unresolved issues with the labor unions and spun-off subsidiary Delphi. Even then General Motors can bring synergies in operation and sales in the U.S.

Daimler-Benz AG bought in 1998 Chrysler for $36 billion. According to Hosleton the Chrysler unit may be sold for as little as $4.8 billion. Various analyst reports suggest that Goldman Sachs has valued the Chrysler unit at $6 billion, one billion more than Magna is willing to pay. However, the cost of healthcare and retiree cost is estimated to be as high as $17 billion. And, when lack of profitability is accounted on top of this legacy cost of running Chrysler, the market value of the Chrysler Group can be construed close to zero.

It is possible that Chrysler Group may be sold for little cash payment so that DaimlerChrysler AG can get rid of the legacy cost and not affect its auto and other operations.