Sears Holdings Corp, (SHLD), department store operator, reported Q1 earnings of $1.14 a share, up from a loss of 7 cents a share a year-ago. Last year''s results incorporate a charge of $90 million related to a change in accounting for certain inventory costs. The company attributed the improvement in earnings to better profitability in both its Kmart and Sears Domestic operations, mainly due to reduced expenses. The company topped analysts’ estimate for a profit of 65 cents a share. Total revenue advanced in the latest three months to $12 billion from $7.63 billion a year ago, primarily due to the inclusion of Sears operations for the full 13-week period. Sears Domestic same-store sales dropped 8.4% in Q1, while Kmart''s comparable stores slid 0.2%.

8:00AM Mittal officially launched $27 billion offer for Arcelor.
Mittal Steel Co. officially offered $27 billion in cash and stock for its rival Arcelor SA, expressing a strong belief that the offer is both attractive and generous. Mittal is offering Arcelor shareholders four Mittal Steel shares and $45.41 for every five Arcelor shares. A secondary offer consists of $36.34 for each Arcelor share. Merging the world''s top steelmakers would create a company with nearly a 10% share of global steel production and a market capitalization close to $40 billion.

The offer, launched in Luxembourg, France and Belgium will be open until June 29. Mittal said it will also launch a bid in Spain and the United States when market regulators clear the offer. Arcelor has so far rejected the offer as hostile, maintaining the view that the present management and plans of the company serve best the company''s shareholders’ interests. In a move that could help Arcelor defend itself, the company said it plans to spend up to $9.5 billion to buy back almost a quarter of its shares.

Arcelor CEO Guy Dolle said last week when both companies reported earnings that Mittal''s Q1 earnings were much weaker than Arcelor''s. He also likened Arcelor''s high-quality steel as perfume to Mittal''s cheaper eau-de-cologne.

Arcelor was formed in 2002 through the merger of Usinor SA of France, Arbed SA of Luxembourg and Aceralia Corp. Siderurgica SA of Spain. Shareholders include the governments of Luxembourg and Belgium''s Walloon region. The company''s board of directors was strongly supported by shareholders last month when they defended its moves to protect itself.

7:30AM Asian-Pacific markets ended lower across the region.
Asian markets closed lower. Japanese benchmark Nikkei 225 shed 220.49 points to settle at 16087.18 points , its lowest closing since March 9. Decliners were led by Canon, down 2.3% and Honda Motor, falling 1.9%. Nippon Oil plunged 3.4% and Ebara, a machinery maker, fell 6.1%. Bank shares also declined, among them Mitsubishi UFJ Financial Group posting 3.5%. Korean index Kospi also fell 2.6%, finishing 36.32 points down, at 1365.15. Financial stocks and construction shares led the decliners. Kookmin Bank dropped 4.5% and Shinhan Financial Group lost 3.8%. Construction dived 6.3%. Hyundai Engineering & Construction plummeted 9.3%. Daewoo Engineering & Construction took a 6.3% dive. Hong Kong''s benchmark Hang Seng Index dropped 349.03 points to finish at 16266.52. Clothes producer Esprit was one of the biggest losers, ending 4.71% down. China stocks finished slightly lower, led by nonferrous-metal companies. Shanghai Composite Index, China’s blue-chip finished 0.5% lower at 1617.28. Australia''s index S&P/ASX 200 closed at 5119.3, off 1.9%, its biggest percentage fall since last October. Taiwan’s Weighted Price Index dropped 82.80 points, or 1.2%, to settle at 7034.03.

6:30AM European markets fight back an early retreat.
The FTSE 100 gained 0.5 %, Xetra Dax traded in Frankfurt 0.5 % higher and the CAC-40 in Paris rose 0.4 %. On the corporate front, Societe Generale topped expectations, up 0.7%, on record-breaking first-quarter net earnings, while Air France beat the estimate only just, its stocks remained flat. Arcelor was among the decliners, shedding 2.6% in the wake of the takeover bid from Mittal Steel, which also fell 3.6%. Alstom lost 0.3% despite ING lifting its price target, after it reversed to profit. Man AG dropped 1.2% while Sandvik’s stocks advanced 1.5%.

Light crude oil was trading 14 cents down at $68.55 a barrel by 0742 GMT, continuing yesterday’s 84-cent loss. London Brent gained 3 cents to $69.07. Gold declined in early trade to $687.50 an ounce, down from $696.70, along with silver which also lost ground to$13.10 an ounce, down from $13.30 an ounce. The dollar fell against the euro. The euro bought $1.2792, up from $1.2741 late Wednesday. The British pound traded at US$1.8880, up from US$1.8816 and the yen was slightly stronger. The dollar traded at 110.65 Japanese yen, down from 110.96 yen.