Image Entertainment Inc. (DISK: chart), producer and distributor of home entertainment programming, said it agreed to sell the company for about $95 million dollars. BTP Acquisition Co. LLC, an investor group led by David Bergstein, has agreed to buy the company for $4.40 per share. The transaction is valued at about $132 million. Stockholders owning a total of approximately 38% of Image's outstanding common shares have agreed to vote their shares in favor of the transaction.

Magma Design Automation (LAVA: chart) said that it agreed to end all pending litigation with paying Synopsys $12.5 million toward the settlement. Synopsys of Mountain View, Calif., and Magma of Santa Clara, Calif., said they have agreed to release all claims in both California and Delaware and to cross-license the patents at issue in these jurisdictions. Shares climbed 15.5%.

PMC-Sierra Inc. (PMCS: chart), maker of chips used in telecom, networking and storage equipment, shares surged 11.1% after the company unveiled a restructuring plan that includes the closure of two facilities. The company said it plans to close to research and development centers in the Canadian cities of Winnipeg and Saskatoon. The closures are expected to result in 175 job cuts and annual savings of $20 million to $24 million. The company also narrowed its first-quarter revenue expectations to the upper half of its previous guidance range of $98 million to $105 million.

Saba Software Inc. (SABA: chart), employee training software maker, said it expects to break even or possibly earn a profit of up to 5 cents per share in its fiscal fourth quarter, on sales of $27.5 million to $29.5 million. Excluding charges and expenses, the company said it will earn between 5 cents and 10 cents per share in the quarter. In the fourth quarter last year, the company reported a loss of $3.5 million, or 12 cents per share, on sales of $23.1 million. Shares climbed 5.4%.

All American Semiconductor Inc. (SEMI: chart) shares dropped 45.3% after the company said it expects to report a fourth-quarter net loss of $8.3 million to $9.1 million, or $2.07 to $2.26 a share, and a 2006 loss of $11 million to $11.8 million or $2.74 to $2.94 a share. Fourth-quarter revenue came in at $95.8 million, down 16.2% from the same period last year, the company said.

Arotech Corp. (ARTX: chart) shares fell 12.1% after the company reported a fourth-quarter net loss of $2.09 million, or 19 cents per share, versus $3.26 million, or 54 cents per share, last year. Revenues declined to $14.1 million versus $15.2 million in the same period a year earlier.

CKE Restaurants (CKR: chart), restaurants operator, said its fourth-quarter net income dropped 93% to $10.3 million, or 15 cents per share, after recording a $126 million tax benefit in the year-ago quarter. Revenue climbed 3% to $359 million. Same-store Carl's Jr. sales rose 2.8% and same-store Hardee's sales rose 4.8%. Shares fell 1.1%.

Global Payments Inc. (GPN: chart), electronic payment processing company, said it's updated its profit and revenue forecasts for the fiscal year ending in May. The company said it now sees generating earnings in a range of $1.85 to $1.87 a share, excluding the impact of expensing stock options. Such expensing is expected to equate to 11 cents a share as far as net earnings for the current fiscal year go.

Global Payments said it's now anticipating full-year revenue in a range of $1.05 billion to $1.057 billion. Earnings for the third quarter increased to $34.3 million, or 42 cents per share, from $30.1 million, or 36 cents per share, in the year-ago period. Excluding stock option charges, earnings totaled 44 cents per share compared with 36 cents per share. Quarterly revenue rose 16% to $260.4 million versus $225.2 million in the prior year. The current quarter benefited from the addition of an Asia-Pacific joint venture with HSBC in July 2006. The Asia-Pacific segment had sales of $14.7 million in the quarter.


1:30PM NY - 6:30PM Frankfurt – European markets lost early momentum as markets closed. Rising oil and metals prices helped the respective sectors but dragged down broader averages. Merger activities reached feverish pace in the first quarter, but failed to generate broader advances.

European market closed mostly lower but larger markets managed to hang on to their earlier gains of the day. Germany and Spain gained 0.3% but UK, the Netherlands and Norway lost 0.25%.

Banking stocks in Germany traded higher led by 3.2% rise Commerzbank, Deutsche Postbank and Deutsche Bank rose 0.8%. Citigroup said in a report that it is interested in acquisition in the country lifting banking stocks in Germany.

U.K. pharmacy chain Alliance Boots closed up 0.5% on the news that company’s deputy chairman Stefano Pissa teamed up with KKR to offer revised bid of 1,040 pence per share valuing the company at 10 billion pounds. Kingfisher, home improvement retailer, rose 3% on the media report that investment arm of Goldman Sachs is planning to make a takeover bid.

After one day hiring investment banker, Spain’s Iberian air, received takeover interest from private capital group TPG Capital valuing the company at 3.6 euros, lower than the current price of 3.8 euros. The stock fell 1.8% at close after gaining 25% in the last eight trading days.

U.K. based hedge fund operator Man Group said that it plans to spin-off its brokerage group and list on New York Stock Exchange and offer the proceeds of the offering to shareholders. The company also affirmed that earlier earnings guidance for the current quarter at $1.55 billion.

Cap Gemini, software service provider rose 2% on broker upgrade in France.

Mobile telecom operators came under pressure on the announcement from Vodafone stating that operating margins will be remain depressed till the end of the year 2008. Vodafone dropped 4.5% in the UK trading and dragged other telecom operators in Germany and France. Deutsche Telekom lost 0.2% and Teliasonera lost 2%.


12:30PM NY – Market averages turn negative at mid-day trading.