Business Briefs - Monday

TECHNOLOGY

SAP falls on Business Objects bid

The world's biggest business software maker fell 5% on fears over its $6.79 bil bid for the business intelligence software maker. SAP SAP offered $59.35 per share in cash, a 20% premium. Business Objects bobj shot up 15% to 57.83. SAP said the deal is part of its strategy to double its market by 2010, but analysts said it'll hurt profit and is too pricey, given Business Objects' recent weak profit. More on A4

Cognos cogn rose 14% to a new high as investors bet the Business Objects deal will spur a wave of business intelligence takeovers. ENERGY

LDK Solar to file inventory audit

The Chinese maker of solar wafers used to make solar cells has seen its value halved due to inventory concerns, with a Barron's article adding to recent concerns. So LDK Solar's LDK CFO said the company will file an independent auditor's report on its inventory with the SEC within a few days. LDK shares started crashing last week after an ex-fired financial control said it had 250-ton polysilicon discrepancy. LDK denies this. LDK shares fell 26% to 37.50, 51% off its Sept. 27 peak.

BUSINESS SERVICES

Thomson bid to face EU inquiry

The financial services company's $17.2 bil offer for Reuters RTRSY will be weighed by EU antitrust regulators, the EU Commission said. The commission said its initial investigation raised "serious doubts" about possible effects on competition. Thomson's bid would cut the number of major companies selling information and trading systems to the financial services industry from three to just Thomson and privately owned Bloomberg. Reuters shares sold off but closed just 1% lower.

AEROSPACE

Textron will buy UIC for $1.1 bil

The diversified aerospace firm will buy defense technology firm United Industrial for $81 a share in cash. United Industrial UIC makes unmanned aircraft, ground control stations and counter-sniper devices. Textron, which makes Bell helicopters and Cessna planes, thinks the military will continue to rely on unmanned aircraft and vehicles for battlefield combat. United Industrial rose 6% to 80.34. Textron fell 2% after hitting a new high on Fri.

Raytheon RTN received a $150 mil contract from the U.S. Army to upgrade Patriot missile equipment. TELECOM

NovAtel up on Hexagon takeover

The maker of Global Positioning System parts and components said it had agreed to be bought by tech firm Hexagon for $390 mil, or $50 a share in cash. Hexagon, by buying 1 of its key suppliers, will gain access to high-growth GPS technologies used in numerous aerospace, agricultural, mapping and other fields. NovAtel shares rose 17% to 49.65.

Vonage VG will pay $80 mil to settle its patent suit with Sprint Nextel S. Two weeks ago, a jury found the Internet telecom infringed on Sprint's patents. Vonage shares shot up 123% to 2.57 on the news. TRANSPORTATION

UAW sets strike date for Chrysler

The United Auto Workers said if a new contract with Chrysler isn't reached by 11 a.m. CDT on Wed., their members could strike. Negotiators spent most of the weekend in talks trying to reach a compromise. If the UAW does strike, it would be the first time since 1976 that the union stuck against 2 of the major automakers. A GM gm strike late last month only lasted 2 days.

METALS

AK Steel settles retiree care suit

The U.S. steel producer jumped 11% to a new high after settling a lawsuit on retiree health care. Under the deal, AK Steel AKS will transfer health care obligations for about 4,600 former employees to a retiree-managed trust. A federal court in Cincinnati must OK the agreement.