Business Briefs - Tuesday

TECHNOLOGY

Microsoft unlikely to up Yahoo bid

The software giant sees no reason to raise its $44.6 bil offer for Internet portal Yahoo YHOO, according to published reports citing unnamed sources. Microsoft MSFT doesn't feel pressured because because no serious alternative bids have emerged, the sources said. Also, Yahoo's efforts to persuade investors that Microsoft was undervaluing the company failed to convince institutional shareholders to oppose the buyout. Microsoft jumped 4% to 29.50. Yahoo fell 1.5% to 28.50.

Cisco, the network gear maker, rose 3.7% to 24.98 after it said sales of high-end routers had accelerated in the past several months, helping relieve worries about slower tech spending. Cisco said growth in Internet traffic was driven largely by video service. Google GOOG, the Internet search king, climbed 5.7% to 465.71 as Goldman Sachs affirmed its buy rating and said reports that the company's paid-click growth had slowed reflected "self-inflicted changes." Still, it cut its price target 7% to $560 and trimmed profit forecasts through '10. SanDisk SNDK, a memory chipmaker, soared 9.8% to 24.77 after 2 major competitors in Asia raised prices, indicating an oversupply that depressed profits had finally eased. Global chip inventories are expected to fall 14.7% to $2.9 bil at the end of Q1 vs. Dec., reflecting supply cutbacks, technology research firm iSuppli said. DRAM prices continued their slide through March and would bottom this quarter, iSuppli added. TELECOM

RIM rises after mixed outlooks

Research In Motion RIMM climbed 4.7% to 117.48 after research firm Canaccord Adams predicted the maker of BlackBerry smart phones will top forecasts Wed. when it reports Q4 earnings. It also raised its RIM earnings projections for '09-'10. But investment bank Nomura Group affirmed its sell rating on RIM, contending "companies are catching cold as the economic slowdown impacts the high end of the market."

Sprint looks to iPhone alternative

The No. 3 mobile service provider is counting on the new Samsung Instinct touch-screen phone to win back consumers and better compete with Apple's AAPL iPhone, which is exclusively offered by AT&T T in the U.S. Sprint-Nextel S plans to spend $150 mil to advertise the Instinct. The new phone will be available in June. The Instinct will have a few features that Apple's device lacks, such as a GPS chip and a faster broadband network. Sprint dipped a penny to 6.68.

AGRICULTURE

Mosaic falls on analyst warning

The fertilizer company slid 1% to 101.45 after Citi Investment Research said the company's Q3 profit may miss Wall St. expectations. The brokerage said it expects Q3 EPS of 83 cents, below views of 95 cents, citing seasonally lower shipments and higher ammonia and sulfur input costs. But Citi kept a buy rating on Mosaic MOS, partly due to strong industry fundamentals, including robust demand for fertilizer and phosphate prices.

FINANCE

Banks expected to cut 200,000

U.S. banks already have shed jobs at a record pace, but some analysts see the pace picking up as the financial industry cuts costs amid the housing slowdown and slumping economy. The U.S. commercial banking industry could lose 10% of its 2 mil jobs over the next 12-18 months, research firm Celent said in a report. An annual loss of 200,000 jobs at commercial banks would be an unprecedented number. Last year, the entire financial services sector, which consists of mostly commercial banks, announced 153,000 cuts.

Blackstone targeting real estate

The private equity firm has raised nearly $11 bil for what it calls a real estate opportunity fund. Blackstone Group BX said there should be plenty of attractive investments for the money because of the market dislocation that exists today. Investors have contributed $10.9 bil to the fund, which was established to buy risky or distressed properties and then turn them around. Blackstone said its real estate funds have delivered an average annual return of 31% after fees since '92. It surged 8.3% to 17.19.

CME Group CME, owner of the Chicago Mercantile Exchange, said Q1 volume rose 32% from a year ago to 13.7 mil contracts a day. Total electronic volume jumped 41% to 11.1 mil contracts a day. CME said 83% of its total monthly volume was traded electronically. Shares climbed 6.6% to 499.99. National City NCC, a Cleveland bank heavily exposed to the worsening mortgage and housing market, confirmed that it's reviewing its options amid rumors that it wants to find a buyer. It said it has hired investment bank Goldman Sachs to look into strategic alternatives. Shares rose 0.4% to 9.99. REGULATION

FBI targets mortgage 'insiders'

The FBI said it is targeting major corporate insiders and criminal groups especially in the mortgage-lending industry, agency chief Robert Mueller testified at a House hearing. The agency has said it was investigating 17 companies in mortgage cases, and there are more than 1,300 total pending mortgage fraud inquiries. He did not disclose which companies were targeted.