Business Briefs - Wednesday

MINING

Rio Tinto rejects raised BHP bid

The British mining giant rejected a sweetened takeover offer from Australian rival BHP Billiton BHP. Rio Tinto RTP said the all-share offer worth $147.4 bil still did not reflect the value of the company. Should the deal succeed, it would be the biggest mining sector takeover. BHP faces opposition from China, which relies heavily on BHP and Rio Tinto for metal ores. BHP fell 4.9% to 66.10. Rio Tinto climbed 2.9% to 409.37.

Costs hurt Metal Management

The recycler of scrap metal said Q3 EPS fell 45% to 33 cents ex items, far below views of 70 cents. Revenue rose 11% to $582.1 mil, missing forecasts of $664.5 mil. Metal Management MM cited slimmer margins in nonferrous and stainless product lines, high ocean freight rates, tight supply of ships and higher debt costs from acquisitions and investments in plants and equipment. Recycling giant Sims Group's acquisition of Metal Management is expected to close in Q1. It rose 0.6% to 50.

FINANCE

CME plunges on DOJ proposal

The Justice Dept. is pushing for an end to rules that let financial futures exchanges own or control clearing functions. The DOJ contends it impedes new entrants to markets. Making such a change would cut into the profits of the Chicago Mercantile Exchange, owned by CME Group CME. The DOJ comments could also have implications for CME's CME proposed Nymex NMX acquisition, which would bring more consolidation in clearing functions. CME and Nymex tumbled nearly 18% each.

MBIA rises on stock sale, update

The struggling bond insurer surged 15% after hours after it said it will issue 50 mil new shares to raise $750 mil following massive losses. It said Warburg Pincus will "provide a backstop" by agreeing to purchase up to $750 million of convertible participating preferred stock. MBIA also updated its '07 financial results, trimming its Q4 loss slightly and boosting its loan-loss reserves.

TECHNOLOGY

Google tunes into music in China

The Internet search king is partnering with a Chinese music Web site called Top100.cn to offer free music downloads, according to published reports. The move would boost Google's GOOG presence in China and also challenge Baidu.com BIDU. Baidu is the Chinese search market's leader and offers music search, but it also is facing copyright-infringement lawsuits from 3 major record companies. Google slid 1% to 501.71. Baidu fell 9% to 230.

Yahoo YHOO, the search giant, said no decision has been made about Microsoft MSFT's $44.6 bil takeover bid. The message was sent to employees via e-mail. Yahoo slipped 1.4% to 28.57. Microsoft fell 1.9% to 28.52. TELECOM

Partner profit up on 3G services

Israel's No. 2 mobile phone operator said its Q4 EPS jumped 85.2% to $79 mil, above views. Revenue rose 9% to $1.6 bil, also above views. Partner Communications PTNR said an 85% jump in subscribers and lucrative third-generation services boosted the result. The company said revenue and profit growth in '08 would be at a slower pace than last year as it invests in new 3G content. It edged up 0.3% to 21.38.

AT&T T will expand its high-speed wireless service to 80 more markets in '08, bringing it to a total of 350 markets. It fell 1% to 36.40. HMOs

Foreign unit, disability lift Cigna

The health insurer said Q4 EPS rose 13% to 98 cents ex items, meeting views. Revenue grew 6% to $4.46 bil, edging views of $4.4 bil. Cigna CI cited gains in its overseas business and group disability and life units that offset a decline in health care earnings. It raised its '08 EPS outlook to a range of $4.05-$4.25, below forecasts of $4.27. It sees '08 medical membership growth of 2%-5% ex its Great-West Healthcare acquisition vs. its earlier forecast of 3%-5%. Shares climbed 2% to 48.78.

ENERGY

National Oilwell Q4 profit jumps

The oil services company's Q4 EPS rose 54% to $1.05, topping views by a penny. Revenue rose 29% to $2.66 bil, falling shy of analysts' expectations. National Oilwell Varco NOV said its rig technology revenue rose 40%, boosted by int'l offshore oil rig demand. But weak sales in North America and int'l expansion costs hurt margins.

Devon beats on higher fuel prices

The oil and gas explorer and producer said Q4 EPS increased 59% to $2.16 ex items, beating views by 25 cents. Revenue jumped 32% to $3.2 bil, topping estimates. Devon Energy DVN was boosted by higher oil and gas prices and a 10% jump in production. It sees Q1 production rising more than 4% from Q4 levels. Shares climbed 2% to 86.21.

Dawson Geophysical DWSN, a provider of seismic database services to oil and gas companies, said its Q1 EPS rose 40.8% to $1, missing views by 8 cents. Revenue grew 45% to $77.6 mil. Shares tumbled 14.7% to 50.96. MEDIA

IAC/InterActive falls on miss

The media and Internet giant, whose businesses include the HSN home shopping network, Lending-Tree, Ticketmaster and Ask.com, said its earnings fell 31% to 46 cents a share excluding charges, missing views by 9 cents. Revenue rose 8% to $1.86 bil. IAC/InterActive IACI said difficulty in its mortgage referral unit and costs for proposed spinoffs hurt the result. CEO Barry Diller said it was doubtful that the company would be interested if Time Warner TWX put its Internet unit AOL up for sale, unless the price comes down "ridiculously" low. IAC/Interactive fell 7% to 22.84.

BUILDING

Toll Bros. doesn't see recovery

The largest U.S. luxury home builder said it expects Q1 home building revenue to drop 22% to $842.7 mil, and warned that it's "not yet seeing much light at the end of the tunnel." Toll Bros TOL. marked a seventh consecutive quarterly revenue decline. The biggest sales declines were in Fla., the Carolinas, Texas and Ga. Shares fell 3.4% to 21.13.