Roundup: SAIC, Cogent, Dominion Resources
From staff and wire reports
*SAIC may make more acquisitions of health and energy companies to lessen its reliance on U.S. defense budgets, CEO Ken Dahlberg said.
Expanding non-defense businesses through purchases is "not only good for shareholders, it does offset a drawdown in defense spending" that may occur with a change in administration, Dahlberg said. The government contractor is based in San Diego but has major operation sin Washington. Government contracts accounted for 94 percent of SAIC's $8.94 billion in sales last year.
SAIC, which had $1.1 billion of cash on its balance sheet for the year ended Jan. 31, may use any surplus over $500 million for "strategic acquisitions" and share buybacks, Dahlberg said. SAIC wants to buy companies that would enable it to work with utilities and oil producers "now awash in cash," help improve power grids, and manage health-care data, he said.
*Cogent Communications Group said it will buy back up to $50 million in shares. The program is in addition to a $50 million program authorized by the board of the broadband technology supplier in August 2007.
Cogent has about 46.2 million shares outstanding. The company has repurchased about 2.8 million shares for about $50 million since August 2007
*Dominion Resources plans to sell 10- and 30-year debt, the company said in a regulatory filing.
The senior notes are rated Baa2 by Moody's Investors Service, the second-lowest level of investment grade, and two steps higher at A- by Standard & Poor's, according to the filing by the owner of Virginia's largest utility.
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