Roundup: Capital One, Constellation, Iridium and More
From staff and wire reports
*Capital One Financial plans to offer 14 million new shares as it builds loan loss reserves by $200 million. The U.S. economy is expected to stay weak, the McLean company said in a statement.
*Maryland Gov. Martin O'Malley says he will let the state's Public Service Commission decide whether to approve the sale of Constellation Energy to MidAmerican Energy. O'Malley says that the $4.7 billion buyout by the unit of Warren Buffett's Berkshire Hathaway appears to be better than allowing Constellation, which owns Baltimore Gas & Electric, to go bankrupt. On Washington radio station WTOP, O'Malley also questioned a proposal by Republican state lawmakers to tie approval to the return of Maryland power plants from Constellation to BGE. Under the proposal, Maryland would again regulate rates for power produced by the plants.
*A unit of Greenhill & Co., the merger advisory company, agreed to buy Iridium Holdings in a deal valuing the satellite-phone service provider at about $591 million. Greenhill will invest $22.9 million in Iridium prior to the purchase by affiliate GHL Acquisition and use $324 million to pay off debt and other costs, New York-based Greenhill said. Iridium shareholders will get about $77 million in cash and 36 million shares in the company to be called Iridium Communications Inc.
*Union Street Acquisition of Alexandria said shareholders voted against the acquisitions of Archway Marketing Services and Razor Business Strategy Consultants.The company said in a statement that it may not pursue other deals and would begin returning money to shareholders. Union Street, a blank-check company, was formed in February 2007 and said last February that it would buy Archway and Razor.
*CSC of Falls Church said it reached a settlement with the Internal Revenue Service that will result in a nominal $370 million tax refund for the company. The settlement of the IRS audit of CSC's tax returns for the fiscal years 2000 through 2004 will result in no additional federal tax payments for the company for that time.
*Maximus forecast fiscal 2009 revenue growth and revealed plans to sell several business units for $40 million. For the fourth quarter, the Reston consulting, systems and program management services company expects earnings per share from continuing operations of 68 cents to 73 cents per share and revenue from continuing operations of $190 million to $195 million.
Separately, Maximus is selling certain businesses to Toronto-based Constellation Software, and thus expects a fourth-quarter loss from discontinued operations of 78 cents to 84 cents.
*Lockheed Martin plans to further expand its supply-chain management business by targeting an upcoming contract to handle replacement parts for tanks and armored combat vehicles. The new competition, to be announced late this year or in early 2009, may compare in size to the award Lockheed won this month to manage parts for U.S. military trucks and utility vehicles, said Dave Broadbent, vice president of operations and global sustainment. That award was valued at as much as $5.6 billion. Lockheed has stepped up pursuit of contracts to track, store, move and maintain materiel based on its estimation the military may award as much as $75 billion of such work annually.
*American Capital Agency of Bethesda said its board declared a regular quarterly dividend of $1. The real estate investment trust said the dividend is payable Oct. 10 to shareholders of record Sept. 29.
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