WALL STREET JOURNAL: The Wall Street Journal reported that Carlyle Group is set to liquidate its $600M Blue Wave hedge fund. Blue Wave, a joint venture between Carlyle Group and Rick Goldsmith and Ralph Reynolds, formerly of Deutsche Bank (DB), looked to make a variety of investments and was meant to diversify the buyout firm’s business, but instead forayed into residential mortgage-backed securities in the midst of its collapse…In what may cast a dark cloud over the revival of Biogen’s (BIIB) Tysabri drug, the Wall Street Journal reported that two multiple-sclerosis patients treated contracted a potentially deadly brain infection. Biogen and Elan (ELN), its marketing partner, said there are no plans in the pipeline to recall the once-withdrawn drug or restrict its use, and said both patients who contracted progressive multifocal leukoencephalopathy are alive…FINANCIAL TIMES: According to people close to the companies, the Financial Times reported that ArcelorMittal (MT) is considering a counter-bid for miner Alpha Natural Resources (ANR), a move which may disrupt a bid by Cleveland-Cliffs (CLF) for Alpha. ArcelorMittal is said to be mulling other options, including waiting for the deal to fall apart or waiting to buy the combined company…HANDELSBLATT: A person familiar with the situation said that General Motors (GM) will report a multi-billion dollar Q2 loss that will be higher than Ford’s (F). The source called General Motor’s numbers “disastrous,” Handelsblatt repoted…
Apple-AAPL: An overreaction to Jobs’ poor health rumors - BusinessWeek
Despite continued strong demand for its new 3G iPhones, some of Apple’s (AAPL) investors remain concerned, mainly about CEO Steve Jobs’ health. Also, Apple’s modest forecast on profit margins for 2009 shocked investors. Shares have slumped to $160, down from $189 on June 5. Matthew Kather of WR Hambrecht, is one pro that thinks things really aren’t so bad for Apple. Kather expects Apple’s stock to continue to outperform the broader tech market, and despite possible near-term consumer spending challenges, Apple will demonstrate excellent growth. He advises clients to use pullbacks in the stock to accumulate shares. Kather says people are overreacting to rumors regarding Jobs’ health. He recently raised his 2009 target to $257 from $238. Charlie Wolf of Needham, who rates Apple a strong buy, with a $240 target, says the rumor isn’t material to the stock because Jobs, according to his sources, isn’t sick and continues to run the company.
Two patients treated with Biogen’s Tysabri report brain disease-WSJ
In what may cast a dark cloud over the revival of Biogen’s (BIIB) Tysabri drug, the Wall Street Journal reports that two multiple-sclerosis patients treated contracted a potentially deadly brain infection. Biogen and Elan (ELN), its marketing partner, said there are no plans in the pipeline to recall the once-withdrawn drug or restrict its use, and said both patients who contracted progressive multifocal leukoencephalopathy are alive. The drug was removed from the market in 2005 after three cases of PML were reported; the new cases are the first reported since Tysabri was returned to the market in 2006. The WSJ says that uncertainties over the risks of the drug are included in the reasons why no major pharmaceutical company offered to bid for Biogen last year.
General Motors to report multi-billion dollar Q2 loss-Handelsblatt
According to a person familiar with the situation, General Motors (GM) will report a multi-billion dollar Q2 loss that will be higher than Ford’s (F). The source called General Motor’s numbers “disastrous.”
ArcelorMittal may make a new offer for Alpha Natural Resources-FT
Steelmaker ArcelorMittal (MT) is considering making a counter bid for U.S. coal mining company Alpha Natural Resources (ANR). Cleveland Cliffs (CLFQM), an American iron ore mining company, has made a cash and stock bid for Alpha. ArcelorMittal may decide to buy Cleveland Cliffs and Alpha after they have merged, or attempt to wait for the deal to fail.
Even bullish investors worry about home-equity-WSJ
According to the Wall Street Journal’s “Heard on the Street,” even bullish investors are beginning to worry about home-equity loans. Despite a recent improvement in the loans, a sign of encouragement for banks, certain types of loans including “piggyback” loans still pose problems.
