MAJOR PAPERS:

• UBS AG (NYSE: UBS) won't comment on write-down estimates, but according to the Wall Street Journal, investors are expecting it as prices for mortgage securities have significantly gotten worse over the past several weeks as evidenced by Lehman Brothers Holdings Inc (NYSE: LEH) profit warnings.
• Yesterday Lehman's stock fell 8.7% as the firm announced a projected $2.8B second quarter loss and a $6B capital raise. Options activity indicated a lessening volatility, the Wall Street Journal reported, a sign that perhaps the worst may be over.
• According to a person familiar with the matter, the Financial Times reported that China's Qingdao Haier has approached investment banks to advise it on a bid for General Electric Company's (NYSE: GE) appliance business.

• A brief filed by plaintiffs in a shareholder lawsuit against Yahoo! Inc (NASDAQ: YHOO) and its directors claimed that an employee severance plan put in place to protect workers after a merger with Microsoft Corporation (NASDAQ: MSFT) should be repealed immediately. The New York Times reported that the plaintiffs believe the plan could skew the outcome of a proxy battle between Yahoo! and Carl Icahn for control of the company.

Newspaper wrap-up: UBS facing more write-downs? originally appeared on BloggingStocks on Tue, 10 Jun 2008 08:40:00 EST. Please see our terms for use of feeds.

Activist investor Ralph Whitworth of Relational Investors is increasing the heat on Sprint-Nextel Corporation (NYSE: S).

As we have been blogging for a while, Sprint Nextel CEO Gary Forsee's plan to turn the wireless service provider around has not worked. Forsee, a year following its merger with Nextel, targeted EBITDA of around $20 billion, however, now sees 2007 EBITDA of around $11.3 billion. And this is in an industry where the number of competitors has decreased.

The results of Whitworth's activist-shareholder efforts have been somewhat mixed. His most high-profile effort, forcing change to Home Depot Inc's (NYSE: HD) management and board, has yet to prove rewarding for shareholders, as Home Depot's price is down since he took his activist stance.

What will Whitworth do? Hopefully, he will force Forsee out and force the sale of the company to Verizon Communications (NYSE: VZ). AT&T (NYSE: T), which has combined the Cingular and AT&T Wireless businesses, is a huge competitor and is being well-managed. Sprint has fallen way behind its competitors and some serious changes are needed.

Sprint's Gary Forsee seeing more pressure originally appeared on BloggingStocks on Thu, 04 Oct 2007 08:15:00 EST. Please see our terms for use of feeds.