MAJOR PAPERS:

• UBS AG (NYSE: UBS) is launching an initiative to reduce proprietary risk taking by its investment banking division, the Financial Times reported. In an internal memo, UBS CEO Marcel Rohner wrote that the bank would cut by 50% the number of its employees in its real estate and securitization division, and move its troubled mortgage investments into a separate unit.

OTHER PAPERS:

• The UK Times reported that British music company EMI Group PLC (OTC: EMIPY) has made a bid for Chrysalis, one of Britain's last big independent music companies.
• Student loan giant SLM Corporation (NYSE: SLM), also known as Sallie Mae, said it would lay off 350 employees, or about 3% of its workers, the Washington Post said.
• France Telecom (NYSE: FTE) CEO Didier Lombard said sales of Apple Inc's (NASDAQ: AAPL) iPhone device are going better than expected in France, the Associated Press reported.

Billboard.biz announced this morning that the Rolling Stones are set to make their EMI (OTC: EMIPY) catalog available digitally without Digital Rights Management technology. 7digital, a London-based online store, will be the first to offer the catalog, which includes 24 albums between 1971 and 2005 at the "high-quality 320 kbps rate." The band's pre-1971 catalog is managed by Universal Music Group, and the same announcement cites that the company does not intend to offer its part despite the DRM-free testing the company has begun.

7digital will offer the albums for a lowered price for four weeks, before the price returns to normal and the exclusivity ends presumably, though a few of the albums are already available in Apple Inc.'s (NASDAQ: AAPL) iTunes Plus store. The tracks from 7digital will also be playable on a number of devices, not simply iPods, but other MP3 players, cell phones and even PDAs according to Billboard's report.

The catalog from EMI opens one of the largest the company holds, and the Rolling Stones will certainly find old and new listeners cheering as their successful Bigger Bang tour closes with three nights at London's 02 Arena. The tour has already sparked an exclusive DVD set from Best Buy (NYSE: BBY). All that is left to wonder now is whether a new live album is in the works, a la 2004's Live Licks, which peaked at #50 in the Billboard 200. Another deal with Starbucks Corporation (NASDAQ: SBUX) would certainly hit well; 2005's Rarities peaked at a nice #76.

Thinking about the amount of coverage I give to Digital Rights Management (DRM) in my blogs, I can only wonder if all of the news and announcements regarding the technology has any real effect on the consumers or the stocks involved. EMI (OTC: EMIPY), the only music company to abandon the use of DRM, is prepping for its own sale to Terra Firma, a European private equity firm, while the other major music companies hold firm in their advocacy of DRM. At the same time, the new Digital Senior Vice President for EMI, Lauren Berkowitz, has the daunting task of making deals with other digital services to sell the new DRM-free tracks like iTunes and Amazon.com (NASDAQ: AMZN) plan to do.

In the month since EMI announced its deal with Apple (NASDAQ: AAPL) to drop DRM use, Apple's stock has steadily risen, closing at $113.54 yesterday (it was below $95 on April 2, the day EMI made the announcement). Of course, we must also question what role the impending release of the iPhone has on what Apple's stocks are doing, so the DRM announcement may be of little consequence. EMI has risen as well, with the company gaining over 40 pence in the British market since that day, closing at 272.6584 yesterday (roughly $5.38).

With the impending purchase of EMI having been approved, the new digital VP, and the stock growth, what role do these changes have on consumers? Unfortunately, it is hard so say, or guess, if any changes have occurred since April 2. DRM technology does not truly affect consumers on a daily basis. Digital sales may be slow and CD sales are certainly slumping, but a consumer ripping a track from that CD slips around the DRM encoded digital track. The same consumer who buys a track from iTunes for their iPod does not think about the DRM technology, so DRM is unimportant and useless as far as that goes. Music companies don't want to ditch it though, but with stock growth after an anti-DRM announcement, the use of the technology has some bearing on the music industry. EMI is leading the way, but the fact that DRM is in use by the other labels still means that consumers will have a larger percentage of tracks with it than without.

MAJOR PAPERS:

• Barron's Online's (subscription required) "Inside Scoop" section reported that Thomas Everist, an MDU Resources Group (NYSE: MDU) board member since 1995, has sold a total of 742K shares for a total of $22.6M in MDU stock since May 2, according SEC data.
• The Wall Street Journal (subscription required) reported that EMI Group (OTC: EMIPY), the third largest music company by sales agreed to sell to Terra Firma Capital Partners for $4.74B, possibly ending its seven year battle with Warner Music Group Corp (NYSE: WMG).

OTHER PAPERS:

• According to the New York Post, citing people familiar with the situation, the weakening housing market and other issues are making it difficult for Home Depot Inc (NYSE: HD) to sell its professional supply business.
• Discovery Communications is in talks with CBS Corporation (NYSE: CBS) to sell half its Discovery Times channel and form a joint-venture partnership, according to sources close with the situation, reported the Washington Post.

WEBSITES:

• According to an NDP Group report, April sales of Nintendo's (OTC: NTDOY) Wii consoles were almost 3.5 times higher than Sony Corporation's (NYSE: SNE) PlayStation 3, reported DigiTimes.com.

MAJOR PAPERS:

• Google Inc (NASDAQ: GOOG) and online services company Salesforce.com Inc (NYSE: CRM) may form a partnership to better compete with Microsoft Corporation (NASDAQ: MSFT), reported the Wall Street Journal (subscription required).
  

OTHER PAPERS:

• The U.K. Times reported that Warner Music Group Corporation (NYSE: WMG) is expected to offer EMI Group (OTC: EMIPY) a "£100 million sweetener" to try and keep the company from accepting an offer from private equity.
• According to The Observer, Royal Bank of Scotland (OTC: RBSPY), along with its partners Fortis and Banco Santander Central Hispano (NYSE: STD), hope to "table" a £47 billion offer for ABN Amro Holdings (NYSE: ABN) this week.
• The Observer reported that a private equity consortium is considering a $15 billion offer for Virgin Media Inc (NASDAQ: VMED).
• Cadbury Schweppes ADS (NYSE: CSG) is planning to return £5 billion to shareholders through a special dividend or share buyback, according to The Observer.
• The Sunday Telegraph reported that UBS AG (NYSE: UBS) will offer to buy out the pension schemes of some of the leading FTSE100 companies next week.
• Yahoo! Inc (NASDAQ: YHOO) may be looking to acquire British social networking site Bebo, the Sunday Telegraph reported.
• The Bollywood film producer, Eros International, is expected to announce a partnership with Google Inc's (NASDAQ: GOOG) YouTube, the Sunday Telegraph reported.
• Teva Pharmaceutical Industries Limited's (NASDAQ: TEVA) Copaxone will face generic competition for the first time, but will not see an impact immediately, Ha'aretz reported.

WEBSITES:

• The Orange County Register blog looked at a transcript from IndyMac Bancorp Inc's (NYSE: IMB) first quarter conference call, where the CEO Michael Perry said: "When you see that delinquency number in the press of 13% subprime delinquencies, it's hugely understated. It is absolutely hugely understated. And the prime delinquencies are overstated. The subprime delinquencies are more like 18, 20, 22% delinquencies and that's where I think you're going to see the problems."

MAJOR PAPERS:

• The 19.4B sale of Clear Channel Communications Inc (NYSE: CCU) to Bain Capital and Thomas H. Lee Partners is expected to proceed quickly as major shareholders Highfields Capital Management and Fidelity Investments are expected to agree to a new proposal raising the sale bid by 20 cents to $39.20 a share, reported the Wall Street Journal.
• Last month stent implants in the U.S. fell 15% to 71,200 from April 2006, signaling that they may no longer be a strong growth area for the medical industry, reported the Wall Street Journal.
• A new EU law that would slash the roaming charges for mobile phone calls by Europeans when they are traveling on the continent is expected to cut into the profits of companies including Vodafone Group (NYSE: VOD), France Telecom ADS (NYSE: FTE), and Telefonica SA ADS (NYSE: TEF) , reported the Financial Times.

OTHER PAPERS:

• EMI Group (OTC: EMIPY) has opened its books to rival Warner Music Group (WMG), setting up a four-way bidding war, reported The Business.
• New explorations by PetroChina Company Limited's (NYSE: PTR) parent company, China National Petroleum Corp, have found that the Jidong Nanpu Oilfield in Bohai Bay may have more reserves than previously estimated, reported China Daily.

MAJOR PAPERS:

• The Wall Street Journal (subscription required) reported that Clear Channel Communications Inc (NYSE: CCU) has said "no" to a new offer from Thomas H. Lee Partners and Bain Capital Partners to buy the company, saying shareholders had no interest.
• The Financial Times (subscription required) reported that One Equity, a private equity firm affiliated with JPMorgan Chase & Co (NYSE: JPM), has approached EMI Group (OTC: EMIPY) about a takeover which could value the British music company at more than $6B, according to sources.

OTHER PAPERS:

• The New York Post has learned that Microsoft Corporation (NASDAQ: MSFT) has asked Yahoo Inc (NASDAQ: YHOO) to re-enter formal negotiations.
• The New York Post has learned that Westwood One Inc (NYSE: WON) has hired UBS to help identify potential buyers as the company anticipates putting itself up for sale next month.

WEBSITES:

• A ChangeWave survey of 3,489 people revealed that 9% of the respondents are likely to buy the Apple Inc (NASDAQ: AAPL) iPhone when it comes out in June, reported Seeking Alpha.
• According to CNBC Champ Thomas Ko on MSN Money, IMAX Corporation (NASDAQ: IMAX) should benefit from what he anticipates will be a record opening for Spider-Man 3.

MAJOR PAPERS:

• On Friday, the Wall Street Journal reported that a number of firms have been eyeing Kroger Co (NYSE: KR) on the expectation that the company will soon begin exploring a leveraged buyout with the help of investment bank Goldman Sachs Group Inc (NYSE: GS).

OTHER PAPERS:

• The New York Post reported that Warner Music Group Corp (NYSE: WMG) may look to merge with EMI Group plc ADR (OTC: EMIPY) by appealing directly to the music labels shareholders.
• According to the Sunday Express, Dow Chemical Company (NYSE: DOW) is set to receive a bid of $52-$58 per share, valuing the company at $50B, from a consortium of Middle Eastern investors and American buyout firms.
• The U.K. Telegraph reported that the Royal Bank of Scotland is preparing to delay any rival offer for ABN Amro Holdings (NYSE: ABN) until after Barclays plc ADS (NYSE: BCS) reveals its bid for the company.
• From BusinessWeek's "Inside Wall Street" section:
• Oppenheimer oil guru Fadel Gheit says rumors have resurfaced that Exxon Mobil Corporation (NYSE: XOM) may go after oil and gas company Devon Energy Corporation (NYSE: DVN).
• Napco Security Systems Inc (NASDAQ: NSSC) is hoping GatewayX, a new product introduced in January, will spark a rebound.
• Seed and crop-protection company Syngenta AG ADS (NYSE: SYT) looks to have upside ahead, due to brisk demand for corn to make ethanol is boosting farmers' need for Syngenta's products to fight field pests.

MAJOR PAPERS:

• The Wall Street Journal reported that New Century Financial Corporation (OTC: NEWC) is expected to announce as soon as today that it is filing for bankruptcy projection.
• The Wall Street Journal reported that EMI Group plc (OTC: EMIPY) will hold a special media event on Monday with Apple Inc's (NASDAQ: AAPL) CEO Steve Jobs as its special guest, fueling speculation that EMI will sell music without anti-piracy software.
• The Financial Times reported that the U.S. and South Korea said they had agreed on the terms of a landmark free trade deal which will boost trade by as much as $20B a year.
• The Financial Times reported that French stock market regulators are looking into unusual share price movements in France Telecom ADS (NYSE: FTE) and a few other CAC40 stocks, as there is concern that unknown forces could be profiting from false rumors and speculation in the stocks.

OTHER PAPERS:

• The U.K. Times has learned that GlaxoSmithKline plc ADR (NYSE: GSK) is in talks with the World Health Organization, or WHO, over a proposal for a subsidized mass avian flu vaccine for developing countries.

WEBSITES:

• According to an internal memo obtained by SUSE-IRC.org, Microsoft Corporation (NASDAQ: MSFT) is in talks to acquire Novell Inc (NASDAQ: NOVL).

Major Papers:

• According to the Wall Street Journal, General Motors Corp. (NYSE: GM) is considering acquiring DaimlerChrysler's (NYSE: DCX) Chrysler Group, but the company would face massive challenges if it were to take over its longtime rival. People familiar with the matter say GM has not ruled out the idea, however.
• Google Inc (NASDAQ: GOOG) launched a new bundle of services targeted at corporations, but CEO Eric Schmidt said the company is not looking to go "head to head" with Microsoft Corp (NASDAQ: MSFT), the Wall Street Journal reported.
• Barron's Online's "Inside Scoop" column wrote that Encore Acquisition Co. (NYSE: EAC) chairman Jon Brumley bought 40,000 shares of the company for $988,000. "Obviously," Brumley said, "we think the stock is going to move higher."
• The Financial Times reported that Morgan Stanley (NYSE: MS) has bought out its local partner in India, JM, for $445M to up its presence in Asia.
• The Financial Times also reported that EMI Group (OTC: EMIPY) is also exploring alternatives to Warner Music Group Corp.'s (NYSE: WMG) $6B takeover bid for the company. According to people familiar with the matter, no offers appear imminent.

Other Papers:

• Investor's Business Daily's "New America" column focused on online business Bankrate Inc. (NASDAQ: RATE). The company is established, credible, its brand name is known, it has no debt and it has over $100M on its balance sheet.

MAJOR PAPERS:

• According to the Wall Street Journal (subscription required), four months after acquiring YouTube, Google Inc (NASDAQ: GOOG) is struggling to find allies in the television business.
• The Journal's "Heard on the Street" column focused on Mylan Labs (NYSE: MYL), which it said could have "room to run" depending on a key court battle with Pfizer Inc (NYSE: PFE) which it may learn the results of any day.
• According to the online edition of Barron's (subscription required), the Street isn't giving enough credit to GlaxoSmithKline (NYSE: GSK), which has an industry-leading pipeline and profits poised to increase in 2008.
• The Financial Times (subscription required) reported that Wal-Mart Stores (NYSE: WMT) is pressuring its suppliers to better represent women and minorities on the teams that handle Wal-Mart's business.
• The Financial Times also reported that Warner Music Group (NYSE: WMG) has made peace with independent record labels, which could clear the way for the company to make a $6B bid for EMI Corp (OTC: EMIPY).

OTHER PAPERS:

• Investor's Business Daily's "New America" column mentioned Sina Corp (NASDAQ: SINA) positively, saying Sina is the top search engine in China, beating both Google Inc and Yahoo Inc (NASDAQ: YHOO). With e-commerce gaining momentum in the country with a larger population than any other, Sina and analysts have very high hopes for increasing advertising sales in the next two years.