MAJOR PAPERS:

• Harris Corporation (NYSE: HRS), concerned about its future growth, may see limited opportunity and may consider selling itself, the Wall Street Journal reported. If it does decide to sell, suitors could include Raytheon Company (NYSE: RTN), BAE Systems Plc (OTC: BAESY) and Northrop Grumman Corporation (NYSE: NOC).
• The Wall Street Journal reported that, in an attempt to toughen its regulation standards, SEC chairman Christopher Cox said earlier this week the agency would push Wall Street investment houses will have to reduce borrowing and rely less on short-term financing.
• As part of plans to reduce costs and restore profit growth, people close to the situation said that Citigroup Incorporated (NYSE: C) is likely to today identify up to $400B in non-core assets that could be sold. Additionally, the Financial Times reported that Citigroup CEO Vikram Pandit will confirm his pledge to cut the bank's cost base by about 20% at a meeting with analysts today. Sources familiar with the matter believe Pandit will dismiss calls for a break-up of the company.

• According to sources, the New York Post reported that the ax may fall as early as next week on some investment bankers at The Bear Stearns Companies Inc (NYSE: BSC).

Harris Corporation (NYSE: HRS) is an international communications and information technology company serving government and commercial markets in more than 150 countries. The firm offers information networks, reconnaissance solutions, RF communications systems, air traffic control systems, commercial broadcast hardware, and wireless transmission networking products. The company's largest customer is the US government. It's commercial client list includes Clear Channel Communications (NYSE: CCU), Sony (NYSE: SNE) and Lockheed Martin (NYSE: LMT).

The firm surprised the Street last week, when it announced fiscal Q2 EPS of 87 cents and revenues of $1.32 billion. Analysts had been expecting 81 cents and $1.25 billion. Management also guided FY08 EPS to $3.45-$3.55 ($3.43 consensus) and FY08 revenues to $5.2-$5.3 billion ($5.16B consensus). The CEO attributed the favorable outlook largely to increasing strength in the company's RF communications tactical radio business. CL King subsequently initiated coverage of the issue with a "strong buy" rating and a $72 price target.