MERGERS & ACQUISITIONS
Verizon May Reduce MCI Purchase Price
Verizon Communications may reduce its $8.46 billion purchase price for MCI if MCI spends more than $1.78 billion to settle bankruptcy claims and tax liabilities from Jan. 1 to when the merger closes. The purchase price will fall as much as 21 cents a share, Verizon said in a filing with the Securities and Exchange Commission. MCI estimates those expenses will be between $1.62 billion and $1.85 billion.
Brokers Group Says Legislation Would Cut Costs
Proposed legislation strengthening oversight of Fannie Mae and Freddie Mac would reduce mortgage costs for 397,000 U.S. homeowners by as much as $750 million a year, the California Association of Mortgage Brokers said.
The bill, which passed the House Financial Services Committee by a 65 to 5 vote in May, would also cut mortgage rates enough to enable about 245,000 households to buy homes at the median price in their communities, the association said.
Army Pays Last Installment in Tank Deal
Falls Church-based defense giant General Dynamics said the Army has provided the final $15.6 million of a $62.5 million contract for tank materials from the company's Land Systems division.
General Dynamic Land Systems, based in Sterling Heights, Mich., is providing the Army with materials for 92 tanks. Delivery is expected between July 2006 and July 2007.
General Dynamics shares rose $1.57 to close at $115.16 on the New York Stock Exchange.
Halifax, an Alexandria technology services company, said fiscal first-quarter profit fell 16 percent, to $76,000 (2 cents a share), from $91,000 (3 cents) in the corresponding period a year earlier. Revenue for the three months ended June 30 rose 37 percent, to $14.7 million. Shares of Halifax fell 4 cents to close at $4.01.
MobilePro, a Bethesda wireless company, said it swung to a profit of $419,191 (less than a penny a share) in its fiscal first quarter, compared with a loss of $757,439 (less than a penny) in the corresponding period a year earlier. Revenue for the three months ended June 30 increased to $22.5 million from $1.2 million. MobilePro shares rose 1 cent to close at 28 cents on the Over-the-Counter Bulletin Board.
Compiled from staff and news service reports.