Tyco's (NYSE:TYC) $21.95 embattled CEO Dennis Kazlowski announced that he will be resigning, citing personal reasons. The New York Times reported that Manhattan district attorney Robert Morgenthau is investigating the possibility that Kozlowski moved hundreds of millions of dollars into family trusts and used those trusts to buy goods and services without paying state sales taxes. The paper confirmed that Kozlowski has hired experienced criminal lawyer Stephen E. Kaufman to represent him.
Until a replacement can be found for Kozlowski, John Fort, who served as chairman and CEO from 1982-1992 will assume executive responsibilities until a replacement can be found.
USA Interactive makes run at Expedia, Ticketmaster and Hotels.com
USA Interactive (NASDAQ:USAI) $28.43 has made an unsolicited $4.5 billion bid in stock for the shares of three publicly traded subsidiaries -- Expedia (NASDAQ:EXPE) $71.50, Ticketmaster (NASDAQ:TMCS) $21.39 and Hotels.com (NASDAQ:ROOM) $47.89.
USA's Chief Executive Barry Diller laid out his plans in a letter sent to the top executives of the subsidiaries. Diller's goal is to boost USAI's share of the e-commerce market of Web and TV- based retailing to more than double the 8% share it has now.
Diller plans to spend $9 billion on e-commerce acquisitions over the next three years. For the three subsidiaries, he is offering each a stock swap with a 7.5% premium over USAI's closing stock price on Friday -- a move that would mean issuing some 156 million new shares to complete the deal.
In pre-market trading, shares of USAI are bid lower at $26.50, while EXPE is seeing gains at $75.50, TMCS is higher at $22.60 and ROOM is up $2.96 at $50.85.
Stocks edge higher
Stock futures are off their early morning highs, but holding onto some marginal gains as the opening bell approaches. S&P futures are unchanged at 1,067.50, while NASDAQ futures are up 2.5 points at 1,212 and Dow futures are gaining 16 points at 9,921.
Fair value for the S&P 500 today is $0.16. That price will not change during the session. HL Camp & Company has their computers set for program buying at $1.36 and set for selling at $-1.39. Fair value for the NASDAQ-100 today is $1.50.
If you would like to learn more about fair value and how it is calculated, please visit www.programtrading.com.