STOCKS NEWS US-Credit Suisse downgrades mall anchor sector

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1109 ET 28May2009-Credit Suisse downgrades mall anchor sector
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Credit Suisse on Thursday downgraded the mall anchor sector
to underweight from market weight, saying some of the companies
in the group might need to raise capital.

"Mall anchors have developed into a two-tier industry in
our view," the firm wrote, saying the first tier was
characterized by "the ability to sustain positive cash flow
from operations, invest in stores and operations with
sustainable capital spending at or above maintenance levels,
and exhibit balance sheet flexibility." Nordstrom (JWN.N),
Kohl's (KSS.N) and J.C. Penney (JCP.N) were counted as being in
this tier.

"The second tier, including Saks (SKS.N), Dillard's (DDS.N)
and Bon-Ton (BONT.O), fails to meet at least one of these
criteria... disadvantaging the equity holder in the short
term," Credit Suisse wrote.

As part of its call, the firm downgraded Nordstrom to
neutral from outperform, while lowering Bon-Ton, Dillard's and
Saks to underperform.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1101 ET 28May2009 GM option implied volatility stays high,
reflects uncertainty
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GM's overall option implied volatiltiy remains high and
earlier stood at around 350 percent, down from 400 percent the
start of the week, still reflecting the uncertainty that
remains over the company's survival as traders eye the equity's
near-term puts and calls, according to Interactive Brokers
Group data. Some option traders in General Motors Corp (GM.N)
appeared to have taken a bullish stance after the automaker
said a bondholders committee supported a new debt-for-equity
exchange offer. The improved sentiment was supported by the
sharp rise in GM shares, up more than 15 percent to $1.33 in
morning trade. "The sense of uncertainty is palpable in the
options market, where the June $1 and $2 call buyers surfaced
early, but volume in the June $1 puts has reached more than
103,000 contracts, making it the busiest equity options
contract on Thursday, said WhatsTrading.com option strategist
Frederic Ruffy.

Reuters Messaging: doris.frankel.reuters.com@reuters.net
1048 ET 28May2009-Target proxy battle to be put to a vote
Thursday
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A proxy battle between activist investor William Ackman and
Target Corp (TGT.N) will be put to a vote on Thursday, at the
retailer's annual meeting.

In the context, Ackman is seeking enough shareholder votes
to win five seats on the retailer's board, while Target is
running a slate of four incumbent directors.

Shareholders will also have to vote on the size of the
board -- Target wants to set it at 12, while Ackman claims it
should be 13.

For details, see [ID:nN28321308]

Shares of Target fell 1.3 percent to $39.09.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1033 ET 28May2009-GM rallies on improved equity exchange offer
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Shares of General Motors (GM.N) soared on Thursday, after
the company, along with the U.S. Treasury, made an improved
equity exchange offer to bondholders with $27 billion in debt,
a move intended to pave the way for a quick bankruptcy process
for the automaker.

Under the proposed deal, which GM said was supported by
creditors representing about 20 percent of its debt,
bondholders would be offered 10 percent of a reorganized
company and given warrants to purchase another 15 percent.

In exchange for the improved payout, creditors would agree
not to oppose a move to sell GM's profitable assets to a new
company funded by the U.S. government in a fast-track
bankruptcy process.

For details, see [ID:nN28324145]

Shares of the Dow component gained 15 percent to $1.32
while peer company Ford Motor Co (F.N) was down 0.4 percent to
$5.32. The Dow Jones U.S. Automobile index .DJUSAU was up 0.1
percent to 63.33.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1024 ET 28May2009-Markets lose ground after housing data
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Major U.S. indexes fell on Thursday, following the release
of data that showed new home sales rose slightly less than
expected in April.

For details, see [ID:]

The Dow Jones industrial average .DJI fell 0.4 percent to
8,264.83 while the S&P 500 .SPX lost 0.3 percent to 889.99
and the Nasdaq .IXIC was off 0.6 percent to 1,721.55.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net