eSpeed Inc. (NDAQ:ESPD) shares moved up $1.13, or 11.71%, to $10.87 today after the company's takeover offer for Cantor was rejected. Meanwhile, Chapman Capital disclosed a 9.3% stake in the company and demanded consent to replace eSpeed directors at the company's 2007 annual meeting. The hedge fund also reiterated its demands that the board immediately retain an independent auditor to review the Joint Services Agreement, compel the conversion of all Class B common shares into Class A common stock, and engage an investment bank to maximize shareholder value via an auction of the company.

Robert L. Chapman, Jr., Managing Member of Chapman Capital, commented, "Chief Executive Howard Lutnick's three-kingdom reign over Cantor Fitzgerald, eSpeed and BGC Partners appears so infested with potential conflicts of interest and incestuous inter-company transactions that a completely new set of corporate governors may be required to exterminate any vermin from eSpeed's board room. Chapman Capital finds it astonishing that Mr. Lutnick may believe he retains the residual credibility necessary to bedazzle a new group of investors in the proposed BGC Class A concoction after stupefying eSpeed Class A shareholders with years of underperformance and apparent disrespect."

Regarding Chapman Capital's demand for the immediate auction of eSpeed, Mr. Chapman stated, "The non-return of 24 straight business days of telephone calls from eSpeed's largest Class A owner is something one might have expected from multi-kingdom conflicted tyrants such as Hollinger International's Conrad Black, but not someone as conscious of his public reputation as Mr. Lutnick. Moreover, today's disclosure of the seemingly impulsive rejection of Tullett Prebon Plc's premium acquisition proposal has done nothing but heighten our concerns that Napoleonic behavior continues to be condoned by eSpeed's director fiduciaries."

In the end, if the hedge fund is successful in obtaining seats on the company's board of directors, it is likely that there will be some kind of a process to explore a sale of the company. Until then, investors and shareholders have to wait to see if the company will take action to eliminate some of the barriers to making this happen. Regardless, this is definitely a stock worth watching!

View past eSpeed articles

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Marsh & McLennan (NYSE:MMC) shares continued their rise today moving  up an additional 1.78% after jumping 3.5% yesterday on rumors of a private equity bid. The WSJ said, however, that a person familiar with the company's thinking said nothing is in the works. Notably, the company is in the process of turning itself around after CEO Michael Cherkasky cut costs and restructured the business since taking over in October 2004. As part of this turnaround, the company sold off its Putnam Investments division for $3.9 billion late last year and reported healthy earnings last quarter. But despite these changes, the company continues to trail the S&P 500 index even after its move this week. This has caused many investors to remain skeptical as to the company's long-term ability to provide predictable returns to investors. While a buyout is nothing more than a rumor at this point, MMC is definitely a stock worth keeping an eye on!

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EBay Inc. (EBAY) announced that its quarterly earnings and sales came in higher than expected by Wall Street, pushing the company's shares up nearly 3%.

Spansion (SPSN) shares dropped 20% after the chipmaker posted a wider quarterly loss and outlined a restructuring plan. The company said it would be facing weaker prices for its flash chips due to competitive pressures.

Novellus Systems Inc. (NVLS) shares dropped 2.8% after the company forecast second quarter earnings of 42 cents to 45 cents per share.

E-Trade Financial Corp. (ETFC) cut its 2007 forecast due to a reduction in customer trading amid market volatility. The company forecast FY2007 earnings of $1.55 to $1.75 compared to analyst estimates of $1.62 to $1.78 per share.

Gilead Sciences Inc. (GILD) shares moved marginally higher after the company announced first-quarter results that surpassed analysts' expectations. The company also backed its 2007 product revenue and earnings forecast.

Avici Systems Inc. (AVCI) shares fell 27% after the company said it was transitioning away from core router development to focus on its new product iniative. The company also said that it swung to a quarterly profit and declared a special cash dividend of $2 per share.

Yahoo Inc. (YHOO) shares dropped 11.8% on triple the normal volume after the company's profits dropped 11% on higher operating costs as it spent more to compete with Google. The results disappointed analysts and investors who expected better profit and sales figures in light of a new upgraded ad feature known as Panama.

ASML Holding (ASML) shares moved up 5% after the company said first-quarter profit nearly doubled as it shipped more machines used to make chips for mobile phones and iPods.

Carrington Laboratories (CARN) shares rose almost 8% today after the company announced supply and patent license agreements for at least 10 years with Primus Pharmaceuticals Inc.

Avanir Pharmaceuticals (AVNR) shares rose over 300% after the company announced positive top-line results from its Phase III clinical trial evaluating the investigational drug Zenvia in diabetic neuropathic pain.

Claxson Interactive Group, Inc. (OTC:XSONF) shares moved down 4.26% today after Black Horse Capital Advisors disclosed an 8.4% stake in the company and revealed the disturbing details of a March 23rd proposed transaction in which Claxson and its controlling shareholders indicated their desire to purchase the remaining minority shares at $10.50 per share - below the current price of $11.25.

The problem arises when we see that Claxson announced the sale of certain Pay TV assets to Turner Broadcasting for $235 million along with the sale of Ibero American Radio Chile to the Prisa Group for $75 million. The hedge fund noted that the closing of these two transactions and the interim cash flow generation will likely produce a net cash position (afer paying all the remaining holders of company debt) that will significantly exceed the offer price. Furthermore, the proposed transaction does not compensate minority shareholders for Claxson's remaining valuable assets. These amount to an even higher price well above the $10.50 per share offer price. Consequently, the hedge fund recommended that the Special Committee in the board of directors should reject the offer as inadequate. If the offer is rejected and a higher offer is made, it could mean significant appreciation for shareholders. this makes XSONF a stock worth watching!

Point.360 (NDAQ:PTSX) announced yesterday that it had entered a merger agreement with DG FastChannel, Inc. (NDAQ:DGFC). Under the terms of the agreement, DGFC will acquire Point.360's spot advertising distribution business, and Point.360 will spin off its remaining businesses to its shareholders. DGFC will also be assuming up to $7 million in Point.360's debt while providing it with $3 million in cash for the working capital of the other business.

As a result of the spin-off, Point.360 shareholders will continue to own shares in the New 360, which focuses on high definition and standard definition mastering, sophisticated computer graphics, data conversion and video, film and media asset management services. The existing Point.360 senior management will stay with the new company that will be basically debt free and generating revenues of about $45 million to $50 million with EBITDA around $4 million to $6 million during the next 12 months. This is great news for shareholders as they will not only receive a payment from DGFC, but also shares in a new spinoff - which tend to outperform the overall market in their first year. This makes PTSX a stock worth watching!

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BCE Inc. (NYSE:BCE) share moved up $1.98, or 6.17%, to $34.05 today after the company announced that it began discussions with a group of Canadian pension funds in connection with its review of strategic alternatives. The announcement confirmed rumors that have already brought the stock up about 26% since March 29th. Many analysts warn that any buyout may not come at much of a premium to the current market price while the downside if a deal falls through could be quite steep.

The company confirmed that it was in talks with the pension consortium consisting of Canada Pension Plan Investment Board, Caisse De Depot et Placement Du Quebec and Public Sector Pension Investment Board; however, the company restated its dismissal that it was working with KKR or private equity funds on a possible deal. Overall, BCE may not be the best stock to purchase right now as the premium is too high; however, it could be a shorting target if a deal falls through or a buyout target if other bidders surface that would be willing to push up the price. Either way, this is a stock that is worth watching!

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BCE Inc. (BCE) rose 6.3% after the company said it entered into talks with three major institutional investors and a large private-equity firm about a potential buyout.

Black & Decker Corp (BDK) shares moved up 4.4% after the company raised its first quarter profit target amist strong international demand for power tools and other accessories.

Commerce Group (CGI) shares added 8.7% after the company was assigned to the S&P MidCap 400 index, replacing Adesa Inc.

East West Bancorp (EWBC) moved up 11% after the company reported first quarter earnings of 68 cents per share, up a year ago from 55 cents per share. The company also raised its guidance from $2.52 to $2.60 for the FY2007.

InsWeb Corp (INSW) shares more than doubled today after the company reported net earnings of 10 cents per share, compared with a net loss of 41 cents per share a year ago.

Lithia Motors (LAD) shares rose 7.2% after the company was selected to joing the S&P SmallCap 600 Index, replacing MapInfo Corp.

Nanogen (NGEN) shares rose 4.9% after the company submitted a 510(k) application to the FDA for its cystic fibrosis kit and NanChip 400 microarray system.

Telik (TELK) shares rose 9.2% after the company announced results from a Phase II clinical trial of the combination of Telcyta, carboplatin and paclitaxel in the first-line treatment of advanced non-small cell lung cancer.

Fair Isaac Corp (FIC) shaers lost 8.6% after the company cut its fiscal second quarter and 2007 forecasts.

Google Inc.'s (NDAQ:GOOG) buyout of DoubleClick Inc. is fueling speculation that there may be consolidation in the online advertising sector. Online advertising companies aQuantive Inc. (NDAQ:AQNT), 24/7 Real Media Inc. (NDAQ:TFSM), and ValueClick Inc. (NDAQ:VCLK) all moved up significantly on the news after investors and analysts suggested that they could become the next buyout targets. Meanwhile, others suggest that large players will likely seek more reasonably priced companies in the private sector instead of going after any of the larger public targets. Regardless, these are definitely stocks to keep a close eye on following Google's blockbuster acquisition!

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Atmel Corporation (NDAQ:ATML) shares rose 1.19% in early trading after George Perlegos announced the filing of a definitive proxy statement with the SEC in connection with his planned solicitation of proxies at the company's next annual shareholders meeting on May 18th. The founder and former president, CEO, and chairman of the company hopes to replace the company's current board with his own nominees and appoint an additional three candidates that he feels are highly qualified.

If successful, the 5.2% holder proposed several initiatives designed to unlock shareholder value:

• Promptly hiring a new, highly qualified and experienced CEO to replace the current underperforming one who had only 10 weeks of public company CEO experience before joining the company!
  
• Spinning-off Atmel's Smart Card business to its shareholders in order to convert the company to a microcontroller pure-play and deliver value to shareholders. We know that spin-offs tend to outperform the overall market in their first year!
  
• Selling Atmel's automotive business in Germany, which Mr. Perlegos believes can be sold for $400 to $500 million - a far better option than the current proposal to sell the company's wafer business in Germany.
  
• Divesting non-core assets, such as the company's NOR-flash business. This furthers the company's move to become a microcontroller pure-play and provides it with the cash to fund a share repurchase.
  
• Initiating a $500 million to $1 billion share repurchase program designed to boost the company's share price and unlock value for shareholders.
  
• Removing the current poison pill in accordance with the highest standards of corporate governance.

Clearly all of these proposed initiatives would be greatly beneficial to shareholders. The company's stock has already dropped close to 20% since the beginning of 2007 after the company announced further sequential decline in revenue of up to 8% for the first quarter. Obviously changes are needed and perhaps George Perlegos is the one to bring them; after all, he did successfully create and run the company for nearly 20 years! Combined, these factors make ATML a stock worth watching...

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ABN Amro (NYSE:ABN) shares moved up $2.49, or 5.44%, to $48.28 today after the Wall Street Journal reported that the Royal Bank of Scotland officially made a bid for the company. Up until now, the merger talks surrounding the company included only Barclays with mere speculation that there could be others in the mix. The Royal Bank of Scotland is supposedly teaming up with Fortis and Banco Santander Central Hispano to buy ABN and carve it up. It has been widely speculated that other suitors would be willing to pay more than Barclays - especially in the event of a breakup bid.

While ABN management may not be too enthusiastic about these additional bids, a bidding war is certainly in the best interest of shareholders as evidenced by today's jump. We know that one activist investor, The Children's Investment Fund, already announced that it would support the consideration of the RBoS consortium saying: "As ABN Amro shareholders, we believe that the fiduciary duties of the supervisory and management boards require that the Royal Bank of Scotland consortium is allowed to proceed immediately with due diligence on a basis equivalent to Barclays for there to be a fair and transparent process which maximizes shareholder value". Clearly the situation makes ABN a stock worth watching!

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