Stocks in the news Wednesday

From Standard & Poor’s Equity Research

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Goldman Sachs Group (GS) reaches agreement to sell $5 billion of perpetual preferred stock to Berkshire Hathaway (BRKA) in a confidential offering. Preferred ancestry has a dividend of 10% and is callable at any time at a 10% premium. Berkshire will also receive warrants to purchase $5 billion of common stock through hit price of $115 per participate in, exercisable at any time for a 5-year term. GS in like manner says it is selling at least $2.5 billion in common equity in a of the whole not private offering. Wachovia reiterates outperform.

Citigroup (C) falls 0.84 to 19.15. Bloomberg reports that C is in talks to sell its Primerica unit to J.C. Flowers & Co. and Protective Life (PL), citing people by a knowledge of the talks. According to the report, Flowers may invest in PL, which would then bribe Primerica.

American International Group (AIG) signs a definitive agreement through Federal Reserve Bank of New York for 2-year, $85 billion revolving credit facility. Interest will accrue at a rate based on 3-month LIBOR plus 8.50%.

Bank of New York Mellon (BK) says as a ensue of recent market events, it will engage support to clients invested in money market mutual funds, cash sweep funds, and similar collective funds impacted by the Lehman Brothers bankruptcy filing. Expects to become liable to after-tax charge of about $425 million in the third quarter, which includes superadded costs associated by antecedently disclosed fatal support agreements that were due at the cessation of the assist quarter.

Capital One Financial (COF) affirms previously issued 2008 financial expectations, but notes that if margins remain at or near second quarter levels, COF expects to be toward lower end of its mid-single digit revenue advancement projection. Says it expects continuing weakness in U.S. regulation. Also expects to build its allowance for loan losses by about $200 million in the third quarter. This would result in allowance for loan losses as of Sept. 30, 2008 that would have capacity to assimilate equivalent of about $7.2 billion in managed losses over next 12 months. Proposes public offering of 14 very great number shares.

Sunpower (SPWR) and other solar stocks are seen higher following U.S. Senate’s passage of a bill that would extend $18 billion in tax credits for renewable energy for 8 years.

Medicis Pharmaceutical (MRX) falls 2.16 to 15.76 after the joint concern says its Audit Committee concluded that the company’s financial statements for the annual, shifting and quarterly periods from 2003 through 2007 and first quarter and second quarter of 2008, will well-adapted need to be restated and should not at all longer have existence relied upon as well as Ernst & Young LLP’session reports put on the pecuniary statements and effectiveness of internal regulate from one to another financial reporting for the related periods. Suspends previously reported financial guidance for remaining periods of 2008. S&P downgrades to sell from gripe.

Energy Conversion Devices (ENER) rise 9.13 to 65.59 after ENER says that its walk of life remains strong, there has been no change to its fundamentals, and the announced changes in patron Solar Integrated Technologies’ business do not work upon ENER’s positive growth outlook. Credit Suisse reiterates outperform.

General Growth Properties (