Board says Bristol-Myers Squibb's offer is too low

ImClone Systems Inc.'s board of directors said Monday cancer drug partner Bristol-Myers Squibb Co.'s $4.5 billion buyout offer ''substantially undervalues'' the company, with Chairman Carl Icahn personally against the deal.

Despite calling the bid too low, ImClone stopped short of rejecting it and said its board formed a committee to weigh the offer. The board also said it is considering splitting the company into two units to focus on Erbitux and its developing pipeline separately.

The New York-based companies are partners on the colon- and head-and-neck-cancer treatment Erbitux. They are also developing the drug as a lung cancer therapy.

Analysts and investors both expected a cold response from ImClone as many view Erbitux and the company's pipeline as more valuable than the buyout offer implies.Anadarko Petroleum

Oil exploration firm says earnings fell dramatically

Anadarko Petroleum Corp. says its second-quarter earnings fell dramatically from a year ago because of hedging losses related to derivatives.

Anadarko, one of the nation's largest independent oil exploration and production companies, said Monday net income amounted to $23 million, or 5 cents a share, for the April-June period, versus a profit of $1.3 billion, or $2.81 a share, a year earlier.

Revenue fell to $2.78 billion from $4.58 billion, the company said.

Net income in the most recent quarter was reduced by nearly $1.3 billion before taxes by one-time items, primarily from losses on derivatives.

On average, analysts polled by Thomson Financial were expecting earnings of $1.74 per share on $3.68 billion in revenue. Those forecasts typically exclude special items.

Humana

Health insurer sees drop

in second-quarter profit

Humana Inc., which has operations in Utah, reported a slight drop in second-quarter profit Monday, caused by a double-digit drop in premiums from its stand-alone Medicare prescription drug plans that was less painful than expected.

The health insurer posted solid growth elsewhere in its Medicare Advantage and commercial segments.

Humana's results for the three months ended June 30 outperformed Wall Street expectations, and the company raised its earnings-per-share projection for the full year.

Louisville-based Humana earned $209.9 million, or $1.24 per share, in the second quarter, down 3 percent from $216.8 million, or $1.28 per share, a year ago. The result beat Humana's own earnings projection of $1.15 to $1.20 per share and the consensus forecast of $1.18 per share by analysts surveyed by Thomson Financial.

WCI Communities

Homebuilder doesn't get funds, files for Chapter 11

Carl Icahn's WCI Communities became the latest casualty of the housing market crisis Monday, filing for Chapter 11 bankruptcy protection after the homebuilder failed to get additional financing in the face of massive losses.

Icahn, chairman of WCI's board, said the filing was necessary because the Bonita Springs, Fla.-based developer's entire $1.8 billion debt may soon be in default. Icahn said this was confirmed when some holders of $125 million convertible notes insisted on being paid in cash in full today.

WCI also fired Chief Executive Jerry L. Starkey and replaced him on an interim basis with David L. Fry.

Day-to-day operations, including selling, building and delivering homes, will continue, and employees will still come to work and be paid, the company said.

Frontier Airlines

Carrier gets an alternative $75 million financing deal

Frontier Airlines Holdings Inc., looking to emerge from bankruptcy protection, has been offered an alternative $75 million investment from three unsecured creditors.

Indianapolis-based Republic Airways Holdings Inc., Credit Suisse Securities, and Greenwich, Conn.-based AQR Capital are offering Frontier up to $75 million in debtor-in-possession financing, Frontier said Monday.

Frontier said that the amount includes an immediate firm commitment and funding of $30 million from the trio of investors. All are members of the unsecured creditors committee in Frontier's Chapter 11 bankruptcy cases.

Last week, Washington-based investment firm Perseus LLC said it would provide a $75 million debtor-in-possession loan for the chance to buy almost 80 percent of the equity in Frontier.