Bank technology stocks followed the broader market bloodbath last week, sparked by the dollar's continued selloff against other major currencies.
With the exception of a few firms in the outsourcing business, almost all the companies that sell systems and services to banks spiraled downward last week, with some companies' stocks losing more than 10% of their value.
The payment systems company First Data Corp. announced Friday that it had upped its bid for bankrupt New Valley Corp.'s Western Union Financial Services Inc.
On June 9, First Data offered to buy the unit for $595 million plus the assumption of unfunded pension liabilities.
But the following week, First Data's bid was topped by buyout firm Forstmann Little & Co., who offered $650 million plus the pension liabilities.
First Data officials said they had raised their bid to $660 million, with other parts of their offer remaining the same.
The officials added that they expected the U.S. bankruptcy court in Newark, N.J., would continue to consider additional motions on the sale and to ultimately decide whether an auction process should be instituted for the purchase of the Western Union subsidiary.
First Data officials said they would support an auction supervised by the bankruptcy court.
First Data's stock closed at $42.50 a share Friday, down $2.875 for the week.
Shares of bank software maker Hogan Systems Inc. took a nosedive after an analyst downgraded the stock from buy to hold.
Richard Bove at Raymond James & Associates said he had cut his earnings estimates for Hogan's fiscal first quarter of 1994 to eight cents a share, down from 13 cents share previously.
Mr. Bove said he did not think Hogan's software sales would reach his $5 million target for the quarter, saying he now expected the sales to be about $2.5 million. He also pointed to smaller profit margins in the firm's consulting business and costs related to the amortization of new products introduced during the period for the downgrade.
Full-Year Earnings Estimates
Mr. Bove noted that he had not changed his full-year earnings estimates, anticipating that the software sales would pick up later this year.
He also said he expected the company will probably seek bank credits, which will mean interest costs he had not previously anticipated.
Hogan's common stock closed at $7.75 a share Friday, down $2.625 for the week.
The credit reporting firm Equifax Inc. announced last week that its chairman and chief executive, C.B. Rogers, will remain at the company for an indefinite period of time.
Mr. Rogers, who was elected chairman and CEO of Atlanta-based Equifax in 1992, was due to step down when he turned 65 in October.
Equifax stock closed at $28,625 a share Friday, down $0.625 for the week.
