Business News - part 9
BUSINESS October 2, 2014 | 11:24 AM
- Retailer hopes to raise $380 million
- Funds needed for holiday inventory
- Sears has had years of financial struggles
American retailer Sears plans to raise $380 million between mid-October and late-November by selling a 51% stake in Sears Canada to existing shareholders to raise much needed funds before the Christmas season.
Forty million shares were approved by the board of directors for the offering.Read more »
BUSINESS October 1, 2014 | 1:39 PM
- Company in highly competitive market
- Chinese seem willing to invest
- Alcatel-Lucent creating new technologies
French equipment vendor Alcatel-Lucent has completed the sale of its IP telephony and Ethernet switching equipment business to industrial investment company China Huaxin Post & Telecommunication Economy Development Center for $254 million.
The sale is part of Alcatel-Lucent’s Shift Plan, which began in June 2013, whose goal is to cut costs, generate asset sales and reestablish the company as a specialist in IP, Cloud and Ultra-Broadband Access.Read more »
BUSINESS September 30, 2014 | 11:12 AM
- eBay investor urged split
- eBay CEO says time is right for split
- PayPal facing competition from other mobile payment systems
Online auction house eBay Inc. announced payments business PayPal will be spun off into a publicly traded company in the second half of 2015, allowing the businesses to be nimble and evolve to changing market conditions.
Activist hedge fund magnate Carl Icahn, who is eBay's sixth-largest shareholder, had urged the companies to split, saying PayPal would receive a huge premium and a split would remove conflicts of interest.Read more »
BUSINESS September 29, 2014 | 11:45 AM
- Offer values movie studio at $3.4 billon
- DreamWorks has struggled financially
- SoftBank interested in further expansion
Japan’s SoftBank Corp., the owner of U.S. wireless carrier Sprint, has made an offer to purchase Jeffrey Katzenberg’s DreamWorks Animation SKG Inc. film studio for $32 a share, according to the Hollywood Reporter. The offer values the studio at $3.4 billion.
DreamWorks Animation,which operates separately from Steven Spielberg's DreamWorks Studios, has been struggling financially and has invested heavily in television. It is the smallest Hollywood studio, producing less than four movies annually.Read more »
BUSINESS September 23, 2014 | 12:02 PM
- Healthcare a fast growing market
- Lighting will be able to better adapt to market changes
- Phillips has history of changing with the times
Dutch electronics company Royal Phillips will split into two businesses – lighting and healthcare technology – as part of a larger strategy to move into fast-growing markets.
The healthcare business, HealthTech, which manufactures hi-tech medical equipment, will merge with Phillips’s consumer lifestyle division.Read more »
BUSINESS September 22, 2014 | 4:08 PM
- Purchase increases company’s portfolio in lab supplies
- Pharmaceutical business to remain medium enterprise
- Merck has had better luck with chemical businesses
German drug and chemical manufacturer Merck KGaA is purchasing American lab supply manufacturer Sigma-Aldrich Corp. for $17 billion, boosting Merck’s chemical portfolio and reducing its dependences on pharmaceuticals.
Chemicals and services are a steadier source of income than pharmaceuticals. In recent years, Merck has had a series of drug failures and will keep its pharmaceuticals business, Serono, medium sized.Read more »
BUSINESS September 18, 2014 | 1:05 PM
- Plastics division had been underperforming
- Bayer to focus on life sciences
- Separation to benefit both businesses
Germany’s Bayer AG plans to either spin off its plastics business, Bayer MaterialScience, or list it as an initial public offering with shares sold against cash within the next 12 to 18 months. It gives the business funds needed for research and development.
The MaterialScience division has not been profitable with profit margins less than half the company average. Rising material costs have decreased profits.Read more »
BUSINESS September 17, 2014 | 1:22 PM
- Three other states have issued permits
- Self operating vehicles use sensor technology
- California put new regulations in place before issuing permits
California has become the fourth state to issue permits for testing self driving vehicles on state roads.
The California Department of Motor Vehicles permit is $150 for 10 vehicles and 20 drivers. An additional 10 drivers can be added for $50.Read more »
BUSINESS September 16, 2014 | 10:03 AM
- Airline hopes 2,100 accept offer
- Buyout helps prevent future layoffs
- United only airline to experience quarterly loss
American carrier United Airlines, a unit of United Continental Holdings Inc.,is offering flight attendants a $100,000 lump-sum buyout to prevent future layoffs.
The airline employees 23,000 flight attendants and hopes 2,100 accept the offer.Read more »
BUSINESS September 15, 2014 | 3:59 PM
- Sales 2 million more than iPhone 5
- Model not available in all nations Sept. 19
- Demand is usually greater than supply for Apple Products
Presales for the iPhone 6 and iPhone 6 Plus reached 4 million during the first 24 hours, according to Apple Inc., breaking the record set by the iPhone 5 which sold 2 million in 24 hours.
If sales kept pace all weekend, up to 10 million iPhone 6s were sold. Analysts say the volume of orders reflects customers’ demand for larger screens.Read more »