Finance News - part 2
FINANCE January 18, 2012 | 3:55 PM
- Pembina and Provident merger creates company worth $8 billion
- Deal blends together Pembina’s gas processing with Provident’s extraction and storage
- Companies combining now while production of oil sands and shale gas is increasing
Pembina Pipeline Corp will purchase Provident Energy Ltd. for CAD$3.2 billion in stock, creating a publicly traded infrastructure company worth $7.9 billion.
The merger will blend together the services each company offers: Pembina provides gas processing and energy transportation along a 7,500 kilometer network, while Provident offers logistics, fractionation, extraction, transportation and storage.Read more »
FINANCE December 22, 2011 | 10:14 AM
- GM blocks sale of Saab to Chinese over concern for intellectural property
- Saab says filing bankruptcy best bet for its creditors
- Saab valued at $3.8 million
Unable to solidify deals that would have saved Saab, the Swedish automaker has now filed for bankruptcy.
The bankruptcy filing comes after many attempts to keep the company afloat. In September, Saab, which is owned by Swedish Automobile, filed for protection from creditors. On Dec. 7, the administrator in charge of reorganizing the company filed to end reorganization, saying the automaker did not have the funds needed to continue.Read more »
FINANCE December 20, 2011 | 2:55 PM
- Cameron International will pay $250 million to BP for Gulf of Mexico oil spill cleanup costs and individual damage claims
- Deepwater Horizon disaster could cost BP $40 billion in total
- BP required to evaluate pollution control technologies
Cameron International, which provides pressure management systems for the oil and gas industry, is to pay British oil company BP $250 million after legal proceedings following the April 20, 2010 oil spill, known as Deepwater Horizon, in the Gulf of Mexico.
Cameron and BP will both abandon their claims in the case, which was set to begin trial in February to determine fault in the leaking of over 200 million gallons of oil off the Louisiana coast.Read more »
FINANCE December 20, 2011 | 2:52 PM
- Deal will create a company with an $11 billion market capitalization
- Eldorado predicts production will exceed 1.5 million ounces of gold by 2015
- Gold sector sees growing trend toward consolidation
Canada-based gold producer Eldorado Gold will buy EU-focused Canadian precious metals company European Goldfields for $2.4 billion in shares and cash, marking its largest acquisition.
Eldorado, the fifth-biggest gold company in Canada, expects the purchase to diversify its production base and to constitute a firm with a near $11 billion market capitalization. The company predicts an output increase to over 1.5 million ounces of gold a year by 2015.Read more »
FINANCE December 16, 2011 | 4:34 PM
- Banking sector sheds 125,000 jobs in 2011 amid market volatility
- Morgan Stanley to relocate 80 Singapore back-office workers
- Morgan Stanley agrees to drop MBIA insurance claims for over $1 billion
Morgan Stanley will cut around 1,600 jobs from its 62,600-strong workforce in the first quarter of 2012 in the face of financial market instability.
The banking sector is reigning in on its employee numbers across the board, with Citigroup planning to cut 4,500 jobs, Bank of America set to axe 30,000 jobs over the coming years, and Swiss lender UBS planning on letting 2,000 of its 18,000-strong workforce go.Read more »
FINANCE December 15, 2011 | 5:40 PM
- Olympus files 5 years of revised financial statements to avoid automatic removal from Tokyo Stock Exchange
- Olympus being investigated for possibly hiding $1.5 billion over past 13 years
- Future of Olympus unclear as it may need to sell assets or form merger to raise capital
Olympus Corp. filed five years of revised financial statements yesterday with Japan’s Financial Services Agency and avoided automatic removal from the Tokyo Stock Exchange. In its statement, Olympus needed to prove its financial problems are limited to senior management and that there were no more revisions after losing $1.3 billion in net assets.
Olympus may had avoided removal from the stock exchange, but it is not in the clear. The 92-year-old optics company is being investigated by law enforcement officials in Japan for hiding $1.5 billion over the past 13 years. Officials from the United States and the United Kingdom are also conducting their own investigations.Read more »
FINANCE December 12, 2011 | 5:32 PM
- Delta to take 3% stake in Gol along with board seat
- Gol capital boosted by 280 million reais ($160 million)
- Gol announced 844 million reais ($482 million) net loss in October
Delta Air Lines will invest $100 million in Brazilian budget airline Gol Linhas Aereas to give the company a financial boost against its Latin American rivals. The carriers agreed to a deal in which Delta will buy Gol’s American depository receipts and acquire shares for 22 reais each, equivalent to 47% more than the closing price of shares early last week.
This will boost Gol’s capital by up to 280 million reais, or $160 million.Read more »
FINANCE December 9, 2011 | 2:03 PM
- J.C. Penney Gains near 17% Stake, 2 Board Chairs from Martha Stewart Living
- Martha Stewart Living Shops to Open in 2013
- J.C. Penney's Holiday Sales Down, Q3 Losses
- J.C. Penney Hires PMK-BNC for Public Relations
US retail department store giant J.C. Penney has announced a partnership with Martha Stewart Living Omnimedia Inc. to the tune of $38.5 million. As part of the agreement, J.C. Penney paid $3.50 per share to own a 17% stake in the company and an additional 12% premium to Martha Stewart Living's closing price. J.C. Penney will also hold two seats on the board of the company.
In return, Martha Stewart Living and J.C. Penney are working together to open Martha Stewart Living mini-stores and an e-commerce website that are set to be launched by February 2013.Read more »
FINANCE December 8, 2011 | 2:22 PM
- Saab administrator gives up on restructuring, leaving owner Swedish Automobile one week to respond or be declared bankrupt
- Saab needs to borrow $800 million to cover restructuring costs
- Chinese automakers offered to buy Saab for $135 million earlier this year but GM blocked deal
Guy Lofalk, the administrator in charge of Saab Automobile’s restructuring, filed papers yesterday to give up efforts to save the dying car manufacturer. He says Swedish Automobile, who owns Saab, cannot cover the cost of restructuring.
Swedish Automobile needs to borrow $800 million to make the restructuring a success, and it has one week to respond to Lofalk’s application or run the risk of being declared bankrupt. A Swedish court is scheduled to rule on the case on December 16.Read more »
FINANCE December 7, 2011 | 5:33 PM
- SuccessFactors shares up over 50% after $3.4 billion buyout offer
- Main rival Taleo shares jump over 20% to record high $32.92
- Other software companies shares driven up amid speculation
Shares in a number of cloud computing firms jumped following an announcement from SAP that it will acquire workforce management software company SuccessFactors.
The German software giant’s $3.4 billion buyout proposal drove SuccessFactors stocks up by over 50% to $39.71 in New York, sparking speculation of other takeovers within the business software industry.Read more »