Finance News - part 8
FINANCE July 22, 2011 | 5:17 PM
- Borders closes doors on just under 400 stores, almost 11,000 jobs lost
- Creditors owed more than $270 million
- Digital book sales overtake print copy sales
- Closure opens retail rental space totaling 10 million square feet
Bookstore giant Borders has begun the process to liquidate its 399 remaining stores across the US. Having filed for bankruptcy last February when it closed a third of its outlets, Borders subsequently failed to find itself a bidder.
According to Publishers Weekly, private equity firm Najafi Companies had made a $215 million bid earlier this month, but the chain opted to sell itself to liquidators Hilco Merchant Resources and Gordon Brothers Retail Partners LLC.Read more »
FINANCE July 20, 2011 | 11:42 AM
- Allergan to acquire Vicept Therapeutics for $75 million
- Vicept's V-101 could be first-approved topical treatment for rosacea
- Cell-based assay will be used for testing Allergan's star product, Botox
Drug specialist Allergan Inc. will purchase all remaining shares and assets of Vicept Therapeutics, a privately-held dermatology company. The strategic acquisition will include an upfront cash payment of $75 million by Allergan, plus up to $200 million in aggregate payments.
Allergan's stock (AGN) steadily increased shortly after the announcement, closing at $84.02 on July 19. The aim of the agreement is for Allergan to expand its skin therapy treatment segment. Vicept's main research product is V-101, a topical cream that will be used to treat the erythema, or redness, that is associated with treatment of rosacea.Read more »
FINANCE June 24, 2011 | 6:25 PM
- Citi and Google invest $314 for two phases of project
- AWEC will nearly double the power of current largest US wind farm
- Alta to power 450,000 homes after completion
Google and Citi are investing money toward what is being called the largest wind project in America: The Alta Wind Energy Center (AWEC) in California will have the capacity of 1,550 megawatts, nearly double the capacity of the current largest US wind farm.
The financing agreement is structured so that investors purchase phases of the project and lease them back to Terra-Gen Power, also known as a leveraged lease. Citi and Google currently hold leases for two phases of the wind project, though Citi has also financed several phases of the project totalling roughly 570 megawatts.Read more »
FINANCE June 10, 2011 | 4:17 PM
- Walmart establishes $15 billion share repurchase plan
- Focus on keeping prices low with deals and cost-cutting to attract consumers, encourage spending beyond essentials
- Walmart ranks 6 in list of top 500 retail chains for year-over-year growth
In an effort to overcome two years of decreased sales, Walmart is trying multiple means to garner customer sales: The store is offering a $15 billion share repurchase in an attempt to correct the business in the United States. The buyback plan will be equivalent to about 8% of Walmart's $189 billion market capitalization.
Buyback plans are usually put in place when a company's stock is believed to be undervalued, and Wal-Mart stock has recently been underperforming; however, it was up 6.3% in early June according to Reuters.Read more »
FINANCE May 31, 2011 | 10:04 AM
- VisionChina Media announces contract extensions in Guangzhou and Shenyang; new contract in Shenzen
- VisionChina will have over 15,000 advertising screens in Guangdong Province subway stations
VisionChina Media announced on Thursday the renewal of exclusive contracts to advertise on Guangzhou's subway system and the Shenyang bus network.
One of China’s main outdoor digital advertising networks, VisionChina, will continue on for another five years in Guangzhou, the capital of Guangdong Province, where it will broadcast its mobile television advertising network on the city’s five subway lines. It will also take over three new lines that are being added to cater to increasing commuter numbers.Read more »
FINANCE May 26, 2011 | 3:04 PM
- Speculation surrounding Nestle's intentions regarding General Mills end
- Only about 14% of General Mills business is of interest to Nestle
- If Nestle had bought General Mills, sales could have reached $40 billion
Nestle is unlikely to buy General Mills because it is not fully interested in General Mill's markets and revenue growth is too low.
Only a small portion, about 14% of the General Mills business, such as Haagen Dazs ice cream and frozen pizza, could be of interest to Nestle. The sales pace for Nestle is not in line with General Mills, whose slow growth does not suit the Nestle strategy.Read more »
FINANCE May 25, 2011 | 4:21 PM
- Sears reported an unexpected loss in sales, falling 3.4%
- Poor customer service is blamed on the decreased sales
- Kmart sales fell by 1.6%
Sears reported a larger than expected quarterly loss, which is blamed on the company's focus on cutting costs and increasing profit - rather than a focus on providing a better combination of merchandise and an improved shopping experience for its customers.
Sales in the first quarter fell 3.4% to $9.71 billion.Read more »
FINANCE May 24, 2011 | 10:31 AM
- Pfizer has no plans to release a standout drug in 2011, but expects to reach financial goals
- Pfizer to give more accountability to research scientists, use collaborations to minimize risk and gain access to new technology
- Pfizer to lose exclusive patent on Lipitor, but shares are expected to increase due to new rheumatoid arthritis drug Tofacitinib
Despite the fact that Pfizer does not have any imminent plans to release a blockbuster drug in 2011, according to Pfizer CEO Ian Read, the company will still likely reach its financial goals this year.
Pfizer is perhaps best known for developing the popular cholesterol drug Lipitor. The US-based pharmaceutical company plans to reach revenue of $65-$67 billion dollars with per-share earnings of about $1.09-$1.24. As the less-than-stellar economy continues to affect the pharmaceutical industry, Pfizer will also continue to promote its products in Spain.Read more »
FINANCE May 21, 2011 | 11:25 AM
- Sara Lee is reported to be in talks with Brazilian coffee maker Marata
- Sara Lee already owns 22% of the Brazilian coffee market
- Brazil is the second-largest coffee market in the world behind the US
US food company Sara Lee is in negotiations to buy Brazilian coffee, tea and juice maker Marata, a Brazilian newspaper said on Wednesday.
According to financial paper Valor Economico, sources close to the two companies confirmed the discussions for the buyout of Marata, also reporting that Sara Lee was open to the idea of a merger.Read more »
FINANCE May 20, 2011 | 12:22 PM
- First quarter profit for ArcelorMittal is at $2.58 billion
- Demand from auto industry despite higher prices for ore may account for rise in profit
- Raw material prices are anticipated to increase due to growing demand
Steel giant ArcelorMittal experienced a first quarter profit, prompting the company to shore up its iron-ore and coal mines. Earnings were reported as $2.58 billion.
The company's earnings surpassed analyst estimates that the company would reach an average of $2.39 billion, Bloomberg reports. The rise in earnings has been attributed to demand from the automotive industry.Read more »