Top Headlines - part 75
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 »
BUSINESS December 21, 2011 | 4:23 PM
- Merger would have given combined companies 75% market share
- Deutsche Telekom to receive $6 million breakup fee from AT&T
- Sprint and Dish Network emerge in speculation over possible T-Mobile suitors
AT&T scrapped its $39 billion takeover bid for T-Mobile due to blocks thrown up by President Barack Obama’s administration preventing the company from creating the largest cellphone service provider in the US.
Both companies lose out as the deal fails to go ahead. AT&T will no longer be able to clear up its network and speed up service for cellular data coverage on devices heavily used in business, such as smartphones and iPhones, through T-Mobile’s cellular airwaves. Meanwhile, T-Mobile, which is trailing behind the three other national operators in the US - AT&T, Sprint Nextel and Verizon Wireless - has less promising prospects in absence of the deal.Read more »
BUSINESS December 21, 2011 | 2:45 PM
- Bi-Lo, Winn-Dixie merger will total 700 stores and 63,000 employees
- Bi-Lo purchased all remaining Winn-Dixie shares at $9.50, 75% higher than its Friday close price
- No stores or distribution centers are expected to close as a result of the merger
Supermarket operator Bi-Lo LLC has agreed to purchase food retailer chain Winn-Dixie Stores Inc. for $560 million, which will render the Jacksonville-based Winn-Dixie private.
When the merger goes through, the new grocery chain will have roughly 700 stores throughout the Southeast with approximately 63,000 employees, making it the ninth-largest supermarket chain in the US. The deal is expected to close in the next two to four months pending Winn-Dixie’s shareholder approval.Read more »
BUSINESS December 21, 2011 | 10:56 AM
- Wizarding World of Harry Potter sees tourist success at Universal in Orlando
- Walt Disney looking to open Avatar theme park in 2013
- Chinese theme park based on martial arts expected to feature film favorites such as Bruce Lee
Theme park followers can look forward to next month when details of new additions may be revealed as Universal Studios Hollywood film studio marks its 100th birthday. Company executives say the yearlong campaign will include news of “theme park activities,” according to the Orlando Sentinel.
Past theme park watchers certainly know of the Wizarding World of Harry Potter, which opened in Orlando, Florida, this year to create what some call “frenzied excitement among muggles worldwide.”Read more »
BUSINESS December 20, 2011 | 4:18 PM
- Cash-strapped states launch legalized gambling venues to balance their budgets
- State-sponsored gambling raises moral and financial questions
- Cost-benefit analysis needed to help states determine whether gambling is a good business venture but unlikely to be made available
Every US state except Hawaii and Utah has some form of legalized gambling to raise revenue, but cash-strapped states are increasingly betting that more slot machines and blackjack tables will be good bets to meet future funding needs.
“Since the national economy started its nosedive in the summer of 2008, governors and state lawmakers across the country have been pushing new and expanded gambling measures to boost revenue, either for general state coffers or particular accounts, like education funding," reports the Patriot Ledger newspaper in Boston.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 »
ECONOMY December 19, 2011 | 4:37 PM
- 14 US states spent more than 25% of overall expenditure on Medicaid
- Medicaid spending totaled over $398 billion for 2011, 10% more than last year
- North Carolina is overpaying for Medicaid because of issues with new billing system
Overall US state spending on Medicaid has increased this year to nearly 25%, while education funding has dropped by 20%, according to a report by the National Association of State Budget Officers (NASBO).
The NASBO report shows that 12 states have spent more than 10% on Medicaid, while 14 US states spent over 25% and California has spent up to 40% this year. Meanwhile, in Maine, Nebraska and New Mexico, Medicaid spending dropped due to a decline in federal funding.Read more »
BUSINESS December 19, 2011 | 4:29 PM
- Zelboraf sales estimated to reach around $930 million by 2016
- Six-month treatment costs $56,000 in the US; EU price yet to be set
- Drug found to delay disease progression and boost survival rates
EU drug regulators have recommended Swiss company Roche Holding’s Zelboraf treatment of a certain kind of melanoma for approval. The drug, whose clinical name is "vemurafenib", could generate profits as high as $930 million by 2016.
Zelboraf received the go ahead for retail in the US in August. It works by blocking a protein that drives tumor progression in around 50% of patients with advanced skin cancer.Read more »
BUSINESS December 19, 2011 | 2:44 PM
- ISTA Pharmaceuticals Rejects $314 Million Proposal from Valeant
- ISTA foresees revenue growth for 2012 with expansion of eye, allergy products
- Valeant purchases Afexa and iNova, is seeking more acquisitions
- FCC Approves New Valeant Deals, Requires Divestment
ISTA Pharmaceuticals Inc. has rejected a buyout proposal from Valeant Pharmaceuticals International for $314 million, calling the offer “grossly inadequate.” Valeant's Board of Directors fully supported the buy, which includes the purchase of ISTA's $13 million debt.
In letter dated last week, ISTA's President and CEO Vicente Anido reports that Valeant's offer was not in the best interest of the company's shareholders. ISTA expects substantial revenue growth for 2012 and the foreseeable future due to its successful eye-care and allergy medicines.Read more »