Wall Street Rumors - April 22, 2008
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RBS to Sell $24 Billion in Shares After Markdowns
Royal Bank of Scotland Group Plc (NYSE:RBS), the U.K.’s second-biggest lender, will sell 12 billion pounds ($23.7 billion) of new shares to investors in Europe’s largest rights offer to boost capital depleted by writedowns.
AT&T Hits Sales, Profit Targets
AT&T (NYSE:T) posted first-quarter numbers that were in line with estimates, buoyed by strong growth in its wireless, broadband and enterprise divisions.
Overseas Growth Boosts McD’s
McDonald’s Corp. reported a 24% rise in first-quarter net income on strong global growth and U.S. market-share gains amid the weak economy.
UnitedHealth Misses Estimate, Reduces 2008 Outlook
UnitedHealth Group Inc.’s (NYSE:UNH) first- quarter earnings missed analyst estimates as sales to employers and individuals faltered and investment income fell. The company cut its profit goals and dropped 13 percent in early trading.
Fuels Prices Weigh on UAL, JetBlue
UAL Corp.’s (NASDAQ:UAUA) first-quarter net loss ballooned as jet-fuel costs soared 51% and the United Airlines parent said it would shrink capacity and cut jobs amid an increasingly harsh airline-operating environment.
CIT Group Prices $1.5 Billion Stock Offering
CIT Group (NYSE:CIT) on Tuesday priced $1.5 billion in concurrent common and preferred stock offerings. The commercial financier said it would offer 91 million shares of common stock for $11 a share and 10 million shares of noncumulative, perpetual convertible preferred stock, with a liquidation preference of $50 a share.
Banks Offer to Enter Arbitration Over Clear Channel Funding
A group of banks involved in the buyout of Clear Channel Communications Inc. (NYSE:CCU) has offered to enter into binding arbitration with private-equity firms Thomas H. Lee and Bain Capital Partners to resolve their dispute about funding the $19.4 billion deal.
Yahoo Report Is Chance to Coax Higher Microsoft Bid
Yahoo! Inc. (NASDAQ:YHOO) gets a chance today to show it’s worth more than the $44.6 billion Microsoft Corp. (NASDAQ:MSFT) is offering for the owner of the second most popular Internet search engine.
Samsung’s Chairman To Quit Amid Tax Charges
In a big shake-up at South Korea’s largest conglomerate, Samsung Group Chairman Lee Kun-hee said he will resign in the wake of an indictment over tax violations.
Citi Maintains Dividend
Citigroup (NYSE:C) on late Tuesday declared a 32-cent dividend on its common shares. The announcement come as some relief to shareholders, who already endured a 41% cut to it dividend in January. Citi on Friday posted a $5.1 billion first-quarter loss and said it was slashing 9,000 jobs to cut costs.
Texas Instruments Issues Disappointing Outlook
Texas Instruments Inc. (NYSE:TXN) reported a 28% rise in first-quarter profit, but its outlook for the second quarter fell short of Wall Street expectations.
News Corp. Nears Deal to Buy Newsday
Tribune Co. (NYSE:TXA) is closing in on an agreement to sell its Long Island newspaper Newsday to News Corp. (NYSE:NWS) for about $580 million, according to individuals familiar with the situation.
ABC Learning Sells 60% of U.S. Unit To Morgan Stanley Private Equity
Australian childcare provider ABC Learning Centres Ltd. (ASX:ABS) Tuesday finalized a deal to sell 60% of its U.S. business to Morgan Stanley Private Equity and also said several senior executives and directors will step down.
DuPont Profit Jumps 26% on Crop Seeds, Pesticides
DuPont Co. (NYSE:DD), the third-biggest U.S. chemical company, said first-quarter profit rose 26 percent as record grain prices boosted sales of pesticides and genetically modified corn and soybean seeds.
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