Wall Street Rumors - June 2, 2008
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Wachovia Ousts Thompson, Smith Will Be Interim CEO
After two months of vehemently defending the performance of Wachovia Corp. (NYSE:WB) CEO G. Kennedy Thompson, the company said Monday that board members have forced him to retire from the company he has run for eight years.
U.S. Stock-Index Futures Drop; Citigroup, Wachovia Shares Fall
U.S. stock futures fell after Treasury Secretary Henry Paulson said it will take months before financial-market turmoil ends and a U.K. mortgage lender slashed the price of its share sale.
Bradford & Bingley Suffers Biggest Drop, Sells Stake
Bradford & Bingley Plc (LON:BB), the U.K.’s largest lender to landlords, fell the most since going public in 2000 after announcing plans to sell shares at a 33 percent discount and saying the housing market is deteriorating.
Weakness in U.S. Weighs On Marriott’s Outlook
Marriott International Inc. (NYSE:MAR) Chairman and Chief Executive J.W. Marriott Jr. said the company’s international business remains strong, but the U.S. market has been weakened by softer demand trends.
Hedge Funds Cut Oil Bets as Prices Rose, CFTC Probed
Hedge-fund managers and speculators reduced bets on higher oil prices by 80 percent since July as crude futures rose to records and U.S. regulators started investigating trading, government data show.
Harris Corp. to Remain Independent
Defense contractor Harris Corp. (NYSE:HRS) decided to remain independent after considering acquisition offers that were below what the company’s board believes to be its value.
GM, Motorola, New York Times Burn Cash Flow, Keeping Dividends
General Motors Corp. (NYSE:GM), the biggest U.S. automaker, produced 33 cents a share in so-called free cash flow last year while maintaining a $1 dividend. Motorola Corp. (NYSE:MOT) took in 8 cents a share from operations after capital expenses, and paid a 20-cent dividend. New York Times Co. (NYSE:NYT) pays investors 92 cents per share a year and spent $1.87 a share more on operations than it made in cash.
Boeing, Airbus Delays Give Carriers a Break
The delays plaguing Airbus and Boeing Co.’s (NYSE:BA) plans to roll out new jetliners are giving the world’s profit-squeezed airlines an unexpected lucky break. As Airbus experiences production problems with its new A380 superjumbo and Boeing with its new 787 Dreamliner, the industry’s capacity — the global supply of airline seats — is growing less than expected.
Class-Action Law Firm Close to a Settlement
Class-action law firm Milberg LLP is close to a settlement that could end a federal prosecution of the firm for alleged kickbacks, according to two people familiar with the discussions. The deal would mark the climax of a case that has roiled the American plaintiff’s bar.
Microsoft Search to Be Default on Hewlett-Packard PCs
Microsoft Corp. (NASDAQ:MSFT), owner of the third most popular Internet search engine, struck an agreement to be the default Internet search provider on all Hewlett-Packard Co. (NYSE:HPQ) computers sold in the U.S. and Canada.
Chip Sales Rise 5.9% On Strong Demand For Flash Memory
Global semiconductor sales rose 5.9% in April from a year ago as strong unit sales for devices that use flash memory more than offset the dampening impact of surging prices on consumer spending, according to the Semiconductor Industry Association.
ArcelorMittal Says Five May Have Died in Kazakh Mine
ArcelorMittal (NYSE:MT), the world’s biggest steelmaker, said five workers may have died at its Tentekskaya coal mine in Kazakhstan. The company evacuated 95 of the 100 workers in the Tentekskaya pit and it’s trying to locate the 5 unaccounted for, Luxembourg-based ArcelorMittal said today in an e-mailed statement.
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