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Treasury Plan to Deal With Toxic Assets Banks on Private Cash
Noting that the U.S. financial system “is still working against economic recovery,” the U.S. Treasury Department on Monday revealed details of its plan to address toxic assets weighing on banks’ balance sheets. Treasury said one major reason the financial system is still facing challenges is because of “legacy assets” and securities that are compromising banks’ ability to raise capital and their willingness to boost lending. Under the new program — the Public-Private Investment Program — the Treasury Department,
Walgreen Climbs After Sales, Profit Beat Analysts’ Estimates
Walgreen Co. (NYSE:WAG), the second-largest U.S. drugstore chain, rose 5.8 percent in early trading after second-quarter profit and sales exceeded analysts’ estimates. Revenue climbed 7 percent to $16.5 billion in the three months ended Feb. 28, the company said today in a statement.
Daimler to receive $2.7 billion Abu Dhabi investment
Shares of Daimler (NYSE:DAI) climbed as much as 8% Monday, gaining after Abu Dhabi’s Aabar Investments agreed to invest 1.95 billion euros ($2.7 billion) in the luxury-car maker. Terms call for Aabar to acquire about 96.4 million newly issued shares at a price of 20.27 euros each, a 5% discount to Friday’s closing price.
AIG’s Rivals Blame Bailout For Tilting Insurance Game
The federal bailout of insurance giant American International Group Inc. (NYSE:AIG), designed to help stabilize financial markets, is roiling another corner of the corporate world. AIG’s competitors claim the insurer’s federal lifeline is unfairly tilting the commercial-insurance playing field. And they’re pressing federal officials to crack down.
Time Warner to Invest $241.5 Million in Lauder’s CME
Time Warner Inc. (NYSE:TWX) will invest $241.5 million in Central European Media Enterprises Ltd. (NASDAQ:CETV) in exchange for about a 31 percent stake in the television station operator founded by cosmetics billionaire Ronald Lauder. Time Warner will receive 14.5 million Class A shares and 4.5 million Class B shares of CME, the companies said today in a statement distributed by Business Wire.
Skype Targets Businesses to Ring Up New Revenue
EBay Inc.’s (NASDAQ:EBAY) Skype Internet phone unit, on the hunt for new sources of revenue, is making a push into the corporate market. On Monday, Skype plans to announce a version of its Internet calling software that connects to corporate phone systems. Initially, the company will charge about 2.1 cents per minute for calls to cellphones and fixed lines, but calls from computers to phone systems using the Skype software will be free.
WaMu parent sues FDIC for $13 billion
The holding company for Washington Mutual Bank (OTC:WAMUQ) filed a lawsuit, charging that the Federal Deposit Insurance Corp. improperly sold its banking operations to J.P. Morgan Chase (NYSE:JPM) and could have gotten more money for those assets, media reports say.
Ford Doubles Buyback Amount for Loans to $1 Billion
Ford Motor Co.’s (NYSE:F) finance arm doubled to $1 billion the amount of the automaker’s term-loan debt it will buy back, as the company trims borrowings to avoid government aid. The repurchase was increased because the offer was oversubscribed, Ford Motor Credit Co. said today in a statement. The unit also said bondholders seeking a premium for early acceptance of another buyback proposal claimed $1.1 billion of the $1.3 billion the company plans to spend on it.
Suncor to Buy Petro-Canada in Record C$19.3 Billion Takeover
Suncor Energy Inc. (NYSE:SU), the world’s second-largest oil-sands producer, agreed to buy Petro-Canada (NYSE:PCZ) for C$19.3 billion ($15.6 billion) in a record takeover that will create the biggest Canadian energy company. Owners of Petro-Canada will get 1.28 shares of the combined company for each of their shares, the Calgary-based oil producers said today in a statement.
AT&T, Verizon get the (TV) picture
Despite the worst recession in decades, Verizon Communications Inc. (NYSE:VZ) and AT&T Inc. (NYSE:T) continue to sign up customers for their TV services and put pressure on cable and satellite rivals. The two phone giants could each add more than 1 million TV customers in 2009, analysts say — if for no other reason than Verizon and AT&T are making their service available in more cities and towns.
Tiffany profit tumbles on higher costs, lower demand
Tiffany & Co. (NYSE:TIF) said Monday that its fourth-quarter profit plunged 76%, hurt by job cuts, store-closing costs and faltering demand in the face of global recession. Net income in the quarter-ended Jan. 31 dropped to $31.1 million, or 25 cents a share, from $127.4 million, or 96 cents, a year earlier. Sales dropped 20% to $841.2 million from $1.05 billion, the New York-based company said.
Intel Freezes Top Salaries, Reprices Employee Options
Intel Corp., (NASDAQ:INTC) the world’s largest chipmaker, froze salaries for top executives and overhauled its option pricing for employees as the economic slump weighs on chip orders. The company, whose net income fell 24 percent last year, won’t give raises to managers including Chief Executive Officer Paul Otellini and finance chief Stacy Smith, according to a regulatory filing. Intel also will allow employees to exchange underwater stock options for ones with lower prices.
