ReportWire

Tag: Corporate management

  • Allegiant Air to acquire Sun Country Airlines in $1.5B deal

    LAS VEGAS — Allegiant Air said it will acquire Sun Country Airlines in a cash-and-stock deal valued at about $1.5 billion, including debt, in a move combining two low-cost U.S. carriers focused on leisure travel.

    Executives at both carriers said their route networks complement each other and that the larger airline would increase affordable travel options for passengers. The merged airline will serve about 175 cities with more than 650 routes and a fleet of roughly 195 aircraft, the companies told investors Monday.

    “Allegiant and Sun Country have both shown that our leisure-focused, flexible capacity models are strong, thriving and consistently profitable, which gives me great confidence in the potential benefits of combining our organizations,” Allegiant CEO Gregory Anderson said.

    The deal still needs approval from regulators and Sun Country shareholders. It is expected to close in the second half of 2026.

    The airlines said travelers shouldn’t expect any immediate changes and can continue booking and flying with either carrier as they normally do. Ticketing, flight schedules, the overall travel experience and the Sun Country brand will remain the same for now.

    The merged airline will operate under the Allegiant name and will be headquartered in Las Vegas. It will also maintain a significant presence in the Minneapolis–St. Paul area, where Sun Country is based, while also continuing to operate Sun Country’s charter and cargo businesses, the companies said.

    Anderson will lead the combined airline as CEO, and Sun Country CEO Jude Bricker will join the company’s board of directors.

    “I’ve had the privilege of working at both companies and can say that based on those experiences, this is a tremendous fit across the board,” said Bricker, who previously served as Allegiant’s chief operating officer in 2016 and 2017.

    Source link

  • Trump’s plan to seize, revitalize Venezuela’s oil industry faces major hurdles

    President Donald Trump’s plan to take control of Venezuela’s oil industry and ask American companies to revitalize it after capturing that country’s president in a military raid isn’t likely to have a significant immediate impact on oil prices. Venezuela’s oil…

    By JOSH FUNK – AP Business Writer

    Source link

  • Trump’s plan to seize and revitalize Venezuela’s oil industry faces major hurdles

    President Donald Trump’s plan to take control of Venezuela’s oil industry and ask American companies to revitalize it after capturing President Nicolás Maduro in a raid isn’t likely to have a significant immediate impact on oil prices.

    Venezuela’s oil industry is in disrepair after years of neglect and international sanctions, so it could take years and major investments before production can increase dramatically. But some analysts are optimistic that Venezuela could double or triple its current output of about 1.1 million barrels of oil a day to return to historic levels fairly quickly.

    “While many are reporting Venezuela’s oil infrastructure was unharmed by U.S. military actions, it has been decaying for many many years and will take time to rebuild,” said Patrick De Haan, who is the lead petroleum analyst at gasoline price tracker GasBuddy.

    American oil companies will want a stable regime in the country before they are willing to invest heavily, and the political picture remained uncertain Saturday with Trump saying that the United States is in charge, while the current Venezuelan vice president argued, before Venezuela’s high court ordered her to assume the role of interim president, that Maduro should be restored to power.

    “But if it seems like the U.S. is successful in running the country for the next 24 hours, I would say there would be a lot of optimism that U.S. energy companies could come in and revitalize the Venezuelan oil industry fairly quickly,” said Phil Flynn, a senior market analyst at the Price Futures Group.

    And if Venezuela can grow into an oil production powerhouse, Flynn said “that could cement lower prices for the longer term” and put more pressure on Russia.

    Oil isn’t traded over the weekend, so there wasn’t an immediate impact on prices. But a major shift in prices isn’t expected when the market does reopen. Venezuela is a member of OPEC so its production is already accounted for there. And there is currently a surplus of oil on the global market.

    Venezuela is known to have the world’s largest proven crude oil reserves of approximately 303 billion barrels, according to the U.S. Energy Information Administration. That accounts for roughly 17% of all global oil reserves.

    So international oil companies have reason to be interested in Venezuela. Leading companies, including Exxon Mobil and Chevron, didn’t immediately respond to requests for comment Saturday. ConocoPhillips spokesperson Dennis Nuss said by email that the company “is monitoring developments in Venezuela and their potential implications for global energy supply and stability. It would be premature to speculate on any future business activities or investments.”

    Chevron is the only one with significant operations in Venezuela, where it produces about 250,000 barrels a day. Chevron, which first invested in Venezuela in the 1920s, does business in the country through joint ventures with the state-owned company Petróleos de Venezuela S.A., commonly known as PDVSA.

    But even with those massive reserves, Venezuela has been producing less than 1% of the world’s crude oil supply. Corruption, mismanagement and U.S. economic sanctions saw production steadily decline from the 3.5 million barrels per day pumped in 1999 to today’s levels.

    The problem isn’t finding the oil. It’s a question of the political environment and whether companies can count on the government to live up to their contracts. Back in 2007, then President Hugo Chávez nationalized much of the oil production and forced major players like ExxonMobil and ConocoPhillips out.

    “The issue is not just that the infrastructure is in bad shape, but it’s mostly about how do you get foreign companies to start pouring money in before they have a clear perspective on the political stability, the contract situation and the like,” said Francisco Monaldi, who is the director of the Latin American energy program at Rice University.

    But the infrastructure does need significant investment.

    “The estimate is that in order for Venezuela to increase from one million barrels per day — that is what it produces today — to four million barrels, it will take about a decade and about a hundred billion dollars of investment,” Monaldi said.

    Venezuela produces the kind of heavy crude oil that’s needed for diesel fuel, asphalt and other fuels for heavy equipment. Diesel is in short supply around the world because of the sanctions on oil from Venezuela and Russia and because America’s lighter crude oil can’t easily replace it.

    Years ago, American refineries on the Gulf Coast were optimized to handle that kind of heavy crude at a time when U.S. oil production was falling and Venezuelan and Mexican crude was plentiful. So refineries would love to have more access to Venezuela’s crude because it would help them operate more efficiently, and it tends to be a little cheaper.

    Boosting Venezuelan production could also make it easier to put pressure on Russia because Europe and the rest of the world could get more of the diesel and heavy oil they need from Venezuela and stop buying from Russia.

    “There’s been a big benefit for Russia to see Venezuela’s oil industry collapse. And the reason is because they were a competitor on the global stage for that oil market,” Flynn said.

    But Matthew Waxman, a Columbia University law professor who was a national security official in the George W. Bush administration, said seizing control of Venezuela’s resources opens up additional legal issues.

    “For example, a big issue will be who really owns Venezuela’s oil?” Waxman wrote in an email. “An occupying military power can’t enrich itself by taking another state’s resources, but the Trump administration will probably claim that the Venezuelan government never rightfully held them.”

    But Waxman, who served in the State and Defense departments and on the National Security Council under Bush, noted that “we’ve seen the administration talk very dismissively about international law when it comes to Venezuela.”

    ___

    Associated Press writers Matt O’Brien and Ben Finley contributed to this report.

    Source link

  • Trump Media to merge with nuclear fusion company

    Trump Media & Technology will merge with a fusion power company in an all-stock deal that the companies said Thursday is valued at more than $6 billion.

    Devin Nunes, the Republican congressman who resigned in 2021 to become the CEO of Trump Media, will be co-CEO of the new company with TAE Technologies CEO Michl Binderbauer.

    Shares of Trump Media & Technology, the parent company of President Donald Trump’s Truth Social media platform, have tumbled 70% this year but jumped 20% before the opening bell Thursday.

    TAE is a private company and the merger with Trump Media would create one of the first publicly traded nuclear fusion companies.

    “We’re taking a big step forward toward a revolutionary technology that will cement America’s global energy dominance for generations,” Nunes said in a prepared statement.

    TAE focuses on nuclear fusion, a technology that combines two light atomic nuclei to form a single heavier one. It releases enormous amount of energy, a process that occurs on the sun and other stars, according to the United Nation’s International Atomic Energy Agency.

    TAE and Trump Media shareholders will each own approximately 50% of the combined company.

    The companies say the transaction values each TAE common stock at $53.89 per share.

    At closing, Trump Media & Technology Group will be the holding company for Truth Social and TAE, along with its subsidiaries TAE Power Solutions and TAE Life Sciences.

    Source link

  • Founder of bankrupt subprime auto lender Tricolor Holdings is charged with fraud

    NEW YORK — The founder of Tricolor Holdings and other executives of the subprime auto lender were charged Wednesday with what federal authorities say was a massive fraud that led the company into bankruptcy.

    Daniel Chu, the company’s founder and chief executive, was charged in an indictment unsealed in Manhattan federal court with directing multiple executives since 2018 to defraud investors and lending institutions through multiple fraudulent schemes.

    A defense lawyer did not immediately return a message seeking comment.

    According to the indictment, the scope of the fraud was revealed in late August when lenders confronted Chu and other executives about Tricolor’s collateral.

    Chu and others accused of carrying out the fraud initially tried to conceal it, saying the collateral issues were due to an administrative error, the indictment said.

    After those efforts failed, Chu extracted over $6 million from the company, the indictment said.

    On Sept. 10, Tricolor filed for Chapter 7 bankruptcy because it owed over $900 million to the company’s largest lenders, the indictment said.

    More information was expected to be released at a morning news conference.

    Source link

  • Takeover bid of parent company means limbo for CNN and some fellow cable networks

    Paramount Skydance’s hostile takeover bid of Warner Bros. Discovery places CNN and its sister cable networks squarely back into what is likely to be an extended period of management limbo.

    There was some relief at CNN with last Friday’s announcement that Netflix was buying Warner’s studio and streaming businesses, since the cable network would not be a part of that deal. But that quickly changed on Monday with Paramount’s announced bid, which includes the cable assets that Netflix doesn’t want and, if successful, opens the possibility of a combined CNN and CBS News.

    The management uncertainty adds to what is already a challenging time at CNN, where there was no doubt who was in charge before swashbuckling founder Ted Turner sold his company in 1996. “That era might as well be the roaring ‘20s for how long ago it feels,” said Ross Benes, senior analyst at emarketer.com.

    The dueling bids between Paramount and Netflix now “lead to more uncertainty and greater anxiety among the current CNN staff and among those of us who served for many years as leaders of CNN under Ted,” said Tom Johnson, former CNN president in the 1990s.

    Paramount’s bid, which must be approved by shareholders and regulators, could be seen favorably by President Donald Trump, who is closely allied with Paramount Skydance chairman and CEO David Ellison as well as his father, Oracle founder Larry Ellison. But Trump has already expressed anger at the company on social media for Sunday’s “60 Minutes” report on former U.S. Rep. Marjorie Taylor Greene.

    Prior to Friday’s announcement, Warner Bros. Discovery had said it planned to spin off its cable television networks including CNN, Discovery, HGTV, the Food Network and TLC, into a separate company. The growth of streaming has made cable networks an unattractive business.

    CNN’s television ratings have tumbled to the extent that it is firmly the third-rated cable news network behind Fox News Channel and MS NOW, formerly MSNBC. Its CEO, Mark Thompson, has aggressively moved into digital with a new subscription service and said that management of Discovery Global, the spinoff company, has already approved a 2026 budget investing in the plan.

    “I know this strategic review has been a period of inevitable uncertainty across CNN and indeed the whole of WBD,” Thompson told staff in a memo Friday. “Of course, I can’t promise you that the media attention and noise around the sale of our parent will die down overnight. But I do think the path to the successful transformation of this great news enterprise remains open.”

    Thompson had no additional comment on Monday, a spokeswoman said.

    Since Paramount’s takeover of CBS News this past summer, the network has taken steps to appeal to more conservative viewers with the installation of Free Press founder Bari Weiss as editor-in-chief. Weiss is moderating a prime-time discussion this weekend with Erika Kirk, widow of slain conservative activist Charlie Kirk.

    During an appearance on CNBC Monday, Ellison answered, “yeah,” when asked if he would combine CNN’s newsgathering operation with CBS News. What exactly that means is unclear.

    “We want to build a scaled news service that is basically, fundamentally, in the trust business, that is in the truth business, and that speaks to the 70% of Americans that are in the middle,” Ellison said.

    Trump has spoken highly of both Ellison and his billionaire father. But he was clearly angry about Lesley Stahl’s “60 Minutes” interview with former MAGA supporter Greene, who broke with him and recently resigned from Congress. Trump said on Truth Social that his real problem with the show is that the new corporate ownership allowed it to air.

    “THEY ARE NO BETTER THAN THE OLD OWNERSHIP,” Trump said, adding he believed that “60 Minutes” had gotten worse from his perspective since the changeover.

    CNN is not likely to find out soon who its new owners would be. Even before the Paramount bid, experts had predicted the Netflix deal would face more than a year of regulatory hurdles.

    “There is such a need for independent, unbiased news services,” Johnson said. “I so hope that the new CNN owners will see that as their fundamental mission.”

    If Netflix eventually wins, emarketer.com’s Benes predicted it would be likely that the spinoff company, Discovery Global, would be shopped around to other buyers.

    “CNN will be in limbo for a while no matter which bidder purchases CNN,” he said.

    ___

    David Bauder writes about the intersection of media and entertainment for the AP. Follow him at http://x.com/dbauder and https://bsky.app/profile/dbauder.bsky.social.

    Source link

  • Campbell’s fires executive who was recorded saying company’s products are for ‘poor people’

    The Campbell’s Co. said Wednesday it has fired an executive who was recorded making racist comments and mocking the company’s products and customers.

    Martin Bally, a vice president in Campbell’s information security department, was named in a lawsuit filed last week by Robert Garza, a former Campbell’s employee who said he was fired Jan. 30 after he reported Bally’s comments to a supervisor.

    The lawsuit was filed in Michigan, where both Garza and Bally live. Campbell’s is based in Camden, New Jersey.

    In the lawsuit, Garza claimed he met with Bally in November 2024 to discuss his salary. During the meeting, which Garza allegedly recorded, Bally described Campbell’s as “highly process(ed) food” and said it was for “poor people.”

    Garza claimed in the lawsuit that Bally made racist remarks about Indian workers, whom he called “idiots.” Garza said Bally also told him that he often went to work high after consuming marijuana edibles.

    Campbell’s said Wednesday it first learned of Garza’s lawsuit last week. After listening to portions of the recording, Campbell’s said it believed the voice was Bally’s. Bally was fired Tuesday.

    “The comments were vulgar, offensive and false, and we apologize for the hurt they have caused,” the company said in a statement. “This behavior does not reflect our values and the culture of our company, and we will not tolerate that kind of language under any circumstances.”

    Garza’s attorney didn’t respond when The Associated Press asked for a copy of the audio recording.

    But according to Local 4 news in Detroit, which interviewed Garza and played a portion of the recording on air, Bally said Campbell’s products were unhealthy during his expletive-filled rant.

    “Bioengineered meat. I don’t want to eat a piece of chicken that came from a 3D printer,” Bally said.

    Campbell’s defended its chicken Wednesday, saying it comes from long-trusted U.S. suppliers, is raised without antibiotics and meets high quality standards.

    “The comments heard on the recording about our food are not only inaccurate, they are patently absurd,” Campbell’s said.

    Larry Kopp, the chairman and founder of The TASC Group, a strategic communications and public relations company, said Campbell’s should have fired Bally and reached a settlement with Garza as soon as it learned of the incident.

    “If they had settled they would not be in this mess,” Kopp said. “Recordings like these are devastating and should never see the light of day.”

    Garza is seeking monetary damages from Campbell’s, Bally and from his former manager, J.D. Aupperle. Garza said he told Aupperle about the conversation with Bally shortly before he was fired.

    Campbell’s said Wednesday that Aupperle remains employed by the company.

    Source link

  • Campbell’s IT chief on leave after lawsuit claims he said company’s food is for ‘poor people’

    The Campbell’s Co. said Tuesday it has placed one of its executives on leave while it investigates claims that he made racist comments and mocked the company’s products and customers in an audio recording.

    Martin Bally, Campbell’s vice president of information technology, was named in a lawsuit filed last week by Robert Garza, a former Campbell’s employee. The lawsuit was filed in Michigan, where both men live. Campbell’s is headquartered in New Jersey.

    In the lawsuit, Garza claimed he met with Bally in November 2024 to discuss his salary. During the meeting, which Garza allegedly recorded, Bally described Campbell’s as “highly process(ed) food” and said it was for “poor people.”

    Garza claimed that Bally made racist remarks about Indian workers, whom he called “idiots,” according to the lawsuit. Garza said Bally also told him that he often went to work high after consuming marijuana edibles.

    Garza said he told his manager, J.D. Aupperle, on Jan. 10 that he wanted to report Bally’s comments to Campbell’s human resources department. Garza said Aupperle didn’t encourage him to report the comments but also gave him no advice on how to proceed.

    On Jan. 30, Garza was terminated from Campbell’s. He is seeking monetary damages from Campbell’s. He also names Bally and Aupperle in the lawsuit, saying they were responsible for his termination.

    In its statement Tuesday, Campbell’s said that if the comments on the audio recording were in fact made by Bally, they are unacceptable.

    “Such language does not reflect our values and the culture of our company,” the company said. “We do not tolerate that kind of language under any circumstances.”

    Campbell’s added that the comments were allegedly made by someone in IT “who has nothing to do with how we make our food.”

    “We are proud of the food we make, the people who make it and the high-quality ingredients we use to provide consumers with good food at a good value,” Campbell’s said. “The comments heard on the recording about our food are not only inaccurate — they are patently absurd.”

    Source link

  • Berkshire Hathaway’s profits rise 17% as Buffett prepares to step down

    OMAHA, Neb. — The profits of Warren Buffett’s company improved 17% thanks to a relatively mild hurricane season and more paper investment gains this year as Berkshire Hathaway continues to prepare for the legendary 95-year-old investor to relinquish the CEO title in January.

    But last month’s $9.7 billion investment in OxyChem won’t do much to diminish the $381.7 billion cash pile that Berkshire was sitting on at the end of September even though it is the biggest deal the company has made in years.

    The biggest thing on most investors’ minds right now is that Buffett Vice Chair Greg Abel is set to succeed him as CEO in January, although Buffett will remain chairman at Berkshire. The Class A stock is well off its peak of $812,855, set just before Buffett surprised shareholders at the annual meeting in May by announcing he will step back. It closed Friday at $715,740, but Berkshire still didn’t buy back any of its own stock in the quarter, which suggests Buffett thinks it is still overvalued.

    CFRA Research analyst Cathy Seifert said she expects investors will clamor for more details from Berkshire after Abel takes over, and that calls for the company to finally pay a dividend if it can’t find better uses for all that cash will also grow louder. But with Buffett remaining chairman there may not be any immediate changes.

    “The lack of discussion and disclosure — I think has a lot of the investment community frustrated,” Seifert said. Berkshire has never had public or investor relations departments, and the company skips the quarterly investor calls that nearly every public company holds. Buffett has long said he prefers to share results with every investor at the same time, on Saturdays, and give them the weekend to digest the results before the markets reopen.

    Berkshire said Saturday that it earned $30.796 billion, or $21,413 per Class A share, in the quarter. That’s up from last year’s $26.251 billion, or $18,272 per A share.

    But those bottom-line figures are always distorted by the current value of Berkshire’s massive investment portfolio and any stock sales, which this year added $17.3 billion to the company’s profits.

    That’s why Buffett has long recommended that investors pay more attention to Berkshire’s operating earnings to get a sense of how its many operating companies are performing, including well-known insurers like Geico, BNSF railroad, several major utilities and an assortment of manufacturing and retail companies.

    On that measure, Berkshire’s operating profit jumped to $13.485 billion, or $9376.15 per Class A share, thanks to a strong rebound in its insurance companies. A year ago, Berkshire reported operating earnings of $10.09 billion, or $7,023.01 per Class A share.

    The four analysts surveyed by FactSet Research predicted Berkshire would report operating earnings of $8,573.50 per Class A share.

    Berkshire said fewer catastrophic losses from hurricanes this year compared to when Hurricane Helene ravaged the southeast a year ago helped its insurance underwriting profit jump $1.6 billion to $2.369 billion. The bottom line was also helped by $331 million in gains on debt held in foreign currencies this year, compared to a $1.1 billion loss on those holdings a year ago.

    Most of Berkshire’s other companies performed well in the quarter although profits did decline nearly 9% at its utilities to $1.489 billion.

    Source link

  • CEO of the Alamo’s historic site has resigned after a Texas Republican criticized her

    The CEO of the nonprofit managing the Alamo resigned after a powerful Republican state official criticized her publicly, suggesting that her views aren’t compatible with the history of the Texas shrine.

    Kate Rogers said in a statement Friday that she had resigned the day before, after Lt. Gov. Dan Patrick wrote a letter to the Alamo Trust’s Board of Directors suggesting that she either resign or be removed. Patrick criticized her over an academic paper questioning the GOP-controlled Legislature’s education policies and suggesting she wanted the historic site in Texas to have a broader focus.

    “It was with mixed emotions that I resigned my post as President and CEO at the Alamo Trust yesterday,” Rogers said in a statement texted to The Associated Press. “It became evident through recent events that it was time for me to move on.”

    Several trust officials did not immediately respond to email or cellphone messages Friday seeking comment.

    Patrick had posted a letter to the board Thursday on X, calling her paper “shocking.” She wrote it in 2023 for a doctorate in global education from the University of Southern California. Patrick posted a portion online.

    “I believe her judgment is now placed in serious question,” Patrick wrote. “She has a totally different view of how the history of the Alamo should be told.”

    It is the latest episode in an ongoing conflict over how the U.S. tells its history. Patrick’s call for Rogers’ ouster follows President Donald Trump’s pressure to get Smithsonian museums in Washington to put less emphasis on slavery and other darker parts of America’s past.

    The Alamo, known as “the Shrine of Texas Liberty,” draws more than 1.6 million visitors a year. The trust operates it under a contract with the Texas General Land Office, and the state plans to spend $400 million on a renovation with a new museum and visitor center set to open in 2027. Patrick presides over the Texas Senate.

    In San Antonio, Bexar County Judge Peter Sakai, the county’s elected top administrator, decried Patrick’s “gross political interference.”

    “We need to get politics out of our teaching of history. Period,” he said in a statement Friday.

    In the excerpt from her paper, Rogers noted the Texas Legislature’s “conservative agenda” in 2023, including bills to limit what could be taught about race and slavery in history courses.

    “Philosophically, I do not believe it is the role of politicians to determine what professional educators can or should teach in the classroom,” she wrote.

    Her paper also mentioned a 2021 book, “Forget the Alamo,” which challenges traditional historical narratives surrounding the 13-day siege of the Alamo during Texas’ fight for independence from Mexico in 1836.

    Rogers noted that the book argues that a central cause of the war was Anglo settlers’ determination to keep slaves in bondage after Mexico largely abolished it. Texas won the war and was an independent republic until the U.S. annexed it in 1845.

    Rogers also wrote that a city advisory council wanted to tell the site’s “full story,” including its history as a home to Indigenous people — something the state’s Republican leaders oppose. She said she would love the Alamo to be “a place that brings people together versus tearing them apart.”

    “But,” she added, “politically that may not be possible at this time.”

    Traditional narratives obscure the role slavery might have played in Texas’ drive for independence and portray the Alamo’s defenders as freedom fighters. Patrick’s letter called the siege “13 Days of Glory.”

    The Mexican Army attacked and overran the Texas defenses. But “Remember the Alamo” became a rallying cry for Texas forces.

    “We must ensure that future generations never forget the sacrifice for freedom that was made,” Patrick wrote in his letter to the trust’s board. “I will continue to defend the Alamo today against a rewrite of history.”

    Source link

  • Regulators approve disputed $6.2B takeover of Minnesota Power by investment group

    MINNEAPOLIS — MINNEAPOLIS (AP) — Minnesota regulators voted unanimously Friday to approve an investment group’s takeover of a power company over the objections of the state attorney general, big industrial electricity buyers and consumer advocates.

    In voting for the takeover of Duluth-based Minnesota, the five members of the Minnesota Public Utilities Commission said they believe the conditions imposed on the deal will protect the public interest and shield customers from rate increases. Opponents warned that the private equity group is only interested in squeezing bigger profits from regular ratepayers.

    The approval came as electricity bills are rising fast across the U.S., and growing evidence suggests the bills of some residential customers are increasing to subsidize the rapid build-out of power plants and power lines to supply the gargantuan energy needs of Big Tech’s data centers and the boom in artificial intelligence.

    Raising the stakes is the potential that Google could build a data center in Minnesota Power’s territory in the northern part of the state, a lucrative prospect for the utility’s owner.

    Opponents also expressed fear that the sale would encourage more such deals across the U.S.

    Under the planned buyout, a BlackRock subsidiary and the Canada Pension Plan Investment Board will take over the publicly traded company Allete, parent of Minnesota Power, which provides power to 150,000 customers and owns a variety of power sources, including coal, gas, wind and solar.

    The buyout price is $6.2 billion, including $67 a share for stockholders at a 19% premium, and assuming $2.3 billion in debt. In its petition, Allete told regulators that Minnesota Power’s operations, strategy and values wouldn’t change under BlackRock and that the deal’s cost wouldn’t affect electric rates.

    Building trades unions and the administration of Democratic Gov. Tim Walz, who appointed or reappointed all five of the utility commissioners, sided with Allete and BlackRock.

    The state Department of Commerce, Minnesota Power and the investors negotiated a package of modifications this summer that included additional financial and regulatory safeguards. The department’s attorney, Richard Dornfeld, told the commission the changes will protect the public interest.

    The commission’s chair, Katie Sieben, agreed.

    “Because of the collective work of partners, stakeholders, labor, environmental groups and others, we’ve made the overall package better for Minnesota Power customers,” Sieben said.

    Opposing the deal were the state attorney general’s office and industrial interests that buy two-thirds of Minnesota Power’s electricity, including U.S. Steel and other iron mine owners, Enbridge-run oil pipelines, and pulp and paper mills.

    Allete argued that BlackRock will have an easier time raising the money that Minnesota Power needs to comply with a state law requiring utilities to get 100% of their electricity from carbon-free sources by 2040.

    Previously, an administrative law judge recommended that the commission reject the deal, saying that the evidence revealed the buyout group’s “intent to do what private equity is expected to do — pursue profit in excess of public markets through company control.”

    Commissioner Audrey Partridge said she started with “a high degree of skepticism and I would say even cynicism,” and “assumed the absolute worst in these investors.” But she said the added safeguards, and the over $100 million that the investors will provide for relief for ratepayers and investments in clean energy, will protect the public interest.

    Opponents said they were dismayed by the approval.

    “Private equity ownership of Minnesota Power will likely mean higher bills, less accountability, and more risk for Minnesotans,” Alissa Jean Schafer, climate and energy director at the Private Equity Stakeholder Project, said in a statement. The national nonprofit says it seeks to bring transparency and accountability to the private equity industry.

    ___

    Levy reported from Harrisburg, Pennsylvania.

    Source link

  • CSX railroad replaces CEO after investor pressure and poor performance as Union Pacific merger looms

    CSX railroad announced Monday that it had replaced its CEO less than two months after an investment fund urged it to either find another railroad to merge with to better compete with the proposed transcontinental Union Pacific railroad or fire outgoing CEO Joe Hinrichs.

    The outgoing CEO, who came to the railroad in 2022 after a long career with Ford, focused on repairing CSX’s relationship with its workers and labor unions and unifying the team after a bitter contract fight. But Ancora Holdings, which helped spur major changes at Norfolk Southern, said CSX’s operating performance deteriorated significantly under Hinrichs’ leadership. Hinrichs resigned to clear the way for Steve Angel to become CEO effective Sunday.

    Angel, 70, also comes from outside the rail industry although earlier in his career he oversaw GE’s locomotive building unit, so he does have that experience. CSX said he has 45 years experience leading large public companies, including most recently as CEO of Linde and Praxair that provide industrial gasses to other companies.

    “We are excited to welcome Steve as our new CEO. He is a visionary in creating long-term value and an expert in guiding companies through significant transformation,” the railroad’s board Chairman John Zillmer said.

    CSX has been under pressure from Ancora and other investors since Union Pacific announced its $85 billion deal to acquire Norfolk Southern, which is CSX’s rival in the eastern United States. But both BNSF and CPKC railroads said they aren’t interested in a merger right now.

    Ancora said CSX has delivered disappointing shareholder returns and poor financial performance during Hinrichs’ tenure. But over the past year, CSX was working on two major construction projects — repairs from Hurricane Helene and a major tunnel renovation in Baltimore — that disrupted the railroad. Both those projects were just completed this month, so CSX’s performance was expected to improve in the fourth quarter.

    Even though he’s not a railroader, Ancora praised Angel’s hiring because of his experience with mergers and acquisitions. The top executives at Ancora, Frederick D. DiSanto and James Chadwick, said in their statement that they believe Hinrichs “botched the opportunity” to merge with another railroad and may have even fought the idea. They said Angel is expected to be more aggressive at pursuing a deal and that he will re-evaluate the railroad’s leadership team.

    “With President Donald Trump and other policymakers recently expressing enthusiasm for the benefits of a transcontinental railroad, CSX and other Class I railroads have no choice but to embrace the industry’s new realities,” the Ancora executives said. “Although Steve Angel is not a railroader by trade, his M&A pedigree and value creation record indicate his appointment is an initial step in the right direction for CSX.”

    Angel promised to make improvements at the Jacksonville, Florida-based company, which is one of the six largest railroads in North America.

    “My top priorities will be to ensure the safety of the railroad and our employees, deliver reliable service to our customers, and increase value for our shareholders,” Angel said in a statement.

    Ancora said it continues to buy more CSX shares and hopes to develop a better relationship with the railroad. Ancora holds three seats on Norfolk Southern’s board after running a proxy campaign there to oust the previous CEO at that railroad, so the investment fund had input on the Union Pacific-Norfolk Southern merger.

    CSX shares gained more than 3% Monday after the new CEO was announced.

    Source link

  • Oracle names Magouyrk and Sicilia as CEOs; Catz to become executive vice chair of the board

    Oracle has named Clay Magouyrk and Mike Sicilia as CEOs, with current CEO Safra Catz becoming executive vice chair of the technology company’s board.

    The announcement comes as Oracle founder Larry Ellison has been named as part of a group that could be part of a deal in which the U.S. will take control of the social video platform TikTok. The group is also said to include media mogul Rupert Murdoch and tech founder Michael Dell.

    Ellison currently serves as Oracle’s chairman and chief technology officer.

    Oracle said Monday that Magouyrk previously served as president of Oracle Cloud Infrastructure. He joined Oracle in 2014 from Amazon Web Services and is a founding member of Oracle’s cloud engineering team.

    Sicilia was president of Oracle Industries and joined the company when Oracle acquired Primavera Systems.

    “Humanity is investing enormous resources in the race to advance artificial intelligence,” Ellison said in a statement. “Oracle Cloud Infrastructure is playing a major part in that effort. Clay’s years of experience leading Oracle’s large, fast-growing cloud infrastructure business has demonstrated his readiness for a CEO role. Mike has spent the last several years modernizing Oracle’s industry applications businesses—including Oracle Health—by completely rebuilding those applications using the latest AI technologies.”

    Catz has served as Oracle’s CEO since 2014. Earlier this month she said that Oracle signed four multi-billion dollar contracts during its latest quarter, and it expects cloud infrastructure revenue to jump 77% to $18 billion this fiscal year. After that, it expects such revenue to soar to $144 billion in just four years.

    Source link

  • Former executive of Mars candy subsidiary pleads guilty to stealing $28M from company

    BRIDGEPORT, Conn. — A former executive for a subsidiary of candymaker Mars Inc. pleaded guilty Thursday to fraud and tax charges in connection with his theft of $28 million from the company, federal prosecutors said.

    Paul Steed, 58, appeared in federal court in Bridgeport, Connecticut. He also agreed to pay $28.4 million in restitution to Mars and owes another $10 million in back taxes to the Internal Revenue Service, U.S. Attorney for Connecticut David Sullivan said in a statement.

    Steed, of Stamford, Connecticut, who is free on $5 million bail, did not immediately return messages left at phone numbers and emails listed for him in public records. His lawyer, former U.S. Attorney for Connecticut Deirdre Daly, did not immediately return phone and email messages Thursday.

    A dual U.S. and Argentine citizen, Steed was once a respected sugar market expert for Mars Wrigley, where his last position was global price risk manager. The company is a subsidiary of McLean, Virginia-based Mars Inc., the maker of M&M’s, Snickers, Skittles, Altoids mints and Doublemint gum, as well as other food products and pet food.

    A federal indictment accused him of stealing from Mars beginning in about 2013 through various schemes, including diverting funds to companies he set up. Steed sent the lion’s share of the stolen funds, more than $26 million, to one of his companies, MCNA LLC, which was created to mimic an actual Mars company, Mars Chocolate North America, prosecutors said.

    Authorities say they have seized more than $18 million from Steed’s bank accounts, and Steed has agreed to forfeit the money. The government is also seeking to liquidate a home in Greenwich, Connecticut, that Steed allegedly purchased using $2.3 million of the stolen cash. Prosecutors say Steed sent another $2 million to Argentina, where he has relatives and owns a ranch.

    Steed pleaded guilty to two counts of wire fraud and one count of tax evasion. Sentencing is set for Dec. 9.

    Source link

  • Trump will host top tech CEOs except Musk at a White House dinner

    WASHINGTON — WASHINGTON (AP) — President Donald Trump will host a high-powered list of tech CEOs for a dinner at the White House on Thursday night.

    The guest list is set to include Microsoft cofounder Bill Gates, Apple CEO Tim Cook, Meta CEO Mark Zuckerberg and a dozen other executives from the biggest artificial intelligence and tech firms, according to the White House.

    One notable absence from the guest list is Elon Musk, once a close ally of Trump, whom the Republican president tasked with running the government-slashing Department of Government Efficiency. Musk had a public breakup with Trump earlier this year.

    The dinner will be held in the Rose Garden, where Trump recently paved over the grassy lawn and set up tables, chairs and umbrellas that look strikingly similar to the outdoor setup at his Mar-a-Lago club in Palm Beach, Florida.

    “The Rose Garden Club at the White House is the hottest place to be in Washington, or perhaps the world,” White House spokesman Davis Ingle said in a statement. “The president looks forward to welcoming top business, political, and tech leaders for this dinner and the many dinners to come on the new, beautiful Rose Garden patio.”

    The event will follow a meeting of the White House’s new Artificial Intelligence Education task force, which first lady Melania Trump will chair.

    “During this primitive stage, it is our duty to treat AI as we would our own children — empowering, but with watchful guidance,” she said in a statement. “We are living in a moment of wonder, and it is our responsibility to prepare America’s children.”

    At least some of the attendees at the president’s Thursday’s dinner are expected to participate in the task force meeting, which aims to develop AI education for American youths.

    The White House confirmed that the guest list for the dinner is also set to include Google founder Sergey Brin and CEO Sundar Pichai, Microsoft CEO Satya Nadella, OpenAI CEO Sam Altman and founder Greg Brockman, Oracle CEO Safra Catz, Blue Origin CEO David Limp, Micron CEO Sanjay Mehrotra, TIBCO Software chairman Vivek Ranadive, Palantir executive Shyam Sankar, Scale AI founder and CEO Alexandr Wang and Shift4 Payments CEO Jared Isaacman.

    Isaacman was an associate of Musk whom Trump nominated to lead NASA, only to revoke the nomination around the time of his breakup with Musk. Trump cited the revocation of the nomination as one of the reasons Musk was upset with him and called Isaacman “totally a Democrat.”

    The dinner was first reported Wednesday by The Hill.

    Source link

  • Disputed ballots could swing outcome of union election at EV battery complex in Kentucky

    An election to determine whether workers unionize an electric vehicle battery manufacturing complex in Kentucky is in limbo Thursday due to a few dozen disputed ballots that could swing the outcome.

    The United Auto Workers claimed it secured a narrow victory at the BlueOval SK battery park after the two-day vote that ended Wednesday. Yet the outcome ultimately could depend on 41 challenged ballots that the UAW contended were “illegitimate” and should not be counted. The company urged the National Labor Relations Board, which ran the election, to count each eligible vote because “every voice matters.”

    The UAW is hoping to gain another victory at the BlueOval SK complex to expand its foothold in the South at battery factories that will power the next wave of EVs. Unions have struggled to establish a foothold in the South, where organized labor is much weaker.

    The election occurred about a week after production began at the EV battery complex, a nearly $6 billion joint venture between Ford Motor Co. and its South Korean partner, SK On. Batteries from this plant will power the all-electric Ford F-150 Lightning pickup and its EV cargo van, the E-Transit.

    The tally was 526 votes for the union and 515 against union representation, the NLRB said Thursday, plus the 41 challenged ballots that it said were sufficient to affect the results. The federal agency will review whether those disputed ballots will be counted.

    “We believe they are illegitimate and represent nothing more than an employer tactic to flood the unit and undermine the outcome,” the UAW said in a statement. “We will fight these challenges to defend the democratic choices of these workers, as we always do when corporations try to interfere with workers’ democratic choice.”

    Gov. Andy Beshear says the complex that sprung up in Glendale — a community of around 2,000 residents an hour south of Louisville — is the single largest economic investment in Kentucky’s history. The battery complex includes two manufacturing plants but production has started at just one of them.

    Source link

  • Korean Air plans to buy more than 100 Boeing aircraft

    SEOUL, South Korea — Korean Air has announced a $50 billion deal to buy more than 100 Boeing aircraft and several spare engines and obtain engine maintenance for 20 years.

    The deal was formalized at a signing ceremony Monday in Washington as South Korean President Lee Jae Myung met with President Donald Trump.

    The deal includes $36.2 billion for 103 next-generation Boeing aircraft; $690 million for 19 spare engines from GE Aerospace and CFM International; and $13 billion for the 20-year engine maintenance service contract with GE Aerospace, Korean Air said in a statement.

    “This deal is a strategic choice to strengthen Korean Air’s partnership with the U.S. aviation industry,” the Korean Air statement said. “This strategic investment in the U.S. market will further strengthen the airline’s operational capabilities and global competitiveness, and foster robust commercial ties that will drive sustained growth.”

    It said the aircraft purchase order includes 20 Boeing 777-9s, 25 Boeing 787-10s, 50 Boeing 737-10s, and eight Boeing 777-8F freighters. The aircraft are scheduled for phased delivery through the end of 2030, according to the statement.

    The signing ceremony was attended by Walter Cho, Chairman and CEO of Korean Air and Hanjin Group; Stephanie Pope, President and CEO of Boeing Commercial Airplanes; and Russell Stokes, President and CEO of Commercial Engines & Services at GE Aerospace, according to the Korean Air statement.

    Source link

  • Trump says Intel CEO has an ‘amazing story’ days after calling for his resignation

    Less than a week after demanding his resignation, President Donald Trump is now calling the career of Intel’s CEO an “amazing story.”

    Shares of Intel, which slid last week after CEO Lip-Bu Tan came under fire from the U.S. president, bounced higher before the opening bell Tuesday.

    The attack from Trump came after Sen. Tom Cotton sent a letter to Intel Chairman Frank Yeary expressing concern over Tan’s investments and ties to semiconductor firms that are reportedly linked to the Chinese Communist Party and the People’s Liberation Army. Cotton asked Intel if Tan had divested from the companies to eliminate any potential conflict of interest.

    Trump said on the Truth Social platform Thursday that, “The CEO of Intel is highly CONFLICTED and must resign, immediately. There is no other solution to this problem. Thank you for your attention to this problem!”

    Tan was named Intel CEO in March and it is unclear if he has divested his interests in the chip companies.

    Tan said in a message to employees that there was misinformation circulating about his past roles at Walden International and Cadence Design Systems and said that he’d “always operated within the highest legal and ethical standards.”

    After a Monday meeting with Tan at the White House, Trump backed off his demand that Tan resign without hesitation.

    “I met with Mr. Lip-Bu Tan, of Intel, along with Secretary of Commerce, Howard Lutnick, and Secretary of the Treasury, Scott Bessent,” Trump wrote in a Truth Social post. “The meeting was a very interesting one. His success and rise is an amazing story. Mr. Tan and my Cabinet members are going to spend time together, and bring suggestions to me during the next week. Thank you for your attention to this matter!”

    Shares of Intel gained 3.5% Tuesday

    The economic and political rivalry between the U.S. and China are increasingly focused on computer chips, AI and other digital technologies that are expected to shape future economies and military conflicts.

    Source link

  • Security tech company Evolv fires its chief executive

    Security tech company Evolv fires its chief executive

    NEW YORK (AP) — Amid the backdrop of a sales misconduct investigation and other looming legal troubles, security technology company Evolv is now firing its CEO.

    Evolv’s board of directors terminated chief executive Peter George on Wednesday, effective immediately, according to a Thursday announcement from the company. Michael Ellenbogen, Evolv’s current chief innovation officer, will step into the role as interim CEO and president.

    Specifics behind George’s firing were not immediately clear — but Evolv noted the dismissal was without cause and followed months of “careful planning and deliberation” by the board.

    The move arrives just days after Evolv disclosed an ongoing investigation into the company’s sales practices, warning shareholders to no longer rely on recent financial statements. The board acknowledged this investigation Thursday, but maintained that it had been “evaluating leadership and performance for several months — long before we became aware of any potential issues relating to the Company’s sales practices and financial reporting.”

    Evolv shared initial findings this investigation last week. An internal committee found that certain employees engaged in sales “subject to extra-contractual terms and conditions,” the company noted, some of which were not shared with accounting personnel. Evolv says it’s trying to determine if this misconduct impacted revenue reports and other financial metrics, and if so, when senior personnel became aware.

    How high up that could be has yet to be confirmed, but Evolv said it would take any remedial actions as necessary. As of Friday’s disclosure, the investigating committee estimated that sales transactions at issue resulted in premature or incorrect revenue recognition of about $4 million to $6 million through the end of June.

    This is far from the first time Evolv has found itself in hot water. The company has faced other legal issues over the years, including separate federal probes into its marketing practices led by the Federal Trade Commission and the Securities Exchange Commission.

    And earlier this year, investors filed a class-action lawsuit, accusing company executives of overstating the devices’ capabilities and claiming that “Evolv does not reliably detect knives or guns.”

    Evolv, which provides security screening technology powered by artificial intelligence, also made headlines after a pilot testing program used its portable weapons scanners inside some New York City subway stations this summer.

    That program faced ample criticism from some civil liberties groups, as well as questions of efficacy. Recently released police data showed that the scanners did not detect any passengers with firearms — and had more than 100 false alerts over the one-month test.

    Following the news of George’s firing, shares for Evolv were down nearly 10% Thursday afternoon.

    According to the company, Evolv’s board formed a succession planning committee to evaluate leadership performance and plan for a CEO transition back in May. The company noted that it’s been actively recruiting candidates for CEO, and intends to announce an official successor “expeditiously.”

    In a statement Thursday, the board added that a leadership change was necessary “to improve the company’s culture as we prepare for the next phase of growth.”

    Ellenbogen, the current interim CEO, is one of Evolv’s co-founders and previously served as chief executive for seven years.

    In August, Waltham, Massachusetts-based Evolv reported second-quarter revenue was $25.5 million, up 29% from $19.8 million for the same period last year. Its next earnings report is delayed due to the ongoing sales misconduct investigation.

    Source link

  • TEPCO ex-chair at time of Fukushima nuclear disaster dies at 84 while on trial over responsibility

    TEPCO ex-chair at time of Fukushima nuclear disaster dies at 84 while on trial over responsibility

    TOKYO — Tokyo Electric Power Company Holdings’ former chairperson, who led the emergency response after a meltdown at its Fukushima Daiichi nuclear plant and was accused of being responsible for failing to prevent the disaster as top management, has died, with his trials still pending. He was 84.

    Tsunehisa Katsumata died on Oct. 21, TEPCO said Thursday, without providing further details including the cause of his death.

    Katsumata was TEPCO chair when Fukushima Daiichi was hit by a magnitude 9.0 earthquake and tsunami in March 2011 and suffered triple meltdowns. He led the emergency response after the company’s then-president stepped down due to health problems and served until mid-2012.

    He later became one of the defendants in high-profile criminal and civil lawsuits seeking TEPCO management’s responsibility over their alleged failure to anticipate the massive quake and tsunami and to take preventive measures.

    Nearly 6,000 Fukushima residents in 2012 filed the criminal complaint, accusing several former TEPCO executives, including Katsumata, of professional negligence in the death of more than 40 elderly patients during or after forced evacuations in the aftermath of the meltdown, which released large amounts of radiation to the surroundings.

    After prosecutors dropped the case, Katsumata and two other former executives were indicted in 2016 by a citizens’ inquest of prosecution and forced to stand trial in the only criminal case related to the Fukushima disaster.

    Katsumata and two co-defendants pleaded not guilty, saying predicting the tsunami was impossible, and were acquitted in the district and high court rulings. The case is now pending at the Supreme Court.

    Katsumata also faced a civil trial filed by a group of TEPCO shareholders and was ordered by the Tokyo District Court in 2022 to pay damages exceeding 13 trillion yen ($85 trillion) with three other former executives. The case is pending at Tokyo High Court.

    Katsumata, who was president of TEPCO from 2002 to 2008, was also in charge of damage control and pushing corporate governance following the utility’s earlier data coverup scandal. He joined TEPCO in 1963.

    As head of the powerful utility, Katsumata also served key posts in business organizations, such as Keidanren, and had major influence over Japanese politics and industry.

    Today, more than 13 years after the accident, Fukushima Daiichi is being decommissioned — a decades-long process that is still at an early stage.

    In recent months, TEPCO has struggled to get a first tiny amount of melted fuel debris from one of the three damaged reactors using a remote-controlled robo t. If successful, the sample’s return would be a milestone that could contribute to further research into analyzing the melted fuel and developing necessary technology to remove the 880 tons of melted fuel debris that remain inside the three reactors.

    Source link