ReportWire

Tag: takeovers

  • Macy’s rejects $5.8 billion takeover bid; Arkhouse threatens to go to shareholders

    Macy’s rejects $5.8 billion takeover bid; Arkhouse threatens to go to shareholders

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    Macy’s Inc. said Sunday it has rejected an unsolicited bid by Arkhouse Management and Brigade Capital Management to take the department-store chain private in a $5.8 billion deal, citing concerns over financing.

    In a statement, Macy’s
    M,
    -1.67%
    said Arkhouse and Brigade failed to address the board’s concerns over their ability to finance the deal, and found a “lack of compelling value in their non-binding proposal.”

    “Following careful consideration and efforts to gather additional information from Arkhouse and Brigade, the board determined that Arkhouse and Brigade’s proposal is not actionable and that it fails to provide compelling value to Macy’s, Inc. shareholders,” Macy’s Chief Executive Jeff Gennette said in a statement. “We continue to be open to opportunities that are in the best interests of the company and all of our shareholders.”

    Earlier Sunday, Arkhouse confirmed that it and Brigade had submitted a proposal to buy Macy’s for $21 a share on Dec. 1, and threatened to bring the matter directly to Macy’s shareholders if talks do not pick up this week. “We see the potential for a meaningful increase to our original proposal if we are granted access to the necessary due diligence,” Arkhouse added.

    Also read: Macy’s real estate alone is worth nearly $3 billion more than investors’ bid, these analysts say

    Macy’s shares jumped after the buyout bid was first reported in December, but have since lost some of those gains.

    Last week, Macy’s said it will lay off 13% of its corporate staff — roughly 2,350 jobs — and close five stores in an effort to cut costs.

    Macy’s stock is down about 23% over the past 12 months, compared to the S&P 500’s
    SPX
    22% gain.

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  • JetBlue, Spirit Airlines appeal court ruling blocking their proposed merger

    JetBlue, Spirit Airlines appeal court ruling blocking their proposed merger

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    JetBlue Airways Corp. and Spirit Airlines Inc. said late Friday that they have appealed a court ruling that earlier this week blocked their planned merger.

    JetBlue
    JBLU,
    -1.19%
    and Spirit
    SAVE,
    +17.19%
    announced the appeal in a terse press release that provided no more details, adding only that the process is “consistent with the requirements of the merger agreement.”

    Wall Street was split on whether the airlines would be legally obliged to appeal the Tuesday ruling, which sided with the Justice Department in saying that a merger between low-cost JetBlue and ultra-low-cost Spirit would hurt competition.

    Shares of Spirit rallied 12% after hours Friday, while JetBlue shares fell nearly 2%. Analysts at JP Morgan said this week that the ruling freed JetBlue from a “costly merger.”

    Earlier Friday, Spirit sought to reassure investors about its liquidity and issued an upbeat fourth-quarter revenue guidance. Spirit has amassed about $5.5 billion in debt, and is reportedly seeking advisers to help restructure it.

    The likelihood of Spirit attracting a new merger or takeover bid is considered low without a debt restructuring. Frontier Group Holdings Inc.
    ULCC,
    -2.13%
    and JetBlue competed for Spirit in 2022, with Frontier ultimately bowing out in July of that year.

    Raymond James analyst Savanthi Syth said in a note earlier Friday that it was “clear to us that Spirit is pressing JetBlue to appeal the antitrust ruling, but we continue to believe the chances of success are low.”

    Syth has estimated that an appeal would take some four to five months.

    Shares of Spirit have lost 67% in the past 12 months, while shares of JetBlue are down 41%. The U.S. Global Jets ETF
    JETS
    has lost 9% in the same period. Those losses contrast with gains of 24% for the S&P 500 index
    SPX.

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  • Hewlett Packard Enterprises to buy Juniper Networks in $14 billion deal

    Hewlett Packard Enterprises to buy Juniper Networks in $14 billion deal

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    In an effort to keep up in the accelerating AI arms race, cloud-services provider Hewlett Packard Enterprise Co. on Tuesday agreed to buy Juniper Networks, Inc. in a deal worth around $14 billion.

    Under the terms of the deal, Hewlett Packard Enterprises
    HPE,
    -8.92%
    will acquire Juniper
    JNPR,
    +21.81%
    — which makes communications-networking products and also has an AI segment called Mist AI — for $40 a share. The companies expect the deal to close late this year or in early 2025.

    “The acquisition is expected to double HPE’s networking business, creating a new networking leader with a comprehensive portfolio that presents customers and partners with a compelling new choice to drive business value,” the companies said in a release.

    After the deal is completed, Juniper Chief Executive Rami Rahim will lead the combined HPE networking business, and report to HPE CEO Antonio Neri.

    “This transaction will strengthen HPE’s position at the nexus of accelerating macro-AI trends, expand our total addressable market, and drive further innovation for customers as we help bridge the AI-native and cloud-native worlds, while also generating significant value for shareholders,” Neri said in a statement.

    HPE said the addition of Juniper will boost margins and result in up to $450 million in annual cost savings within three years of the deal’s completion, as well as accelerate growth. HPE’s networking segment was the company’s top source of quarterly earnings before taxes, $401 million, on $1.4 billion in revenue.

    HPE’s deeper plunge into networking closes a chapter of sorts. Then-Hewlett-Packard Co. acquired Aruba Networks for about $3 billion in March 2015, months before Silicon Valley’s original garage startup split in half, resulting in the formation of HPE, which sells servers and other equipment for data centers, and HP Inc.
    HPQ,
    -2.71%    ,
    which makes PCs and printers.

    The Wall Street Journal reported the possibility of a deal on Monday, sending shares of Juniper higher.

    Shares of Juniper
    JNPR,
    +21.81%
    rose 0.5% after hours, after jumping 21.8% during regular trading hours. Hewlett Packard
    HPE,
    -8.92%
    shares were down 0.4% after hours, after falling 8.9% during the day.

    As of Tuesday’s close, Juniper had a market cap of $9.64 billion, while HPE’s was $23.04 billion.

    The companies hope the deal can provide a much-needed jolt after a series of lackluster quarterly earnings. Juniper shares have gained 15.7% over the past 12 months, while HPE shares are down 5.4% over that span. The S&P 500
    SPX,
    in comparison, is up about 21.4% over the past year.

    For decades, Juniper has lagged rival Cisco Systems Inc.
    CSCO,
    -1.09%
    in the networking-equipment market. In its most recent quarter, Juniper reported net income of $76 million on revenue of $1.4 billion, down 1% from the same quarter a year earlier.

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  • GE's stock has its best year on record ahead of final breakup

    GE's stock has its best year on record ahead of final breakup

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    General Electric Co. has saved its best year for its last.

    At the beginning of the second quarter, GE’s power and renewable-energy business will be spun off as GE Vernova, while its remaining business will be relaunched as GE Aerospace. That follows the conglomerate’s separation of GE HealthCare Technologies Inc.
    GEHC,
    -0.28%
    in December 2022.

    But rather than mourn the final breakup of the 150-year old company, which was co-founded by Thomas Edison, Wall Street cheered like it never had before.

    GE’s stock
    GE,
    -0.54%
    has rocketed 95.1% in 2023 as of afternoon trading Friday. That would be by far the stock’s best year on record, based on available data going back to 1972, according to Dow Jones Market Data. The next best year was 1982, when it gained 65.4%. In comparison, the S&P 500 index
    SPX
    has rallied 24.2% this year.

    Read: GE stock sees biggest rally in more than 2 years after a big earnings beat, raised outlook.

    As good as the stock’s performance has been leading up to the breakup, most analysts feel like investors still have more to gain. Keep in mind that in many cases, a company’s parts are worth more individually than they are valued as part of a whole.

    Wells Fargo’s Matthew Akers has a pre-breakup target of $144 on GE’s stock, which implies about 13% upside from current levels.

    “GE combines an attractive business with high aftermarket mix, solid management team with a clean balance sheet, L-T margin upside and built-in catalyst with the Vernova spin in early Q2,” Akers wrote.

    J.P. Morgan’s Seth Seifman said he believes the combined equity values of GE Vernova and GE Aerospace, when including the company’s equity stake in GE HealthCare, is about $149 billion. That compares with GE’s current market capitalization of about $139 billion.

    Of the 18 analysts surveyed by FactSet who cover GE, 12 are bullish and six are neutral, while there are no bears. And the average price target is $139.23, or about 9% above current levels.

    GE’s 2023 marks the culmination of a five-year turnaround for the stock engineered by current Chief Executive Larry Culp, who will remain as CEO of GE Aerospace.

    GE’s stock has nearly tripled in the five years that Larry Culp has been CEO, outperforming the S&P 500 by a wide margin.


    General Electric Co.

    The stock had suffered its worst year ever in 2018, plunging 56.6%, just after it had its fourth-worst year in 2017, when it suffered a 44.8% decline.

    Things got so bad for GE that it got booted from the Dow Jones Industrial Average
    DJIA
    in June 2018, ending a record 111-year run in the blue-chip barometer.

    Culp was named CEO in October 2018. During his tenure, GE’s stock has had only two down years. It fell 3.2% in 2020 as the COVID-19 pandemic wreaked havoc on the aerospace business, and slumped 11.3% in 2022 as spiking inflation and interest rates fueled fears that a recession was on the horizon.

    But since the end of 2018, GE’s stock has climbed 181%, while the S&P 500 has rallied 90% and the Dow has gained 61%.

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  • Activision Blizzard to pay $55 million to settle California civil-rights lawsuit

    Activision Blizzard to pay $55 million to settle California civil-rights lawsuit

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    Videogame maker Activision Blizzard has agreed to pay nearly $55 million to settle a California civil-rights lawsuit brought over complaints of sexual harassment, discrimination and pay disparities by women employees that helped trigger the company’s acquisition by Microsoft.

    The settlement, announced by the California Civil Rights Department on Friday evening, resolves the lawsuit filed against the “Call of Duty” videogame studio by the agency in 2021 over claims that it “discriminated against women at the company, including by denying promotion opportunities and paying them less than men for doing substantially similar work,” CRD said.

    The agreement, subject to court approval, will see Activision pay nearly $46 million into a settlement fund dedicated to compensating women employees and contract workers at the company, plus more than $9 million in attorneys’ fees and costs. Additionally, Activision will take steps “to help ensure fair pay and promotion practices at the company,” including retaining an independent consultant to evaluate its compensation and promotion policies.

    Yet the settlement also sees CRD withdraw its initial claims alleging a culture of widespread, systemic workplace sexual harassment at Activision, according to a copy of the agreement provided to MarketWatch. The document notes that the department is filing an amended complaint that removes the sexual-harassment allegations against the company and focuses on the gender-based pay and promotion claims.

    CRD made no note of its prior sexual-harassment claims against Activision in its announcement Friday. A spokesperson for the department said the statement “largely speaks for itself with respect to the historic nature of this more than $50 million settlement agreement, which will bring direct relief and compensation to women who were harmed by the company’s discriminatory practices.

    Representatives for Activision declined to comment.

    The Wall Street Journal first reported the news of the settlement Friday.

    The California agency’s complaint was one of several high-profile investigations by both state and federal regulators in recent years into alleged workplace misconduct at Activision and failures by its leadership to respond appropriately. 

    While Activision repeatedly denied the allegations, they ramped up pressure on the Santa Monica, Calif.-based company and its CEO, Bobby Kotick, and eventually led to a $68.7 billion takeover bid by Microsoft
    MSFT,
    +1.31%
    in January 2022. The acquisition closed this October after receiving approval by U.K. and E.U. antitrust regulators, though the U.S. Federal Trade Commission continues to challenge the deal in court. Kotick is expected to leave the company, which he led for more than three decades, at the end of this year.

    The settlement would be the second-largest ever for the California Civil Rights Department, according to the Journal, after its $100 million agreement with another Los Angeles-area videogame developer, Riot Games, to resolve gender-discrimination allegations in 2021. The agency had initially sought a much-larger settlement with Activision, the publication reported, citing how the state had estimated the company’s liability at nearly $1 billion to some 2,500 employees with potential claims.

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  • Shari Redstone reportedly in talks to sell Paramount parent to Skydance

    Shari Redstone reportedly in talks to sell Paramount parent to Skydance

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    Media tycoon Shari Redstone is in talks to sell controlling interesting in Paramount parent National Amusements to media and entertainment company Skydance, Puck and the New York Times reported Sunday.

    On Friday, shares of Paramount Global Inc. rallied 13% after Deadline reported Skydance and private-equity firm RedBird Capital were kicking the tires on National Amusement, which has a 77% stake in Paramount.

    According to the Times, Redstone — the daughter of late Paramount CEO Sumner Redstone — has held talks with Skydance in recent weeks, though the Times said it was unclear if a deal would be reached.

    Skydance, which is led by David Ellison, son of Oracle founder Larry Ellison, is one of Hollywood’s top independent studios, and has produced Paramount blockbusters such as “Mission: Impossible — Dead Reckoning” and “Top Gun: Maverick.” RedBird is a financial backer of Skydance.

    A sale would be a major reversal for Redstone, who waged a bitter battle for control of the company in 2016, and who later led the effort to merge CBS Corp. and Viacom, which led to the creation of the current Paramount Global.

    Deadline had reported that Skydance would be more interested in Paramount’s IP and movie studio, and could look to sell its TV assets, including CBS.

    A deal could signal the start of a major shakeup across the media industry, as traditional TV companies are struggling to make money in the streaming age. Comcast Corp.
    CMCSA,
    -0.17%    ,
    which owns NBCUniversal, could be looking to expand, while Warner Bros. Discovery
    WBD,
    +6.01%
    could be a potential seller. Disney
    DIS,
    +0.84%
    CEO Bob Iger recently floated the idea of selling ABC, but quickly walked that back.

    Paramount Global shares
    PARA,
    +12.11%
    have surged nearly 40% in the past month, but are still about flat year to date.

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  • Mortgage rates' dip to 7% could be brief if jobs market stays strong, Fannie Mae economist says

    Mortgage rates' dip to 7% could be brief if jobs market stays strong, Fannie Mae economist says

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    November’s sharp pullback in 30-year fixed mortgage rates may not last if the labor market remains strong, said Mark Palim, deputy chief economist at Fannie Mae.

    Palim was speaking to the robust jobs report released on Friday, showing the U.S. added 199,000 jobs in November and that wages rose, albeit with the figures somewhat inflated by the return of striking workers from the auto industry and from Hollywood.

    Homebuyers can benefit from a robust labor market and the near 80 basis point decline in mortgage rates since the end of October, Palim said. But if the “labor markets remain this strong, we believe the pace of mortgage rate declines will likely not continue in the near term or may partially reverse,” he said in a statement.

    The benchmark 30-year fixed mortgage rate was edging down to 7.05% on Friday, after surging to nearly 8% in October, according to Mortgage Daily News.

    Optimism around the potential for falling mortgage costs to thaw home sales helped lift shares of Toll Brothers Inc.,
    TOL,
    +1.86%
    and a slew of other homebuilders tracked by the SPDR S&P Homebuilders ETF, 
    XH,
    to record highs earlier this week, even while investors in some homebuilder bonds have been sellers in recent weeks.

    Yields on 10-year
    BX:TMUBMUSD10Y
    and 30-year Treasury notes
    BX:TMUBMUSD30Y
    were up sharply Friday, to about 4.23% and 4.32%, respectively, but still below the highs of about 5% in October. The surge in long-term borrowing costs was stoked by tough talk by Federal Reserve officials about the need to keep rates higher for longer to bring inflation down to a 2% annual target.

    Read: Solid job growth, sharp wage gains sends Treasury yields up by the most in months

    U.S. stocks were up Friday afternoon, shaking off earlier weakness following the jobs report. The Dow Jones Industrial Average
    DJIA
    was 0.2% higher, further narrowing the gap between its last record close set two years ago, the S&P 500 index
    SPX
    and the Nasdaq Composite Index
    COMP
    also were up 0.2%, according to FactSet data.

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  • Markets – MarketWatch

    Markets – MarketWatch

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    Technology-stock gains drive big day, week on Wall Street

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  • Six Flags, Cedar Fair near merger: report

    Six Flags, Cedar Fair near merger: report

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    Shares of Six Flags Entertainment Corp.
    SIX,
    +6.48%
    and Cedar Fair Entertainment Co.
    FUN,
    -1.36%
    are rising following a report in the Wall Street Journal that the regional theme-park operators could announce a merger as soon as this week. Six’s stock is up 1.5% on Wednesday, while shares of Cedar Fair have climbed 5.6%. Cedar’s properties include Great America in Santa Clara, Calif., Kings Island in Cincinnati, and Canada’s Wonderland in Toronto.

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  • ‘Banks fail. It’s OK,’ says former FDIC chair Sheila Bair.

    ‘Banks fail. It’s OK,’ says former FDIC chair Sheila Bair.

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    Higher interest rates may be painful in the short term, but banks, savers and the financial ecosystem will be better off in the long run, said Sheila Bair, former chair of the Federal Deposit Insurance Corp.

    “When money is free, you squander it,” Bair said in an interview with MarketWatch. “It’s like anything. If it doesn’t cost you anything, you’re going to value it less. And we’ve had free money for quite some time now.”

    Bair, who led the FDIC from 2006 to 2011, caused a stir recently in criticizing “moonshots,” the crypto industry and “useless innovations” like Bored Ape NFTs, which proliferated because of speculation and near-zero interest rates.

    Her main message has been that the path to higher rates, while potentially “tricky,” ultimately will lead to a more stable financial system, where “truly promising innovations will attract capital” and where savers can actually save.

    Former FDIC Chair Sheila Bair was dubbed “the little guy’s protector in chief” by Time Magazine in the wake of the subprime mortgage crisis.

    Bair sat down for an interview with Barron’s Live, MarketWatch edition, to talk about the ripple effects of higher rates, what could trigger another financial crisis and why more regional banks sitting on unrealized losses could fail in the wake of Silicon Valley Bank’s collapse in March.

    “We probably will have more bank failures,” Bair said. “But you know what? Banks fail. It’s OK. The system goes on. It’s important for people to understand that households stay below the insured deposit caps.”

    The FDIC insures bank deposits up to $250,000 per account. It also has overseen 565 bank failures since 2001.

    “I know borrowing costs are going up, but your rewards for saving it are going up too,” she said. “I think that’s a very good thing.”

    However, Bair isn’t focused only on money traps and pitfalls for grown-ups. She also has two new picture books coming out that aim to explain big financial themes to young readers, including where easy-money ways, speculation and inflation come from.

    “One thing that I’ve learned from the kids is to not ask them what a loan is, because when I did that, a little hand when up, and she said: ‘That’s when you’re by yourself,’” Bair said.

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  • Exxon Mobil’s top shale exec arrested on sexual assault charge in Texas

    Exxon Mobil’s top shale exec arrested on sexual assault charge in Texas

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    David Scott, the head of Exxon Mobil Co.’s shale oil and gas production business, was arrested in Texas and faces a charge of sexual assault.

    According to public records from the Montgomery County, Texas, Sheriff’s Office, Scott, 49, was arrested Thursday afternoon on second-degree felony sexual-assault charges. According to the records, he was released on $30,000 bond. Police records show he was arrested at a La Quinta Inn & Suites hotel in Magnolia, Texas, near Exxon’s headquarters in Spring, Texas, just north of Houston.

    No further details of the incident were made clear.

    According to his LinkedIn profile, Scott is vice president of Exxon’s upstream unconventional unit, and has worked for Exxon for 26 years at the company’s operations in Australia, the U.K., the United Arab Emirates, Malaysia, Angola and the U.S.

    In a statement Sunday, Exxon Mobil
    XOM,
    -1.67%
    said it was “aware of the allegations and cannot comment on a personal matter.” However, “we can say that this individual will not continue work responsibilities as the investigation proceeds.”

    Scott’s arrest comes as Exxon Mobil is reportedly closing in on a roughly $60 billion deal to buy shale driller Pioneer Natural Resources
    PXD,
    +10.45%    ,
    as it looks to become the dominant player in the oil-rich Permian Basin in western Texas and New Mexico.

    Scott oversees Exxon’s operations in the Permian Basin, but it was unclear if or how he might be involved in the Pioneer deal.

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  • Bristol Myers Squibb to buy Mirati Therapeutics in deal worth up to $5.8 billion

    Bristol Myers Squibb to buy Mirati Therapeutics in deal worth up to $5.8 billion

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    Bristol Myers Squibb Co. said Sunday it will buy Mirati Therapeutics Inc. in a deal valued at up to $5.8 billion.

    The pharmaceutical giant announced it will pay $58 a share for Mirati, for a total equity value of $4.8 billion. Mirati stockholders will also receive one non-tradeable Contingent Value Right for each share they hold, potentially worth $12 a share in cash, representing an additional $1 billion of possible value.

    Mirati shares closed Friday at $60.20, with the company’s market cap at about $4.21 billion.

    Mirati develops commercial-stage oncology therapies, and through the deal, Bristol Myers Squibb will add lung-cancer medicine Krazati, among others, to its portfolio.

    “We are excited to add these assets to our portfolio and to accelerate their development as we seek to deliver more treatments for cancer patients,” Giovanni Caforio, Bristol Myers Squibb’s chief executive and chairman, said in a statement. “With a strong strategic fit, great science and clear value creation opportunities for our shareholders, the Mirati transaction is aligned with our business development goals.”

    The deal is expected to be dilutive to Bristol Myers Squibb’s non-GAAP earnings per share by about 35 cents a share in the first 12 months after the transaction closes. The merger is expected to close by the first half of 2024.

    Bristol Myers Squibb, with a market cap of about $118.4 billion, has seen its shares
    BMY,
    +0.43%
    sink 21% year to date. Mirati shares
    MRTX,
    -3.49%
    are up 33% this year. The S&P 500
    SPX,
    in comparison, has gained about 12% in 2023.

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  • Exxon near $60 billion deal to buy shale driller Pioneer Natural Resources: report

    Exxon near $60 billion deal to buy shale driller Pioneer Natural Resources: report

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    Exxon Mobil Corp. is close to a deal to buy shale-drilling company Pioneer Natural Resources for about $60 billion, the Wall Street Journal reported late Thursday.

    Citing sources familiar with the matter, the Journal said the deal could be finalized in the coming days. The Journal had reported in April that the two companies had held preliminary talks.

    The acquisition would be one of the largest in the U.S. this year, and Exxon’s biggest since it bought Mobil in 1999. The Journal noted that Exxon has been flush with cash since posting record profits last year, and is looking to become the dominant player in the oil-rich Permian Basin in western Texas and New Mexico.

    Exxon has a market cap of about $446 billion, as of Thursday, while Pioneer is valued at about $50 billion.

    Exxon shares
    XOM,
    -2.25%
    have fallen about 1% year to date, while Pioneer
    PXD,
    -0.17%
    stock is down about 6% in 2023, The S&P 500
    SPX,
    in comparison, is up about 11% year to date.

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  • By buying Splunk, Cisco is closer to becoming a software company

    By buying Splunk, Cisco is closer to becoming a software company

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    With Cisco Systems Inc.’s pending acquisition of Splunk Inc., the networking giant is making another major step toward becoming a software company.

    On Thursday, Cisco CSCO said it was buying Splunk SPLK in a deal valued at about $28 billion, or $157 a share in cash, for the cloud-security company. The match had been speculated about for years, and Cisco has been on a buying binge this year, as it seeks to grow with more security and software offerings.

    “Together, we will become one of…

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  • SVB Capital closes in on deal to be bought out of bankruptcy: report

    SVB Capital closes in on deal to be bought out of bankruptcy: report

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    The former parent company of Silicon Valley Bank is nearing a deal to sell its VC and credit-investment arm out of bankruptcy, according to a Wall Street Journal report Friday, citing people familiar with the matter. SVB Financial Group
    SIVPQ,
    -4.62%
    is in talks with two bidders for SVB Capital: Anthony Scaramucci’s SkyBridge Capital and Atlas Merchant Capital, and private-equity firm Vector Capital. A court decision on a winner is expected in the next few weeks in a deal that could fetch between $250 million and $500 million. Silicon Valley Bank failed in March and was taken over by regulators, cascading into a banking crisis that later took down Signature Bank and First Republic.

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  • Stocks are trapped in a trading range. Something’s got to give.

    Stocks are trapped in a trading range. Something’s got to give.

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    The U.S. stock market, as measured by the S&P 500 Index SPX, is trapped in a trading range, and volatility seems to be damping down considerably. The significant edges of the trading range are support at 4330 and resistance at 4540. Both of those levels were touched in the latter half of August. A breakout from this range should give the market some strong directional momentum. 

    Since Labor Day, prices have hunkered down into an even narrower range. Typically, the latter half of September through the early part of October…

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  • AMC stock tumbles after filing prospectus supplement for the sale of up to 40 million shares

    AMC stock tumbles after filing prospectus supplement for the sale of up to 40 million shares

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    Shares of AMC Entertainment Holdings Inc. AMC tumbled 13.9% toward the lowest price seen since January 2021 after the movie theater operator disclosed an equity distribution agreement in which the company could sell up to 40 million common shares. That would represent up to 7.7% of the common shares outstanding. The shares sales, if any, may be “at the market offerings” or could be to sales agents through block trades. The stock, which underwent a 1-for-10 reverse stock split on Aug. 24, was on track to open at the lowest price seen during regular-session hours since Jan. 15, 2021. It has tumbled 66.7% over the past three…

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  • Manchester United’s stock suffers record selloff after report that sale of club is off

    Manchester United’s stock suffers record selloff after report that sale of club is off

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    The U.S.-listed shares of Manchester United PLC suffered a record beating Tuesday, after a report that the iconic English football club was set to be taken off the market.

    Manchester United MANU UK:MNL fell 18.2% on the day to log its biggest one-day selloff since the company went public in August 2012. The previous record drop was 13.8% on March 12, 2020, at the outset of the coronavirus pandemic.

    The…

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  • UPS workers vote to approve ‘historic’ five-year contract

    UPS workers vote to approve ‘historic’ five-year contract

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    UPS employees approved a new five-year union contract with the delivery giant Tuesday, about a month after reaching a tentative deal that averted a strike of 340,000 United Parcel Services workers.

    The Teamsters said 86.3% of members voted for the “historic” deal, saying it was “the highest vote for a contract in the history of the Teamsters at UPS.”
    UPS,
    -0.97%

    “Teamsters have set a new standard and raised the bar for pay, benefits and working conditions in the package-delivery industry,” Teamsters General President Sean O’Brien said in a statement. “This is the template for how workers should be paid and protected nationwide, and nonunion companies like Amazon
    AMZN,
    -0.32%
    better pay attention.”

    Among the parts of the contract the union highlighted were $2.75-an-hour raises for existing full- and part-time union members this year, and a total of a $7.50-an-hour raise over five years. All existing part-timers will earn at least $21 an hour starting immediately per the contract, according to the Teamsters.

    The union also noted that the pay increases for full-timers will keep UPS Teamsters as the highest-paid delivery drivers in the country, with the average top rate rising to $49 an hour. In addition, the Teamsters said the new contract ends what it called the two-tier wage system at the company, with all UPS Teamster drivers currently classified as “22.4s” — or hybrid drivers and warehouse workers who were paid less than full-time drivers — to be reclassified immediately as RPCDs, or regular package car drivers.

    A UPS spokesperson sent the following statement from the company: “Our Teamsters-represented employees have voted to overwhelmingly ratify a new five-year National Master Agreement that covers more than 300,000 full- and part-time UPS employees in the U.S.”

    Amazon did not immediately respond to a request for comment.

    One local supplemental agreement that affects 174 workers in Florida will be renegotiated, the union said. The national master agreement will go into effect as soon as that supplement, which is one of 44 local supplements, has been renegotiated and ratified, the union said.

    See: UPS blames ‘late and loud’ Teamsters talks for revenue miss, outlook cut

    Also: Actors, writers, hotel housekeepers and grad-student workers are all striking for the same reason

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