Archive for May 14th, 2008
Posted by: in Latest News
Filed under: Deals, Insiders, Microsoft (MSFT), Yahoo! (YHOO)
Well, maybe Icahn can save them from themselves. Who? Yahoo!’s board of course.
Seems Carl Icahn, whom earlier reports had considering moving in on Yahoo! Inc. (NASDAQ: YHOO)’s board, has made a decision. The billionaire activist investor, who has amassed some 50 million shares of the web portal company to a 3.6% stake, is planning “to move ahead with plans to run a dissident board slate at Yahoo,” according to Reuters.
A Reuters source said that already he has lined up at least 12 potential board candidates and could announce the slate as early as tonight, ahead of Thursday’s deadline.
It’s not just that Yahoo! has so offhandedly rejected Microsoft Corp. (NASDAQ: MSFT)’s attempts to buy it, but it’s also — and probably mainly — the way the company has been managed for some time now. It’s not just Jerry Yang, the current CEO, but his predecessor Terry Semel as well. Yahoo! has been behind the curve in technology and trend, not only losing market share in search, but mainly failing to capitalize on its assets and the traffic they generate.
Already following the early reports today, Yahoo shares completed the day up 2.18%. Now, in after-hours it’s gaining another 1.5%. Yahoo! investors seem to put their trust in Icahn.
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Posted by: in Latest News
Filed under: Before the bell, Earnings reports, Deals, Apple Inc (AAPL), Pfizer (PFE), Applied Materials (AMAT), Whole Foods Market (WFMI), Electronic Arts (ERTS), Deere and Co (DE), BHP Billiton Ltd ADR (BHP), Rio Tinto plc ADS (RTP)
 Before the bell: Futures lower ahead of CPI
Macy’s (NYSE: M), which was forecast to report a loss of a penny a share in the first quarter, stated the difficult retail environment hurt sales and it incurred costs from a restructuring. The loss came to $59 million, or 14 cents a share, compared with a profit of $36 million, or 8 cents a share, a year earlier. (As the numbers are quite fresh, it’s possible they include one-time item not yet sorted out and not comparable to analyst expectations.)
John Deere (NYSE: DE) stated its second-quarter profit rose 22%. Deere experienced increased demand for its farm equipment, as crop prices kept rising, posting an 18% increase in sales. Profit for the quarter jumped to $763.5 million, or $1.74 per share, a penny below analyst estimates. From premarket early action, it seems shares of DE might start much lower.
Freddie Mac (NYSE: FRE) also reported this morning, saying its first quarter loss widened to $151 million as the U.S. housing market worsened. Somehow, though, the results weren’t as poor as expected and FRE’s loss of 66 cents a share beat estimates of a 92 cents a share loss. FRE’s shares are up over 6% in premarket trading. Still on earnings, last night Whole Foods (NASDAQ: WFMI) and Electronic Arts (NASDAQ: ERTS) reported results. Shares of WFMI are plunging nearly 9% in premarket trading as the organic grocery chain reported a worse-than-forecast 13% profit fall. Electronic Arts (NASDAQ: ERTS) shares are also declining over 2.8% in premarket trading after the suitor of Take-Two Interactive (NASDAQ: TTWO) reported a widening quarterly loss and a disappointing outlook. Yes, and Applied Materials (NASDAQ: AMAT) also reported lower earnings and revenue after the close Tuesday. New orders fell in the period, AMAT said, but still managed to beat analysts estimates. Most important, though, is that the maker of equipment for chip stated it sees the end of the downturn.
In deal news, speculations are mounting that Pfizer Inc. (NYSE: PFE) may bid for MediGene AG, the German developer of the Endotag cancer drug. MediGene shares shot up 16% on the rumor.
BHP Billiton (NYSE: BHP) shares are rising in premarket trading also on bid speculation that China will take a stake in the world’s largest miner. It’s not clear yet how that will affect BHP’s wish to takeover of Rio Tinto (NYSE: RTP).
The Guardian reports that chief executive of Telefónica Europe, which its O2 has a “multi-year” exclusive deal to sell the iPhone in the UK and Ireland said Apple Inc. (NASDAQ: AAPL)’s 3G version of the iPhone will be unveiled “in the coming weeks.” Speculation is the reveal will be on June 9.
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Posted by: in Latest News
Filed under: Before the bell, Earnings reports, Deals, Microsoft (MSFT), Yahoo! (YHOO), Market matters, Sony Corp ADR (SNE), Clear Channel Commun (CCU), Economic data, Housing, Federal Reserve
As is nearly the case ahead of some key data announcement, investors tend to be looking for direction. Indeed, stock futures were mildly lower early Wednesday morning as the Street awaits CPI reading on inflation. Also in focus this morning is housing after a reading on foreclosures surged.
Already on Tuesday investors seemed nervous as U.S. stocks finished blended on Tuesday. Retail sales, Wal-Mart results, Hewlett Packard’s acquisition of EDS and Federal Reserve Chairman Ben Bernanke’s speech on the markets affected stocks with the Dow ending 44 points, or 0.34% lower, the S&P 500 nearly flat as it was down half a point, or 0.04%, and the Nasdaq Composite ending 6 points, or 0.27%, higher.
This morning, stocks will likely get a clearer direction after April’s Consumer Price Index report due out at 8:30 a.m. EDT. Economists, according to Briefing.com anticipate CPI to rise 0.3% in April, while core CPI, which excludes the volatile food and energy prices, is estimated to be up 0.2% in April. Investors want the report to grant the Fed to keep interest rates as they’re so as to bolster the dollar, and hence commodities, somewhat.
Speaking of the dollar and commodities, though, oil keeps trading on its own set of “rules,” it seems. Overnight, oil set yet another record, shrugging off gains in the dollar. The record, near $127 a barrel, was due to concerns that Iran may cut production. Oil has retreated since as the reports may have been overblown. This morning, at 10:30 a.m. EDT the weekly release of U.S. fuel inventories is due. Meanwhile, congress voted Tuesday to challenge President Bush to temporarily halt the daily shipment of thousands of barrels of oil into the government’s emergency reserve.
As for housing, homes facing foreclosure increased in April by 65% year-over-year, and were up 4% since March.
Nevada, Arizona, California and Florida were among the hardest hit says.
In major corporate news, CNBC reported late Tuesday the activist investor Carl Icahn, with its current 3.6% stake in Yahoo!, is considering a proxy fight for control of the board at Yahoo (NASDAQ: YHOO) following its rejection of the takeover bid by Microsoft (NASDAQ: MSFT). Shares of Yahoo jumped in afternoon trading Tuesday, but have somewhat leveled off.
Clear Channel Communications (NYSE: CCU) has settled a legal dispute with the lenders funding its private equity buyout, in essence agreeing to a lower buyout offer, and clearing the way for company to finally seal the deal nearly two years after it was first announced.
Sony Corp. (NYSE: SNE), which had a loss last year, reported a $277 million profit for the January-March quarter on Wednesday.
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Posted by: in Business News
Filed under: Business, Internet
The state of New York recently adopted a law that requires online retailers to collect taxes for items sold in New York if they’ve affiliates based in the say. That might sound like a reasonable request if New York shopping malls were littered with Amazon and Overstock.com kiosks. But the affiliates the law refers to are web publishers and bloggers in NY who happen to post links to stores like Amazon and Overstock in exchange for a small commission.
Needless to say, some folks aren’t too happy with the ruling, and Amazon has already sued NY. Overstock.com is apparently taking a different approach. The company has begun sending out letters to affiliates in New York, letting them know that the company will, at least temporarily, be ending its relationships with NY affiliates.
In other words, New York doesn’t get to collect any taxes from Overstock.com, and the say has probably just ticked off a whole lot of New Yorkers who had affiliate relationships with the company.
Thanks Scott!
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Posted by: in Latest News
Filed under: Deals, Microsoft (MSFT), Yahoo! (YHOO)
 By saying “no” to Microsoft (Nasdaq: MSFT)’s buyout bid, Yahoo! (NASDAQ: YHOO) thought there would be no more distractions.
Maybe not.
Yahoo! now has a new pesky shareholder — Carl Icahn, the shareholder activist — who according to CNBC has accumulated a 50 million share stake in Yahoo. And it looks like Icahn is putting together a proxy fight.
Icahn adores to battle senior managers and boards. He has been doing this for decades, and seems to get better and superior (and the deals get bigger and bigger).
He has a huge war chest (his personal fortune). He also has his own hedge fund, and more importantly, he has lots of credibility with the Street.
Icahn won’t take any excuses from Yahoo!’s CEO, Jerry Yang. If anything, he’s going to make Yang’s life miserable, so as to pad his pockets.
In other words, just when it seemed things couldn’t get more interesting, the Yahoo! saga has been elevated to a new level… of excitement.
Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar On the web Guide to Decoding Financial Statements . He also operates MergerBook.com.
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