Top 10 News for 05/06 - 05/10: MBIA, BAC Settle; Ira Sohn Brings the Best; IPOs in Full Force
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1. MBIA Inc. (NYSE: MBI) announced this week that it agreed to the terms of a comprehensive settlement agreement and related agreements with Bank of America Corporation (NYSE: BAC) and certain of its subsidiaries. Under the terms of the Settlement Agreement, MBIA Corp. will receive a net payment of approximately $1.7 billion, consisting of approximately $1.6 billion in cash and $137 million principal amount of MBIA Inc.’s 5.70% Senior Notes due 2034. In exchange for the $1.7 billion net payment, MBIA Corp. will dismiss the litigation commenced in September 2008 against Countrywide Home Loans, Inc.
2. BMC Software (Nasdaq: BMC) signed a definitive agreement to be acquired by a private investor group led by Bain Capital and Golden Gate Capital together with GIC Special Investments Pte Ltd and Insight Venture Partners.
3. During the Ira Sohn conference this week, hedge fund giant David Einhorn, of Greenlight Capital, said he recently added to his Apple (Nasdaq: AAPL) position. According to SEC filings, Greenlight Capital held 1,307,006 Apple shares at the end of 2012. Einhorn didn't disclose how large the position was at the event. To read more hedge fund moves from the conference, click here.
4. J. C. Penney Company, Inc. (NYSE: JCP) released preliminary unaudited selected financial information for its fiscal first quarter ended May 4, 2013. The retailer said it expected Q1 sales of $2.635 billion and comparable-store sales to dip 16.6 percent. The Street was looking at revs of $2.74 billion at the time.
5. Green Mountain (Nasdaq: GMCR) saw a pop later in the week. It announced strong quarterly results, as well as entering a new 5-year minimum partnership with Starbucks (Nasdaq: SBUX). For more color on the information, click here.
6. JPMorgan (NYSE: JPM) CEO Jamie Dimon came under fire this week with some shareholders calling for the separation of CEO and Chairman, both positions within the firm that Dimon holds. Proxy firm Glass Lewis recommended that shareholders vote to split the positions, while the bank's board said a change could be "disruptive." Much of the concerned stems from the "London whale" losses realized last year, which cost the bank billions in profit.
7. Fannie Mae (OTCBB: FNMA) reported pre-tax income of $8.1 billion, the largest in company history. Comprehensive income was $59.3 billion, versus $3.1 billion in the same period last year. The single-family delinquency rate slipped to 3.02 percent for the quarter, versus 3.67 percent in Q112 and 3.29 percent in the preceding period. Fannie Mae said it "will pay Treasury $59.4 billion in dividends in the second quarter of 2013, which reflects the company’s net worth as of March 31, 2013 less the $3.0 billion capital reserve applicable in 2013 under the terms of the senior preferred stock purchase agreement. The company expects to remain profitable for the foreseeable future."
8. On Wednesday, Fusion-io (NYSE: FIO) announced that Shane Robison has been named Chairman, Chief Executive Officer and President, effective immediately. Robison, who is a director of the Fusion-io Board of Directors, succeeds David Flynn, who has resigned as CEO and President to pursue entrepreneurial investing activities. The company also announced that co-founder, Rick White, has resigned as Chief Marketing Officer to join Flynn in early stage investing activities. The move by Flynn was a surprise to many, given he was the face of Fusion-io.
9. McDonald's Corp (NYSE: MCD) announced that global comparable sales decreased 0.6% in April. The Street consensus was aiming for comps to drop by about 0.5 percent. Performance by segment was as follows: U.S. up 0.7 percent; Europe down 2.4 percent; and Asia/Pacific, Middle East and Africa (APMEA) down 2.9 percent.
10. Lots of IPOs this week, including:
* Quintiles (NYSE: Q) - opened at $43.76 after pricing 23.68 million shares at $40
* Emerge Energy (NYSE: EMES) - offered 7.5 million with a price of $17
* American Residential (NYSE: ARPI) - priced 13.7 million shares at $21
* Cyan, Inc. (NYSE: CYNI) - offered 8 million shares with a price of $11
* Receptos (Nasdaq: RCPT) - priced 5.2 million shares at $14
For more IPO news, click here.
2. BMC Software (Nasdaq: BMC) signed a definitive agreement to be acquired by a private investor group led by Bain Capital and Golden Gate Capital together with GIC Special Investments Pte Ltd and Insight Venture Partners.
3. During the Ira Sohn conference this week, hedge fund giant David Einhorn, of Greenlight Capital, said he recently added to his Apple (Nasdaq: AAPL) position. According to SEC filings, Greenlight Capital held 1,307,006 Apple shares at the end of 2012. Einhorn didn't disclose how large the position was at the event. To read more hedge fund moves from the conference, click here.
4. J. C. Penney Company, Inc. (NYSE: JCP) released preliminary unaudited selected financial information for its fiscal first quarter ended May 4, 2013. The retailer said it expected Q1 sales of $2.635 billion and comparable-store sales to dip 16.6 percent. The Street was looking at revs of $2.74 billion at the time.
5. Green Mountain (Nasdaq: GMCR) saw a pop later in the week. It announced strong quarterly results, as well as entering a new 5-year minimum partnership with Starbucks (Nasdaq: SBUX). For more color on the information, click here.
6. JPMorgan (NYSE: JPM) CEO Jamie Dimon came under fire this week with some shareholders calling for the separation of CEO and Chairman, both positions within the firm that Dimon holds. Proxy firm Glass Lewis recommended that shareholders vote to split the positions, while the bank's board said a change could be "disruptive." Much of the concerned stems from the "London whale" losses realized last year, which cost the bank billions in profit.
7. Fannie Mae (OTCBB: FNMA) reported pre-tax income of $8.1 billion, the largest in company history. Comprehensive income was $59.3 billion, versus $3.1 billion in the same period last year. The single-family delinquency rate slipped to 3.02 percent for the quarter, versus 3.67 percent in Q112 and 3.29 percent in the preceding period. Fannie Mae said it "will pay Treasury $59.4 billion in dividends in the second quarter of 2013, which reflects the company’s net worth as of March 31, 2013 less the $3.0 billion capital reserve applicable in 2013 under the terms of the senior preferred stock purchase agreement. The company expects to remain profitable for the foreseeable future."
8. On Wednesday, Fusion-io (NYSE: FIO) announced that Shane Robison has been named Chairman, Chief Executive Officer and President, effective immediately. Robison, who is a director of the Fusion-io Board of Directors, succeeds David Flynn, who has resigned as CEO and President to pursue entrepreneurial investing activities. The company also announced that co-founder, Rick White, has resigned as Chief Marketing Officer to join Flynn in early stage investing activities. The move by Flynn was a surprise to many, given he was the face of Fusion-io.
9. McDonald's Corp (NYSE: MCD) announced that global comparable sales decreased 0.6% in April. The Street consensus was aiming for comps to drop by about 0.5 percent. Performance by segment was as follows: U.S. up 0.7 percent; Europe down 2.4 percent; and Asia/Pacific, Middle East and Africa (APMEA) down 2.9 percent.
10. Lots of IPOs this week, including:
* Quintiles (NYSE: Q) - opened at $43.76 after pricing 23.68 million shares at $40
* Emerge Energy (NYSE: EMES) - offered 7.5 million with a price of $17
* American Residential (NYSE: ARPI) - priced 13.7 million shares at $21
* Cyan, Inc. (NYSE: CYNI) - offered 8 million shares with a price of $11
* Receptos (Nasdaq: RCPT) - priced 5.2 million shares at $14
For more IPO news, click here.
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