Biggest Dividend

posted by Yahoo! News Search Results for dividends on May 31

What a difference a year makes. Or, maybe the more astute observation in the wake of the 2008 Minnesota Legislative would be, what a difference having a seat at the table makes.

posted by Yahoo! News Search Results for dividends on May 31

What a difference a year makes. Or, maybe the more astute observation in the wake of the 2008 Minnesota Legislative would be, what a difference having a seat at the table makes.

posted by Yahoo! News Search Results for dividends on May 31

David Cook’s “American Idol” win is already paying dividends on the music charts.

posted by Yahoo! News Search Results for dividends on May 30

The Canadian Press May 30, 2008 - 5:52 p.m. Automated Benefits Corp. (TSXV:AUT): Three months ended March 31, 2008, net loss $696,000, net loss $0.01 a share; 2007, net loss $1,318,000, per share data unavailable. Revenue: 2008, $860,000; 2007, $762,000.

posted by Yahoo! News Search Results for dividends on May 30

May 30 (Bloomberg) -- Brazilian stocks rose, capping its biggest two-month gain in two years, as banks, homebuilders and retailers rallied on speculation credit growth will quicken after a debt upgrade and Centrais Eletricas Brasileiras SA jumped on a report it will repay over $5 billion in dividends.

posted by Jui Chakravorty on May 30

Bankruptcy is better than a merger. Or that’s what U.S. airlines seem to think.

Almost every U.S. legacy carrier has been through a bankruptcy at some point; many have been through Chapter 11 twice.

And things, once again, are turbulent.

After racking up $35 billion in losses and finally emerging from a five-year slump in 2006, you would think the major carriers, suffering partly due to the threat of low-cost competition, would see the sense in consolidating.

Two of them did. Delta and Northwest said in April they would merge to create the world’s largest airline.

You would think more talks would follow. They did. You would think more mergers would follow. They didn’t.

Merger talks between United Airlines and Continental Airlines picked up steam after the Delta-Northwest deal. Continental pulled away, and the talks died.

Then, merger talks between United Airlines and US Airways picked up steam. The airlines have now decided not to merge amid concerns about labor opposition and integration costs.

But the industry is expected to lose $7.2 billion this year. Oil prices have hit all-time highs, roughly doubling in the past year. United CEO Glenn Tilton sees the fuel bill for U.S. airlines going up by $20 billion this year. Some airlines are raising fares and charging passengers for one checked bag. Let’s face it — times are bad. In fact, times are terrible. 

Still, they refuse to consolidate. Perhaps bankruptcy is easier? In bankruptcy, they’re off the hook for plane leases and labor contracts. In fact, in many ways, it’s the best time for them to merge.

And, unlike the auto industry, where a bankruptcy would be brutal for sales, airlines operate just fine during Chapter 11. Air tickets don’t need a warranty of any sort, and many passengers are usually unaware they are flying a bankrupt carrier when they travel.

In fact, seven small airlines have filed for bankruptcy or stopped operating in the past five months.

And that trend will continue unless the industry cuts capacity. Several airline executives have said there is too much capacity in the U.S. skies. And the “Open Skies” agreement, which eases barriers on Trans-Atlantic travel, will only increase capacity. As more foreign arilines will come into the United States, they will increase competition and lower prices.

For now, the airlines may think they can stick together and raise prices like one big, happy family. But ultimately, if oil stays where it is and consumers get more options, the airlines could once again find themselves facing the Hobson’s choice: merger or bankruptcy. 

posted by Paritosh Bansal on May 30

The days of the eye-popping LBO may be over, but buyout shops are still raising eye-popping amounts of cash.

So far in 2008, private equity firms have raised nearly $100 billion, according to Thomson Reuters data. Buyout-focused funds have raised $65.1 billion, while others that are not focused on buyouts, such as real estate and energy funds, have raised $34 billion. In all $99.2 billion has been raised from 134 funds, Thomson Reuters data shows.

But overall acquisitions by financial sponsors are down 78 percent and global issuance of leveraged syndicated loans is down 68 percent, compared with the same period last year.

So where is the money going?

Minority stakes for one. Financial sponsors have spent $12 billion  so far this year on building up minority stakes in listed companies, up 86 percent from the same period in 2007, according to the data.

Financial services companies, which have been hit hard by the credit crunch and looking to raise funds, have attracted a lot of that cash. The volume of convertible offerings by financial issuers hit an all-time high in May with nearly $20 billion in new issues, according to the data.

The top 10 minority stake acquisitions so far this year include TPG’s $2 billion investment in Washington Mutual, KKR’s $1.25 billion in Legg Mason and WL Ross’ $750 million in Assured Guaranty.

But that still leaves a lot of unused funds with private equity firms, and they are hunting for places to deploy that money. 

“There is so much in the pipeline right now that we expect the back half of 2008 to be more active than the first half of last year,” according to Robert Profusek, chair of Jones Day’s M&A practice.

Profusek expects the activity to be higher in terms of the number of transactions, though, and not necessarily in the dollar amount, as Clear Channel-like mega buyouts may not happen.

Photo credit: Reuters

posted by Yahoo! News Search Results for dividends on May 30

May 30 (Bloomberg) -- Brazilian stocks rose, poised for their biggest two-month gain in two years, as banks, homebuilders and retailers rallied on speculation credit growth will quicken after a debt upgrade and Centrais Eletricas Brasileiras SA jumped on a report it will repay over $5 billion in dividends.

posted by Yahoo! News Search Results for dividends on May 30

May 30 (Bloomberg) -- Brazilian stocks rose for the third time this week as banks, homebuilders and retailers rallied on speculation consumer spending will increase after a debt upgrade and utility Centrais Eletricas Brasileiras SA jumped on a report it will repay over $5 billion in dividends.

posted by Yahoo! News Search Results for dividends on May 30

May 30 (Bloomberg) -- Brazilian stocks rose for the third time this week as banks, homebuilders and retailers rallied on speculation consumer spending will increase after an investment upgrade and Centrais Eletricas Brasileiras SA jumped on a report it will repay over $5 billion in dividends.