THE ECONOMIC MONITOR - U.S.
HP to buy ArcSight
agreed to buy
for about $1.5 billion in cashto gain security software. ArcSight shareholders will receive $43.50 a share which
is 24 per cent more than the stock’s September 10 closing price. ArcSight, a
maker of software used to identify suspicious activity on a corporate network,may help HP better incorporate security features into other products. Netincome at ArcSight almost tripled to $28.4 million in the fiscal year that ended inApril. Sales increased 33 per cent to $181.4 million in the period.
Liberty Mutual Agency to raise fund in IPO
Liberty Mutual Agency Corp
filed with U.S. regulators to raise $1.22 billion inan initial public offering of its shares. In an amended filing with the SEC, thecompany said it expects the offering of 64.3 million class A shares to be priced at$18 to $20 a share. The company said it will use proceeds from the offering torepay debt. Underwriters for the IPO include
BofA Merrill Lynch
Mitsubishi UFJ Securities
Wells Fargo Securities
BAE plans to sell U.S. aero assets
plans to sell as much as $2billion worth of U.S. aircraft and vehiclecontrols, it may help the company focus ondefense services and raise cash for potentialpurchases.
has been hired by the company to find outoption for the so-called platform solutionsbusiness, including a possible sale, thecompany. The unit includes hybrid propulsionsystems for buses and trucks as well as flight controls used by Airbus and Boeing.
Nokia's mobile unit chief resigns
, the head of Nokia's mobile solutions unit is resigning, whileoutsider
will be replacing him as chief executive of the world'sbiggest cellphone maker. Nokia has also stated its intention on hiring Elop, aCanadian Microsoft executive with Silicon Valley credentials, to replaceembattled CEO
Hertz sweetens Dollar Thrifty deal
Outdoing a rival bid from
Avis Budget Group Inc
, car rental company
HertzGlobal Holdings Inc.
sweetened $1.56 billion deal to buy
Dollar ThriftyAutomotive Group Inc.
It raised its bid for Dollar to $50 per share, including a$10.80 per share increase in the cash component of the offer. The price alsoincludes $122 million of options and restricted shares.
LabCorp to buy Genzyme
said it agreed to sell itsgenetic-testing business to
Laboratory Corpof America Holdings
for $925 million in cash.Confirming the report, LabCorp said the dealhas a net cash cost of about $795 million tothe medical-testing company. LabCorp said itobtained a funding commitment from
toprovide debt financing for the transaction.According to the LabCorp also committed tooffer jobs to the unit's nearly 1,900 employees, including senior management,upon closing.
Carlyle scraps Arinc sale, seeks IPO-sources
Private equity firm
has withdrawn its plans to sell
.People familiar with the matter said the company failed to find a buyer for thedefense and aviation company in the past six months. Carlyle hired
early this year to advise it on the sale of Arinc, but now it’s pursuing an
initial public offering for Arinc, the sources said.
IMF urges stimulus to help 'dire' job market
International Monetary Fund
said the world's rich countries need toextend fiscal stimulus and job growth initiativesto fix a "dire" labor market that could threatenentire societies. The IMF said more and moreworkers worldwide were unable to find jobs forlonger periods, weakening social cohesion andraising risks of unrest and even underminingdemocracy. "The labor market is in dire straits,"IMF Managing Director
told the one-day meeting, adding that theGreat Recession had left a "wasteland of joblessness".
Bank stocks rise on Basel norms
Bank stocks soared in U.S., Europe and Asia as regulators gave firms more timethan analysts expected to obey with firmer capital requirements meant forpreventing future financial crises. Regulators reached a consensus that more
than doubles capital requirements for the world’s banks, while giving them as
long as eight years to comply in full at a meeting held in Basel, Switzerland. U.S.,U.K. and Switzerland pushed for a maximum of five years, while Germany hadsought to give firms a decade to make the transition. (See Special Report)
Bidder to appeal ruling on AIG Taiwan unit-Paper
One of the bidders for
American InternationalGroup's Taiwan unit
will appeal the regulator's decision to block the deal,the Economic Daily news reported.The Economic Daily news said Primus did not want togive up on the Nan Shan unit and would alsoconsider bidding again if AIG put the unit back onsale. The paper said that if AIG put
on sale again, the price would bemuch lower because of projected losses of T$23 billion ($723 million) this year atNan Shan.
U.S. August deficit is $90.53 billion
data showed that the United States posted a $90.53billion budget deficit in August. The government has now posted a budgetdeficit for a record 23 straight months, the Treasury Department said. Thedepartment said the budget gap so far for fiscal 2010 was $1.260 trillion, smallerthan the $1.371 trillion posted for the first 11 months of fiscal 2009. Receiptstotaled $164 billion in August, higher than the prior year's $145.53 billion inAugust receipts.
Geithner says recovery not fast enough
said the U.S.economy was recovering but not fast enough.Geithner urged Congress to act quickly onextending expiring tax cuts for the middle classand on a proposal by President Barack Obama toprovide new federal financing for rebuilding U.S.roads, bridges and other infrastructure.
COMPANY NEWS (contd…)
Enbridge pipeline stays shut
Line 6A pipeline carrying Canadian crude oil to U.S. refineries and oilhub in Cushing, Oklahoma, remained shut on Monday. No date has been set forrestarting the pipeline, which was shut Thursday as oil was bubbling up throughthe soil in a industrial section of Romeoville, Illinois.