(Reuters) - Bausch & Lomb's credit quality measures were already weak as a result of product recalls, S&P said in a statement. Though finances are expected to improve as the company rebuilds its brand name and expands sales in unaffected businesses, that will not offset an increase in debt because of the acquisition, S&P said.
"Even if the transaction is not consummated ... management's willingness to aggressively increase leverage to this extent is not commensurate with an investment-grade rating," S&P said.
Read more at Reuters.com Mergers News
Wednesday, May 16, 2007
US STOCKS-Indexes near flat; Citigroup rises 3.7 pct
(Reuters) - Shares of Citigroup climbed 3.7 percent to $54.76 on the New York Stock Exchange after an affiliate of Edward Lampert's hedge fund disclosed it owned more than 15 million shares in the largest U.S. bank. For details, see [ID:nN15262580].
But with the S&P 500 index coming off its sixth straight week of gains, some investors opted to lock in profits and were switching investment strategies.
Read more at Reuters.com Bonds News
But with the S&P 500 index coming off its sixth straight week of gains, some investors opted to lock in profits and were switching investment strategies.
Read more at Reuters.com Bonds News
Treasury Yields Trade Near Four-Week High as Data Reduce Bets on Rate Cut
(Bloomberg) -- Treasuries were little changed, with yields of 10- and two-year notes trading near four-week highs on signs of strength in the U.S. economy.
Futures traders reduced bets on a cut in borrowing costs by the Federal Reserve as a government report suggested the housing slump may be moderating and Fed data showed industrial output increased more than economists forecast. The central bank held its benchmark rate steady at its policy meeting last week, saying inflation remains the ``predominant'' economic risk.
Read more at Bloomberg Bonds News
Futures traders reduced bets on a cut in borrowing costs by the Federal Reserve as a government report suggested the housing slump may be moderating and Fed data showed industrial output increased more than economists forecast. The central bank held its benchmark rate steady at its policy meeting last week, saying inflation remains the ``predominant'' economic risk.
Read more at Bloomberg Bonds News
Brazil's Real Reaches 6-Year High Amid Speculation of Less Dollar Buying
(Bloomberg) -- Brazil's real gained for a fourth day to a new six-year high on speculation the central bank will reduce efforts to slow the currency's appreciation.
The currency broke through the 2-per-dollar level yesterday for the first time in six years. Over the past two months the central bank bought dollars daily and sold reverse currency swap contracts to cool the rally.
Read more at Bloomberg Currencies News
The currency broke through the 2-per-dollar level yesterday for the first time in six years. Over the past two months the central bank bought dollars daily and sold reverse currency swap contracts to cool the rally.
Read more at Bloomberg Currencies News
Oil Falls After Report Shows U.S. Crude, Gasoline Supplies Rose Last Week
(Bloomberg) -- Crude oil fell after the Energy Department reported that U.S. oil and gasoline supplies increased last week as refineries prepared for the peak-demand summer months.
Crude-oil inventories rose 1.06 million barrels to 342.2 million last week, the highest since June, the report showed. Supplies along the Gulf Coast surged 2.38 million barrels. Gasoline and heating oil stockpiles also rose, the report showed. Prices fell earlier today after Reuters reported that protesters in Nigeria left an oil facility run by Royal Dutch Shell Plc.
Read more at Bloomberg Energy News
Crude-oil inventories rose 1.06 million barrels to 342.2 million last week, the highest since June, the report showed. Supplies along the Gulf Coast surged 2.38 million barrels. Gasoline and heating oil stockpiles also rose, the report showed. Prices fell earlier today after Reuters reported that protesters in Nigeria left an oil facility run by Royal Dutch Shell Plc.
Read more at Bloomberg Energy News
TREASURIES-Bonds flat as data fails to alter rates outlook
(Reuters) - NEW YORK, May 16 - U.S. Treasury debt prices were unchanged on Wednesday after data on housing starts and industrial production did little to alter expectations the Federal Reserve will hold interest rates steady over the near term.
The central bank has held the federal funds rate at 5.25 percent since June 2006 as it tries to balance the pace of economic growth with the rate of price inflation.
Read more at Reuters.com Bonds News
The central bank has held the federal funds rate at 5.25 percent since June 2006 as it tries to balance the pace of economic growth with the rate of price inflation.
Read more at Reuters.com Bonds News
UPDATE 1-U.S. union asks SEC intervention on Blackstone IPO
(Reuters) - The AFL-CIO urged the Securities and Exchange Commission to require that Blackstone register as an investment company and submit to oversight under the same law mutual funds follow.
The labor federation told the SEC in a letter that it believed Blackstone "deliberately structured its public offering ... to hide the fact that the Blackstone Group LP is actually an offering of interests in pools of investment securities."
Read more at Reuters.com Government Filings News
The labor federation told the SEC in a letter that it believed Blackstone "deliberately structured its public offering ... to hide the fact that the Blackstone Group LP is actually an offering of interests in pools of investment securities."
Read more at Reuters.com Government Filings News
Mexican bond yields up as investors eye rate hike
(Reuters) - Continuing worries over inflation and last month's surprise rate hike have investors betting there is a higher chance of the central bank hiking rates, bond and peso traders said.
"The market is taking some precautions," said a peso trader in Mexico City.
Read more at Reuters.com Bonds News
"The market is taking some precautions," said a peso trader in Mexico City.
Read more at Reuters.com Bonds News
Treasury Yields Trade Near a Four-Week High on Outlook for Interest Rates
(Bloomberg) -- Treasuries were little changed, with yields of 10-year and two-year notes trading near four-week highs, on signs of strength in the world's largest economy.
Futures traders reduced bets on a cut in borrowing costs by the Federal Reserve as a government report suggested the housing slump may be moderating and Fed data showed industrial output increased more than economists forecast. The central bank held its benchmark rate steady at its policy meeting last week, saying inflation remains the ``predominant'' economic risk.
Read more at Bloomberg Bonds News
Futures traders reduced bets on a cut in borrowing costs by the Federal Reserve as a government report suggested the housing slump may be moderating and Fed data showed industrial output increased more than economists forecast. The central bank held its benchmark rate steady at its policy meeting last week, saying inflation remains the ``predominant'' economic risk.
Read more at Bloomberg Bonds News
Bank of America eyes options for a brokerage unit
(Reuters) - Bank of America, which is based in Charlotte, North Carolina, said it will use its own bankers to advise on alternatives. Spokesman Will Wilson declined to elaborate on the bank's press statement.
Read more at Reuters.com Mergers News
Read more at Reuters.com Mergers News
EU defends Galileo satellite project, seeks funds
(Reuters) - Galileo, meant to rival the U.S. Global Positioning System, has fallen into political and industrial disarray after the companies charged with building the 30-satellite system balked at the costs and risks involved.
Transport Commissioner Jacques Barrot, who said the project was essential for the EU despite concerns that it would not be profitable, presented a proposal to take it over, a move that will require support from the European Union's 27 member states.
Read more at Reuters.com Bonds News
Transport Commissioner Jacques Barrot, who said the project was essential for the EU despite concerns that it would not be profitable, presented a proposal to take it over, a move that will require support from the European Union's 27 member states.
Read more at Reuters.com Bonds News
MTN beefs up management, appoints new M&A head
(Reuters) - South African cell phone operator MTN has recruited three new top executives including a high-profile head of mergers and acquisitions.
MTN said on Wednesday it had appointed Tim Lowry as head of southern and eastern Africa and head of MTN's South Africa business, its second biggest market.
Read more at Reuters Africa
MTN said on Wednesday it had appointed Tim Lowry as head of southern and eastern Africa and head of MTN's South Africa business, its second biggest market.
Read more at Reuters Africa
WRAPUP 1- U.S. April housing starts up but permits down
(Reuters) - The Commerce Department said housing starts hit a seasonally adjusted annual pace of 1.528 million units, a 2.5 percent increase from the prior month. That was above the 1.490 million pace analysts were expecting after a first reported 1.518 million rate in March that the government revised down to 1.491 million.
However, building permits, which signal future construction plans, dropped in April by 8.9 percent to a pace of 1.429 million units. That was the slowest pace since June 1997 when the pace stood at 1.402 million and well below expectations for 1.525 million units.
Read more at Reuters.com Economic News
However, building permits, which signal future construction plans, dropped in April by 8.9 percent to a pace of 1.429 million units. That was the slowest pace since June 1997 when the pace stood at 1.402 million and well below expectations for 1.525 million units.
Read more at Reuters.com Economic News
Federated profit misses Wall St view as sales dip
(Reuters) - Excluding merger integration costs, profit from continuing operations increased to 16 cents a share from 1 cent.
Analysts on average expected earnings of 19 cents a share, according to Reuters Estimates.
Read more at Reuters.com Market News
Analysts on average expected earnings of 19 cents a share, according to Reuters Estimates.
Read more at Reuters.com Market News
Warburg Pincus to buy Bausch & Lomb for $3.67 bln
(Reuters) - Shares of the company were trading at $67.40 in premarket activity, an indication that investors may expect a higher bid.
The offer is only a 5.7 percent premium to where Bausch & Lomb shares closed on Tuesday, but its shares have been on a sharp ascent for several weeks due to rumors that it would be a target of a leveraged buyout.
Read more at Reuters.com Mergers News
The offer is only a 5.7 percent premium to where Bausch & Lomb shares closed on Tuesday, but its shares have been on a sharp ascent for several weeks due to rumors that it would be a target of a leveraged buyout.
Read more at Reuters.com Mergers News
Commvault Systems, Limited Brands, Nuvelo, Virgin: U.S. Equity Preview
(Bloomberg) -- The following is a list of companies whose shares may have unusual price changes in U.S. exchanges today. This preview includes news that broke after exchanges closed. Stock symbols are in parentheses after company names. Share prices are as of 8:10 a.m. New York time.
Aecom Technology Corp. (ACM US) gained $1.50, or 7.1 percent, to $22.50 in trading before U.S. exchanges opened. The architectural and engineering company was recommended by CNBC host Jim Cramer, who said the stock should go ``much higher'' after last week's initial offering.
Read more at Bloomberg Stocks News
Aecom Technology Corp. (ACM US) gained $1.50, or 7.1 percent, to $22.50 in trading before U.S. exchanges opened. The architectural and engineering company was recommended by CNBC host Jim Cramer, who said the stock should go ``much higher'' after last week's initial offering.
Read more at Bloomberg Stocks News
Federated posts quarterly profit
(Reuters) - Excluding merger integration costs, profit from continuing operations was 16 cents a share, up from 1 cent a year ago.
Read more at Reuters.com Market News
Read more at Reuters.com Market News
Bausch & Lomb in $3.67 bln deal with Warburg Pincus
(Reuters) - The total value of the deal, including debt, is $4.5 billion.
Read more at Reuters.com Bonds News
Read more at Reuters.com Bonds News
Canada's Dollar Falls From 11-Month High as Prices of Commodities Decline
(Bloomberg) -- Canada's dollar fell for the first time in four days as prices of the nation's commodity exports declined, reducing the currency's appeal.
The currency dropped from an 11-month high after trading above 91 cents yesterday for the first time since May 2006. The Canadian dollar fell to 90.86 U.S. cents at 7:42 a.m. in Toronto. One U.S. dollar buys C$1.1006.
Read more at Bloomberg Currencies News
The currency dropped from an 11-month high after trading above 91 cents yesterday for the first time since May 2006. The Canadian dollar fell to 90.86 U.S. cents at 7:42 a.m. in Toronto. One U.S. dollar buys C$1.1006.
Read more at Bloomberg Currencies News
European Two-Year Bond Yields Hold Near 5-Year High After Inflation Report
(Bloomberg) -- European two-year bond yields held near the highest in almost five years after a report showed inflation in the euro region kept close to the European Central Bank's 2 percent ceiling.
Yields have risen 34 basis points this year on speculation robust economic growth will fan inflation and prompt higher interest rates. Futures trading shows investors are raising bets on how high policy makers will lift interest rates. Bonds were little changed after an auction of French government debt, the first following the election of Nicolas Sarkozy as President.
Read more at Bloomberg Bonds News
Yields have risen 34 basis points this year on speculation robust economic growth will fan inflation and prompt higher interest rates. Futures trading shows investors are raising bets on how high policy makers will lift interest rates. Bonds were little changed after an auction of French government debt, the first following the election of Nicolas Sarkozy as President.
Read more at Bloomberg Bonds News
FACTBOX-Five facts about French President Nicolas Sarkozy
(Reuters) -
* Scion of a minor Hungarian nobleman, Sarkozy becomes the first son of an immigrant to rule modern France. The right-wing former interior minister won 53 percent in a May 6 run-off ballot, having dominated the campaign.
Read more at Reuters.com Bonds News
* Scion of a minor Hungarian nobleman, Sarkozy becomes the first son of an immigrant to rule modern France. The right-wing former interior minister won 53 percent in a May 6 run-off ballot, having dominated the campaign.
Read more at Reuters.com Bonds News
Dynegy Planning to Sell $1.1 Billion of Debt: U.S. Corporate Bond Alert
(Bloomberg) -- Dynegy Inc., an owner of power plants in 14 U.S. states, plans to sell at least $1.1 billion of senior unsecured notes to repay debt.
Houston-based Dynegy and the Province of Ontario are among borrowers planning to sell at least $15.2 billion of bonds in the U.S., data compiled by Bloomberg show. Borrowers have sold $11.6 billion of debt this week, compared with $10.7 billion at the same point last week. Sales year-to-date total $464.4 billion, up from $410.4 billion a year ago.
Read more at Bloomberg Bonds News
Houston-based Dynegy and the Province of Ontario are among borrowers planning to sell at least $15.2 billion of bonds in the U.S., data compiled by Bloomberg show. Borrowers have sold $11.6 billion of debt this week, compared with $10.7 billion at the same point last week. Sales year-to-date total $464.4 billion, up from $410.4 billion a year ago.
Read more at Bloomberg Bonds News
LME metals prices dragged down by Shanghai
(Reuters) - Base metal prices fell in early London Metal Exchange business on Wednesday, dragged down by a fall on the Shanghai market overnight.
Copper, the benchmark for the metals markets and a key indicator of economic growth in general, was down $75 at $7,680/7,700 per tonne by 0948 GMT after a large rise in copper imports by China in the first quarter undermined Shanghai prices.
Read more at Reuters Africa
Copper, the benchmark for the metals markets and a key indicator of economic growth in general, was down $75 at $7,680/7,700 per tonne by 0948 GMT after a large rise in copper imports by China in the first quarter undermined Shanghai prices.
Read more at Reuters Africa
U.K. Property Shares Fall, Paced by Land Securities; Vedanta Gains
(Bloomberg) -- U.K. real-estate stocks dropped, led by Land Securities Plc, British Land Co. and Liberty International Plc.
DSG International Plc fell after the retailer reported slower sales growth. EasyJet Plc slumped after Goldman, Sachs & Co. recommended investors sell the airlines' shares.
Read more at Bloomberg Stocks News
DSG International Plc fell after the retailer reported slower sales growth. EasyJet Plc slumped after Goldman, Sachs & Co. recommended investors sell the airlines' shares.
Read more at Bloomberg Stocks News
JGBs climb as players square positions before GDP
(Reuters) - Two-year yields dipped after having matched a 10-month high earlier in the session as expectations have steadily mounted for the Bank of Japan to lift rates to 0.75 percent in August or September from the current 0.5 percent if the data is strong.
Some investors were looking to pick up bonds as nearly 9 trillion yen of government debt is due to mature next month, analysts said.
Read more at Reuters.com Bonds News
Some investors were looking to pick up bonds as nearly 9 trillion yen of government debt is due to mature next month, analysts said.
Read more at Reuters.com Bonds News
UPDATE 1-Permira buys 29.6 pct stake in Valentino
(Reuters) - Permira said in a statement on Wednesday it would pay 35.65 euros per share including a dividend to International Capital Growth for the stake.
Permira beat out U.S. private equity firm Carlyle, which had also been in talks with ICG to buy the stake.
Read more at Reuters.com Mergers News
Permira beat out U.S. private equity firm Carlyle, which had also been in talks with ICG to buy the stake.
Read more at Reuters.com Mergers News
JPMorgan's China fund JV fires manager over probe
(Reuters) - Tang could not be reached for comment.
Tang is the first Chinese fund manager to be sacked on suspicion of illicit stock trade.
Read more at Reuters.com Government Filings News
Tang is the first Chinese fund manager to be sacked on suspicion of illicit stock trade.
Read more at Reuters.com Government Filings News
French Stocks Drop, Led by Credit Agricole, Arcelor Mittal and Renault
(Bloomberg) -- French stocks declined, led by Credit Agricole SA, Arcelor Mittal and Renault SA.
The CAC 40 Index lost 31.68, or 0.5 percent, to 6018.08 at 9:24 a.m. in Paris. The SBF 120 Index also dropped 0.5 percent.
Read more at Bloomberg Stocks News
The CAC 40 Index lost 31.68, or 0.5 percent, to 6018.08 at 9:24 a.m. in Paris. The SBF 120 Index also dropped 0.5 percent.
Read more at Bloomberg Stocks News
Asian Stocks Rise on TDK, Astellas, Macquarie Bank Earnings; Kajima Falls
(Bloomberg) -- Asian stocks rose after TDK Corp., Astellas Pharma Inc. and Macquarie Bank Ltd. reported earnings that beat estimates.
Expectations that economic and profit growth in Asia will exceed the rest of the world has helped the Morgan Stanley Capital International Asia-Pacific Index outpace its global equivalent in four out of the past five years.
Read more at Bloomberg Stocks News
Expectations that economic and profit growth in Asia will exceed the rest of the world has helped the Morgan Stanley Capital International Asia-Pacific Index outpace its global equivalent in four out of the past five years.
Read more at Bloomberg Stocks News
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