Verizon Communications’s (NYSE:VZ) Management Pension Plan bought a single premium group annuity contract on Monday from The Prudential Insurance Company of America (NYSE:PRU) by which to resolve around $7.5 billion worth of pension liabilities of the Plan. The purchase was made through the definitive purchase agreement, dated October 17th, entered into by Verizon Communications, Verizon Investment Management Corp., Fiduciary Counselors, as independent fiduciary of the Plan, Prudential and Prudential Financial. Verizon paid a total of about $2.6 billion to the Plan since September 1st in regards to the transaction and says it will remeasure its pension and other post-employment benefit assets and liabilities based on updated actuarial assumptions, among which include the actual return on plan assets during the year and the then-current discount rate. As a result of this remeasurement and the purchase, the company expects to record a significant charge in the fourth quarter.
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Wal-Mart Stores’s (NYSE:WMT) Bharti Walmart refuted claims on Monday that it spent money in India to obtain market access. A spokesperson for the retailer said that, “These allegations are entirely false. In accordance with US law, US companies are required to disclose the issues and expenditures associated with lobbying on a quarterly basis,” adding that the expenditures are an aggregate of expenses linked with staff, association dues, consultants and contributions spent in the United States.
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