Ackman Departs J.C. Penney’s Board, Citigroup to Shed More Weight, and 3 More Hot Stocks
J.C. Penney Company Inc. (NYSE:JCP): Shares are trading down on Tuesday as the company announces that Bill Ackman has resigned from its board. Moreover, Ackman won’t be able to sell his stake in the company for several months due to the insider nature of the information that he possesses.
Citigroup (NYSE:C): The bank is exploring the possibility of shuttering its Citigroup Alternative Investments unit, which includes Citi Infrastructure Partners and a memo from the fund’s managers has them seeking interest for a 25 percent stake. The unit has already started selling off its portfolio, including a stake in the U.K. water supplier Kelda, possibly an investment in a Spanish toll road operator, a container terminal business, and an airport operator. The move is consistent with CEO Michael Corbat’s goal to make Citigroup more banking focused.
Baxter International Inc (NYSE:BAX): China’s Ministry of Commerce has given Baxter the go-ahead for a $4 billion acquisition of Sweden’s Gambro on the condition that Baxter divests its global continuous renal replacement therapy business, which makes up 2 percent of its renal product sales. China joins the European Union, which also demanded the sale of the unit when it approved the Gambro deal. Additionally, China’s terms also involve Baxter ending an outsourcing production agreement in the country with Japan’s Nipro by March 31st, 2016.
Live Nation (NYSE:LYV): Live Nation is reportedly planning to let go of the CEO of its TicketMaster division, as a part of the unit’s restructuring efforts. The exact reason for Nathan Hubbard’s rumored departure was not made clear; but sources indicated that it has something to do with making the TicketMaster unit more technology-oriented.
Petroleo Brasileiro S.A. (NYSE:PBR): Investors seem cautious on the prospects that the company can contain spending and boost production, while simultaneously pushing Brazil’s government to end domestic subsidies for gasoline and diesel as shares of Petrobras trade lower. A weaker Brazilian real will make energy stocks built up during the second quarter more expensive to replenish, meaning the refining unit could start to see losses climb again in coming quarters, despite gains.