BNY Mellon Loses Tax Case and 3 Morning Hot Stocks Demanding Attention

Avis Budget Group Inc (NYSE:CAR): Current Price $23.06

Avis Budget Group Inc (NYSE:CAR) and Zipcar Inc (NASDAQ:ZIP) announce that following the expiry of the waiting period under the US Hart-Scott-Rodino Antitrust Improvements Act of 1976, the proposed acquisition of Zipcar by Avis Budget receives US anti-trust clearance, though certain other conditions such as approval by Zipcar shareholders and a review by UK competition authorities remain to be fulfilled. By current expectations, the companies expect the transaction to complete by March or April 2013.

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IntercontinentalExchange Inc (NYSE:ICE): Current Price $151.29

The merger between NYSE Euronext and IntercontinentalExchange Inc (NYSE:ICE) has galvanized exchange operator NASDAQ OMX Group Inc (NASDAQ:NDAQ) into seeking out strategic options for itself that could include going private, joint ventures or an outright sale. According to sources cited by Wall Street Journal, private equity player Carlyle Group LP (NYSE:CG) sounded out NASDAQ on taking it private, but talks are presently suspended. NASDAQ also discussed the possibility of entering partnerships with the CME Group Inc (NASDAQ:CME) regarding products relating to technology and the indexes, but the talks were inconclusive. A tie-up with the London Stock Exchange also remains on NASDAQ’s internal radar, though there is little headway in the matter. A suitable transaction could boost Nasdaq’s stock value, help it compete better across a larger cross-section of markets and businesses, or diversify its current scope of offerings.

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BNY Mellon Corp (NYSE:BK): Current Price $27.87

BNY Mellon Corp (NYSE:BKlost a major tax case opposite the US Internal Revenue Service, resulting in a $850 million charge in its first-quarter accounts. The bank had claimed a $900 million tax benefit resulting from its loan transactions with Barclays (NYSE:BCS), which had been challenged by the IRS. According to Diane Kroupa, the Tax Court Judge, the transaction “was an elaborate series of pre-arranged steps designed as a subterfuge for generating, monetizing and transferring the value of foreign tax credits.” BNK Mellon plans to appeal the decision, saying the tax treatment was in accordance with statutory and judicial authority existing at the time.

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UBS AG (NYSE:UBS): Current Price $17.00

UBS AG (NYSE:UBS) has been fined £9.45 million by the U.K.’s Financial Services Authority for failures in the sale of its AIG Enhanced Variable Rate Fund (NYSE:AIG), leading to its customers being exposed to unacceptable levels of risk on the fund. Early settlement enabled UBS to avail of a 30% discount on the fine.

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Don’t Miss: Barclays Turns a Loss Into a Gain.