Dell’s Deal Hits a Snag, Saks Bidding Involved a Third Party, and 3 More Hot Stocks
Dell Inc. (NASDAQ:DELL): Reuters is reporting that the $24.4 billion bid put forth by Michael Dell and Silver Lake to take over the PC maker hit a significant headwind Wednesday after the company’s special committee rejected their request to change the voting rules in exchange for a sweeter bid. The board will consider a new date for a vote on the $13.75 deal, but only under current rules in which abstentions would be counted as the equivalent of “no” votes.
Saks Inc. (NYSE:SKS): Women’s Wear Daily is reporting that the bidding for Saks involved more than one department store chain, and that Neiman Marcus was still in the mix even after earlier talks in May fell through. Analysts also believe that Canada’s oldest company, Hudson’s Bay, will pose a significant challenge to Nordstrom (NYSE:JWN).
International Business Machines Corp. (NYSE:IBM): ”In May 2013, IBM learned that the [Securities and Exchange Commission] is conducting an investigation into how IBM reports cloud revenue,” the company said in its 10-Q. “IBM is cooperating with the SEC in this matter.” The SEC’s concerns were not detailed, but Seeking Alpha points out that companies tend to receive payment for cloud software and services subscriptions upfront and recognize this revenue over the life of the contracts.
JPMorgan Chase & Co. (NYSE:JPM): Siena prosecutors have accused JPMorgan and at least one of its employees of obstructing Italian regulators as part of a wider probe into Banca Monte dei Paschi di Siena SpA’s purchase of Banca Antonveneta, Bloomberg says. Regulators are accusing the employee of withholding information from regulators about the 1 billion euro ($1.3 billion) financing it arranged for Monte Paschi’s takeover of Antonveneta in 2008.
Burger King Worldwide (NYSE:BKW): Second-quarter earnings per share of 21 cents beat projections by 3 cents as revenue of $278.3 million fell short by $42.94 million. A steep drop in costs helped Burger King improve its profitability in the second quarter and beat projections: the fast food chain saw a 0.6 percent gain in global sales despite a 0.5 percent decline domestically.