GM Slides In Europe, Sony to Review Loeb’s Proposal, and 3 More Hot Stocks
General Motors (NYSE:GM): Just when it seemed that car sales in Europe couldn’t get worse, they did — badly, too. New car registrations tanked 5.9 percent, hitting a low for the month not seen in 20 years with only 1.04 million cars sold. GM suffered more than most, with sales declines of 11.3 percent.
Sony Corp. (NYSE:SNE): Sony has assured that it will review Third Point Capital’s Daniel Loeb’s proposal, that pitches the idea of the electronics giant spinning off its hugely successful entertainment business after Loeb and his fund increased its position in Sony from a 6.5 percent stake to a 7 percent stake. However, Sony is reluctant to spin off its entertainment arm, as it believes the two businesses — electronics and film — work well together, and have “valuable synergies” according to CEO Kazuo Hirai.
France Telecom (NYSE:FTE): On Monday, France Telecom’s board voted to keep Stephane Richard as its CEO, despite his being detained by French authorities over his role in a in the suspected misuse of public funds and subsequent payout to a French businessman. The board said it doesn’t believe that Richard’s legal problems “impede his ability to fully and effectively” manage France Teleom.
Sprint-Nextel (NYSE:S): Sprint has filed a lawsuit in efforts to end Dish Network’s (NASDAQ:DISH) bid for Clearwire (NASDAQ:CLWR), claiming that the deal — which was endorsed by Clearwire — violated Delaware law as well as the rights of Sprint and other “strategic” Clearwire investors. Included in Sprint’s claims, the company says that the Dish offer can’t be concluded without the approval of both Comcast (NASDAQ:CMCSA) and Clearwire shareholders owning at least 75 percent of the shares.