RBS Regulator Settlement Looms and 2 Morning Hot Stocks Sparking Chatter
Krispy Kreme Doughnuts Inc (NYSE:KKD): Current Price $11.58
Krispy Kreme Doughnuts Inc (NYSE:KKD) announced the creation of a tax asset protection plan designed to preserve substantial tax assets such as its Federal net operating loss and other tax carry forwards that may be prejudiced by an unintended “ownership change” under IRS rules, or section 382 of the Internal Revenue Code. The plan proposes to discourage any person from becoming a 5% shareholder, thus reducing the risk of such an ownership change.
Royal Bank of Scotland Group Plc (NYSE:RBS): Current Price $11.41
The Royal Bank of Scotland Group Plc (NYSE:RBS) may have to settle with regulators for its alleged involvement in the LIBOR rate rigging scandal by paying over $800 million in fines as early as next week. It may be recalled that Swiss Bank UBS (NYSE:UBS) was fined $1.5 billion while Barclays plc (NYSE:BCS) had to shell out £290 million for similar transgressions. RBS may also lose investment banking chief John Hourican and Peter Nielsen, head of markets, because the alleged rigging occurred during their tenures.
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Dell Inc (NASDAQ:DELL): Current Price $12.58
Billionaire Wilbur Ross strikes a cautionary note on the rumoured privatization of Dell Inc (NASDAQ:DELL) by PE players TPG and Silver Lake Partners via an LBO. Saying Dell’s earnings have been “in a kind of freefall,” Ross warns the LBO’s sponsors and equity sponsors expecting a quick turnaround could be a real hurdle.