Verizon Jumps Into Clearwire Mess and 2 Dow Movers To Watch
Verizon Wireless (NYSE:VZ): Current Price $50.83
The Wall Street Journal reports that Verizon Wireless will pay as much as $1.5 billion to acquire spectrum leases from Clearwire Corporation (NASDAQ:CLWR). The purchase would give the United States’ biggest wireless carrier the right to use airwaves currently controlled by Clearwire in big domestic markets. Beyond that, it further complicates a three-way series of agreements in which Clearwire would divest itself to part owner Sprint Nextel Corporation (NYSE:S), and Sprint agreed to sell a controlling interest in itself to Softbank of Japan. Adding yet another factor, Sprint now has become the subject of a competitive takeover bid from DISH Network Corporation (NASDAQ:DISH).
The Boeing Company (NYSE:BA): Current Price $87.41
On Monday, federal aviation regulators will order special inspections and, if necessary, replacement of improperly made parts on over 1,000 Boeing 737 jets that might cause pilots to lose control, according to The Wall Street Journal. Industry officials called the directive unusual, since it applies to factory defects that potentially affect such a large number of planes, particularly relatively new versions of the most widely-employed jetliner flown by carriers globally. The Federal Aviation Administration’s safety mandate covers certain corrosion-prone pins utilized to attach movable tail panels to the jetliner’s fuselage.
JPMorgan Chase & Co. (NYSE:JPM): Current Price $48.34
A group of investors remarked in a letter to other JPMorgan shareholders on Monday, that the bank should split the roles of chairman and chief executive officer, so as to restore credibility with regulators and manage the bank more effectively, reports Reuters. The investors, among which include the American Federation of State, County and Municipal Employees, the Connecticut Retirement Plans and Trust Funds, Hermes Fund Managers, and the New York City Pension Funds, have placed a proposal on JPMorgan’s proxy to split those roles. If passed, the proposal would be another hit to the company, and its Chairman and Chief Executive Jamie Dimon. JPMorgan has a presiding director, the former Exxon Mobil Corporation (NYSE:XOM) Chairman and Chief Executive Lee R. Raymond, who approves the board’s agenda and meeting schedules, and facilitates communication with Dimon, but the investor group insists that he wields too much power.
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