Talks to sell Victoria’s Secret to Sycamore Partners to spill into next week

Talks to sell L Brands’ Victoria’s Secret brand to private equity firm Sycamore Partners will spill into next week, as the complex deal structure creates headaches for its advisors, people familiar with the situation said. L Brands had hoped to complete a deal by the end of this week, people familiar with the situation previously said. Sycamore is simultaneously exploring an acquisition of L Brands’ Victoria’s Secret brand and, separately, a private investment in public equity, or PIPE, into L B


Talks to sell L Brands’ Victoria’s Secret brand to private equity firm Sycamore Partners will spill into next week, as the complex deal structure creates headaches for its advisors, people familiar with the situation said.
L Brands had hoped to complete a deal by the end of this week, people familiar with the situation previously said.
Sycamore is simultaneously exploring an acquisition of L Brands’ Victoria’s Secret brand and, separately, a private investment in public equity, or PIPE, into L B
Talks to sell Victoria’s Secret to Sycamore Partners to spill into next week Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-02-14  Authors: lauren hirsch
Keywords: news, cnbc, companies, deal, brands, victorias, familiar, sycamore, billion, company, firm, week, spill, talks, secret, sell, partners, investment


Talks to sell Victoria's Secret to Sycamore Partners to spill into next week

Josephine Skriver attends the debut of Victoria’s Secret’s new fall collection at Natick Mall on August 17, 2019 in Natick, Massachusetts.

Talks to sell L Brands’ Victoria’s Secret brand to private equity firm Sycamore Partners will spill into next week, as the complex deal structure creates headaches for its advisors, people familiar with the situation said.

L Brands had hoped to complete a deal by the end of this week, people familiar with the situation previously said. The company is now aiming to announce a deal as soon as Tuesday, people familiar with the matter said. They spoke on terms of anonymity because the deal talks are confidential.

Sycamore is simultaneously exploring an acquisition of L Brands’ Victoria’s Secret brand and, separately, a private investment in public equity, or PIPE, into L Brands, to address the parent company’s debt load, the people familiar said. The two are focused primarily on the sale of Victoria’s Secret, which they hope to get done with or without a PIPE.

The delay highlights the pressure L Brands is under as it grapples with a heavy debt load and the sluggish Victoria’s Secret brand. Those business challenges have been exacerbated amid scrutiny of L Brands Chairman and CEO Les Wexner and his ties to the late sex criminal Jeffrey Epstein.

Wexner is in talks to step down as CEO as part of the deal, one of the people familiar with the situation said.

Wexner’s dual role as chairman and CEO came under fire last year, when activist firm Barington Capital disclosed a stake in L Brands. Barington Capital criticized the L Brands board for its close social ties and pushed the company to split its Victoria’s Secret and the stronger-performing Bath & Body Works businesses. L Brands and Barington reached a truce last year that added the investment firm as a special advisor and two new directors to its board. The truce is set to expire this month.

L Brands had total debt of roughly $9 billion as of October 2019, according to FactSet. It has a market capitalization of $6.7 billion.

Sycamore has invested in public companies before. The investment firm in 2014 offered up a $150 million credit facility for then publicly traded company Aeropostale. The investment later put the two at odds, when Aeropostale accused Sycamore of helping to drive the company into bankruptcy. A bankruptcy judge ultimately took Sycamore’s side in the dispute.

A deal price for Victoria’s Secret could not be immediately determined, but analysts at MKM Partners earlier this week estimated a sale of the lingerie retailer could fetch $2 billion to $3.4 billion. The company generates roughly $7 billion in sales, a little more than half of L Brands’ business, according to FactSet.

L Brands and Sycamore declined to comment.


Company: cnbc, Activity: cnbc, Date: 2020-02-14  Authors: lauren hirsch
Keywords: news, cnbc, companies, deal, brands, victorias, familiar, sycamore, billion, company, firm, week, spill, talks, secret, sell, partners, investment


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Airbus to buy rest of Bombardier stake in A220 passenger jet program

An Airbus A220 passenger jet stands in the final assembly line in Mirabel near Montreal, Quebec, Canada on January 14, 2019. European planemaker Airbus has reached a deal to buy the remaining stake of Canadian plane and train maker Bombardier in the A220 passenger jet program, it said on Thursday. The deal signals Bombardier’s exit from commercial aviation by transferring its remaining interest in Airbus Canada to the main parent Airbus SE company and the government of the Canadian state of Queb


An Airbus A220 passenger jet stands in the final assembly line in Mirabel near Montreal, Quebec, Canada on January 14, 2019.
European planemaker Airbus has reached a deal to buy the remaining stake of Canadian plane and train maker Bombardier in the A220 passenger jet program, it said on Thursday.
The deal signals Bombardier’s exit from commercial aviation by transferring its remaining interest in Airbus Canada to the main parent Airbus SE company and the government of the Canadian state of Queb
Airbus to buy rest of Bombardier stake in A220 passenger jet program Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-02-13
Keywords: news, cnbc, companies, canada, bombardier, quebec, airbus, passenger, buy, a220, exit, program, deal, jet, remaining, stake, rest, company, transaction


Airbus to buy rest of Bombardier stake in A220 passenger jet program

An Airbus A220 passenger jet stands in the final assembly line in Mirabel near Montreal, Quebec, Canada on January 14, 2019.

European planemaker Airbus has reached a deal to buy the remaining stake of Canadian plane and train maker Bombardier in the A220 passenger jet program, it said on Thursday.

The deal signals Bombardier’s exit from commercial aviation by transferring its remaining interest in Airbus Canada to the main parent Airbus SE company and the government of the Canadian state of Quebec.

Bombardier will receive $591 million, net of adjustments, and will no longer have future funding capital requirements to Airbus Canada. The deal will secure more than 3,300 Airbus jobs in Quebec, the companies added.

Bombardier added that the transaction would also help the company – which faced a cash crunch in 2015 — improve its overall financial position.

“This transaction supports our efforts to address our capital structure and completes our strategic exit from commercial aerospace,” said President and Chief Executive Alain Bellemare.

Sources have told Reuters that Bombardier’s rail unit may also be sold to French group Alstom , although any deal between Alstom and Bombardier has yet to be finalised.


Company: cnbc, Activity: cnbc, Date: 2020-02-13
Keywords: news, cnbc, companies, canada, bombardier, quebec, airbus, passenger, buy, a220, exit, program, deal, jet, remaining, stake, rest, company, transaction


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

20-something Delane Parnell’s PlayVS expands by locking in deal with Tencent-owned Riot Games

The growth of esports led to a broader discussion about creating a path for young gamers to become esports athletes. And the expansion of one startup at the heart of it all speaks to an increasing demand for this “path to pro” to emerge. This week, PlayVS —an esports competition platform that primarily focuses on bringing esports to high schools —announced an multi-year partnership with Tencent-owned Riot Games to be the exclusive provider of competitive high school League of Legends in the Unit


The growth of esports led to a broader discussion about creating a path for young gamers to become esports athletes.
And the expansion of one startup at the heart of it all speaks to an increasing demand for this “path to pro” to emerge.
This week, PlayVS —an esports competition platform that primarily focuses on bringing esports to high schools —announced an multi-year partnership with Tencent-owned Riot Games to be the exclusive provider of competitive high school League of Legends in the Unit
20-something Delane Parnell’s PlayVS expands by locking in deal with Tencent-owned Riot Games Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-02-13  Authors: annie pei
Keywords: news, cnbc, companies, playvs, tencentowned, delane, young, games, schools, parnells, partnership, esports, path, 20something, deal, riot, competition, expands, high, locking, fortnite


20-something Delane Parnell's PlayVS expands by locking in deal with Tencent-owned Riot Games

The growth of esports led to a broader discussion about creating a path for young gamers to become esports athletes. And the expansion of one startup at the heart of it all speaks to an increasing demand for this “path to pro” to emerge.

This week, PlayVS —an esports competition platform that primarily focuses on bringing esports to high schools —announced an multi-year partnership with Tencent-owned Riot Games to be the exclusive provider of competitive high school League of Legends in the United States.

The partnership comes less than a month after PlayVS inked a partnership with Fortnite publisher Epic Games to bring Fortnite competitions to high schools and colleges across the country as well.

Both partnerships basically give young players a taste of competition in two of the biggest and most-watched games in the esports industry, which research firm Newzoo had predicted would generate more than $1 billion in revenue in 2019.


Company: cnbc, Activity: cnbc, Date: 2020-02-13  Authors: annie pei
Keywords: news, cnbc, companies, playvs, tencentowned, delane, young, games, schools, parnells, partnership, esports, path, 20something, deal, riot, competition, expands, high, locking, fortnite


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

T-Mobile-Sprint merger critic voices her concern for consumers

T-Mobile-Sprint merger critic voices her concern for consumersThe Sprint and T-Mobile merger has finally been approved after two years, and some are concerned that the deal will open the floodgates for other mergers that could have potential to hurt consumers. Gigi Sohn, a distinguished fellow with the Georgetown Institute for Tech Law and Policy and former counselor to FCC Chairman Wheeler, joins “Squawk Box” to discuss why she’s been a vocal critic of the deal.


T-Mobile-Sprint merger critic voices her concern for consumersThe Sprint and T-Mobile merger has finally been approved after two years, and some are concerned that the deal will open the floodgates for other mergers that could have potential to hurt consumers.
Gigi Sohn, a distinguished fellow with the Georgetown Institute for Tech Law and Policy and former counselor to FCC Chairman Wheeler, joins “Squawk Box” to discuss why she’s been a vocal critic of the deal.
T-Mobile-Sprint merger critic voices her concern for consumers Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-02-12
Keywords: news, cnbc, companies, vocal, wheeler, tech, consumers, concern, tmobilesprint, tmobile, merger, deal, critic, squawk, voices


T-Mobile-Sprint merger critic voices her concern for consumers

T-Mobile-Sprint merger critic voices her concern for consumers

The Sprint and T-Mobile merger has finally been approved after two years, and some are concerned that the deal will open the floodgates for other mergers that could have potential to hurt consumers. Gigi Sohn, a distinguished fellow with the Georgetown Institute for Tech Law and Policy and former counselor to FCC Chairman Wheeler, joins “Squawk Box” to discuss why she’s been a vocal critic of the deal.


Company: cnbc, Activity: cnbc, Date: 2020-02-12
Keywords: news, cnbc, companies, vocal, wheeler, tech, consumers, concern, tmobilesprint, tmobile, merger, deal, critic, squawk, voices


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Why T-Mobile’s deal with Sprint could be the warm-up to a wild decade of mergers

Chip Somodevilla | Getty ImagesWhen the history books are written, T-Mobile’s merger with Sprint may be the final chapter of the 4G-LTE era. The 5G era will initially feature massive capital expenditure by wireless companies. Charter, the second-largest U.S. cable company with an enterprise value of about $200 billion, could be the catalyst for consolidation. The cable company is partially owned by billionaire dealmaker John Malone’s Liberty Broadband (a subset of GCI Liberty) and is run by CEO


Chip Somodevilla | Getty ImagesWhen the history books are written, T-Mobile’s merger with Sprint may be the final chapter of the 4G-LTE era.
The 5G era will initially feature massive capital expenditure by wireless companies.
Charter, the second-largest U.S. cable company with an enterprise value of about $200 billion, could be the catalyst for consolidation.
The cable company is partially owned by billionaire dealmaker John Malone’s Liberty Broadband (a subset of GCI Liberty) and is run by CEO
Why T-Mobile’s deal with Sprint could be the warm-up to a wild decade of mergers Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-02-12  Authors: alex sherman
Keywords: news, cnbc, companies, warmup, wireless, sprint, att, tmobiles, charter, decade, altice, mergers, verizon, assets, cable, wild, deal, company, companies


Why T-Mobile's deal with Sprint could be the warm-up to a wild decade of mergers

T-Mobile CEO John Legere (L) and Executive Director of Sprint Marcelo Claure pose for photographs before testifying to the House Judiciary Committee’s Antitrust, Commercial and Administrative Law Subcommittee in the Rayburn House Office Building on Capitol Hill March 12, 2019 in Washington, DC. Chip Somodevilla | Getty Images

When the history books are written, T-Mobile’s merger with Sprint may be the final chapter of the 4G-LTE era. What comes next could completely shuffle the U.S. telecommunications landscape yet again. The 5G era will initially feature massive capital expenditure by wireless companies. Verizon and AT&T will have to spend tens of billions of dollars laying fiber across the U.S. to provide the 1 gigabit speeds promised by both companies. T-Mobile and Sprint’s 5G plan won’t be as costly, but the combined company will be dependent on cable providers to connect their lowband and midband spectrum with small cell technology to generate high speeds. The necessity of having a huge balance sheet to afford 5G infrastructure combined with the reliance on cable for so-called small-cell technology may prompt U.S. wireless companies to merge assets or acquire cable assets, a phenomenon that’s already happened in Europe. If it happens, the end result could test U.S. regulators and possibly lead to some of the largest mergers ever attempted. “Things are changing so fast in this industry that it’s hard to know the market boundaries,” said Scott Wagner, a partner at Bilzin Sumberg who specializes in antitrust regulation. “This was one of the reasons the T-Mobile/Sprint deal was approved. It’s so hard to predict where the market is headed [and] whether cable and cell service will one day be the same. Are we going to end up in a place where people are using 5G service for home broadband? That’s the question.”

Stage three: wireless + cable

The last six years have brought waves of media and telecom M&A. First there was cable and satellite TV consolidation, with Charter buying Time Warner Cable (after Comcast’s attempt was denied by regulators), Altice acquiring Cablevision and Suddenlink, and AT&T buying DirecTV. The next phase was media rollups, led by AT&T acquiring Time Warner, Disney buying the bulk of 21st Century Fox, Comcast purchasing Sky, and CBS merging with Viacom. Stage three could logically be tie ups between cable and wireless — one potentially foreshadowed by Verizon and SoftBank’s interest in acquiring Charter in 2017. It’s possible the cost of 5G infrastructure will push together wireless providers Verizon, AT&T, T-Mobile and Dish with regional cable companies, said Walt Piecyk, a telecommunications analyst at LightShed Partners. “The cable industry has fiber assets that are close to the end users and therefore can be the critical backbone for a dense 5G network build,” Piecyk said. Charter, the second-largest U.S. cable company with an enterprise value of about $200 billion, could be the catalyst for consolidation. The cable company is partially owned by billionaire dealmaker John Malone’s Liberty Broadband (a subset of GCI Liberty) and is run by CEO Tom Rutledge, 66. When Charter briefly toyed with the idea of selling in 2017, it drew interest not only from Verizon and SoftBank, which owns a majority stake in Sprint, but also fellow cable company Altice USA. The European Altice, based in the Netherlands and also controlled by billionaire Patrick Drahi, owns both cable and wireless assets. While Altice USA’s enterprise value is just $42 billion, a combination of Charter and Altice USA could be the first step to an eventual run at combining wireless and cable in the U.S. Other European telecommunications companies, including Malone’s Liberty Global and Vodafone, also already own both wireless and cable assets and could be the model for where the U.S. is headed.

Losing the regional monopoly


Company: cnbc, Activity: cnbc, Date: 2020-02-12  Authors: alex sherman
Keywords: news, cnbc, companies, warmup, wireless, sprint, att, tmobiles, charter, decade, altice, mergers, verizon, assets, cable, wild, deal, company, companies


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Trump’s India trip could help seal administration’s next trade deal

India’s Prime Minister Narendra Modi (L) attends a meeting with US President Donald Trump during the G20 Osaka Summit in Osaka on June 28, 2019. President Donald Trump is hoping to sign another trade deal before the 2020 election. It could be with India, if he and Prime Minister Narendra Modi can come to terms during Trump’s official trip to the country in less than two weeks. Experts say the constructs of the trade agreement — and whether it can even be called a trade deal — will be determined


India’s Prime Minister Narendra Modi (L) attends a meeting with US President Donald Trump during the G20 Osaka Summit in Osaka on June 28, 2019.
President Donald Trump is hoping to sign another trade deal before the 2020 election.
It could be with India, if he and Prime Minister Narendra Modi can come to terms during Trump’s official trip to the country in less than two weeks.
Experts say the constructs of the trade agreement — and whether it can even be called a trade deal — will be determined
Trump’s India trip could help seal administration’s next trade deal Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-02-12  Authors: seema mody
Keywords: news, cnbc, companies, york, india, seal, helicopters, trade, trumps, help, visit, deal, trip, modi, administrations, trump


Trump's India trip could help seal administration's next trade deal

India’s Prime Minister Narendra Modi (L) attends a meeting with US President Donald Trump during the G20 Osaka Summit in Osaka on June 28, 2019.

President Donald Trump is hoping to sign another trade deal before the 2020 election. It could be with India, if he and Prime Minister Narendra Modi can come to terms during Trump’s official trip to the country in less than two weeks.

Despite multiple attempts, the two countries’ trade teams have struggled to see eye to eye in countless meetings in Washington, New Delhi and New York held over the last 18 months yielding no results.

“I expect that the trade deal—which has been previewed for months, but apparently at last reaching a conclusion—will be a major focus of the visit,” Alyssa Ayres, senior fellow at the Council on Foreign Relations said in an interview.

Experts say the constructs of the trade agreement — and whether it can even be called a trade deal — will be determined by the outcome of U.S. Trade Representative Robert Lighthizer’s trip to India this week.

Defense, energy, medical devices and agriculture are among the items said to be on the table, according to Eurasia analyst Akhil Bery.

The New York Times reported on Monday that India was preparing to buy U.S. military helicopters from Lockheed Martin for $2.6 billion ahead of Trump’s visit. Since Modi was elected, the country has been steadily increasing its purchases of U.S. defense equipment.

“[Defense] been an area of significant progress in the relationship,” said Ayres.

In exchange for the purchase of 24 Seahawk helicopters, Jonah Blank of Rand Corp. expects that the U.S. may roll back tariffs on select American exports.

“The main deliverables are likely to include announcements of Indian purchases of US military hardware, particularly a $2.6 billion deal for 24 Seahawk (MH-60R) helicopters; in return, the US may announce a year (or more) of duty-free waivers for some of the 2,000 products on which it levied tariffs last year,” Blank said to CNBC.


Company: cnbc, Activity: cnbc, Date: 2020-02-12  Authors: seema mody
Keywords: news, cnbc, companies, york, india, seal, helicopters, trade, trumps, help, visit, deal, trip, modi, administrations, trump


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Bankers in Asia brace for a virus-related deal drought

(Photo by WANG Zhao / AFP) (Photo credit should readBankers in Asia are bracing for a deal drought as efforts to limit the spread of the coronavirus epidemic have put key meetings and roadshows on hold. Several auctions of assets are facing delays or re-assessments and preparations for potential Chinese initial public offerings (IPOs) are also slowing, bankers said. European and U.S. buyers are also worried about travelling to Asia,” said a Singapore-based banker. Major banks in Hong Kong and Si


(Photo by WANG Zhao / AFP) (Photo credit should readBankers in Asia are bracing for a deal drought as efforts to limit the spread of the coronavirus epidemic have put key meetings and roadshows on hold.
Several auctions of assets are facing delays or re-assessments and preparations for potential Chinese initial public offerings (IPOs) are also slowing, bankers said.
European and U.S. buyers are also worried about travelling to Asia,” said a Singapore-based banker.
Major banks in Hong Kong and Si
Bankers in Asia brace for a virus-related deal drought Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-02-12
Keywords: news, cnbc, companies, business, kong, chinese, virusrelated, china, sale, declined, deal, hong, bankers, drought, singapore, brace, asia, company


Bankers in Asia brace for a virus-related deal drought

The skyline of the central business district in Beijing on August 13, 2019. (Photo by WANG Zhao / AFP) (Photo credit should read

Bankers in Asia are bracing for a deal drought as efforts to limit the spread of the coronavirus epidemic have put key meetings and roadshows on hold.

Several auctions of assets are facing delays or re-assessments and preparations for potential Chinese initial public offerings (IPOs) are also slowing, bankers said.

“All our deals are on hold now — capital markets or M&A. Nothing is happening,” said a Hong Kong-based senior investment banker with a Wall Street bank.

Baring Private Equity Asia is expected to extend a bidding deadline for the sale of HCP, a Shanghai-based packaging business valued at around $1 billion, said four people with knowledge of the deal.

The Hong Kong-based investment firm sent out teasers before Chinese New Year and was initially expecting bids to come in as soon as this month, they said.

Baring declined to comment and HCP did not respond to a query for comment.

The launch of a sale process of Eu Yan Sang International, a Singapore-based healthcare company specializing in Chinese medicine, is likely to be postponed, said two people aware of the matter. They said the company had hoped to value itself at more than $500 million.

The sale of the company, partly owned by a unit of Singapore state investor Temasek Holdings and with a significant chunk of its business in Hong Kong, is being pushed back as most of its targeted buyers are Chinese, these people said.

Responding to a Reuters query, Eu Yan Sang’s Group CEO Aaron Boey said in a statement late on Tuesday the company did not comment on “rumors”, adding it was focused on “executing our strategies and enhancing shareholder value” during these extremely challenging times.

Temasek declined comment.

“Any China-related deals are off, so that means Q1 is probably washed out. European and U.S. buyers are also worried about travelling to Asia,” said a Singapore-based banker.

Major banks in Hong Kong and Singapore have restricted travel to mainland China and are allowing staff to work from home while moving others to different office locations.

A number of countries have reduced or cancelled flights in and out of China while Singapore and Hong Kong have demanded people returning from China quarantine themselves for up to 14 days.

The virus has claimed more than 1,000 lives and has spread to 24 other countries and territories.

The bankers declined to be identified because the transactions are confidential.


Company: cnbc, Activity: cnbc, Date: 2020-02-12
Keywords: news, cnbc, companies, business, kong, chinese, virusrelated, china, sale, declined, deal, hong, bankers, drought, singapore, brace, asia, company


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Judge approves $26 billion merger of T-Mobile and Sprint

Shares of Sprint soared Tuesday after a U.S. District judge ruled in favor of its $26 billion deal to merge with T-Mobile. The judge laid out three points on which the court rejected the states’ objections to the merger. Second, the court rejected that Sprint would be able to continue operating effectively as a wireless services competitor without the merger. Legere had been expected to step down once the company’s merger with Sprint was completed. Sprint and T-Mobile had initially said Legere w


Shares of Sprint soared Tuesday after a U.S. District judge ruled in favor of its $26 billion deal to merge with T-Mobile.
The judge laid out three points on which the court rejected the states’ objections to the merger.
Second, the court rejected that Sprint would be able to continue operating effectively as a wireless services competitor without the merger.
Legere had been expected to step down once the company’s merger with Sprint was completed.
Sprint and T-Mobile had initially said Legere w
Judge approves $26 billion merger of T-Mobile and Sprint Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-02-11  Authors: lauren feiner
Keywords: news, cnbc, companies, deal, merger, wireless, ruling, states, network, judge, sprint, dish, court, approves, billion, tmobile


Judge approves $26 billion merger of T-Mobile and Sprint

Shares of Sprint soared Tuesday after a U.S. District judge ruled in favor of its $26 billion deal to merge with T-Mobile.

The stock was up 75% Tuesday morning. It had risen after hours Monday after The Wall Street Journal reported the judge was expected to rule in favor of the deal. Shares of T-Mobile were up 10%.

The ruling clears one of the final hurdles for the deal, which still can’t close until the California Public Utilities Commission approves the transaction. Tuesday’s ruling also culminates a years-long courtship between Sprint and T-Mobile, which have made multiple attempts over the years to merge, only to abandon their plans fearing regulatory scrutiny.

Attorneys general from New York, California, Connecticut, Hawaii, Illinois, Maryland, Michigan, Minnesota, Oregon, Wisconsin, Massachusetts, Pennsylvania, Virginia and D.C. originally brought the lawsuit to block the deal following approval from the Justice Department of Federal Communications Commission. The states had argued that combining the No. 3 and No. 4 U.S. carriers would limit competition and result in higher prices for consumers. The companies had argued their merger would help them compete against top players AT&T and Verizon and advance efforts to build a nationwide 5G network.

In his decision filed Tuesday, Judge Victor Marrero wrote, “The resulting stalemate leaves the Court lacking sufficiently impartial and objective ground on which to rely in basing a sound forecast of the likely competitive effects of a merger.”

The judge laid out three points on which the court rejected the states’ objections to the merger. First, he said, they failed to convince the court that the merged party “would pursue anticompetitive behavior that, soon after the merger, directly or indirectly, will yield higher prices or lower quality for wireless telecommunications services.”

Second, the court rejected that Sprint would be able to continue operating effectively as a wireless services competitor without the merger.

“The Court is thus substantially persuaded that Sprint does not have a sustainable long-term competitive strategy and will in fact cease to be a truly national [mobile network operator],” the ruling said.

And finally, the court rejected the states’ argument that Dish Network “would not enter the wireless services market as a viable competitor nor live up to its commitments to build a national wireless network.” The deal called for Dish to step in as a new wireless player based on agreements with the DOJ and FCC. Shares of Dish were up 11% on the judge’s ruling.

In a statement following the ruling, New York Attorney General Letitia James, who helped lead the states’ push, said the states “disagree with this decision wholeheartedly, and will continue to fight the kind of consumer-harming megamergers our antitrust laws were designed to prevent.” She called the ruling and called it a “loss” for Americans who rely on wireless networks and said the states will review their options, including a potential appeal.

“From the start, this merger has been about massive corporate profits over all else, and despite the companies’ false claims, this deal will endanger wireless subscribers where it hurts most: their wallets,” James said.

California Attorney General Xavier Becerra, who also led the states’ efforts, said in a statement, “Our fight to oppose this merger sends a strong message: even in the face of powerful opposition, we won’t hesitate to stand up for consumers who deserve choice and fair prices. We’ll stand on the side of competition over megamergers, every time. And our coalition is prepared to fight as long as necessary to protect innovation and competitive costs.”

Top executives at T-Mobile and Sprint claimed a victory with the judge’s ruling.

“[N]ow we are finally able to focus on the last steps to get this merger done!” T-Mobile CEO John Legere said in a statement.

T-Mobile and Sprint agreed to certain concessions to the government before the agencies cleared the deal. The companies told the FCC they would deploy a 5G network covering 97% of the U.S. population within three years of closing the deal. Sprint also agreed to sell Boost Mobile, Virgin Mobile and other prepaid phone businesses, as well as some of its wireless spectrum to Dish for $5 billion before gaining approval from the Justice Department.

FCC Chaitman Ajit Pai said in a statement that he was “pleased” with the court’s ruling and that the merger “will help close the digital divide and secure United States leadership in 5G,” calling it “a big win for American consumers.”

Dish Co-founder and Chairman Charlie Ergen said in a statement that the ruling and approvals from the DOJ and FCC

“accelerates our ability to deploy the nation’s first virtualized, standalone 5G network and bring 5G to America.”

If approved by the California commission, the deal would create a new wireless competitor in Dish, which has tried for years to become a provider, spending billions on airwaves it has stored away. Under a previous deal between Dish and the DOJ and FCC, the company had a deadline this year to build a narrowband internet of things (IoT) network connecting “people and sensors and microprocessors.” If the deal clears, Dish will instead focus its efforts on building a 5G network covering 20% of the country by June 2022 and 70% of the U.S. population by June 2023, with the consequence of facing a $2.2 billion payment to the U.S. Treasury if it fails to live up to its commitments.

Legere, the T-Mobile CEO, announced last year he would step down from the role and be succeeded by President and COO Mike Sievert. Legere had been expected to step down once the company’s merger with Sprint was completed. Sprint and T-Mobile had initially said Legere would lead the combined company when they announced their intention to merge in April 2018.

-CNBC’s Alex Sherman contributed to this report.

Subscribe to CNBC on YouTube.

WATCH: John Legere to be replaced by Mike Sievert


Company: cnbc, Activity: cnbc, Date: 2020-02-11  Authors: lauren feiner
Keywords: news, cnbc, companies, deal, merger, wireless, ruling, states, network, judge, sprint, dish, court, approves, billion, tmobile


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Mall owner Simon Property Group to buy rival Taubman Centers in $3.6 billion deal

Shoppers walk through the King of Prussia mall in King of Prussia, Pennsylvania. Taubman Centers shares skyrocketed Monday after the mall owner agreed to be bought by larger rival Simon Property Group in a deal valued at $3.6 billion. The companies said Simon plans to acquire Taubman’s stock for $52.50 a share, or a 51% premium to where Taubman shares closed on Friday. Simon shares were up less than 1% in premarket trading. Among its properties are Copley Place in Boston, King of Prussia Mall ou


Shoppers walk through the King of Prussia mall in King of Prussia, Pennsylvania.
Taubman Centers shares skyrocketed Monday after the mall owner agreed to be bought by larger rival Simon Property Group in a deal valued at $3.6 billion.
The companies said Simon plans to acquire Taubman’s stock for $52.50 a share, or a 51% premium to where Taubman shares closed on Friday.
Simon shares were up less than 1% in premarket trading.
Among its properties are Copley Place in Boston, King of Prussia Mall ou
Mall owner Simon Property Group to buy rival Taubman Centers in $3.6 billion deal Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-02-10  Authors: christina cheddar berk
Keywords: news, cnbc, companies, shopping, prussia, owner, simon, taubman, mall, shares, buy, group, property, stock, rival, deal, shoppers, centers, malls


Mall owner Simon Property Group to buy rival Taubman Centers in $3.6 billion deal

Shoppers walk through the King of Prussia mall in King of Prussia, Pennsylvania.

Taubman Centers shares skyrocketed Monday after the mall owner agreed to be bought by larger rival Simon Property Group in a deal valued at $3.6 billion.

The companies said Simon plans to acquire Taubman’s stock for $52.50 a share, or a 51% premium to where Taubman shares closed on Friday.

The news sent Taubman’s stock soaring up 52% after it resumed trading following a halt for the announcement. Simon shares were up less than 1% in premarket trading. Simon’s stock, which has a market value of $45.2 billion, is down 24% over the past 12 months.

Simon, which is known for owning and operating top-tier shopping malls, said it expects the deal to immediately boost its funds from operations, adding at least 3% on annualized basis. Among its properties are Copley Place in Boston, King of Prussia Mall outside Philadelphia and Town Center at Boca Raton in Florida.

Taubman will continue to be managed by Robert Taubman, its chairman, president and CEO. The company owns, manages or leases 26 super-regional shopping centers in the U.S. and Asia, including The Mall at Short Hills in New Jersey and the Beverly Center in Los Angeles.

As part of the deal, the Taubman family is selling one-third of their stake and will continue to own 20% of Taubman Realty Group LP.

The deal, which is expected to close within about six months, comes as mall operators are under increasing pressure to lure shoppers, who more and more favor buying products online or at strip malls where it is easy to dart in and out with purchases. With foot traffic declining at malls, there have been numerous retail bankruptcies and store closings, such by Macy’s.

Mall owners have tried to counter these trends by offering shoppers more entertainment and services.

“By joining together, we will enhance the ability of [Taubman Reality] to invest in innovative retail environments that create exciting shopping and entertainment experiences for consumers, immersive opportunities for retailers, and substantial new job prospects for local communities,” said Chief Executive Officer and President David Simon in a press release.

The deal is subject to regulatory and shareholder approval. The Taubman family, which owns about 29% of the voting stock, has agreed to vote in favor of the deal. At least two-thirds of the outstanding Taubman voting stock and a majority of the stock not held by the Taubman family must approve the transaction.

This deal is only the latest for Simon. It recently partnered with U.S. mall owner Brookfield Property Partners and Authentic Brands in an attempt to buy Forever 21 for $81 million. The fast fashion retailer filed for Chapter 11 bankruptcy protection in September.

Simon is one of Forever 21′s biggest landlords, with dozens of stores in its malls.


Company: cnbc, Activity: cnbc, Date: 2020-02-10  Authors: christina cheddar berk
Keywords: news, cnbc, companies, shopping, prussia, owner, simon, taubman, mall, shares, buy, group, property, stock, rival, deal, shoppers, centers, malls


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Schick razor maker abandons its $1.37 billion deal for Harry’s after FTC opposition

Schick razor maker Edgewell Personal Care on Monday scrapped its $1.37 billion deal for peer Harry’s Inc after the U.S. competition regulator sought to stop the deal. The Federal Trade Commission earlier this month said it would file a lawsuit to block the acquisition, arguing it would harm competition in the U.S. shaving industry. The shaving market has long been dominated by Procter & Gamble, which makes Gillette brand razors, and Edgewell, which makes Wilkinson Sword and many private label ra


Schick razor maker Edgewell Personal Care on Monday scrapped its $1.37 billion deal for peer Harry’s Inc after the U.S. competition regulator sought to stop the deal.
The Federal Trade Commission earlier this month said it would file a lawsuit to block the acquisition, arguing it would harm competition in the U.S. shaving industry.
The shaving market has long been dominated by Procter & Gamble, which makes Gillette brand razors, and Edgewell, which makes Wilkinson Sword and many private label ra
Schick razor maker abandons its $1.37 billion deal for Harry’s after FTC opposition Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-02-10
Keywords: news, cnbc, companies, billion, razors, ftc, edgewell, opposition, makes, razor, shaving, schick, abandons, market, competition, unilever, harrys, deal, 137, uncertainty, maker, wilkinson


Schick razor maker abandons its $1.37 billion deal for Harry's after FTC opposition

Schick razor maker Edgewell Personal Care on Monday scrapped its $1.37 billion deal for peer Harry’s Inc after the U.S. competition regulator sought to stop the deal.

The Federal Trade Commission earlier this month said it would file a lawsuit to block the acquisition, arguing it would harm competition in the U.S. shaving industry.

“We are disappointed by the FTC’s decision and continue to disagree with its position,” Chief Executive Officer Rod Little said in a statement.

“Given the inherent uncertainty of a potential trial, the required investment of resources and time …, we determined that proceeding with our standalone strategy is the best course of action for Edgewell,” he said.

The shaving market has long been dominated by Procter & Gamble, which makes Gillette brand razors, and Edgewell, which makes Wilkinson Sword and many private label razors. The market was shaken up by the entry of Harry’s and Dollar Shave Club — bought by Unilever in 2016 — with their online-focused businesses.

Edgewell said privately owned Harry’s intended to pursue litigation against it.


Company: cnbc, Activity: cnbc, Date: 2020-02-10
Keywords: news, cnbc, companies, billion, razors, ftc, edgewell, opposition, makes, razor, shaving, schick, abandons, market, competition, unilever, harrys, deal, 137, uncertainty, maker, wilkinson


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post