Tag Archive | "new york stock exchange"

Sprint Opposes AT&T’s Deal with T-Mobile

Sprint Nextel Corp. opposes the proposed $39 billion deal between AT&T Inc. and T-Mobile USA Inc., the wireless provider announced in a statement on Monday.

The third largest wireless provider in United States urges the government to block the agreement. Voya McCann, Sprint’s senior vice president for government affairs, says the deal will cause harm in the industry and will be dominated by two service carriers, which are Verizon Wireless and a much larger AT&T T-Mobile.

AT&T Inc. planned to takeover T-Mobile USA by purchasing it for $39 billion from its parent company Deutsche Telekom AG. The agreement between the companies was announced March 20. However, it will take effect once it has been approved by the regulators.

Sprint’s chief executive officer Dan Heese said in an interview last week that they will file objections at the U.S. Congress once they start to review the agreement. The government is expected to review the deal comprehensively.

Also, key lawmakers promised to execute hearings. Some of the lawmakers, as well as some consumer advocates believe that the deal could increase prices for wireless subscribers and lessen the competition in the industry.

Sprint said it can compete with the truly dynamic marketplace. AT&T’s plans to purchase T-Mobile can reverse the years of action by the court and federal government to make the telecommunications market in the United States more competitive.

AT&T increased 75 cents to $29.60 on Monday in New York Stock Exchange while Sprint increased 5 cents to $4.73 in the composite trading.

Posted in BusinessComments (0)

Reports on Stronger Profits Put Stocks to Higher Position

Strong earnings from big retailers, as well as an update to for Hewlett-Packard helped put stocks to better position on Tuesday.

Two companies raised their earning forecasts for this year. Sears Holdings Corp said that they could earn twice as much as the analysts had foretold this year. Tiffany & Co. also said that vigorous holiday sales will push their earnings higher.

According to Matt Lloyd, chief investment strategist at Advisors Asset Management, the consumer stocks have been left for dead. The consumer companies had slashed so many costs during the recession and he said that any slight changes in the spending this year will make a much bigger effect on margins.

Hewlett-Packard Co. became one of the leaders in the Dow Jones industrial average. This happened when analysts at the UBS increased their earnings estimates for the company that creates computers.

AT&T Inc. and Verizon Communications Inc. were the two lowest companies on the Dow Jones list. Verizon fell 1.6 percent to $35.36 while AT&T fell 1.5 percent to $27.91.

Verizon will start selling their version of Apple Inc’s iPhone this coming February 10. This will break AT&T’s strong grip on the famous phone. They were the exclusive carrier of the phone since launched in 2007.

Aside from stocks, yields went higher as bond prices fell. The yield on the 10-year Treasury note increased to 3.34 percent from 3.29 percent late Monday. The yield is utilized to put interest rates on several kinds of loans that includes mortgages.

There are about three stocks that increased for every one that dropped on the New York Stock Exchange. The consolidated volume noted was 4.1 billion shares.

Posted in FinanceComments (0)

Hertz Global Holdings to Buy Assets that Avis Budget May Divest

The car rental company, Hertz Global Holdings, is planning to acquire assets that the Avis Budget may have to give away to take hold of the antitrust clearance and acquire the Dollar Thrifty Automotive Group, Inc.

The Hertz once tried to get the takeover bid for the Dollar Thrifty car rental company. However they were rejected by the shareholders of the company.

One week after Hertz dropped their pursuit, the Avis and Dollar Thrifty are now making its way to getting the approval of the regulatory group to stop its business rival.

Hertz mentioned in their conference call with the Deutsche Bank Leverage Finance that Avis may have to divest the Thrifty brand. According to the Park Ridge Company, the New Jersey-based Hertz, it is doubtful that Avis’ offer will be approved by the antitrust regulators. This is the reason why they have to divest assets to Hertz.

Avis and Dollar Thrifty are two big names in the car rental market with low-budget. Avis Budget Group manages two of most popular brands in the vehicle rental industry.

On the other hand, Dollar Thrifty was only few of the major car rental companies that placed a profit in the year 2009. They offer remarkably cheap car rentals. Their company became an important element in the rental industry while several consumers try to save a big deal of money.

Today, Hertz is keeping its eye on expanding its own low-priced brand, Advantage Rent-a-Car. Park Ridge shares were down with 2 percent at a $9.98 on the New York stock exchange on Wednesday. Since Dollar Thrifty shareholders spurned their bid, their stocks have dropped 4 percent.

Posted in BusinessComments (0)