Source: Citigroup Cutting More Jobs Soon; Housing Outlook Remains Bleak; Consolidating Waste; Declining Euro; Huntsman Sues Apollo; GM Boost Prices, Cuts Costs; Safran Woos with Higher Offer; Motorola Slumps on "Sell" Rating
- Citigroup Inc. (C) may lay off more workers this week under a March plan to cut its trading and investment-banking workforce by about 6,000, or 10%. So far, about half of the jobs have been shed, a source with knowledge of the matter told Bloomberg.
- The Joint Center for Housing Studies released its annual State of the Nation's Housing report yesterday (Monday), MarketWatch reported. According to the report, the slump still has further to run, as local markets continue to grapple with drops in housing starts, new home sales and existing home sales.
- Republic Services Inc. (RSG) said yesterday (Monday) that it would buy Allied Waste Industries (AW) in a $6.07 billion stock deal that would combine the second- and third-largest disposal companies in the industry. Republic Services Inc. will pay Allied Waste shareholders .45 worth of a Republic share for each share held, valued at $14.04 per share based on Republic's Friday closing stock price of $31.19, the Associated Press reported.
- The euro fell 0.6% to $1.5516 at 4:31 p.m. in New York yesterday (Monday), from $1.5606 on June 20 after the Ifo survey showed German business confidence fell to its lowest level since 2005 in June, Bloomberg News reported. A separate study showed that Eurozone manufacturing and services both contracted in June, which also put downward pressure on the euro.
- Chemicals manufacturer Huntsman Corp. (HUN) sued Leon Black, head of Apollo Management LP, for more than $3 billion after a failed takeover. In a complaint filed yesterday (Monday), Huntman alleged that Black and Apollo co-founder Joshua Harris engaged in fraud and tortious interference to gain acceptance of a bid for Apollo's Hexion Specialty Chemicals Inc. unit.
- General Motors Corp. (GM) announced it would increase prices on its 2009 line in response to soaring commodity costs, The Wall Street Journal reported. The struggling automaker will also extend its summer shutdown at six plants and offer more sales incentives in hopes of decreasing inventory on its larger vehicles such as pick-up trucks and sport-utility vehicles.
- French firm Safran SA (PINK: SAFRY) made a $300 billion cash offer for the secure ID business of Digimarc Corp. (DMRC) topping a previous offer from L-1 Identity Solutions Inc. (ID) put forth in March, Reuters reported. In a statement. Digimarc said its board has determined that Safran's proposal "could reasonably be expected to lead to a superior proposal," which would allow the company a chance to back on out on its deal with L-1.
- Shares of Motorola Inc. (MOT) dropped over 6% yesterday (Monday) after analysts downgraded the outlook for the mobile phone maker. The stock dropped 50 cents to close at $7.44 after analysts at Piper Jaffray Cos. (PJC) and Avian Securities lowered ratings on Motorola stock, Reuters reported.