Companies Use Savings From Tax Cuts to Buy Back Their Own Shares
U.S. companies are using much of the money from President Donald Trump's tax cut to buy back shares, which can benefit shareholders, including senior executives, by bolstering the stock price. Trump promised that the tax cuts would encourage companies to invest in factories, workers and wages. As the tax cuts kick in, some companies have laid out uses that include paying one-time bonuses and opening new factories. But buying back of shares is at record levels. U.S. companies have announced more than $178 billion in buybacks — the largest amount in a single quarter, according to market researcher Birinyi Associates.
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You Might Be a Gun Owner — Even if You Don’t Possess a Weapon
Even if you don't actually own a gun, there is a good chance you own shares in a gun manufacturer through a pension, a 401(k) or an investment in an index fund. State pension funds for public employees in Florida, Texas, Wisconsin and Ohio have small stakes in American Outdoor Brands, the manufacturer of the AR-15 semi-automatic rifle. Two of the world’s biggest asset managers, BlackRock and Vanguard, are top shareholders of gun companies Sturm Ruger, American Outdoor Brands and Vista Outdoor. And Fidelity is the top shareholder of Vista Outdoor, with 15 percent of the company.
UPS Seeks More Than $2 Billion in Damages Over TNT Bid
United Parcel Service has sued European antitrust regulators for blocking its takeover of the Dutch delivery company TNT Express five years ago. Facing a deadline to seek damages, UPS filed a claim seeking 1.74 billion euros (about $2.14 billion), plus interest, according to a notice published Monday. UPS agreed to acquire TNT in a transaction valued at $6.8 billion in March 2012, but European regulators blocked the deal because they said the merger would effectively leave the Continent’s shipping market with just two main players: UPS and DHL. Rival FedEx Corp. later acquired TNT after receiving approval from European regulators.
After Anbang Takeover, China’s Deal Money, Already Ebbing, Could Slow
The Chinese government’s seizure of Anbang Insurance Group Friday has regulators struggling to figure out what that means to the properties the company owns around the world. For years, China was a big buyer of hotels and real estate, entertainment companies and logistic companies in the United States. Lawmakers on Capitol Hill are now pushing through a bill to expand regulatory inquiries into Chinese deals and Wall Street has put the brakes on financing some of China’s deal-making amid accusations they failed to properly vet buyers. That scrutiny could test what has been a ready source of money for companies.
How a Deal to Sell The Weinstein Co. Fell Apart
Two weeks ago, the embattled Weinstein Co. looked like it had found a buyer as an investor group wanted to buy most of the studio’s assets, including its film library, and keep the studio operating. But the board of The Weinstein Co., crippled in the wake of sexual misconduct allegations against co-owner Harvey Weinstein, said late Sunday the sale had fallen apart. By Monday, finger-pointing over who was to blame had begun. With other potential buyers only wanting to cherry-pick properties, and the studio nearly out of money, its future seemed to be a sale or liquidation.
California Scraps Safety Driver Rules for Self-Driving Cars
California regulators have given the green light to truly driverless cars. Starting April 2, the state’s Department of Motor Vehicles said it would eliminate a requirement for autonomous vehicles to have a person in the driver’s seat to take over in an emergency. The new rules require companies to be able to operate the vehicle remotely and communicate with law enforcement and other drivers when something goes wrong. John M. Simpson, a director for Consumer Watchdog, said the new rules will threaten highway safety as remote operators attempt “to control the robot car from afar.”