Monday, September 21, 2009

Monday morning

AlphaNinja - US stocks are lower in premarket trading, following the lead of global shares. On the plus side, Dell (DELL) is buying IT services firm Perot Systems (PER) for $30 a share in cash, a massive 66% premium to Friday's closing share price. Fertilizer giant Potash (POT) is off 4% in premarket trading after drastically cutting earnings guidance Friday afternoon.

The government will seriously consider former AIG head Maurice Greenberg's suggestion that the debt be restructured.
Greenberg’s proposal includes cutting the government’s stake in New York-based AIG from almost 80 percent, trimming the interest rate on loans, and giving the firm more time to repay debt, said the aide. AIG is charged the three-month London interbank offered rate plus 3 percentage points on a Fed credit line, which it has four years to repay. The original credit line was for two years and charged a higher interest rate.

Japan sees consumer switch from chasing high-end products, to becoming Walmart shoppers.
Across the board, discount retailers are reporting increases in revenue — while just about everyone else is experiencing declines, in some cases, by double digits. As a result, the luxury boutiques, once almighty here, are reeling.

Bloomberg cites low debt yields and huge cash balances as a reason big M&A deals will abound.

And with the increase in mergers, beware a return to the idea that "synergy" can save a deal.

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