June 11, 2007 — Gas down The average price of a gallon of gasoline in the U.S. fell a little more than 7 cents in the past three weeks, marking the first drop since mid-Jan uary, an industry analyst said yesterday. The na tional average for self- serve, regular unleaded gas was $3.1090 a gallon last week, which was 7.37 cents per gallon cheaper than in the past three weeks, according to the nationwide survey of about 7,000 gas stations. The average price for a gallon of gasoline bot tomed out...
Bell Canada backs buyout offer
June 30th, 2007
OTTAWA: Bell Canadas directors endorsed a buyout offer Saturday from the Ontario Teachers Pension Plan and Providence Equity Partners, the company said in a statement.
If approved by shareholders, the deal would be Canadas largest takeover to date, worth about 51.7 billion Canadian dollars, or $48.8 billion, after assumption of debt and other factors, and among the largest leveraged buyouts in history.
The announcement from Canadas largest communications company came with unusual swiftness. Bell only received bids from three groups on Tuesday morning and the board began reviewing them Friday. Canada Pension Plan Investment Board and Kohlberg Kravis Roberts offered a similar, all-cash privatization. Cerberus Capital Management, along with Canadian partners, proposed a more complex structure that would have kept some Bell equity trading.
Teachers offer, which was enhanced on Friday, will pay 42.75 Canadian dollars a share. Within the last year, the companys stock has traded for as little as 25.32 Canadian dollars.
With a 6.3 percent stake in Bell, Teachers is already Bells largest shareholder. It has made little secret of its dissatisfaction with Bells lagging share price and the companys management. That situation ultimately led to a review by a special committee of Bells board and the companys auction.
One player, however, was absent from those talks. Telus, Bells smaller but more successful competitor from Western Canada, announced its intention to bid. But just after Tuesdays deadline for offers, it withdrew, citing unspecific complaints about the auction process.
The unusually secretive process - Teachers and Providence had not even confirmed that they had made a bid - was unpopular with many investors who saw the value of their shares swing based on rumors and incomplete news reports.
Bell is one of Canadas most widely held companies, with retail investors making up 60 percent of its shareholder base. While they will receive a healthy premium for their stock, those shareholders will lose Bells dividend payments, which are the chief attraction of the company for many small investors. Long-term shareholders may also face a substantial capital gains tax.
There has been speculation that Telus will return with a hostile bid. Its ability to pay with both cash and shares gives it the chance, in theory, to outbid Teachers and Providence, as does its ability to exact substantial cost savings from Bell. But if Teachers has negotiated a hefty breakup fee, that might make a Telus offer impractical.
Canadian law prohibits foreign control of telecommunications companies, making it impossible for foreign communications firms to enter the bidding.
« H&R Block Reports $85.5 Million 4Q Loss
(06-21) 07:12 PDT Kansas City, Mo. (AP) — H&R Block Inc. swung to a fourth-quarter loss Thursday as the continuing struggles of its mortgage lending arm offset higher revenue in its tax and financial services divisions. The company reported losing $85.5 million, or 26 cents per share, during the February-April period, which is when the nation’s largest tax preparer sees the majority of its revenue. By comparison, the company earned $587.5 million, or $1.79, during...