Tesla Offers To Buy SolarCity

Wowza, Tesla Offers To Buy SolarCity!

Well, who saw this one coming? SolarCity has dominated the residential/commercial rooftop solar industry in the United States and is one of the largest solar companies in the world. As you know, of course, Tesla CEO Elon Musk is Chairman of SolarCity, and his cousins Lyndon Rive & Peter Rive are CEO & CTO of SolarCity. Tesla long ago announced plans to solarize its Tesla Supercharger stations, and it’s obvious Tesla aims to put a lot of solar panels on its record-size battery factory (Gigafactory) in Nevada. But seriously — which of you anticipated that Tesla would propose to acquire SolarCity?

As you may know, I’m an investor in both SolarCity and Tesla Motors because I think they have clear competitive advantages (and the focus on a transition to a cleantech, sustainable world, which essentially is a requirement for me). As an investor, I’m playing the long game, just assuming these companies will make it through the early stages of their industries and come out much bigger and more efficient in the end. Nonetheless, it’s been a bit concerning to watch SolarCity miss targets in recent months and its stock stumble, roll, and drop. Naturally, this must be part of the story — weather Tesla sees SolarCity as in need of help that warrants an acquisition, or just sees it as being at a great potential acquisition price, I don’t know, but the long-term point is obvious: Tesla is on the verge of turning into a titan of the cleantech industry … even more than it already was.

As is clear to anyone paying attention, another important point is that Elon Musk is passionate about addressing global warming and air pollution. It seems he’s either getting more and more concerned and vocal about these threats, or he just feels he’s reached a certain level of influence that it is good to speak out more and more about these problems. Either way, though, you have to be out of your mind to think he isn’t deeply concerned about where society is taking itself, and essentially trying his absolute best to help turn the boat around. Having a full ecosystem within one corporate roof that produces clean energy, stores clean energy, and puts clean energy into cars to propel them forward faster than your average Ferrari, Lamborghini, or Porsche is a natural fit for Elon’s aims and approach.

Anyway, though, that’s my intro. Below is the full press release Tesla Motors just sent our way. A press call just started. We’ll let you know what else comes out of it.

Tesla Makes Offer to Acquire SolarCity

Tesla’s mission has always been tied to sustainability. We seek to accelerate the world’s transition to sustainable transportation by offering increasingly affordable electric vehicles. And in March 2015, we launched Tesla Energy, which through the Powerwall and Powerpack allow homeowners, business owners and utilities to benefit from renewable energy storage.

It’s now time to complete the picture. Tesla customers can drive clean cars and they can use our battery packs to help consume energy more efficiently, but they still need access to the most sustainable energy source that’s available: the sun.

The SolarCity team has built its company into the clear solar industry leader in the residential, commercial and industrial markets, with significant scale and growing customer penetration. They have made it easy for customers to switch to clean energy while still providing the best customer experience. We’ve seen this all firsthand through our partnership with SolarCity on a variety of use cases, including those where SolarCity uses Tesla battery packs as part of its solar projects.

So, we’re excited to announce that Tesla today has made an offer to acquire SolarCity. A copy of Tesla’s offer is provided below.

If completed, we believe that a combination of Tesla and SolarCity would provide significant benefits to our shareholders, customers and employees:

We would be the world’s only vertically integrated energy company offering end-to-end clean energy products to our customers. This would start with the car that you drive and the energy that you use to charge it, and would extend to how everything else in your home or business is powered. With your Model S, Model X, or Model 3, your solar panel system, and your Powerwall all in place, you would be able to deploy and consume energy in the most efficient and sustainable way possible, lowering your costs and minimizing your dependence on fossil fuels and the grid.
We would be able to expand our addressable market further than either company could do separately. Because of the shared ideals of the companies and our customers, those who are interested in buying Tesla vehicles or Powerwalls are naturally interested in going solar, and the reverse is true as well. When brought together by the high foot traffic that is drawn to Tesla’s stores, everyone should benefit.
We would be able to maximize and build on the core competencies of each company. Tesla’s experience in design, engineering, and manufacturing should help continue to advance solar panel technology, including by making solar panels add to the look of your home. Similarly, SolarCity’s wide network of sales and distribution channels and expertise in offering customer-friendly financing products would significantly benefit Tesla and its customers.
We would be able to provide the best possible installation service for all of our clean energy products. SolarCity is the best at installing solar panel systems, and that expertise translates seamlessly to the installation of Powerwalls and charging systems for Tesla vehicles.
Culturally, this is a great fit. Both companies are driven by a mission of sustainability, innovation, and overcoming any challenges that stand in the way of progress.
Today’s offer to acquire SolarCity is only the first step toward a successful combination of Tesla and SolarCity. We will provide a further update if and when an agreement is reached.



********************



June 20, 2016

Mr. Lyndon R. Rive
Chief Executive Officer
SolarCity Corporation
3055 Clearview Way
San Mateo, CA 94402

Dear Lyndon:

We are pleased to submit to you and the SolarCity board of directors a proposal to acquire all of the outstanding shares of common stock of SolarCity in exchange for Tesla common shares. Subject to completing due diligence, we propose an exchange ratio of 0.122x to 0.131x shares of Tesla common stock for each share of SolarCity common stock. This proposal represents a value of $26.50 to $28.50 per share, or a premium of approximately 21% to 30% over the closing price of SolarCity’s shares, based on today’s closing price of SolarCity’s shares and the 5-day volume weighted average price of Tesla shares. We believe that our proposal offers fair and compelling value for SolarCity and its stockholders, while also giving SolarCity’s stockholders the opportunity to receive Tesla common stock at a premium exchange ratio and the opportunity to participate in the success of the combined company through their ongoing ownership of Tesla stock.

The board of directors of Tesla is excited at the prospect of a potential combination of SolarCity’s business with Tesla. We believe that the possibilities for product, service and operational synergies would be substantial, and that a combination would allow our companies to build on our respective core competencies and remain at the forefront of delivering innovative approaches for sustainable transportation and energy. We believe that a combination would generate significant benefits for stockholders, customers and employees of both Tesla and SolarCity.

We are committed to a possible transaction that is fair to SolarCity’s and Tesla’s respective stockholders. To help ensure that, Tesla is prepared to make the consummation of a combination of our companies subject to the approval of a majority of disinterested stockholders of both SolarCity and Tesla voting on the transaction. In addition, as a result of their overlapping directorships, Elon Musk and Antonio Gracias have recused themselves from voting on this proposal at the Tesla board meeting at which it was approved, and will recuse themselves from voting on this proposal at the SolarCity board as well. We believe that any transaction should be the result of full and fair deliberation and negotiation by both of our boards and the fully-informed consideration of our respective stockholders.

Our proposal is subject to the satisfactory completion of due diligence, the negotiation of mutually agreeable definitive transaction documents, and final approval by the Tesla board. While a transaction would be further subject to customary and usual closing conditions, we believe that Tesla is well positioned to negotiate and complete the transaction in an expedited manner. We do not anticipate significant regulatory or other obstacles in consummating a mutually beneficial transaction promptly.

In light of Elon Musk’s SEC disclosure obligations in his individual capacity as a stockholder of SolarCity this proposal will be publicly disclosed, but Tesla’s intention is to proceed only on a friendly basis.

We look forward to discussing a potential transaction with you, and hope to expeditiously enter into a definitive agreement.

Sincerely,

The Board of Directors of
Tesla Motors, Inc.



source: cleantechnica

Twitter makes some noise with $70 million SoundCloud investment

Twitter makes some noise with $70 million SoundCloud investment

Twitter is expected to invest $100 million into SoundCloud, with speculation abounding as to why.

Twitter made noise Tuesday with a $70-million investment in the music service Soundcloud, perhaps one of social media's latest experiments to redefine how their users interact with music, videos, and even news.

The investment, which was first reported by Recode, is part of a round of funding expected to total $100 million. Twitter's move follows the microblogging website's April integration of Soundcloud into its Twitter Moments, enabling users to discover and share their new, favorite music.

Both Twitter and SoundCloud confirmed the investment, but declined to provide details.
When asked by The Christian Science Monitor how Twitter could further integrate SoundCloud into its platform, a spokeswoman for the music service declined to elaborate.
"This investment will enable SoundCloud to remain focused on building value for creators and listeners alike, and to continue the global rollout of many company initiatives such as our recently launched subscription service, SoundCloud Go," wrote the spokeswoman in an email. "Both companies facilitate and inspire contemporary culture to happen in real time while reaching millions of people around the world."

Some speculated the investment was an effort by Jack Dorsey, Twitter's chief executive, to increase the company's valuation as rumors circulate about who will acquire it. But Robert Siegel, a lecturer at Stanford University's Graduate School of Business and a partner at the XSeed Capital investment firm, tells the Monitor that the investment is less about its valuation and more about user engagement.

"It's another way for Twitter to dip its toes into the water of more than 140 characters," says Mr. Siegel. "The richness of communication, of Periscope, and Facebook Live, all of these social media platforms, has found new ways to engage us over and over again."

"This is less about a $70-million investment, and more about keeping ties and relationships between Twitter and Soundcloud so users have a richer experience," he says.

Since its founding in 2008, SoundCloud has been at the forefront of a major shift in music consumption, as listeners veer further towards streaming, relying less on CDs and song downloads. But SoundCloud has managed to become more than a free streaming services pioneer: it's now a go-to for musicians and listeners alike, letting artists promote their music to some 175 million users, according to The New York Times.

Originally, however, major record labels didn't like the way that SoundCloud hosted unlicensed content. In March, after SoundCloud signed new licensing deals with record companies and publishers, it launched its long-awaited SoundCloud Go subscription service, offering 125 million tracks for a monthly fee.

This isn't Twitter's first foray into music either, as it has often looked to SoundCloud to push itself more into the industry. The duo first came together in 2012 to let users listen, like, and share songs from SoundCloud without leaving Twitter, reported The Wall Street Journal. (When Twitter tried to go it alone in 2013, its Twitter #Music app flopped, to the disappointment of music executives.) Twitter eyed purchasing SoundCloud in 2014, but let the negotiation deadline expire "because the numbers didn't add up," according to The Journal.

In 2015, Rhapsody International made all of its 32 million songs available to Twitter, the first music streaming service to let people listen to a full library of licensed tunes within the social network.

Twitter's latest endeavor with music is allowing users to listen to SoundCloud within Twitter Moments, where curators such as the music blog Stereogum can create playlists and Tweet about individual songs directly.

Since Mr. Dorsey was named permanent chief executive of Twitter in October, he has attempted to transform the platform into more than just a news feed. Twitter considered allowing users to post Tweets more than 140 characters, and has removed website links and media images from the limit.

Twitter's most recent stake in SoundCloud falls into this trend, Siegel says. How successful it will be will depend on how well it is integrated into Twitter, how easy it is to use, and its end goal: perhaps to try to expose and deliver new music to users, he says.

source: csmonitor

LinkedIn Is The Latest Tech Company To Give Up On The Stock Market

LinkedIn Is The Latest Tech Company To Give Up On The Stock Market

By agreeing to a $196 a share takeover from Microsoft MSFT -2.62%, LinkedIn LNKD +46.64% is taking a mulligan on 2016.

After all, LinkedIn, a must use social network among job seekers and corporate human resource departments, is agreeing to an acquisition that doesn’t even return the company to its beginning of year share price. Some might look at LinkedIn’s $26.2 billion pricetag as a middling feat of deal-making for CEO Jeffrey Weiner and billionaire founder Reid Hoffman.

Philadelphia soda tax sold public interest over health

Philadelphia soda tax sold public interest over health

PHILADELPHIA — In the city of cheesesteaks and soft pretzels, a soda tax that regulates people’s behavior is a hard sell.

But Philadelphia is on the verge of becoming only the second city in the country to pass a tax on soft drinks, thanks to the mayor’s creative approach to push the plan as a way to address some of its other ills, including paying for pre-kindergarten opportunities, rebuilding crumbling recreation centers and creating community schools.

The 1.5 cent per ounce tax on regular and diet sodas is expected to raise $91 million. City council is set to approve the measure at its Thursday meeting.

It’s an approach that could be the key to victory for an idea that has failed twice in Philadelphia and dozens of times in places across the country in recent years — and a new strategy cities have been watching as Philadelphia is poised for a rare victory on an issue that has been unpopular.

“Cities learn from each other,” said Vanessa Williamson, a fellow at the Brookings Institute who studies American attitudes about taxation. “I would be very surprised if other cities weren’t going to think about whether the example set by Philadelphia can apply to their cities as well.”

Indeed, the City of Brotherly Love looked to Berkeley, California — the first city in the country to pass a soda tax last fall — for how they might pull off its own. But Berkeley, a town of less than 120,000, has nearly twice the median household income of Philadelphia and is overwhelmingly white.

In Philadelphia, often cited as the poorest big city in the country, more than 180,000 citizens — many of them children — live in deep poverty and only 45 percent of its 1.5 million residents are white.

“Berkeley’s not Philadelphia,” said City Councilwoman Blondell Reynolds-Brown, who voted against the soda tax in 2010 and 2011, but is supporting the latest version, which includes a tax on diet soda.

“I’m satisfied because the homework says diet soda is more often consumed by non-African-Americans,” said Reynolds-Brown, who is black. “That’s casting the net far wider and more citizens have some skin in the game.”

The case could certainly be made for a healthier Philadelphia — more than 68 percent of adults and 41 percent of children in the city are overweight or obese. But Kenney, a council veteran who ran pledging to establish universal pre-K and took office citing poverty as his top priority, focused on the public interest over public health in making the argument to tax sugary drinks.

“It’s easier to have children get pre-K,” Kenney said, calling whatever health benefits are realized from the tax a bonus. “Americans generally reject other people telling them what’s healthy for them, so we tried to stay away from that. Our intention was to reduce the level of poverty for our city, and we can do that through education.”

And the novel strategy of taking a tax that has traditionally been criticized as preying on poor communities and pledging to use the money to help those same neighborhoods was an argument that helped neutralize some of the racial backlash.

As the debate has swirled around the issue this spring, the optics were stark: On one end were union members honking through town in trucks bearing soda company logos. On the other, toddlers staged read-ins at City Hall in an emotional appeal.

“It made it more difficult because we were viewed as being adverse to children,” said Larry Ceisler, a spokesman for No Philly Grocery Tax, which includes the soda industry. “The mayor basically put a false choice before city council: If you’re for pre-K, you have to be for the soda tax. It was three months of children being paraded out in rallies with crayons.”

Both sides spent millions of dollars lobbying for the issue, with money pouring in from outside of Philadelphia. And the issue also hit the 2016 election when Democratic presidential candidates Hillary Clinton and Bernie Sanders both weighed in ahead of the Pennsylvania primary.

The soda tax needs nine of the council’s 17 votes to become law, and final passage is expected on Thursday.


source: washingtonpost

Private Buffett lunch goes to highest bidder for over $3.4M

Private Buffett lunch goes to highest bidder for over $3.4M

Berkshire Hathaway Chairman and CEO Warren Buffett

OMAHA, Neb. (AP) — For the second time, an anonymous bidder has agreed to pay more than $3.4 million for a private lunch with billionaire Warren Buffett, with the auction proceeds going to a San Francisco homeless charity.

The bid of $3,456,789 from Friday night's winner ties the record highest from 2012, when a bidder also paid $3,456,789 to become the most expensive individual charity item ever sold on eBay.

The weeklong eBay auction to raise money for the Glide Foundation began Sunday and wrapped up Friday night. By midmorning Friday, the bidding reached more than $2.6 million, nearly $300,000 higher than last year's winning bid by Beijing-based Dalian Zeus Entertainment Co.
Six of the past eight winners paid more than $2 million to dine with Buffett, the investor who leads the Berkshire Hathaway conglomerate.

Buffett has raised more than $20 million for Glide. The lunch auctions began after Buffett's first wife, Susie, showed him the charity, where she had been volunteering. Susie Buffett died in 2004, but the connection between Warren Buffett and Glide's founders has endured.

Buffett has praised the foundation's approach in providing meals, health care, job training, rehabilitation and housing support to the poor and homeless.

"I am proud to be part of something that has directly benefited so many people in need," Buffett said ahead of the auction. "Glide is a bridge for thousands of people on the brink of despair, helping them achieve dignity and opportunity by providing them with basic services."

After the auction, the Rev. Cecil Williams, one of Glide's co-founders, said: "We are astonished by the results of this year's auction and send heartfelt gratitude to Mr. Buffett for his deep investment in unconditional love and community."
Buffett has said he gets a wide range of questions at the lunches that usually run for several hours. The only limit on lunch conversation is what Buffett might invest in next, but any other topic is open.

The winners of the lunch auction typically dine with Buffett at Smith and Wollensky steak house in New York City, which donates at least $10,000 to Glide each year to host the lunch. But when the winner wants to remain anonymous, the lunch happens elsewhere.

Buffett's company owns more than 90 subsidiaries including insurance, furniture, railroad, jewelry and candy companies, restaurants and natural gas and corporate jet firms, and has major investments in such companies as Coca-Cola Co., IBM and Wells Fargo & Co.


source: pressofatlanticcity

World Stocks Slip

World Stocks Slip Ahead of China Data, Fed Meeting, UK Vote

HONG KONG — World stock markets slipped Friday as investors shied away from risky assets before the release of Chinese economic data and a Fed policy meeting, and as fears loomed that Britain could vote to leave the European Union.

KEEPING SCORE: European stocks fell sharply in early trading. Britain's FTSE 100 lost 1.2 percent to 6,156.62 while France's CAC 40 fell 1.2 percent to 4,353.64. Germany's DAX slumped 1.6 percent to 9,925.74. U.S. stocks were poised to open lower as Dow futures slid 0.4 percent to 17,807.00 and broader S&P 500 futures fell 0.5 percent to 2,095.10.

FED IN FOCUS: Investors are keenly awaiting the outcome of a scheduled two-day Fed meeting that wraps up on Wednesday. Doubts are growing that U.S. policymakers will raise interest rates soon after Fed chief Janet Yellen said Monday that many lingering uncertainties mean it's unclear when the Fed should resume raising rates.

BREXIT FEARS: Investors are avoiding risk as polls suggest growing support for Britain to quit the European Union ahead of a June 23 referendum on the issue. The uncertainty over how a so-called "Brexit" might affect financial markets is driving investors into safer assets, analysts said.

QUOTEWORTHY: "The market has a number of potential risk events before it," said Ric Spooner, chief analyst at CMC Markets in Sydney. "Chief among these is the Brexit vote on 23 June. Now only two weeks away, the Brexit vote is likely to impact trader behavior in the broader risk markets like equities and commodities."

CHINA DATA: The latest figures for Chinese retail sales, industrial production and fixed asset investment are expected this weekend. The numbers will provide further clues on the direction of the protracted slowdown of the world's second-biggest economy. Export data released earlier this week showed further contraction as global and domestic demand remained weak, underscoring the difficulties officials in Beijing face in trying to reverse the slump.

ASIA'S DAY: Japan's benchmark Nikkei 225 index lost 0.4 percent to end at 16,601.36 while South Korea's Kospi dipped 0.3 percent to 2,017.63. Hong Kong's Hang Seng shed 1.2 percent to 21,042.64 and Australia's S&P/ASX 200 slid 0.9 percent to 5,312.60. Benchmarks in Singapore, Indonesia, the Philippines and Thailand also fell. Markets were closed in mainland China and Taiwan for a holiday.

ENERGY: U.S. crude shed 80 cents to $49.76 a barrel in New York. Brent crude, the benchmark for international oil prices, fell 88 cents to $51.07 a barrel in London.

CURRENCIES: The dollar rose to 106.86 yen from 107.05 yen in late trading Thursday. The euro dropped to $1.1298 from $1.1310.

source: nytimes

The Highest-Rated CEOs In America

These Are The Highest-Rated CEOs In America

Highest Rated CEOs

Mark Zuckerberg still ranks high, but there are a couple of surprises on this year's list. Here's what the best CEOs had in common.

The votes have been counted and analyzed and the winners of Glassdoor’s 2016 Highest Rated CEOs at large companies in the U.S. are in

Mark Zuckerberg claimed fourth place again while Salesforce CEO Marc Benioff made a big move, rising 15 spots to number six from number 21 last year. Google’s Larry Page cinched the number one spot last year, but the company’s new chief, Sunar Pichai, has already inspired employees’ favor coming in at number seven with a 96% approval rating.

The Top 10 Highest Rated CEOs

Bain & Company’s Bob Bechek (99% approval)
Ultimate Software’s Scott Scherr (99% approval)
McKinsey & Company’s Dominic Barton (99% approval)
Facebook’s Mark Zuckerberg (97% approval)
LinkedIn’s Jeff Weiner (97% approval)
Salesforce's Marc Benioff (97% approval)
Google's Sundar Pichai (96% approval)
Apple's Tim Cook (96%)
Nestle Purina Pet Care's Joseph R. Sivewright (96% approval)
Red Hat's Jim Whitehurst (96% approval)

Several leaders made the list for the first time including Nestle Purina PetCare’s Joseph Sivewright, debuting at number nine, NBCUniversal’s Stephen Burke at number 39, and lululemon’s Laurent Potdevin coming in at number 48.

Glassdoor’s ranking isn’t just a popularity contest. According to the researchers who conduct this analysis annually, the results were based on anonymous employees' feedback on the platform through a company review. These employees reported on whether they approve or disapprove of their CEO, as well as provide insight about their job, work environment, and employer over the past year.

In order to be included for consideration, a CEO’s company has to employ at least 1,000 people, have a minimum of 100 Glassdoor-approved company reviews, along with 100 or more CEO approval ratings, and at least 100 senior management ratings, from current and former U.S.-based employees. Reviews are accepted from full-time, part-time, contract, and freelance workers, but not interns.

Employee satisfaction is intimately tied to a company’s culture and values as well as trust in senior leadership, according to another study by Glassdoor. Another study by Edelman indicates that trust is hard-won. Among the other notable findings, trust decreases down an organization’s hierarchy as employees say they trust peers more than CEOs when it comes to company information.

In the case of Bain & Company, employees reported their faith in leadership this way: "Management works hard to make things sustainable" and "Strong leaders are willing to take the time to do the right thing and support developing employees."

Scott Scherr at Ultimate Software inspired similar sentiments. "Scott is the sweetest man alive and that’s why the company has such amazing culture… he takes care of anyone and everyone around him," wrote one employee in outside sales. Another wrote, "Scott started Ultimate 25 years ago and since he put people first way back then, the company today is full of empowered, helpful, and loving employees."

At Facebook, a site selection program manager wrote, "Mark Zuckerberg, Sheryl Sandberg, Chris Cox, and the rest of the leadership team, inspiring, smart and totally real."

Glassdoor career trends analyst Scott Dobroski notes that while this is not the first time female CEOs have made the list, 2016 is the year that has the most women represented. Dobroski points out that in 2013, Victoria's Secret CEO Sharen Turney made the list, and in 2014, both Turney and Yahoo's Marissa Mayer were in the Top 50. No women made the list in 2015, says Dobroski, but Glassdoor recognized the five highest-rated women CEOs, such as General Motor's Mary Barra, who didn’t rank in the Top 50, but were very highly rated by their employees.

Four female CEOs broke through the top 50 (There were none on the 2015 list)

#17 In-N-Out Burger’s Lynsi Snyder
#28 Staffmark’s Lesa Francis
#31 Enterprise Holdings’ Pamela Nicholson
#41 Deloitte’s Cathy Engelbert

Dobroski says that all of the top CEOs share common traits including strong leadership, dedication to company mission, commitment to professional growth opportunities, investment in company culture, and being personable and approachable. He points out that CEOs, like every other person, are unique individuals. "We do see themes that differ on how they lead a company and a workforce independent of what gender he or she is," he notes.

A recent study from DDI, a global HR consulting firm, revealed similar findings. The report indicated that both men and women score similarly in their ability to drive business.

For CEOs making the list for the first time, Dobroski says it is interesting to note that several are leading workforces that cross time zones and boundaries. "When we look at what their employees have to say, we see that they don't mention one-on-one or a lot of face time, " he explains, "but we see employees talking favorably that these CEOs have found a way to consistently communicate with all employees, including letting them know where the company stands, why their work matters and what's coming up next for the business."

At EY, one employee wrote: "Leadership and team members help build a team environment where everyone has a voice. Leadership recognizes individuals for their contributions and provides guidance."

Says Dobroski: "Employees like this in a leader because it reminds them that their work does impact business and lets them know what's on the horizon to motivate them."


source: fastcompany

Stocks 5 things to know before the open

Stocks: 5 things to know before the open

It's looking like a 'meh' day for markets.

U.S. stock futures are slipping, global indexes are in the red and oil's rally appears to have stalled.
Here are the five things you need to know before the opening bell rings in New York:

1. Stocks pause near new highs: The S&P 500 is flirting with all-time highs, having gone 43 days without a major dip. The index is roughly 0.7% away from the key 2,134.72 points level. If it gets above that, the index will set a new record -- its first in more than a year.
The Nasdaq is nearing the 5,000 mark for the first time in 2016 -- although it's not tech stocks driving the rally.
The index closed just under 4,975 points on Wednesday, adding 13 points. It has surged nearly 20% since hitting a 52-week low in February. The last time it was above 5,000 was on December 31.

2. Stock market movers -- Vodafone, Orexigen Therapeutics : Vodafone Group (VOD) is up 1.5% premarket after announcing a $2.4 billion merger between its New Zealand unit and the country's biggest pay-TV provider, Sky Network.
Shares in Orexigen Therapeutics (OREX) are surging 4.7% premarket after the pharmaceutical company focused on treating obesity announced it had won a patent ruling against rival Actavis.

3. Oil steady: U.S. crude oil futures are dipping but holding above $51 per barrel, compared to a mid-February low of $26.05.
Oil prices have risen recently because of supply disruptions. Wildfires in Alberta forced Canadian authorities to close oil sands facilities and evacuate workers. And output in Nigeria also dropped after a wave of attacks by militants on the country's oil infrastructure.

4. Earnings and economics: JM Smucker Co (SJM) and Christopher and Banks Corporation (CBK) are reporting ahead of the open. H&R Block (HRB) and Mattress Firm (MFRM) will report after the close.
The Department of Labor will release its Initial Claims report at 8:30 a.m. ET.

5. Markets overview: European markets are all in the red in early trading. Markets across China and Hong Kong were closed on Thursday because of a holiday. Other Asian markets ended the session down.
On Wednesday, the Dow Jones industrial average ended up 0.4%, while the Nasdaq gained 0.3%. The S&P 500 added 0.3%.

source: money.cnn

US Presses China on Industrial Glut

US Presses China on Industrial Glut at Strategic Dialogue.

US,China, Presidents

U.S. Treasury Secretary Jacob Lew urged China on Monday to cut excess steel production that he warned is distorting global trade as the two sides opened a high-level dialogue overshadowed by tension over the South China Sea.

The annual meeting of Cabinet-level foreign affairs, trade and other officials from both sides is meant to head off conflict. The sides also called for closer cooperation between the two biggest economies on climate change, global finance, agriculture and other fields.

Latest gas price increase

Latest gas price increase.

Experts say we could see an end to this upward gas price trend.

Gas prices increased by six cents over the past two weeks. The current national average price for gas is now two-dollars and 37-cents a gallon. The average price has gone up 60-cents since February, but its 49-cents less than it was last year.

Crude oil costs and summer blend gasoline have both been big contributors to the price hike.

But don’t worry. As long as oil prices don’t jump substantially, experts say we could see an end to this upward gas price trend.

source: wwlp

Large Investors Key to Tribune Publishing's Board Approval

Large Investors Key to Tribune Publishing's Board Approval

Add caption

A majority of participating shareholders at Tribune Publishing (TPUB) on Thursday voted for the company's directors -- a major blow to USA Today publisher Gannett's (GCI) $864 million hostile acquisition effort to buy the Chicago-based company and one that sent a message that the two major U.S. proxy advisory firms and big institutional investors were key deciders in the outcome.
Tribune Publishing issued a statement noting that based on preliminary voting data, all of Tribune Publishing's directors were re-elected to the board noting that "the majority of our voting shareholders agree." The vote was a major blow to Gannett, which last month had launched a so-called "just vote no" campaign against Tribune Publishing's board, urging shareholders to oppose the company's directors at an annual meeting that took place Thursday.
The vote had no binding impact on the company's management or board. However, a large negative vote against Tribune Publishing's directors would have sent a strong message that shareholders wanted the two sides to engage in discussions about a combination.

Neither Tribune Publishing nor Gannett have released the specific details of the "for or against" vote. A vote of opposition by a large minority of shareholders - in the 40% to 49% range - could still be enough to pressure Tribune Publishing to the negotiation table with Gannett. The specific details will likely be released later Thursday or Friday.

Nevertheless, Tribune Publishing's shares traded down on the news, dropping by 5% to $10.99 late Thursday.

The specific vote is critical to understanding the outcome, especially after a small shareholder filed a lawsuit early Thursday seeking to halt a recent sale of a 12.9% stake to Nant Capital founder Patrick Soon-Shiong, a California-based billionaire investor and friend of Tribune Publishing's non-executive chairman. Soon-Shiong was also invited onto the media company's board as vice chairman, a role he is expected to take on Thursday.

Nevertheless, the vote of a majority of shareholders for Tribune Publishing's board did send a message that the two major proxy advisory firms, Institutional Shareholder Services and Glass Lewis, carried a lot of weight in the outcome. Last month, ISS and Glass Lewis recommended that shareholders back Tribune Publishing's board. The two proxy advisers recommendations likely influenced some large institutional investors, such as BlackRock, Vanguard and State Street (STT) , all of which own significant stakes in the company. Their specific votes have not yet been disclosed.

Glass Lewis waded into the debate with a report charging that Gannett has offered "insufficient cause for investors" to support its current campaign and that Tribune Publishing's board "is well positioned to fully evaluate and reject any bids that seem particularly opportunistic." ISS suggested that based on its analysis, that the revised bid still "materially underrepresented the intrinsic value of the company."

The vote of support for Tribune Publishing's board was significant, in part, because at least two large disgruntled investors held large blocks of shares and have urged the media company to engage in negotiations with Gannett. Asset manager Oaktree Capital Group, which owns a 15% stake, on May 6 reported in an activist securities filing that it was urging the media company to "pursue discussions" with Gannett. In addition, Towle & Co., which owns a 4% stake, charges that Tribune Publishing has "abandoned its fiduciary responsibility."

On the other side of the battle, Tribune Publishing's non-executive chairman, Michael Ferro's investment vehicle accumulated a 16.5% stake in the media company in February, in a deal that some shareholders consider to be an illegal effort to thwart Gannett's hostile bid. In addition, Nant Capital's Soon-Shiong last month made a $70.5 million investment in Tribune Publishing in exchange for a 12.9% stake and a board seat, also considered by some to be a blocking stake.

Even with a low vote of opposition, Tribune Publishing could still be driven to the negotiating table as a result of the lawsuit, filed in Delaware Chancery Court on Wednesday. It charges Ferro, CEO Justin Dearborn and the investor, Soon-Shiong, with acting in the interest of personal gain rather than that of shareholders. The lawsuit, filed by Capital Structures Realty Advisors alleges that Ferro sought to entrench himself at Tribune when the company's board issued 4.7 million new shares in the company to Soon-Shiong.

In addition to seeking the halt of the stock sale to Soon-Shiong, the suit seeks to have Tribune Publishing set up a special committee of independent directors to consider Gannett's offer. It also seeks to have the media company "reform" its governance to "prevent outsized control and influence by defendant Ferro."

A person familiar with the situation noted that Capital Structures Realty Advisors owns a stake in Tribune Publishing and is not affiliated with Gannett. It is possible that some other shareholders could file their own lawsuits, in a move that would ultimately result in a consolidated case. Gannett, for example, owns 1,100 Tribune Publishing shares as of a May 16 securities filing, and could file a suit of its own. In addition, it is possible that Oaktree or Towle, the two disgruntled large shareholders, could their own lawsuits.

source: Thestreet

Uber Turns to Saudi Arabia for $3.5 Billion Cash Infusion

Uber Turns to Saudi Arabia for $3.5 Billion Cash Infusion.

Travis Kalanick, chief executive of Uber, which views the Middle East as an increasingly important overseas market.

SAN FRANCISCO — In its quest to build a global empire, Uber has turned to the Middle East for its biggest infusion of cash from a single investor.

Uber said on Wednesday that it had raised $3.5 billion from Saudi Arabia’s Public Investment Fund, the kingdom’s main investment fund. The money was part of the ride-hailing giant’s most recent financing round and continued to value the company at $62.5 billion. The investment does not cash out any of Uber’s existing investors.

As part of the investment, a managing director at the Public Investment Fund, Yasir Al Rumayyan, will take a seat on Uber’s board, joining Uber’s chief executive, Travis Kalanick, and other directors, including Arianna Huffington.

Trump ‘hasn’t been known’ for charitable giving

Bill Gates: Trump ‘hasn’t been known’ for charitable giving.

Bill Gates

Microsoft founder and philanthropist Bill Gates on Wednesday said Donald Trump “hasn’t been known” for his charitable giving.

Gates took the jab at Trump during an interview alongside his wife, Melinda, at a panel discussion hosted by the news outlet ReCode.

“He hasn’t been known for his philanthropy. He’s been known for other things,” Gates said to laughter, when asked if the presumptive GOP presidential nominee had been approached to sign a pledge to give away at least half of his wealth to philanthropic causes.

Gates has focused strongly on philanthropy since stepping down from his executive position at Microsoft years ago. He and his wife have paired up with Warren Buffett to push billionaires to sign “The Giving Pledge,” in which families commit to giving away more than half of their wealth to charity during their lifetimes or in their will.

More than 150 families have signed up for the pledge, including Facebook founder Mark Zuckerberg, Oracle founder Larry Ellison and the top executives at Airbnb and Salesforce.

Melinda Gates, with a smirk, said the couple has not approached Trump, adding that they are still working their way down Fortune’s list of billionaires.

“We don’t have any immediate plans to approach him,” she said. “I think we should probably let this cycle play itself out before we do anything related to that.”

Trump recently sent off $5.6 million in donations — including a $1 million check from his personal account — to veterans groups after he faced increasing questions about his pledge to donate funds raised during a January event that coincided with a GOP presidential debate he skipped.

Trump’s campaign says the candidate has donated more than $100 million to charity over the past several years. But he has so far declined to release his tax returns, which would shed more light on his giving.

source: thehill