Regulators, investors turn up heat over Facebook IPO
Reuters - Two top U.S. financial regulators said the issues around the initial public offering of Facebook should be reviewed, putting fresh pressure on the company, its lead underwriter, Morgan Stanley, and the Nasdaq stock exchange.
Facebook shares closed 8.9 percent lower at $31, following an 11 percent plunge on Monday. At that price the company has shed more than $19 billion in market capitalization from its $38-per-share offering price last week.
Stocks to Watch: Hewlett-Packard, Dell
The Street - Hewlett-Packard HPQ , the computer and printer maker, reports earnings after Wednesday’s closing bell and an announcement could be made on a restructuring plan that may include the elimination of as many as 30,000 jobs. Analysts expect HP to report fiscal second-quarter earnings of 91 cents a share on revenue of $29.92 billion.
Computer maker Dell fell short of analysts’ expectations on both the top and bottom lines in its fiscal first quarter. Dell also provided second-quarter revenue guidance below analysts’ views. Dell predicts revenue of between $14.69 billion and $15 billion; analysts are looking for sales of $15.42 billion. Toll Brothers TOL , the homebuilder, posted second-quarter profit of 10 cents a share, a swing from a year-earlier loss of 12 cents. The latest quarter included a tax benefit of $1.2 million. Revenue rose to $373.7 million from $319.7 million. Analysts expected Toll to report earnings of 3 cents a share on revenue of $381 million.
SAP to Acquire Ariba for $4.3 Billion in Push Into Cloud
Bloomberg - SAP AG, largest maker of enterprise- applications software, agreed to buy Ariba Inc. (ARBA) for $4.3 billion in the German company’s second multi-billion purchase in cloud computing to take on Oracle Corp. (ORCL). SAP will pay $45 a share, or 20 percent more than Ariba’s May 21 closing price, Walldorf, Germany-based SAP said yesterday. The transaction, subject to approval by Ariba shareholders and regulators, will probably be completed by the end of August, SAP Chief Financial Officer Werner Brandt said on a conference call.
Euro drops to 21-month low as break up risks mount
The euro fell to a 21-month low against the dollar on Wednesday as investors added to bearish bets on growing concerns about a chaotic Greek exit and widespread skepticism about the outcome from an EU summit due later in the day.
EU leaders are expected to discuss growth-boosting measures at an informal summit but they are not expected to produce any plan that would restore optimism among investors, especially given Germany remains strongly opposed to joint euro bonds.
Indian Stocks Drop to Year’s Low as Rupee Falls to Record
Bloomberg – India’s benchmark stock index fell to near its lowest level this year as the rupee’s decline to a record renewed concern the government will find it difficult to control inflation and the fiscal deficit.
Bharti Airtel Ltd. (BHARTI), the nation’s largest mobile-phone operator, slumped to its lowest level in about two years. Tata Power Co. (TPWR), the largest private utility, tumbled to its lowest price since January after unexpectedly reporting a loss. The rupee touched an all-time low of 56.1875 per dollar.
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