Best Buy’s stock price took a beating today after it announced that the buyout by its co-founder, and largest shareholder, Richard Schulze will be postponed. Shulze apparently needs more time to get his buyout plans finalized and Best Buy claims putting the deal off until after the holidays will be better for both sides. Wall Street seemed to disagree and punished Best Buy’s stock price today.
The finance ministers of all the members of the Eurozone, known as the The Eurogroup, agreed to an additional 34.3 billion euro to be disbursed to Greece in their latest bailout efforts. The Greek bailout and its now infamous austerity measures have dragged on and appear to be a very long-term proposition for the Greek government and its citizens.
As the end of the year approaches Americans concern over whether or not the fiscal cliff will be averted intensify. Democrats and Republicans alike claim they have compromised, yet no agreement has been reached that will put all the negotiating to rest. While most on Capitol Hill have been nothing but pessimistic about beating the clock and getting things resolved by year end, Senate Majority Leader Harry Reid was one of the few optimistic politicians, saying, “I think it’s going to be extremely difficult to get it done before Christmas, but it could be done.”
Virgin Atlantic Airways is selling a 49% interest int the company to Delta Airlines for $360 million in a deal that Delta’s has been contemplating for two years. Sir Richard Branson will still own a 51% controlling share of Virgin Atlantic and he has bet a million British pounds that the Virgin brand will stay alive for at least the next five years.
Ingersoll-Rand announced it will be spinning off its security business from the rest of its operations in a strategic initiative that includes a a $2 billion share repurchase plan and a 31% increase in its dividend and . The Davidson, North Carolina based company generated $14.8 billion in sales in 2011 and has 60,000 employees worldwide.
Google just announced that it will begin charging small and medium sized businesses (SMB) for the use of its Google Apps for business. Google has about 40 million Google Appf for business users and rakes in $1 billion in revenue annually from those users. Google has had a paid premium edition of its service since 2007, but this move to charge all business users has some wondering who’s next to get charged to use Google products.
The payday loan industry has been the subject of many accusations and probes by consumer watchdog organizations. As many as 5.5% of American’s have taken out some kind of payday loan in the last five years, despite the fact that thousands of complaints have been filed with the Better Business Bureau nationwide related to questionable practices in this industry.
These types of loans are so predatory that in 2006 Congress put a ban on lenders offering payday loans to anyone in the military and the Federal Trade Commission warned consumers in 2008 that they could wind up paying 650% interest on payday loans.
Rolls Royce has always stood for luxury, but now they stand accused of corruption in a scandal that could cost them millions. Though best known to consumers for making ultra high end cars, Rolls Royce is the second largest aircraft maker on the planet. The company’s engines and technology power some of the most important military aircraft for armed forces across the globe, but it is now firmly in the sites of the United Kingdom’s Serious Fraud Office (SFO) and the United States’ Department of Justice (DOJ).