News

Dow Jones Rises on Reports Murdoch Has Enough....

Market Speculator — Tue, 31 Jul 2007 09:59:01

Dow Jones Rises on Reports Murdoch Has Enough Votes

By Leon Lazaroff
     July 31 (Bloomberg) -- Dow Jones & Co. shares rose as much
as 11 percent on reports Rupert Murdoch's News Corp. has enough
support from the Bancroft family to clinch its $5 billion
acquisition.
     The stock rose $5.45 to $57.01 at 9:37 a.m. after CNBC
called Murdoch's bid a ``done deal'' and said an agreement would
be completed later today. Family members and trusts representing
more than 30 percent of the voting power indicated to their
lawyers they support a sale, the New York Times said yesterday,
citing unidentified people briefed on the matter.
     The family's decision would clear the way for Murdoch to
fulfill a longstanding goal of acquiring the Wall Street
Journal, the second-largest U.S. newspaper, giving him a
financial news operation to buttress his television and
newspaper holdings in the U.S., Europe and Asia. New York-based
Dow Jones has been in Bancroft family hands for 105 years.
    ``It's a matter of reviving the Journal and spreading the
brand,'' said Hal Vogel, a New York-based media analyst and
author of ``Entertainment Industry Economics.'' ``Under Rupert
Murdoch, there'll be so many opportunities to expand the brand
around the world.''
     The $60-a-share price, worth about $1.23 billion to the
family, represents a 65 percent premium to Dow Jones's closing
price on April 30, a day before the bid was made public. The
shares dropped 13 percent between July 6 and yesterday on
speculation the Bancrofts would oppose the sale.

RBS to Launch Hostile Bid for ABN Amro

Market Speculator — Tue, 29 May 2007 10:44:33

AMSTERDAM, Netherlands (AP) -- A consortium led by Royal Bank of Scotland PLC said Tuesday it will launch a hostile bid of 71.1 billion euros ($95.5 billion) for ABN Amro, topping a friendly offer from Barclays PLC and pressing Bank of America Corp. for control of the Dutch bank's U.S. arm.

The offer by the RBS group is for 38.40 euros ($51.59) per share of ABN Amro Holding NV, mostly in cash. It is at least 10 percent more than Barclays' all share offer worth 34.69 euros ($46.59) at current levels. ABN Amro's shares fell 0.6 percent to 35.87 euros ($48.19), suggesting serious investor doubts about which deal will prevail.

Either bid, if successful, would be the largest in the history of the financial industry.

"We believe we have a particularly comprehensive strategic fit in all of the main markets in which ABN Amro is operating," RBS Chief Executive Fred Goodwin told investors at a conference in London, arguing that the consortium was a better fit than Barclays to invest in and expand ABN's businesses in the future. "We are tall and deep, and they are wide and thin," he said.

ABN Amro's management has separately agreed to sell its U.S. arm, Chicago-based LaSalle Bank Corp., to BofA for $21 billion (15.5 billion euros), with the proceeds going to Barclays as part of its takeover deal. That sale, struck while the consortium bid was on the horizon, was widely seen as a poison pill measure, since RBS's primary interest is in LaSalle.

The offer announced Tuesday is contingent on the LaSalle sale not going forward.

A Dutch court has frozen the sale of LaSalle, saying ABN Amro's management overreached by attempting to sell it without shareholder approval; but BofA has filed suit in a U.S. federal court, saying its purchase contract is enforceable under U.S. law.

An ABN Amro spokesman said Tuesday it had received the consortium's offer but declined to comment further.

The Netherlands' Supreme Court is to issue a decision on an appeal of the sale freeze in July. But now that a prospective offer from RBS is on the table, ABN's shareholders may override the company's management and call for a meeting in 30 days to voice their preference on the LaSalle sale or either offer.

The first hearing in the U.S. case is scheduled for June 15.

Goodwin said the consortium has held "amicable" talks with Bank of America to find a compromise, but they have so far been unsuccessful.

The offer reserves 1 euro ($1.35) in cash per ABN share, or around 1.85 billion euros ($2.49 billion) to pay potential claims or a settlement to BofA.

"We think this is the neatest and most straightforward way of addressing the issues that arise, whatever they may be, in relation to LaSalle," Goodwin said.

RBS and its partners gave details on how they would divvy up ABN and finance the massive transaction. RBS, overseeing the process, would pay 27.2 billion euros ($36.5 billion) to buy LaSalle and ABN's investment banking businesses. To fund that, it would issue 15 billion euros ($20.2 billion) in new shares to ABN Amro shareholders -- the non-cash portion of the consortium's offer -- and raise 6 billion euros ($8.1 billion) more in debt.

Fortis NV of Belgium would pay 24 billion euros ($32.2 billion) for ABN's Dutch operations and asset management business, funding it by a 15 billion euros ($20.2 billion) share issue and taking on 5 billion euros ($6.7 billion) in debt.

The purchase cost is more than half of Fortis's current market capitalization of 44 billion euros ($59 billion). Fortis shares fell 0.8 percent to 31.02 euros ($41.67) Tuesday, continuing a sharp decline that began in April on the potential dilution.

"We have a pretty good view that this is doable" from both a financial and regulatory viewpoint, Fortis Chief Executive Jean-Paul Votron said Tuesday.

Banco Santander Central Hispano SA of Spain would buy ABN's Italian and Brazilian operations for 19.9 billion euros ($26.7 billion), raising up to 10 billion euros ($13.4 billion) with an issue of shares or convertible bonds.

While Barclays CEO John Varley has said the consortium offer amounts to a "carve up" of ABN, Goodwin countered that the consortium's division was a "blindingly obvious" one and that the banks "together expect to deliver benefits for ABN AMRO shareholders which they believe no single buyer of ABN AMRO could match."

He also rejected claims by ABN Chief Executive Rijkman Groenink that the consortium deal was more risky, saying it was actually less risky because each member will have less to swallow, and will be more expert in each of ABN's markets.

Goodwin said fewer jobs would be lost or outsourced in the consortium offer than the 24,000 projected by Barclays and ABN in their agreement.

My 10 Picks

eugj — Wed, 9 May 2007 15:59:20

10 Stocks to BUY right now - jimo - ABY - CDY - EEEI - FAX - GTW - WEL - CHINA - URZ - UMCC.PK - CBAG.OB

CALIFORNIA STATE FRESNO CAMPUS - another shooting

Market Speculator — Tue, 8 May 2007 11:19:17

1 KILLED, 2 WOUNDED IN SHOOTING NEAR CALIFORNIA STATE-FRESNO CAMPUS; POLICE SAY STUDENT GUNMAN CORNERED IN APARTMENT

ROAYL DEFEATED!!!!!!

Market Speculator — Sun, 6 May 2007 16:35:43

SEGOLENE ROYAL CONCEDES DEFEAT TO NICOLAS SARKOZY IN FRENCH PRESIDENTIAL ELECTION

Weekend Reading

eugj — Sun, 6 May 2007 14:56:22

Weekend Reading

By Paul Kedrosky
RealMoney.com Contributor
5/6/2007 2:06 PM EDT
Click here for more stories by Paul Kedrosky

Fidelity Investments
The Trading Institute

CyberTrader
Zecco.com

Charles Schwab
TD AMERITRADE

Good Sunday morning, and welcome to Weekend Reading. As always, here are some articles and papers worth reading. First, however, a look back at the week that just finished, and a look forward to the week ahead.
The major U.S. indices were up again last week, for something like ... well, seemingly forever. The Murdoch Index -- I mean the Dow Jones Industrial Average -- closed the week up 1.1%, while the S&P 500 finished up 0.8%. The Nasdaq Composite gained 0.6%. It was a hodgepodge of things, ranging from media deals to continued strong earnings, that kept the party going, but the effect was the same: The rally was sustained for another week. This is a rally that has the Dow at new records, and the S&P 500 within 50 points of its March 2000 (bubble) high.

Looking forward to next week, it's back to Fed-watching, with Wednesday's FOMC meeting being the highlight. Few sane people think policymakers will actually do anything, but that won't prevent the usual slavish text-parsing of whatever they announce about their decision not to announce anything. Other than that, it's the usual suspects, but the bottom line remains that there is too much money out there, and too few places to put it, so the market continues to be squeezed higher.

Turning to economic indicators, Friday will bring reports for April on U.S. producer prices and retail sales. The former is forecast to be up 0.6%.

Turning to earnings, among the companies reporting and worth watching this week are Cisco (CSCO - Cramer's Take - Stockpickr - Rating), Disney (DIS - Cramer's Take - Stockpickr - Rating) and American International Group (AIG - Cramer's Take - Stockpickr - Rating). Reuters points out that 68.4% of companies reporting in the quarter have beaten estimates.

Finally, here are some articles, papers, and books worth reading:

Editor's note: To access some of these stories, registration or a subscription may be required. Please check the individual links for the site's policy.

Massive Bank of France report on the hedge fund industry is worth scanning. (Bank of France)

High current correlations in the hedge fund industry may not be as ominous as back in 1999. (The New York Fed)

Google (GOOG - Cramer's Take - Stockpickr - Rating) is locating new data centers in the U.S.'s tornado alley. (Byte and Switch)

Summarizing the argument that the U.S. economy has decoupled from the rest of the world. (The New York Times)

Why Rupert Murdoch would be the best owner for Dow Jones (DJ - Cramer's Take - Stockpickr - Rating). (The New York Times)

Dissecting Thomson's (TOC - Cramer's Take - Stockpickr - Rating) bid for Reuters (RTRSY - Cramer's Take - Stockpickr) and the outlook for financial data markets. (Globe and Mail)

Why the Thomson/Reuters deal has been in the works for two years. (Telegraph)

Recency bias and the magazine-cover indicator for stocks. (The Economist)

Novartis' (NVS - Cramer's Take - Stockpickr - Rating) risky and expensive new focus on rare diseases. (Forbes)

There are 16 Wall Street billionaires on Forbes' list of best paid, but only four CEOs. (Forbes)

eBay's (EBAY - Cramer's Take - Stockpickr - Rating) continuing quest to find a new growth leg. (Forbes)

The Fed won't change rates without (a lot) more convincing data. (Bloomberg)

AI, neural nets, and the second (or maybe fifteenth) coming of the market quants. (Bloomberg)

Warren Buffett thinks he has the investing strength of four men. He wants four CIOs. (Reuters)

Wildly speculative column claims 150,000 upcoming layoffs at IBM (IBM - Cramer's Take - Stockpickr - Rating). (PBS/Robert X. Cringely)

A big biotech conference is this week, so what's next in biotech? (Boston Globe)

Forbes' somewhat self-refuting list of the best brokerage analysts. (Forbes)

Barron's picks stem cells, McDermott (MDR - Cramer's Take - Stockpickr - Rating) and Wellpoint (WLP - Cramer's Take - Stockpickr - Rating). (Barron's)

Loose credit is scaring buyout gurus. (Bloomberg/Gilbert)

Tidal power entrepreneurs include hedge fund manager Paul Tudor Jones. (Bloomberg)

BMW is struggling and may lose its No. 1 spot among luxury car makers. (Bloomberg)

David "Prudent Bear" Tice is stubbornly calling for 50% market declines within 3-6 months. (TheStreet.com)

Attacks on Nigerian oil workers continue. (Oil & Gas Journal)

         1 What would best describe your stance heading into the coming week of trading?
  Bullish
Bearish
Neutral

2 Which of these sectors do you think is set to move up in the coming week? --Choose One--Aerospace and DefenseAirlinesAutomobilesBeverages and Food ProductsBiotechnologyCommercial BanksComputers and PeripheralsConsumer NondurablesEnergy Equipment & ServicesHMOs and HospitalsHomebuildingInsuranceIntegrated OilInternet, Software ServicesInvestment Bankers and BrokersMediaMultiline RetailPharmaceuticalsPrecious MetalsSemis, Semi EquipmentTelecom EquipmentTobacco and AlcoholWireless CommunicationsUtilities

3 Which of these sectors do you think is set to move down in the coming week? --Choose One--Aerospace and DefenseAirlinesAutomobilesBeverages and Food ProductsBiotechnologyCommercial BanksComputers and PeripheralsConsumer NondurablesEnergy Equipment & ServicesHMOs and HospitalsHomebuildingInsuranceIntegrated OilInternet, Software ServicesInvestment Bankers and BrokersMediaMultiline RetailPharmaceuticalsPrecious MetalsSemis, Semi EquipmentTelecom EquipmentTobacco and AlcoholWireless CommunicationsUtilities



View the results without voting

P.S. Act Quickly � Special Limited-Time Offer for RealMoney
Be among the next 500 people to subscribe to TheStreet.com RealMoney, where you�ll find investing ideas from over 40+ Wall Street pros, and get this money-saving offer � 20% off the regular price, plus our exclusive stock report, RealMoney�s Top Picks of 2007, FREE! Click here for this special offer.

RELATED NEWS TO THIS ARTICLE
Coming Week: Magnetic Pull
'Mad Money' Culture Quiz
What a Week: Balky Bulls

MOST POPULAR STORIES
1.  Stockpickr: 10 Rocket Stocks for the Long Haul

2.  Stockpickr: Stock Plays for Baby Boomers

3.  Nortel Knocks Out Bears

4.  Chart of the Day: NYSE Euronext

5.  Top 10 China Stocks, While They're Hot

6.  Stockpickr: 10 Insider Buys With Star Power

7.  Stockpickr: Next Online-Ad Takeover Targets

8.  Kass: Don't Buy Big-Caps' Big Move Up

9.  Cramer: Get the Oil Game Plan

10.  Cramer's 'Beat The Street': Crocs, Under Armour

Video on Killer

eugj — Thu, 19 Apr 2007 07:54:45

Unbelievable

http://cosmos.bcst.yahoo.com/up/player/popup/?rn=952695&cl=2435463&src=news

just copy and paste this link in your Address line

Killing at Vir. Tech

eugj — Mon, 16 Apr 2007 12:59:56

Gunman kills 21 on Virginia Tech campus By SUE LINDSEY, Associated Press Writer
2 minutes ago

BLACKSBURG, Va. - A gunman opened fire in a dorm and classroom at Virginia Tech on Monday, killing 21 people in the deadliest campus shooting in U.S. history. The gunman was killed but it was unclear if he was shot by police or took his own life.

ADVERTISEMENT

"Today the university was struck with a tragedy that we consider of monumental proportions," said Virginia Tech president Charles Steger. "The university is shocked and indeed horrified."

The university reported shootings at opposite sides of the 2,600-acre campus, beginning at about 7:15 a.m. at West Ambler Johnston, a co-ed residence hall that houses 895 people, and continuing about two hours later at Norris Hall, an engineering building.

The name of the gunman was not released.

Up until Monday, the deadliest campus shooting in U.S. history took place in 1966 at the University of Texas, where Charles Whitman climbed to the 28th-floor observation deck of a clock tower and opened fire. He killed 16 people before he was gunned down by police. In the Columbine High bloodbath near Littleton, Colo., in 1999, two teenagers killed 12 fellow students and a teacher before taking their own lives.

On Monday, one student was killed in a dorm and the others were killed in the classroom, Virginia Tech Police Chief W.R. Flinchum.

After the shootings, all entrances to the campus were closed and classes canceled through Tuesday.

"There's just a lot of commotion. It's hard to tell exactly what's going on," said Jason Anthony Smith, 19, who lives in the dorm where shooting took place.

Aimee Kanode, a freshman from Martinsville, said the shooting happened on the 4th floor of West Ambler Johnston dormitory, one floor above her room. Kanode's resident assistant knocked on her door about 8 a.m. to notify students to stay put.

"They had us under lockdown," Kanode said. "They temporarily lifted the lockdown, the gunman shot again."

"We're all locked in our dorms surfing the Internet trying to figure out what's going on," Kanode said.

Madison Van Duyne, a student who was interviewed by telephone on CNN, said, "We are all in lockdown. Most of the students are sitting on the floors away from the windows just trying to be as safe as possible."

It was second time in less than a year that the campus was closed because of a shooting.

In August 2006, the opening day of classes was canceled and the campus closed when an escaped jail inmate allegedly killed a hospital guard off campus and fled to the Tech area. A sheriff's deputy involved in the manhunt was killed on a trail just off campus.

The accused gunman, William Morva, faces capital murder charges.

Venezuela Oil takeover

eugj — Fri, 13 Apr 2007 14:45:37

Chavez: Troops to escort oil takeovers Fri Apr 13, 5:32 AM ET

CARACAS, Venezuela - President Hugo Chavez said Thursday that soldiers will accompany government officials when they take over oil projects in the Orinoco River basin next month.

Chavez has decreed that Petroleos de Venezuela SA, or PDVSA, will take a minimum 60 percent stake in four heavy-oil projects in the Orinoco River region and invited the six private companies operating there to stay on as minority partners.

"On May 1 we are going to take control of the oil fields," Chavez said. "I'm sure no transnational company is going to draw a shotgun, but we will go with the armed forces and the people."

The projects � run by BP PLC, Exxon Mobil Corp., Chevron Corp., ConocoPhillips, France's Total SA and Norway's Statoil ASA � upgrade heavy, tar-like crude into more marketable oils and are considered Venezuela's most promising. As older fields elsewhere go into decline, development of the Orinoco is seen as key to Venezuela's future production.

Negotiations over the takeover have yet to yield an agreement and are expected to be difficult as the companies seek a deal that takes into account more than $17 billion in investments and loans related to the projects.

Chavez has been given special powers by congress for 18 months to issue laws by decree in energy and other areas, which he has also used to nationalize the country's biggest telecommunications company and electricity company.

Chavez has justified the nationalizations as necessary to give the government control of sectors strategic to Venezuela's interests.

Latin Stocks to gain

eugj — Fri, 13 Apr 2007 13:17:22

Analysts see Latin American stocks moving higher

By Juan Jose Lagorio

NEW YORK, April 13 (Reuters) - Latin American stock markets, which have outperformed so far in 2007, will keep setting record highs this year, boosted by relatively cheap valuations, solid economic growth, improved domestic finances and high commodities prices, analysts say.

The region has shown the best performance against both developed and emerging markets this year, according to the MSCI all countries world index.

"The strength in Latin America is sustainable ... The valuation is still attractive. Brazil is still one of the cheapest markets in the world" in terms of price over earnings, said Don Elefson, who overseas $1.1 billion in emerging markets assets at the Excelsior Funds.

Reuters Pictures

Editors Choice: Best pictures
from the last 24 hours.
View Slideshow

"Mexico is on the road. The president has finally taken control ... has pushed through some surprise reforms. That'd put Mexico on a better financial (path) looking forward," Elefson said.

The MSCI index shows that Latin American stock markets have risen almost 10 percent this year, more than doubling the world index and the performance of emerging Asian stocks.

The region suffered a major setback in February, when a sharp drop in Chinese shares and problems in the subprime mortgage market in the United Stated raised concerns about the global economic growth outlook.

Since then, Latin American markets have recovered and have marked record highs in countries like Brazil, Mexico and Peru. Continued...

� Reuters 2007. All Rights Reserved

Page 2
Brazil's leading index Bovespa <.BVSP> has risen some 5 percent in 2007, while Mexico's IPC <.MXX> has jumped around 11 percent, Chile's IPSA <.IPSA> has gone up almost 13 percent and Peru's IGRA <.IGRA> has soared almost 47 percent.

Even though the Latin American markets will feel some pressure from the slowdown of the United States' economy, the region still has tools to boost its markets, analysts said this week.

On Wednesday, the International Monetary Fund raised its economic growth outlook for Latin America to 4.9 percent in 2007, up from September's 4.2 percent forecast, pushed by an expansion in Brazil. The growth rate in 2006 was 5.5 percent, according to the IMF.

Also, prices for metals like copper and gold have risen in recent weeks, supported by strong demand from China, and prospects that the demand will become even greater.

Reuters Pictures

Editors Choice: Best pictures
from the last 24 hours.
View Slideshow

And the region is going through a boom in primary and secondary stock offerings. According to a Merrill Lynch report published last week, 2007 could become a record year for Latin American equity offerings.

The brokerage house said based on the annualized first quarter rate it projects 62 transactions worth a total of $18.6 billion for the entire year. "Weakness in LatAm equities (oversupply risk) is not a concern. In our view, appetite ... remains strong," Merrill Lynch wrote in the report.

Standard & Poor's equity market strategist Alec Young recommended on Thursday that investors keep their exposure in emerging markets because of the strong long-term fundamentals of those economies.

EYES ON BRAZIL, MEXICO Continued...

Page 3

Brazil's central bank has been cutting interest rates, which is boosting consumption and fueling a housing boom. The government is also pushing reforms to spur the country's economy.

In Mexico, President Felipe Calderon successfully pushed a pension reform bill through Congress last month and is hoping to use the momentum to pass sweeping changes to one of Latin America's weakest tax systems. Analysts expect the Mexican stock market to go up 20 percent in 2007.

"Obviously, it depends on the reforms. If the fiscal reform advances, I think we might be reviewing that target up," said Alejandro Fuentes, analyst with BBVA Bancomer in Mexico City.

Although the Chilean market is currently expensive -- it has the highest valuation in the region and it is even richer compared to the S&P 500 Index <.SPX> -- Elefson said it was an opportunity for investors looking for high-quality assets.

Reuters Pictures

Editors Choice: Best pictures
from the last 24 hours.
View Slideshow

Analysts predict the Chilean stock market will climb 18 to 20 percent this year.

Analysts said that in Argentina the Merval index could rise between 5 and 13 percent in 2007, mainly supported by the growth of the local economy and steelmaker Tenaris (TENA.BA: Quote, Profile , Research) (TS.N: Quote, Profile , Research), a big producer of tubes for the oil industry.

The biggest winner this year is expected to be once more the Peruvian market, even though it is smaller than regional leaders Brazil and Mexico.

Analysts foresee the IGRA index soaring 50 to 60 percent in 2007 mainly due to the high prices of metals like copper and gold. IGRA rose more than 160 percent in 2006.

"It's more than just the economic growth. It's more than just exports. That's the key" in Latin America, Elefson said. (Additional reporting by Manuel Farias in Santiago, Jorge Otaola in Buenos Aires, Rosario Torres in Mexico City and Ricardo Serra in Lima)