Blackberry stops its sale while Twitter raises IPO prices. Lululemon faces more problems with its panes. And what industry has some of the most layoffs?
Twitter boosts IPO price to $23 to $25 per share
Reuters reports that Twitter announced today that it has boosted the price range for its IPO to $23 to $25 per share, as it seeks to raise $1.75 billion. The previous range was $17 to $20 per share. Twitter’s IPO is set to price on Wednesday and shares will begin trading on Thursday on the New York Stock Exchange.
Blackberry abandons sale
The Associated Press is reporting that Blackberry has abandoned its sales process and announced it will replace its CEO. Fairfax, Blackberry’s largest shareholder with a 10 percent stake, has announced that it will not buy the struggling company but other investors will inject $1 billion as part of a revised investment process. Current CEO, Thorsten Heins, is stepping down. In September, Blackberry announced that Fairfax Financial had signed a letter of intent that contemplated buying Blackberry for $9 per share, or $4.7 billion. It is assumed that investors looked at the company’s books and backed out of the deal.
Lululemon faces more pant problems
A new batch of complaints, mostly around the Wunder Under and Groove pants, has been haunting Lululemon. Last year, according to CNBC, the store was forced to pull its overly sheer black yoga pants off store shelves. The prior recall is expected to dent 2013 sales from $67 million down to $57 million. The store has created a niche for high-end yoga ware. The current complaints regard piling for the pants identified but, according to the store, has only impacted a small number of clients. Shares closed down 1.8 percent on Friday, ending at $67.85.
Financial firms cutting jobs
Financial firms are cutting tens of thousands of jobs because of a slowdown in the mortgage business, the sluggish economy and the growth of online banking and new regulations. According to USA Today, the sector announced 49,000 layoffs the first nine months of 2013, the most among all industries. The cutbacks represent a reversal from 2011 and 2012 when financial firms had begun contributing to US job growth after recovering more slowly than other sectors. Bank of America recently announced 5900 mortgage-related layoffs since August. Other banks recently announcing layoffs include: Wells Fargo – 6400, Citigroup – 1100, and Suntrust – 800.
Over $1 billion in art looted by Nazis found in Munich
Fox News is reporting that authorities in Munich have found a vast trove of priceless art that vanished during the Nazi regime and today is valued at about $1 billion. German tax authorities found the store of 1500 artworks, including those by masters like Matisse, Picasso and Chagall, hidden in the home of Cornelius Gurlitt, the reclusive son of a Munich art dealer. Gurlitt has been suspected of tax evasion and the art was found after a search warrant was executed upon his home. Although the art was seized two years ago, this is the first time it has been reported.
Catherine S. McBreen is President of Millionaire Corner. McBreen plans and develops content for Millionaire Corner. Catherine balances editorial content to meet the informational needs of both new and seasoned investors. She designs special monthly surveys on topical issues affecting the economic environment.
McBreen has a B.S. in speech communications from Northwestern University and a J.D. from DePail University College of Law. She is a member of the American Bar Association, the Illinois Bar Association, and the Chicago Bar Association.
Well-known for her expertise in the affluent and retirement arenas, McBreen is a frequent speaker at industry conferences. She has been quoted widely by the financial media, including The Financial Times, The Wall Street Journal, Research, Private Asset Management, On Wall Street, Reuters, Bloomberg News, The Dow Jones Newswires and Worth. Cathy has appeared as a guest on CNBC Closing Bell, First Business Morning News, Neal Cavuto at Fox Business News, ABC and CBS radio.
McBreen is co-author with Spectrem President George H. Walper, Jr. of the book "Get Rich, Stay Rich, Pass It On: The Wealth-Accumulation Secrets of America's Richest Families" (Portfolio, January 2008)
Catherine is the mother of four and is involved in many school and community events.