Month: September 2012

Navistar International has announced today that its CEO Daniel Ustian, who’s been with the company for 37 years, is retiring immediately. According to the press release, upon Ustian notifying the board of his retirement, they promoted Lewis Campbell as interim Chief Executive Officer, until a replacement can be found.According to the Chicago Tribune, Navistar has been under some scrutiny lately, saying it had to buy engines from a competitor because its own product could not reach emissions standards. In addition, the company has said that it is currently under investigation by the Securities and Exchange Commission for possible accounting problems. Campbell, Ustian’s successor, is the President, Chairman, and CEO of Textron Inc, an industrial conglomerate.

M&T Bank (NYSE: MTB) has announced today that it will acquire Hudson City Bancorp (NYSE: HCBK) for $3.7 billion, a 16% premium on Hudson City’s stock as of Friday’s close. M&T expects the deal to yield approximately $25 billion in deposits and $28 billion in loans. The payment will come from 40% cash, and 60% stock.As a part of the agreement, Hudson City Bancorp will become a subsidiary of M&T, and its current CEO Ronald Hermance will be inducted as a member of M&T’s board. The deal will see M&T expand its reach into to the New York, New Jersey, and Connecticut Tri-sate area, adding a total of 135 branches. M&T is no stranger to bank acquisitions. Since 2009, it has acquired Bradford Bank, Provident Bankshares, and Wilmington Trust.

While General Motors (NYSE:GM) doesn’t plan on notifying customers until early September, the National Highway Traffic Safety Administration has said that the company will recall (over 44,000) 44,668 2012 Chevrolet Sonics. The problem with the vehicles seems to stem from their windshield wiper system.According to the Chicago Tribune, the windshield wiper hose on 2012 Sonics could detach from the fluid reservoir, rendering the hose useless. A non-functioning hose could prevent drivers from clearing their windshields, possibly impairing their vision and causing a crash. The affected vehicles were produced between the dates of May 5, 2011 and February 24, 2012.

Thomas Bravo LLC announced Monday it will be acquiring Deltek Inc. and will take the company private. Bravo will buy Deltek for $890.5 million, paying $13 a share, lower than Fridays closing of $14. Deltek is a supplier of software and information technology, making it the ideal acquisition for Thomas Bravo, which focuses its investements in software and financial services companies. The deal has been approved by Deltek’s 59.5% stock holder, New Mountain Capital LLC, meaning no added approval is necessary. The deal is expected to close in the last quarter of 2012.

While using electronics during takeoff and landing is currently prohibited on commercial flights, that might change. The Federal Aviation Administration is reviewing its policy on electronics and will possibly make a recommendation to allow them during all flight times.According to the Associated Press, the FAA doesn’t actually ban all electronic devices when the plane is under 10,000 feet. Instead, it requires airlines to test devices to make sure they do not interfere with avionics before allowing their use. Due to the high volume of different devices released in this day and age, airlines simply ban the use of electronics, as testing every device would be implausible. The study will begin this fall, and will be made up professionals from tech companies and the aeronautics industry. The FAA did say that cell phone usage is not under consideration, and will remain forbidden.

The White House wants your car to be more fuel efficient, at least your future car. The Obama Administration announced today that it had settled on new fuel-economy standards for cars and light trucks. It will take until the year 2025 for the standards to be implemented wholly, but the White House says the new rules will save Americans $1.7 trillion in fuel costs and will raise the Miles Per Gallon average for all affected vehicles to 54.5. The new standards are not entirely beneficial to the consumer, as Americans will be paying an average of $3,000 more for their vehicles than before, although this will likely be offset by lower fuel spending. According to USA TODAY, the big three Detroit Automakers have shown support for these new rules.

This week, three major IPOs are on the books from both the New York Stock Exchange and the Nasdaq. On the Nasdaq, investors will see GlobeImmune offering 5 million shares expected to price between $11 and $13.

PVH Corp. (NYSE: PVH), formerly the Philips-Van Heusen Corp., reported its second quarter earnings Monday after the bell. The apparel company saw a 31% increase in profits reaching $87.7 million. Excluding certain items, the PVH’s EPS was $1.25, beating analysts estimates of $1.20. Revenue for the quarter was $1.34 billion, in line with analysts’ estimates. The company attributes its strong profits to its Tommy Hilfiger brand, which saw excellent growth through tight profit margins and high revenue. PVH stock is currently up over 5% to just over $93.

Good Morning! You are watching The Financial News Network on FNNO.com, I’m Geoffrey Parrish and here is what’s in the news this morning, September 24th, 2012. According to the Wall Street Journal, as 2012 heads to Q4, money managers who caught the year’s rally are sitting on percentage gains well into the double-digits on stocks. As they look ahead to what could be a choppy few months, some are considering staying on the sidelines for the rest of the year. Also, Toyota (TM) plans to roll out 21 new models powered by electric-gas engines over the next few years and predicted strong sales. Reuters reports that the Chinese ambassador to Canada warned against letting domestic politics drive the Canadian government’s decision on whether to approve a Cnooc’s (CEO) proposed $15.1B takeover of Nexen (NXY). And the Euro zone states are preparing to allow the bloc’s permanent bailout fund to leverage its capital in the same way as its predecessor so it can reach a capacity of more than 2 trillion euros and rescue big countries if necessary, according to Der Spiegel. Bloomberg reports Ford (F) employees, represented by the Canadian Auto Workers, ratified a four-year contract that eliminates most cost-of-living raises in favor of bonuses, extends the time it takes for a new employee to reach full pay, and adds 600 jobs. Finally, Bloomberg also reports that French oil company Total (TOT) plans to sell up to $20B in assets to raise cash for oil and gas projects. This is what’s been in the news this morning. For more updates on this and other stories, please follow us on twitter @fnnonline or check us out on the web at FNNO.com

Once a tropical storm, Isaac has officially ramped up to full hurricane force. Now a category 1 hurricane, residents of the American South-East are expecting strong winds, and coastal flooding. Among those preparing for the worst are republican delegates assembled in Tampa, Florida for the Republican National Convention. Of particular interest to people in all parts of the nation, is the effect the storm will have on gasoline prices. According to CBS News, more than 40% of the United States’ oil refineries are located on the Gulf Coast, half of which are in the storms path. Numerous refineries have ceased production or are considering to do so in response to the hurricane. This shut down could cause gas prices to go up by 5 to 10 cents.