Wed, Dec 16, 2015 - Page 15 News List

World Business Quick Take

Agencies

MEDIA

UMB to sell unit to Cision

UBM PLC said it had agreed to sell its press release distributor PR Newswire to Cision Inc, a business controlled by GTCR Canyon Holdings, for US$841 million, allowing UBM to focus on its events business. UBM, which has been looking to sell the business since April, said it would return £245 million (US$371.3 million) of proceeds to shareholders as a special dividend and use the remaining for bolt-on acquisitions. The deal includes US$810 million in cash and US$31 million of preferred equity, UBM said.

FINANCE

Sumitomo to buy GE arm

Sumitomo Mitsui Financial Group Inc agreed to buy General Electric Co’s (GE) Japanese finance and leasing business for about US$4.8 billion to further expand its operations outside of banking. The purchase by the Japanese lender’s leasing unit is expected to be completed by April next year, the companies said in a statement yesterday. It is the second acquisition of a GE business by Sumitomo Mitsui this year, after it bought the US industrial giant’s European buyout financing arm for US$2.1 billion. The deal is to help the bank’s Sumitomo Mitsui Finance & Leasing Co unit expand in commercial lending, as well as the leasing of automobiles, office equipment and construction machinery.

IMAGING

GoPro falls on ratings shift

GoPro Inc slumped the most in six weeks after Morgan Stanley cut its rating and price target on the stock based on slower consumer pickup of drones and a later rollout of its next-generation action camera. Morgan Stanley analyst James Faucette reduced his rating to underweight and set a price target of US$12, down from US$23. GoPro plunged 9.6 percent to US$17.31 at the close in New York, its biggest drop since Oct. 29. The stock is down 73 percent this year. “Likelihood that high inventory persists into 2016, slower consumer drone opportunity and later assumed HERO 5 compels us to cut estimates,” Faucette wrote in a note to investors.

CLOTHING

H&M profit falls on weather

H&M Hennes & Mauritz AB reported fourth-quarter revenue that missed analysts’ estimates as unseasonably mild weather weighed on demand in North America and Europe. Revenue excluding sales tax reached 48.7 billion kronor (US$5.8 billion), Stockholm-based H&M said in a statement yesterday. Analysts predicted 49.5 billion kronor, according to the average of 20 estimates compiled by Bloomberg. Last month’s sales rose 4 percent in local currencies, which also missed estimates. It is only the second time this year that the retailer’s monthly sales growth has fallen to less than 10 percent. H&M attributed the underperformance to unpredictable weather, including in Germany, where it gets about a fifth of its sales.

CONSUMER GOODS

Newell to buy rival Jarden

Newell Rubbermaid Inc is buying rival Jarden Corp in a US$15.4 billion cash-and-stock deal that creates a global consumer goods giant, the US companies announced on Monday. Newell Rubbermaid, maker of Rubbermaid storage containers, Sharpie pens and Calphalon cookware, said the combination of the two companies into the new Newell Brands would create a powerful portfolio of strong global brands with US$16 billion in annual revenue. Jarden’s brands include Coleman tents, Yankee Candle candles, AeroBed inflatable mattresses, Crock-Pot cookers and Mr Coffee coffeemakers.

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