The government and the Fed will make a $12.4 billion minimum profit from the $182.3 billion AIG (AIG) bailout after the Treasury on Monday raised $18 billion after agreeing to sell 554 million shares at $32.50 each; AIG will buy about $5 billion. The government still owns a 21.5 per share in AIG and could an even greater return.
Zynga (ZNGA) announced on Monday that its chief marketing and revenue officer Jeff Karp would be leaving; this came less than a day after its infrastructure CTO had also jumped ship. Zynga’s plummeting stock price has a lot to do with the exits and most likely is also a reflection of the company’s and CEO Mark Pincus. They have both been criticized often.
Morgan Stanley (MS) won a victory after the consultant Perella Weinberg valued Morgan Stanley Smith Barney below $15 billion, reported the NYPost. Morgan Stanley’s had $9 billion valuation for brokerage vs. Citigroup’s $22 billion estimate. Morgan Stanley owns 51 percent of Smith Barney and Citigroup (NYSE:C) has balance. Morgan Stanley will exercise its right to purchase an additional 14 percent and was interested in paying a little as possible.
Qatar Holdings hasn’t decided whether it will support Glencore’s (GLCNF.PK) $36 billion Xstrata (XSRAY.PK) offer an Glencore raises its offer last week. Reuters has reports that Qatar, a top Xstrata shareholder, doesn’t believe it hasn’t immediately make a decision and could wait until it hears the September 24 corporate board’s statement.
Philips Electronics (PHG) raised its cost-savings goal to EUR 1.1 billion from EUR 800 million as it looks to deal with inefficiency at its healthcare and lighting divisions. The conglomerate will also slash another 2,200 jobs on top of the 4,500 cuts it announced last year. Philips disclosed the action ahead of an investor day today.
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