Halliburton continued yesterday’s rebound and is right around the high from January. Relative strength line looking strong.
Halliburton continued yesterday’s rebound and is right around the high from January. Relative strength line looking strong.
(Bloomberg) -- German online retailer Signa Sports United GmbH is in talks to go public through a merger with billionaire investor Ron Burkle’s special purpose acquisition company, people with knowledge of the matter said.Berlin-based Signa Sports has been discussing a deal with the blank-check firm, Yucaipa Acquisition Corp., that could value the combined entity at more than $4 billion, the people said, asking not to be identified because the information is private. Signa Sports is considering an acquisition of U.K. rival Wiggle Ltd. as part of the transaction, the people said.Yucaipa Acquisition, which counts Burkle as its chief executive officer, raised $345 million in its U.S. initial public offering in August, according to data compiled by Bloomberg. No final agreements have been reached, and Signa Sports could opt to pursue talks with a different SPAC if negotiations fall apart, the people said.The German company previously considered an initial public offering in 2018, people with knowledge of the matter said at the time. A representative for Yucaipa declined to comment, while spokespeople for Signa Sports and its parent company didn’t immediately respond to queries.Representatives for Wiggle and its private equity owner, Bridgepoint, declined to comment. Reuters reported earlier Thursday that Signa Sports was speaking to SPACs including Yucaipa Acquisition, citing unidentified people.Signa Sports, backed by Austrian property tycoon Rene Benko, sells sporting goods for cycling, tennis, hiking, and team sports enthusiasts. It runs e-commerce sites under brands including Fahrrad.de, Bikester, Campz, Addnature, Tennis-Point, Outfitter and Stylefile.The firm has around four million active customers and over 200 million visitors each year, according to its parent company’s website. Japanese retailer Aeon Co. agreed to buy a stake in Signa Sports in late 2018.In February, Signa Sports announced a deal to enter the U.S. market with the acquisition of Midwest Sports, an Ohio-based online retailer of tennis goods. At the time, Signa Sports said it was profitable and had increased revenue at a compound annual growth rate of about 30% over the previous three years.The company operates in 17 countries and recorded more than $1 billion of gross merchandise volume in the 2020 financial year, according to the statement.Burkle, who is a co-owner of the National Hockey League’s Pittsburgh Penguins, founded his investment firm Yucaipa Cos. in 1986. He’s completed more than $40 billion of acquisitions in industries including retail, logistics, hospitality and entertainment, according to the prospectus for his SPAC’s initial public offering.The billionaire has previously been involved in takeovers of U.S. grocers like A&P and Fresh & Easy Neighborhood Market Inc. Private members club Soho House is also among his firm’s investments.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
A tech-led rally pushed Wall Street higher on Thursday and Treasury yields extended their pull-back from recent peaks as market participants digested the U.S. Federal Reserve's pledge to stay the course with its dovish monetary policy. The Nasdaq was sharply higher while the S&P 500, while up more modestly, was on track to notch another record high. European stocks touched all-time highs on growing optimism about a global stimulus-driven economic revival and reassurances from the Fed. Emerging market stocks and equities in Asia, aside from Japan, also rose.
(Bloomberg) -- Maplelane Capital, the hedge fund that lost 45% in January in part by shorting GameStop Corp., is starting to recover.The fund rose 6.5% in February and 2.1% in March, according to people familiar with the matter, and ended the first quarter with a loss of 39.5%. The fund benefited from its long and short wagers on technology and consumer-focused companies, one of the people said.In January, Maplelane’s short on GameStop and American Airlines Group Inc. backfired as Reddit-fueled retail investors drove up the price of the companies. The fund has since closed out those positions.Maplelane has made money in 14 of the past 15 months, one of the people said.The $3 billion New York-based firm, run by Leon Shaulov and Rob Crespi, declined to comment.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- China Huarong Asset Management Co. is stepping up efforts to revive investor confidence after persistent questions about the bad-debt manager’s financial health sent its dollar bonds tumbling to record lows.In an emailed response to questions from Bloomberg on Friday, the state-owned company said it has been making debt payments “on time” and its operations are “normal.” The comments came a day after people familiar with the matter said China Huarong has prepared a plan to boost profitability that would avoid the need for a debt restructuring or government recapitalization.While prices for several of China Huarong’s bonds have bounced from their lows on Thursday, the securities continue to trade at historically depressed levels as investors look for more clarity on the company’s finances and overhaul plan. The selloff, which has spilled over to some of China Huarong’s peers, has become the latest test of investor faith in China’s state-owned borrowers after a record-breaking surge in defaults last year.“Too big to fail appears to be an outdated concept in China,” said Deng Hao, chief executive of Beijing GEC Asset Management. For a giant and complex entity like China Huarong, it is risky to assume that default risk is low simply because the Ministry of Finance is the largest shareholder of the firm, he said. His firm does not hold Huarong’s bonds or shares.What’s the company:China Huarong is one of the four state-owned entities set up by China’s government in 1999 to help clean up a banking system riddled with bad debt. It listed in Hong Kong after a $2.5 billion initial public offering in 2015.The firm was left reeling in 2018 after former chairman Lai Xiaomin was accused of bribery and ultimately found guilty of receiving 1.79 billion ($273 million) in illicit payments. Under his watch, China Huarong expanded into areas including securities trading, trusts and other investments, deviating from the original mandate of disposing bad debt. Lai was was sentenced to death in January and later executed.China Huarong has started trimming non-core assets amid regulatory pressure to return to its roots. Net income slumped 92% in the first half of 2020 from a year earlier as the value of some assets dropped in the wake of the Covid-19 pandemic. The company’s market value has tumbled to about $5 billion from $15 billion when it listed.What’s happening:Trading in China Huarong shares and structured products was halted in Hong Kong on April 1, when the company said its 2020 financial results were delayed because its auditor needed more time to finalize a transaction.The bad-debt manager has submitted an overhaul plan to regulators and received positive initial feedback, according to people familiar with the matter who asked not to be identified discussing private information. China Huarong is still determining the value of its stakes in some onshore and offshore units and finalizing which ones will be sold, part of the reason it held off releasing 2020 results, the people said. The company is also awaiting final approvals from Chinese authorities.While China Huarong’s debt recouped some losses after Bloomberg reported details of the overhaul plan on Thursday, yield spreads over comparable Treasuries on several dollar bonds were headed for record closing highs on Friday, a sign of persistent investor skepticism. The firm’s bond due 2030 is indicated at about 420 basis points, compared to 208 basis points at the end of last month, Bloomberg-compiled prices show.Some yuan bonds of Huarong Securities Co., a unit of China Huarong, also plunged to record lows in the onshore market this week, prompting the brokerage to put out a statement reassuring investors that its business environment and operations have had no major changes recently.Why does it matter:China Huarong is deeply intertwined in the nation’s financial markets. A restructuring of the firm would be the most high-profile reorganization of a Chinese state-owned financial institution in recent years.The failure to report annual earnings on time has fueled speculation that the company may have problems unknown to its investors. Uncertainty over China Huarong’s planned overhaul may raise refinancing risks for the firm and its subsidiaries. Investors are paying close attention to any signs of government intervention after Chinese officials recently began dialing back financial support for some state-owned enterprises.SOEs defaulted on a record 81.5 billion yuan of domestic bonds last year, according to data compiled by Fitch Ratings, though most of these companies were affiliated with local or regional governments. China Huarong’s biggest shareholder is the country’s Ministry of Finance.What does the company say:At a brief call held after the earnings delay was announced, China Huarong executives including Vice President Wang Wenjie told investors the firm was operating normally. They said it was inappropriate to publish an unaudited financial report that could not accurately reflect its financial performance.Management also highlighted the bright prospects of the distressed-asset sector due to an expected rise in demand for dissolving financial risk, and flagged opportunities in areas such as corporate mergers and reorganization, bankruptcy restructuring and mezzanine investment. The company didn’t elaborate on its plans in its brief statement to Bloomberg on Friday.What do ratings companies say:Fitch Ratings maintained its A rating and stable outlook on China Huarong in its latest rating report published in June. The assessment “reflects the government’s ownership and very high level of control, which indicates close linkages between the company and its sponsor,” Fitch said.Moody’s Investors Service maintained its A3 rating in a credit opinion released in December. The assumption of a very high level of government support takes into consideration its ownership structure and strategic importance, Moody’s analysts said in the report.Fitch declined to comment when contacted by Bloomberg via email, and a Moody’s analyst wasn’t immediately available to provide remarks.What are traders watching next:China Huarong’s bonds are now in focus. The firm and its subsidiaries have some $42 billion worth of offshore and local bonds outstanding and 41% of that will come due by the end of next year, according to Bloomberg-compiled data. Offshore bondholders may bear the brunt of the fallout if China Huarong faces repayment difficulties because dollar bonds make up about $22 billion of its outstanding notes.Investors are closely monitoring progress on China Huarong’s financial plans and any gestures of potential central government support for the firm. They are also watching for indications that investor angst is spilling into the broader credit market, as well as signs that Chinese banks may change their lending policies to China Huarong.Anything else:Huarong Said to Plan Asset Sales, Avoid Debt Restructuring China Sentences Ex-Finance Chief to Death on Corruption China Huarong’s Credit Risk Deepens as Bonds Extend Losses China Huarong Woes Weigh on Dollar Bonds of Other Asset Managers(Updates bond spread in 10th paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
The e-commerce company Alibaba Group is fined $2.75bn for violating anti-monopoly rules.
(Bloomberg) -- KKR & Co. is leading a $500 million investment in Box Inc. in a deal that will see one of its representatives join the board of the cloud software company.The private equity firm said on Thursday it will receive preferred convertible stock in Box as a result of the transaction, according to a statement that confirmed a Bloomberg News report.While Aaron Levie will continue as Box’s chief executive officer after the deal but will step down as chairman, Box said. He will remain on the board.“The investment from KKR is a strong vote of confidence in our vision, strategy, and continued efforts to increase growth and profitability,” Levie said.Technology executive Bethany Mayer will take Levie’s place as chair. Mayer, who is also a director at Sempra Energy and Marvell Technology Group Ltd., joined the board last year as part of a settlement with activist Starboard Value.“I believe we have the right strategy and right team in place to further cement our leadership position in the market by driving growth, operational efficiency, and shareholder value,” Mayer said.KKR’s John Park, who heads Americas technology private equity at the firm, will separately join the board, which will be expanded to 10 directors.End of ReviewThe proceeds from the investment will be used to fund share buybacks. The agreement with KKR also marks the conclusion of Box’s strategic review.Box fell 8.8% to $22.14 at 10:40 a.m. in New York trading, giving the company a market value of $3.6 billion. The stock is up 47% in the past year.Levie, 36, co-founded Box in 2005 from his University of Southern California dorm room and took the company public a decade later. He’s been chairman and CEO of the Redwood City, California, company since it began.Activist investor Starboard took a stake in Box in 2019, saying the company had underperformed its peers and could be an attractive takeover target. The firm, led by Jeff Smith, owns almost 8% of Box, according to data compiled by Bloomberg. A representative wasn’t immediately available for comment.What Bloomberg Intelligence Says:“This suggests to us that any buyout of Box, similar to Salesforce.com’s proposed deal for Slack, seems unlikely in the near term. Box may eventually end up going private, as its stand-alone growth prospects are pressured by competition from hyperscale-cloud providers including Amazon.com, Microsoft and Google that have bundled cloud offerings.”-- Mandeep Singh, BI senior technology analystClick here to read the research.Starboard reached a settlement agreement with Box last March that saw three new directors join its board. As part of that truce, the activist investor agreed to a standstill agreement, which expired on April 6. Starboard now has until May 11 to decide whether it will put forth additional directors at this year’s annual general meeting after Box extended the nomination deadline last month.Morgan Stanley, Wilson Sonsini Goodrich & Rosati, P.C. and Sidley Austin LLP advised Box.(Updates trading in ninth paragraph; adds details about Starboard in penultimate paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- Indonesia’s Traveloka is in advanced talks to go public through merging with Bridgetown Holdings Ltd., a blank-check firm backed by billionaires Richard Li and Peter Thiel, according to people familiar with the matter.A deal could value Southeast Asia’s online travel leader at about $5 billion, said the people who asked not to be identified because the matter is private. The potential transaction could also involve raising between $500 million and $750 million through a private investment in public equity, or PIPE, the people said. Details including the amount to be raised could change as the companies start discussions with potential investors, they added.Representatives for Bridgetown and Traveloka declined to comment.Shares in Bridgetown Holdings rose about 6% in pre-market trading in New York, extending their 13% gain on Thursday.The deal would make Jakarta-based Traveloka one of the first Southeast Asian unicorns to go public through a special purpose acquisition company, or SPAC. Grab Holdings Inc. is in advanced talks to go that route through Altimeter Capital’s first SPAC, which may value the company at about $40 billion, Bloomberg News reported last month.Read more: Traveloka Is Said to Pick JPMorgan for U.S. Listing via SPACTraveloka was valued in 2020 at around $2.75 billion, according to people familiar with the matter.Bridgetown raised about $595 million in a U.S. initial public offering in October. The company’s sponsor is a collaboration between Thiel Capital, Thiel’s personal investment vehicle based in Los Angeles, and Pacific Century Group, a Hong Kong-based investment company led by Li.Founded in 2012, Traveloka has expanded its reach across six Southeast Asian nations and also covers Australia, making it easier for consumers to book flights and hotels across countries. Like other startups in the region, the company has sought to grow its offering with complementary services, extending into finance alongside its travel, lifestyle and accommodation booking portfolio.Traveloka’s backers include Expedia Group Inc., Rocket Internet, East Ventures, Li’s FWD Group Ltd. and Singapore’s GIC Pte.(Adds pre-market trading in fourth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
The president is being urged to roll more direct aid money into his infrastructure bill.
Stock futures opened slightly higher Wednesday evening, extending a streak of range-bound trading as investors await the start of first-quarter earnings season to confirm the boost to corporate profits expected against an improving economic backdrop.
China's top ride-hailing firm Didi Chuxing has mandated Goldman Sachs and Morgan Stanley to lead its blockbuster IPO and plans to file confidentially for the New York float this month, two people with knowledge of the matter said. Didi, backed by Asian technology investment giants SoftBank, Alibaba and Tencent, is looking to list as soon as July, according to the people. It is eyeing a valuation of at least $100 billion via the initial public offering (IPO), Reuters reported last month.
Melvin Capital is giving the Reddit crowd something to cheer about on a Friday, after the hedge fund rang up a 49% first-quarter loss, according to a report from Bloomberg News on Friday.
Five of the nation's largest banks are asking shareholders to reject racial equity resolution audit less than a year after the Black Lives Matter movement
For all the hard-charging talk about electric cars, you might think that they were taking over the U.S. market. Electric cars there are suddenly 14% of the market, or 23% if we count plug-in hybrids that burn fossil fuel for backup. In the U.S., meanwhile, a $7,500 credit for every electric vehicle phases out after companies sell 200,000 of them, so (TSLA) (ticker: TSLA) and (GM) (GM), the biggest EV players, no longer benefit.
In March, Suze Orman said "don't you dare" invest your $1,400 check in the stock market.
The Honest Co., the consumer-products company co-founded by actress Jessica Alba, has filed for an initial public offering.
After a volatile first quarter, Q2 has kicked off in style, and the major indexes sit at – or hover near – all-time highs. The government bond market has also been steadying as yields have pulled back after rising higher earlier in the year, soothing investor fears that inflation could get out of hand. Moreover, the economic recovery seems to be gathering steam at a faster pace than anticipated. “We had been expecting the data to improve about this time, and early signals are that the recovery is absolutely on track,” said Hugh Gimber, J.P. Morgan’s global market strategist. “This is the period where the forecast of a strong recovery in growth is starting to look more like the fact of a strong recovery in growth.” Against this backdrop, the analysts at J.P. Morgan have pinpointed 2 names which they believe are set for strong growth in the year ahead; both are expected to handsomely reward investors with at least 80% of gains over the coming months. We ran them through TipRanks database to see what other Wall Street's analysts have to say about them. Tencent Music Entertainment (TME) We’ll start in China, where Tencent Music Entertainment is the offspring of China’s giant online venture company, Tencent, and Spotify, the Swedish streaming company that makes music and playlists easy. Tencent Music has seen consistently strong sales and earnings for the past year, with the top line growing year-over-year in each quarter of 2020. The Q4 report showed $1.26 billion in the top line, the highest in the last two years, along with 12 cents per share in earnings, up 33% year-over-year. Strong streaming revenue, which showed 29% growth, helped drive the results. And, Tencent Music, through its variety of apps, is the top music streaming service in the Chinese online market – as shown by the 40.4% yoy increase in paid subscribers during Q4. In its quarterly results, the company reported 4.3 million net new users in Q4, to reach 56 million active premium accounts across its apps. That said, the stock has pulled back sharply recently, as like many other high-flying growth names, worries regarding an overheated valuation have come to the fore. But pullbacks often spell opportunity, and covering the stock for JPM, Alex Yao notes the strong subscription growth, as well as the potential in the company’s other businesses, online ads and long-form audio, for monetization. “We believe TME is entering a healthy development cycle with successive growth engines: 1) music subscription remains the core revenue driver with consistent paying ratio improvement, 2) ads revenue ramps up quickly, and 3) active investments in long-form audio initiative, which could become a new growth driver in 2022 and afterwards," Yao noted. To this end, Yao puts a $36 price target on TME, suggesting a one-year upside of 84%, to back his Overweight (i.e. Buy) rating on the stock. (To watch Yao’s track record, click here) Overall, TME has a thumbs up from Wall Street. Of the 11 reviews on record, 7 are to Buy, 3 are to Hold, and 1 says Sell, making the analyst consensus a Moderate Buy. The shares are priced at $19.50, and their $30.19 average price target implies an upside of 55% for the months ahead. (See TME stock analysis on TipRanks) Y-mAbs Therapeutics (YMAB) The next JPM pick we’re looking at is Y-mAbs, a late-stage clinical biopharma company with a focus on pediatric oncology. The company is working on the development and commercialization of new antibody-based cancer therapeutics. Y-mAbs has one medication – Danyelza – approved for use to treat neuroblastoma in children age 1 and over, and a ‘broad and advanced’ pipeline of drug candidates in various stages of the clinical process, as well as five additional products in pre-clinical research stages. Having an approved drug is a ‘holy grail’ for clinical biopharmaceutical companies, and in 4Q20 Y-mAbs saw considerable income from Danyelza. The company announced at the end of December that it had agreed to sell the Priority Review Voucher for the drug to United Therapeutics for $105 million. Y-mAbs will retain the rights to 60% of the net proceeds from the sale, under an agreement with Memorial Sloan Kettering. Also in December, the company announced a license agreement with SciClone. The partnership gives Y-mAbs and Danyelza an opening for treating pediatric patients in China. The agreement includes Mainland China, Taiwan, Hong Kong, and Macau, and is worth up to $120 million for Y-mAbs. The company has entered other agreements making Danyelza available in Eastern Europe and Russia. Danyelza is Y-mAbs flagship product, but the company also has omburtamab in advanced stages of the pipeline. This drug candidate saw a setback in October last year, when the FDA refused to file the company's Biologics License Application, proposed for the treatment of pediatric patients with CNS/leptomeningeal metastasis. Y-mAbs has been in steady communication with the FDA since then, with a new target date for the BLA at the end of 2Q21 or early in 3Q21. These two drugs – one approved and one not yet – form the basis of the JPM outlook on this stock. Analyst Tessa Romero writes, “Our thesis revolves around the de-risked nature of the pediatric oncology pipeline. Our recent KOL feedback is enthusiastic about use of lead asset Danyelza in patients with high-risk neuroblastoma (NB). For second lead asset omburtamab in NB metastatic to the central nervous system (CNS/LM from NB), while the ‘Refuse to File’ last year and subsequent regulatory delays were certainly disappointing, we still see a high probability of approval for the product in the 2Q/3Q22 timeframe…” Looking ahead, Romero sees an upbeat outlook for the company: “Coupling our anticipation of a healthy launch for Danyelza, with regulatory/clinical momentum expected in the near- to mid-term, we see shares poised to rebound and see an attractive buying opportunity at current levels.” The analyst puts a $52 price target on YMAB shares, implying an upside of 86% for the year ahead, and supporting an Overweight (i.e. Buy) rating. (To watch Romero’s track record, click here) Overall, the Wall Street reviews break down 3 to 1 in favor of Buys versus Holds on Y-mAbs, giving the stock a Strong Buy consensus rating. The shares have an average price target of $61.25, suggestive of a 121% upside potential this year. (See YMAB stock analysis on TipRanks) To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
(Bloomberg) -- The battle for control of Arm Ltd.’s China business is escalating with new lawsuits aimed at keeping the unit’s controversial chief executive in power, further complicating SoftBank Group Corp.’s efforts to sell the business to Nvidia Corp.The dispute erupted almost a year ago in June after the board voted to oust Arm China Chief Executive Officer Allen Wu for conflicts of interest, but he refused to leave. Now the Chinese unit, which remains under Wu’s control, has filed lawsuits against three senior executives the board designated to replace him, according to people familiar with the matter. The previously unreported suits could take years to resolve, suggesting Wu may remain entrenched.Wu fired the three men -- including co-CEO Phil Tang -- but they were subsequently reinstated by the board. In the new lawsuits, Arm China is suing the trio, demanding they return company property, according to the people.Arm China declined to comment on any ongoing legal cases or possible settlement talks. It did say the three executives had caused “material damages” to the company and they had been terminated for legitimate reasons.Tang didn’t return requests for comment. Arm Ltd. declined to elaborate, saying it won’t comment on pending legal matters.The complex tussle has thrown into question the future of Arm, whose semiconductor technology is the world’s most widely used for smartphones and is increasingly deployed in computers. SoftBank founder Masayoshi Son agreed to sell the British chip designer to Nvidia for $40 billion last year, but the path for completing that transaction is growing increasingly difficult.The China dispute also raises questions about Beijing’s willingness to protect foreign investment in the world’s second-largest economy. Arm Ltd. sold a majority stake in the China unit to a consortium of investors, including Beijing-backed institutions. That has complicated the British firm’s efforts to manage Arm China and Wu, who has support from local authorities in Shenzhen.Both sides appear to be at a stalemate. Wu, a Chinese-born U.S. citizen, pulled back from signing settlement agreements worth tens of millions of dollars if he would leave the company, the people said, asking not to be identified talking about legal matters. At the same time, two minority shareholders in Arm China linked to Wu have filed lawsuits to overturn his June 4 dismissal, they said.SoftBank opened negotiations with him last year and had hoped to reach some sort of resolution, they said. Instead the court battles are deepening and the Japanese company has soured over the increasingly complicated dispute, the people said. SoftBank is now resigned to letting the legal proceedings take their course and there are no current negotiations with Wu, according to one of the people.“We are going through a leadership change in China; it’s taking time to resolve,” said Arm Ltd.’s Chief Executive Officer Simon Segars in an interview with Bloomberg Television recently. “It’s hard. But we are confident that’s going to get resolved.”SoftBank and Nvidia declined to comment on the dispute in China.Arm China said in a statement that Wu’s position “is compliant with legal registration and confirmed by China law and regulations.”Read more: Arm Takes Aim at Intel Chips in Biggest Tech Overhaul in DecadeThe standoff accords a relatively unknown executive outsized influence over one of the industry’s most important pieces of technology, in the world’s biggest internet and semiconductor market. Chinese companies need unfettered access to Arm’s products to push forward with the country’s attempts to make itself more independent in chip technology, an area where it’s largely reliant on imports. Beyond resolving the stalemate, Nvidia and SoftBank also need Beijing’s signoff to seal their deal, and it’s unclear whether Wu’s presence would complicate that.Wu’s hold on Arm China is partially due to local laws which make it difficult to change control of a company unless you’re physically in control of the company stamp and registration documents. He’s refused to give them up and has used company funds to pay for legal fees incurred in his attempt to fight off his dismissal, the people said.Arm China said payment of legal fees “is made in compliance with company policies as well as China laws and regulations.”His ultimate goals appear to be a large cash payoff and immunity from subsequent legal action, according to people who’ve spoken with him. Inside Arm China, which is responsible for selling licenses to its chip designs and fundamental technology in the country, Wu has told local staff he’s not going anywhere. He recently gave employees Chinese New Year cash presents in a red envelope with his surname on it.Arm China said the money came from Wu personally to show his appreciation to colleagues, a tradition at Chinese New Year in the country.Hearings in the case against the three executives are expected to take place in late May, one of the people said. Separately, two minority shareholders in Arm China have sued the Chinese entity in Shenzhen to nullify the board’s decision to oust Wu. These two cases are now being merged and hearings are slated for late April, the people said.Son told investors as recently as February that he expects to close the Arm sale and “I don’t have any Plan B.”Arm, for its part is trying to make sure that its technology remains pervasive in China despite U.S. sanctions intended to curb the supply of American technology to major companies like Huawei Technologies Co. While Arm is a U.K.-based company part of its operations are in the U.S. making its products subject to controls.The Chinese government has not stated its position on the Arm China leadership struggle, but the unit has several government-backed shareholders including sovereign wealth fund China Investment Corp. and the Silk Road Fund.In his interview with Bloomberg Television, Arm Ltd. CEO Segars said that the ten-month standoff hasn’t hurt Arm’s business in China. Lack of travel for face-to-face meetings during the pandemic has prolonged the process of changing leadership in China, he said.“When we announced the deal in September, we said it would take about 18 months,” he said. “We remain confident in that timeline.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Wealthy investor Mike Novogratz says that the U.S. has its fate in its own hands but will be at a dire competitive disadvantage if it doesn't come up with a digital dollar soon.
USD/CAD is testing the support level at 1.2590.
Forward-thinking companies such as Tesla and Square see value in blending cryptocurrencies into their business models—but for now, they’re mostly taking baby steps.