Broadcom in Talks to Sell Computing Unit, Alcoa Acquires Alumina for $2.2 Billion, and Latest News
February 26 2024 - 5:55AM
IH Market News
Broadcom (NASDAQ:AVGO) –
Broadcom is nearing a $3.8 billion deal with
KKR & Company (NYSE:KKR) to sell its end-user
computing unit. The CEO is looking to streamline the portfolio
after acquiring VMware. The deal could be announced on Monday, with
KKR leading the auction.
Alcoa (NYSE:AA) – Alcoa has
made a $2.2 billion proposal to acquire all the shares of its
Australian partner Alumina (ASX:AWC), aiming to
simplify its operations and gain more upstream exposure. The
proposed deal offers Alumina shareholders a 31% stake in the
combined company, with Alcoa targeting tax
benefits and global growth options.
General Motors (NYSE:GM) – GM
unveiled the luxurious electric Cadillac Lyriq in France, expanding
its European presence, and will soon reach other European markets.
With sales exclusively online, the move challenges the European
market with Chinese competitors. Prices for France have not yet
been announced.
Stellantis (NYSE:STLA) –
Stellantis has struck a deal with Ayvens to sell
up to 500,000 vehicles in Europe over three years. Flexibility in
the deal’s details aims to meet fleet demand. Brands such as Alfa
Romeo, DS, Fiat, Opel, Peugeot, and Vauxhall will be offered,
promoting sustainable choices.
Ryanair (NASDAQ:RYAAY) –
Ryanair was scheduled to receive 57 Boeing MAX
8200 planes by April, but Boeing (NYSE:BA)
informed the company that only about 50 aircraft would be delivered
by June. This may affect Ryanair‘s summer plans,
resulting in flight cuts and potential fare increases. CEO Michael
O’Leary has strongly criticized Boeing for the
lack of communication and unfulfilled promises, suggesting the
company could accept planes canceled by other airlines. The impact
of supply chain delays is pressuring fares, and costs for customers
are expected to rise. Ryanair is seeking
compensation from Boeing while trying to address
the aircraft delivery challenges.
Norwegian Cruise Line Holding (NYSE:NCLH) – A
Norwegian Cruise Line ship was detained in the
Mauritius Islands after several passengers fell ill. Embarkations
and disembarkations were delayed for two days due to mild stomach
illness symptoms. Local authorities assessed the situation due to
100 cases of diarrhea on board.
Intuitive Machines (NASDAQ:LUNR) –
Intuitive Machines shares plunged 32% in
pre-market trading on Monday following the disastrous lunar landing
of the Odysseus module, highlighting the volatility of small-cap
stocks. Despite the setback, NASA praised the feat, marking the
first American lunar landing in 50 years.
Super Micro Computer (NASDAQ:SMCI) – Driven by
its success in the market, Super Micro Computer
issued $1.5 billion in zero-interest convertible bonds with a 37.5%
conversion premium. This issuance, the first of its kind since
2022, reflects strong investor demand and offers the company
significant advantages. Shares are up 2.8% in pre-market trading on
Monday.
AT&T (NYSE:T) – AT&T
will offer a day of free service to customers after an outage
lasting more than 10 hours that affected over 70,000 users. CEO
John Stankey considers this measure appropriate and manageable, as
the company investigates the failure, ruling out a cyberattack.
Berkshire Hathaway (NYSE:BRK.B) – In his annual
letter to shareholders, Warren Buffett assured that
Berkshire Hathaway is a lasting financial fortress
despite Charlie Munger’s passing. Buffett praised successor Greg
Abel and remembered Munger’s influence. Berkshire
Hathaway acquired the remaining 20% of Pilot Travel
Centers for $2.6 billion, totaling about $13.6 billion, after a
legal dispute over the price. Berkshire reported a
significant increase in operating profits in the last quarter,
driven by gains in the insurance sector, raising its cash reserve
to record levels. Operating profits reached $8.481 billion, 28%
higher than the previous year. The cash reserve hit $167.6
billion.
Sumitomo Mitsui Financial Group (NYSE:SMFG),
Jefferies Financial Group (NYSE:JEF) – The CEO of
Sumitomo Mitsui is considering expanding the
partnership with Jefferies Financial to Asia,
aiming to catch up with Japanese rivals in developing overseas
investment banks. The collaboration has already yielded over 30
deals since April, with plans to extend to Europe.
Goldman Sachs (NYSE:GS) – The sovereign wealth
fund of Abu Dhabi, Mubadala Investment Company, has closed a $1
billion deal with Goldman Sachs to explore private
credit opportunities in Asia. The partnership aims to invest in the
Asia-Pacific region, with a focus on India, through the Goldman
Sachs Alternatives Private Credit division. Mubadala, seeking to
expand its presence in private credit markets, strengthens its
exposure in the Asian region, while Goldman Sachs
extends its operations in the area.
Alibaba (NYSE:BABA) – Following an SEC
investigation, Alibaba revealed that several of
its entities have stakes in Chinese state-owned companies or
foreign sovereign wealth funds. This coincides with increased
Chinese government control over tech companies and intensifies
investor concerns and scrutiny in the US.
Li Auto (NASDAQ:LI) – Li Auto
will release its fourth quarter and 2023 full-year results after
the market closes on Monday. Revenue is forecasted at $5.59
billion, with an estimated quarterly net profit of CNY 2.65
billion.
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