Skip to main content

Opening Bell: 7.13.07

Broadcom Options Probe Shifts to Ex-CEO (WSJ)
Hey executives, listen up: options backdating is a gateway crime. Take the case of the ex-CEO of Broadcom, who is now being investigated for drug use and spiking drinks of clients (with what!?) along with options stuff. The lawyer for Henry Nicholas is wondering why the government is probing into all of this stuff when it has nothing to do with stock options. Guess he just doesn't get it. It has everything to do with stock options. He's just so close to it, he can't see it.
Rahodeb Greatest Hits (CrossingWallStreet)
We just can't stop thinking about the whole John Mackey thing, neither can Eddie, it would seem. He's done us all a favor by listing Rahodeb's greatest hits on the Yahoo message board. So far, our favorite is this one, where he hints that he might be John Mackey. Totally, totally awesome.
Rio-Alcan Deal Pressures Alcoa (WSJ)
It didn't take long for Alcoa to see that the writing was on the wall with respect to Alcan. Theoretically, we suppose, the company could've bested Rio Tinto's offer, but that didn't seem likely. So, without much fanfare, the company had withdrawn its offer, much to the delight of shareholders, who pushed Alcoa stock higher (a pleasant consolation prize). Now analysts suspect that Alcoa could itself be in play, though the company says its plans to continue going dolo.
US files formal case against China on subsidies (China Daily)
(Insert joke about pot, kettle and the color black)

Huntsman to Be Bought by Apollo; Access Deal Scrapped (Bloomberg)
Chemical maker Huntsman has scrapped its plans to be be acquired by Dutch manufacturer Access Industries, instead going to a division of Apollo management. Apollo has built up a big chemicals business through acquisitions, although it's a little surprising that the firm would offer more for Hunstman than another industrial firm. Weren't private equity suitors supposed to be be a lot more discerning when it comes to price?
U.S. trade gap grows as imports rise (LA Times)
The trade deficit jumped in June. So did foreclosures. Worried? All we have to say is this: Dow up 283.86, sucka's.
Jones Apparel's CEO resigns (Philadelphia Inquirer)
The CEO of Jones Apparel is retiring amidst a punk ass retail environment and a takeover bid from Barney's. It's not clear what's going on with the Barney's bid. You have to figure that with all this turmoil going on, the company might just be better off accepting it. That being said, the company hopes to goose sales by selling more through department stores, although analysts remain skeptical.
GE profit up 9.6 percent, to exit subprime (Reuters)
GE announced solid earnings growth due to commercial finance and infrastructure investments. Where it got hurt was in subprime mortgages, a business that it now promises to quit. Of course, quitting the subprime sector at this point is a little bit like a losing poker player that promises never to play again only after losing their entire bankroll. Big deal, real impressive.
Chinese Blogger Arrested Over Stock Tips (Dealbook)
We keep telling our editor over at Dealbreaker China to stop it with the stock tips and stick to the gossip. But he thinks he's the big shot that knows a bunch of stuff. Now he's gonna pay the price.