SABMiller Says AB InBev’s Proposal of $104 Billion Undervalues Brewer (WSJ)
Market leader Anheuser-Busch InBev NV went public with a takeover proposal for SABMiller PLC that valued the company at up to $104 billion after winning over its biggest shareholder, but the world’s No. 2 brewer said the price was too low. A combination of the two companies would create a beer behemoth with unrivaled scale and reach, bringing brands like Budweiser and Stella Artois, which have been languishing in key markets, into new corners of the globe.
The Family That May Hold the Key to a Beer Deal (Dealbook)
It’s unusual to have the fate of a $104 billion takeover campaign rest in the hands of one family. But in the case of SABMiller, its future lies in part with a wealthy Colombian clan that is one of its biggest shareholders. That would be the Santo Domingo family, whose immense wealth has been tied to the canny way it came to dominate that country’s beer market. And a shrewdly constructed deal to sell their company to SABMiller a decade ago has now given it an outsize role in determining whether Anheuser-Busch InBev’s acquisition of the brewer will succeed. As of now, the family controls a roughly 14 percent stake, putting it behind only the tobacco giant Altria, which owns 27 percent. Yet the two have diverged in their responses to Anheuser’s latest takeover offer of roughly £42.15 a share. While Altria has declared that it is happy with Anheuser’s bid, the Santo Domingos, who hold two seats on the SABMiller board, have sided with the company in fending off the bigger brewer’s advances.
Goldman Sachs Earnings Are Moving to Twitter (WSJ)
The Wall Street firm plans to disseminate its quarterly earnings statement next week through its website and Twitter feed, eschewing the independent business wires that for decades have been the preferred medium for sending out corporate news releases. Those distribution companies have hit a number of glitches lately, including several instances in which sensitive client information was released early and one in which they were targeted by hackers.
Clinton to propose tax on high-frequency trading (Reuters)
The tax would target securities transactions with excessive levels of order cancellations, which destabilize the markets, a campaign aide said. "The growth of high-frequency trading has unnecessarily burdened our markets and enabled unfair and abusive trading strategies," the aide said. Clinton said at an Iowa campaign stop on Tuesday that she would lay out her plan to rein in Wall Street "abuses" within the next week.
Man, 53, Calls 911 To Complain That His Girlfriend Will Not Have Sex With Him (TSG)
A South Carolina man called 911 early this morning to complain that his girlfriend would not have sex with him, according to an arrest report. When a cop responded to his Spartanburg residence, Patrick Doggett, 53, “stated he called 911 because his girlfriend, Ms. Faye Woodruff, would not give him any ass.”
Goldman, Morgan Stanley win back hedge fund trading business (Reuters)
Goldman Sachs and Morgan Stanley are winning back the trading business of hedge fund clients that they lost to European rivals during the financial crisis, as new capital rules spur banks like Deutsche Bank to scale down their businesses. The two U.S. banks together now have about 37 percent of the market for trading with hedge funds and financing positions, known as "prime brokerage," up about 6 percentage points from the end of last year, according to research firm Preqin.
Blackstone in $39 Million SEC Settlement (WSJ)
The SEC said Wednesday that the New York firm failed to sufficiently disclose to its fund investors details about big one-time fees Blackstone collected from companies it sold or took public, as well as discounts the firm received on some legal fees that weren’t passed on to the fund investors. Nearly $29 million of the settlement will be distributed to affected fund investors, the SEC said.
BlackRock Calls for Halting Stock Market to Avoid Volatility (Bloomberg)
BlackRock Inc., the world’s biggest asset manager, has its own remedy for days of extraordinary volatility in the U.S. equity market: Shut it down. Among the fund company’s suggestions: The entire $23 trillion market should automatically come to a halt if a certain number of shares stop trading, giving traders time to regroup on a wild day, according to BlackRock. Tweaking the rules on halts and making all stock openings electronic are among other ideas in a paper published Wednesday by the firm.
Luke Gatti reportedly expelled from UConn for mac and cheese tantrum (DTM)
By now everyone has seen the nine minutes of YouTube footage depicting an intoxicated 19-year-old Luke Gatti, as he assaults and belittles the manager of University of Connecticut’s Union Street Market cafeteria while begging for an order of jalapeno bacon mac and cheese. The video ends as a police officer puts the kid in handcuffs and escorts him off campus. Gatti was charged that Sunday evening with a breach of peace in the second degree and criminal trespassing. And, as a result of the minor’s intoxication and misconduct, Gatti was reportedly expelled from the University of Connecticut.