SoftBank Will Sell at Least $7.9 Billion of Alibaba Stake (Bloomberg)
SoftBank has established a new trust with the intention of divesting $5 billion in Alibaba’s American depositary receipts in a private placement “to qualified institutional buyers,” the Japanese company said in a statement Tuesday. SoftBank will also sell $2 billion in shares back to Alibaba, $400 million to members of the Alibaba Partnership of senior executives and $500 million to a major sovereign wealth fund.
Buffett Awaits $8 Billion of ‘Bad News’ With Kraft Heinz Payment (Bloomberg)
Warren Buffett is about to get back the $8 billion -- plus a little extra -- that his Berkshire Hathaway Inc. invested in Kraft Heinz Co. “That will be good news for Kraft Heinz,” he wrote in his most recent annual letter to shareholders, “and bad news for Berkshire. It’s easy to see why. The packaged food giant is paying Buffett’s company 9 percent, or $720 million annually, on the stake -- an attractive return at a time when the billionaire has struggled to find large investments, and the cash on Berkshire’s balance sheet earns almost nothing.
N.Y. Mets owners reach revised deal with Madoff trustee (Reuters)
The owners of the New York Mets baseball team have reached a revised agreement with the trustee seeking to recoup money for the victims of Bernard Madoff's fraud that gives them more time to pay up to $61 million, the parties announced on Tuesday. The deal came four years after a group including brothers-in-law Fred Wilpon and Saul Katz, the owners of the Mets, reached a settlement to pay a maximum of $162 million as a trial in federal court in Manhattan was set to start in a lawsuit by trustee Irving Picard.
Bets on Fed Move This Summer Surge (WSJ)
Wagers on rising U.S. rates last week hit their highest level since 2014, according to a report from TD Securities on eurodollar futures trading. A separate market, for federal-funds futures, is now pricing in a 58% likelihood of a Federal Reserve rate move at July’s policy meeting, up from 28% a month ago, according to CME Group data.
HBO sues P0rnhub for posting ‘Game of Thrones’ sex scenes (NYP)
While the show continues to push the boundaries for racy onscreen encounters, its producers don’t want their Emmy-award winning actors featured on the smut site. “HBO is aware of the issue and is in the process of getting material taken down from P0rnhub,” an HBO spokesman told The Sun. P0rnhub decided to explore the world of fire and ice and naked breasts after a report came out last month saying that online porn viewing dropped about 4 percent, or by a million people, in the hour before “Game of Thrones” sixth season premiered a few weeks ago. Viewing levels weren’t back to normal for another four hours.
Pension Funds Pile on Risk Just to Get a Reasonable Return (WSJ)
To even come close these days to what is considered a reasonably strong return of 7.5%, pension funds and other large endowments are reaching ever further into riskier investments: adding big dollops of global stocks, real estate and private-equity investments to the once-standard investment of high-grade bonds. Two decades ago, it was possible to make that kind of return just by buying and holding investment-grade bonds, according to new research.
Small Banks Are Doing Well, So Why Aren’t They in Better Shape? (WSJ)
In some respects, community banks—typically banks under $1 billion in assets, or over $1 billion but serving a limited geographic area and focusing on local lending and deposits—have little to complain about. Their earnings rose 9.7% last year, better than industrywide growth of 7.5%, according to Federal Deposit Insurance Corp. data. Community banks’ loan portfolios grew 8.6%, versus the industry’s 6.4%. But according to FDIC data, banks under $1 billion in assets still had less in net income last year than they did in 2007, while the industry’s 2015 earnings were up 55%. Banks under $1 billion have 18% less in loans than in 2007; banks as a whole have 12% more.
Dell Buyout Deal Shortchanged Shareholders, Court Rules (Dealbook)
Three years after Michael S. Dell and the investment firm Silver Lake took Dell Inc. private, a Delaware judge has decided that the $24 billion deal was 21 percent too cheap. That said, most investors who held shares in the computer company at the time of the takeover will not be able to collect, owing to the intricacies of Delaware corporate law. In an opinion published on Tuesday, Vice Chancellor J. Travis Laster of the Delaware Court of Chancery found that Dell shares were worth about $17.62 at the time of the 2013 leveraged buyout, rather than the $13.75 that Mr. Dell and Silver Lake paid.
Divorced Dad Tries Paying Child Support With Pizza, And Court Is Cool With It (HP)
When Nicola Toso split from his wife Nicoletta Zuin in 2002, he agreed to pay child support for their daughter, who was then 6 years old, according to the Daily Telegraph. The local Il Gazzettino newspaper reported that the amount was 300 euros, or about $335, per month. But when a crippling recession struck the southern European country in 2008, the 50-year-old professional pizza maker from Padua could no longer afford to hand over the support in cold, hard cash. Instead, he offered to stump up the equivalent sum in the form of pies, calzones and other meals made by his take-away business. “In lieu of money, the defendant offered his ex-wife the same amount of compensation in the form of take-away pizzas from his workplace, an offer promptly rejected as ‘beggar’s change,’” said Judge Chiara Bitozzi in her ruling. According to the Independent, Toso went on to remarry and have three more children. He shuttered his business in 2010, which is when Zuin filed a criminal complaint against him, alleging non-payment of child support. It culminated in a criminal case, which was heard at a courthouse in Padua last week...Judge Bitozzi found there was no evidence of any crime being committed, and Toso was acquitted.