Opening Bell: 7.1.16
Snack Giant Mondelez Makes $23 Billion Takeover Bid for Hershey (WSJ)
Mondelez International Inc. made a roughly $23 billion bid for Hershey Co. in an effort to create the world’s largest candy maker at a time when both companies’ sales are under pressure. Mondelez, which makes Oreo cookies and Cadbury chocolate bars, recently sent a letter to Hershey proposing a tie-up at $107 a share, half in cash and half in stock. Hershey’s board unanimously rejected the bid Thursday and said it “provided no basis for further discussion.”
Tidjane Thiam’s One-Year Anniversary Gift at Credit Suisse: Brexit Upheaval (WSJ)
Exactly one year ago Friday, Mr. Thiam, a former consultant and insurance executive, became CEO of the bank, at a time it faced growing calls to curb its reliance on volatile, and costly, investment-banking operations. In October, he unveiled a plan—later expedited—to scale back the investment bank by selling off assets such as complex debt instruments as quickly as possible. But problems mounted almost immediately. Credit markets soured late in the year. The bank announced big, surprise trading losses in March. Mr. Thiam’s handling of investment-bank cutbacks proved controversial internally. During his tenure, Credit Suisse’s shares have lost nearly 60% of their value—slightly worse than the performance of Deutsche Bank AG, another European bank struggling with an overhaul, and notably worse than Swiss rival UBS Group AG. The Stoxx Europe 600 bank index is down nearly 40% over the same period.
Even Brexit Can’t Save Currency Funds on Worst Streak Since 2013 (Bloomberg)
A gauge of returns in the $5.3-trillion-a-day foreign-exchange market extended its longest losing streak in almost three years as traders fail to capitalize on volatility that’s surged to the highest since 2011. Even Britain’s shock decision to exit the European Union -- which fueled the the biggest one-day gain for speculators in 10 months -- couldn’t salvage a June marred by misplaced bets on Bank of Japan stimulus and the pace of Federal Reserve policy tightening. The Parker Global Currency Manager Index fell 0.5 percent, its fourth-straight monthly decline.
After ‘Brexit,’ Finding a New London for the Financial World to Call Home (NYT)
One executive in charge of relocation (who like the others, spoke only on condition of anonymity because of the political sensitivity of the issue) said the percentage of employees in his firm who might be required to move ranged from 10 percent to 40 percent. “Multiply that throughout the industry and it’s tens of thousands of people and their families,” he said. “And bear in mind that most of these people are millionaires.”
Lenny Dykstra was traumatized by Darryl Strawberry’s genitals (NYP)
The former Mets player appeared at the Gramercy Theatre on Wednesday night to promote his new memoir, “House of Nails: A Memoir of Life on the Edge,” and regaled the crowd with even more salacious stories about his ballplayer buddies. One hot topic: Darryl Strawberry’s gargantuan genitals. “That guy was hung like a swamp mule. He had a hammer from hell. It was traumatizing,” he said.
Private Equity Has A Crush On Tech (WSJ)
So far this year, tech companies accounted for 46% of all U.S. buyouts, the sector’s highest level since at least 1995, when data provider Dealogic started keeping track. The trend reflects the broader mergers-and-acquisitions market, in which tech is also the most popular sector.
Airbnb may not be worth $30 billion if illegal listings go away, said VC (CNBC)
Airbnb's reportedly proposed $30 billion valuation may not hold up if illegal listings in New York and San Francisco are removed, said Bradley Tusk, a former aid to Mayor Michael Bloomberg who specializes in helping startups navigate regulatory environments. Airbnb has continued to raise funding — enabling the home-sharing service to put off an eventual IPO — even as it remains locked in disputes with lawmakers, including in its hometown of San Francisco and in New York City.
Apple in Talks to Acquire Jay Z’s Tidal Music Service (WSJ)
Apple is exploring the idea of bringing on Tidal to bolster its Apple Music service because of Tidal’s strong ties to popular artists such as Kanye West and Madonna.
Police break down door to rescue 'lifeless woman' -- a plastic blow-up doll (UPI)
Police in the Dutch capital said they kicked down the door to an apartment to rescue a woman who turned out to be an inflatable s3x doll. Amsterdam police said in a Facebook post officers were called to the apartment Tuesday by neighbors who reported looking into the apartment's window and seeing a woman standing motionless for a long period of time...The officers broke through the door to the apartment and "indeed found a lifeless woman," but she was "made of plastic and filled with air," the post said. Officers moved the blow-up doll away from the window to prevent further confusion from onlookers.