In the news: Huntsman will pay $1.1 billion for units of Rockwood, Citigroup has been ordered to pay $3.1 million for failing to supervise a broker, Pandora will issue new shares to beef up its balance sheet, Wener warns about a weak third quarter and Southern faces a limit on profits from its proposed Georgia reactors.
Chemical company Huntsman (HUN) plans to pay $1.1 billion in cash to buy two units from Rockwood Holdings. Huntsman will also assume $225 million in unfunded pension liabilities as part of the deal. The acquisition of the performance additives and titanium dioxide business will help make its pigments business more competitive Huntsman said. The company also said the deal will add about 60 cents per share to its annual earnings.
A unit of Citigroup (C) has been ordered by a securities arbitration panel to pay $3.1 million to a Florida couple who claimed the firm did not properly supervise a broker who steered them into investments in a politician's real estate developments that eventually went broke. The judgment includes the couple's $1 million investment and $2.1 million to cover the investing couple's share of a $10 million judgment against the entity the couple invested in. Citigroup could have to cover the full $10 million in the even the couple is required to pay all of the judgment.
Music streaming service Pandora (P) will issue 10 million new shares in a follow-on offering that will raised three times as much money as the company's IPO. The company may also sell an additional 2.1 million shares to cover excess demand. Crosslink Capital, the company's largest shareholder, will also sell an additional 4 million shares. The company plans to use the proceeds for general corporate purposes, which could include working capital and potential acquisitions.
Transportation company Werner Enterprises (WERN) said it expects to earn between 27 ad 30 cents per share in the third quarter. Analysts had forecast earnings of 36 cents per share. The company said it had higher fleet, driver, equipment and maintenance costs and was also hurt by lower gains on sales of equipment. The company is also dealing with lower miles per truck due to changes in federal rules about driver hours.
A proposal from Republican state legislator Jeff Chapman would cap the profits Southern Co. (SO) could make on two nuclear reactors the company plans to build at Plant Vogtle in Georgia. Chapman has filed similar bills before but they were never voted on. The legislation is similar to a law passed in Mississippi after Sothern Co. shareholders absorbed nearly $ billion in pre-tax losses on a coal gasification plant in that state.