Wednesday headlines include: Walmart cutting benefits for some workers, Allergan could get a new offer from Actavis, the AIG shareholder suit against the government continues, Facebook planning to let advertisers use location data from some mobile users, and Goldman Sachs paying legal fees for the Libyan Investment Authority.
Discount retail giant Walmart (WMT) said Tuesday that will end healthcare benefits for part-time workers who work less than 30 hours per week. The move is expected to affect about 30,000 workers, or about 2% of the company's workforce. Walmart will also raise premiums for all of its workers starting in January.
Drugmaker Actavis (ACT) is reportedly considering making a bid to acquire drug-maker Allergan (AGN). Allergan has been fighting against Valeant Pharmaceuticals (VRX) and hedge-fund manager Bill Ackman, who want to acquire the company, but would reportedly consider an over that values the company at more than $200 per share.
American International Group
A day after former Treasury Secretary Hank Paulson testified that the bailout of AIG (AIG) was designed to send a message to shareholders of other financial companies that the government would not protect them from losses in companies that had taken on undue risk, then president of the New York Federal Reserve Timothy Geithner said he believed that a bailout of the insurer was needed to save the global financial system. Speaking at the trial of a lawsuit brought by former AIG chairman and CEO Maurice “Hank” Greenberg, who claims the government violated the Fifth Amendment's takings clause when it took a controlling stake in the company, Geithner acknowledge previous statements that the bailout had “wiped out” the company's shareholders.
Social network Facebook (FB) plans to start letting advertiser target users based on recent locations. The new ads will only apply to users who have elected the Facebook app to access their location. For other users, Facebook will still refer to the location provided in the user's profile. The ads will be show to Facebook users within a mile of the advertiser's location.
Investment bank Goldman Sachs (GS) was ordered by a court to pay $321,820 in legal fees incurred by the Libyan Investment Authority as part of a lawsuit that claims that Goldman improperly made more than $1 billion in trades that ended up being worthless.