“State Street to buy Intesa business for $1.87B - KTVZ.com” plus 4 more

---

• State Street to buy Intesa business for $1.87B - KTVZ.com
• Bucyrus to acquire mining equipment business of Terex Corp. - Biz Times
• CVS Caremark taps Lofberg to run drug benefit side of business - Nashville Tennessean
• IBM gets $35,000 business incentive from Boulder, will add 500 jobs - Colorado Daily
• Third-Quarter Growth Weaker Than First Thought - New York Times

State Street to buy Intesa business for $1.87B - KTVZ.com Posted: 22 Dec 2009 07:39 AM PST BOSTON (AP) - State Street Corp. said Tuesday that it will buy the securities services business of Italian banking group Intesa Sanpaolo for about $1.87 billion in cash. The financial services provider said the acquisition will broaden its presence overseas, as the Intesa unit has offices in Italy and Luxembourg. State Street anticipates funding the transaction with available capital. The Intesa agreement comes on the heels of State Street's acquisition of Channel Islands based Mourant International Finance Administration, announced earlier this month. Terms of the Mourant deal were not disclosed, but State Street said the acquisition would help expand its global fund administration and alternative servicing operations and its reach in Europe and Asia. The Intesa deal includesthe global custody, depository banking, correspondent banking and fund administration components of the securities services operations. About 555 employees will join State Street on closing. State Street President and Chief Operating Officer Jay Hooley said in a statement that the acquisition will also give the company new customers that it can cross-sell products and services to and provide more access to the insurance market while strengthening its fund accounting and offshore fund servicing components. The Intesa transaction may also include about $16 billion in cash deposits if levels stay consistent with those as of June 30. Additionally, State Street expects to support the acquired Intesa balance sheet with approximately $800 million of additional capital at the closing. As part of the acquisition, State Street will enter into a long-term investment servicing arrangement with Intesa to service all of its investment management affiliates, including Italy's biggest fund manager, Eurizon Capital. State Street anticipates about $120 million in acquisition-related costs over a five-year period, with most costs taking place in the first three years. The Boston company expects to save about $90 million over five years and sees the deal modestly adding to its fiscal 2010 earnings. State Street had $17.9 trillion in assets under custody and administration as of Sept. 30. The custody bank has about $420 billion in alternative assets under administration. The acquisition is targeted to close in the second quarter. Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Five Filters featured article: Chilcot Inquiry. Available tools: PDF Newspaper, Full Text RSS, Term Extraction.

Bucyrus to acquire mining equipment business of Terex Corp. - Biz Times Posted: 17 Dec 2009 03:59 PM PST Dec. 21 Dec. 18 Dec. 17 Dec. 16 Dec. 15 Archive... Published December 18, 2009 - BizTimes Daily Previous | 11 of 11 South Milwaukee-based Bucyrus International Inc. announced it has signed a definitive agreement to acquire the mining equipment business of Terex Corp. for $1.3 billion in cash. The transaction will create the world's largest supplier of mining equipment. The acquisition is expected to add jobs and production capabilities in Bucyrus International's southeastern Wisconsin operations. Bucyrus will offer a comprehensive product portfolio comprised of walking draglines, electric rope shovels, hydraulic excavators, off-the-highway haul trucks, highwall miners, underground longwall, room and pillar and transport machinery and a full line of drills and belt systems for all mining applications. "We are extremely excited about acquiring Terex Mining and we believe that this is a unique opportunity to build an even stronger company for our customers, employees and shareholders," said Tim Sullivan, chief executive officer of Bucyrus. "Customers will reap benefits from this transaction as Bucyrus will be able to offer a broad, complementary product line that is driven by technology, quality, and first class service. Through our extended product offering, we will continue to design and produce world-class machines and provide the best after-market support throughout the life of the equipment. We will expand our geographic footprint and diversify our portfolio of products across a broader range of commodities," Sullivan said. "Like Bucyrus, the Terex mining assets have a proud history powered by hard-working, loyal employees who are passionate about mining." The mining equipment business of Westport, Conn.-based Terex produces the world's largest hydraulic excavators, rugged haul trucks, advanced drilling machines, and highwall mining systems. The Terex mining equipment business has 38 facilities around the world with approximately 2,150 employees. As a result of the transaction, Bucyrus will double its addressable market from roughly $15 billion to over $30 billion and create a team of approximately 10,000 people in nearly 100 locations around the world. Under the terms of the agreement, approved by the boards of directors of both companies, Bucyrus will acquire those subsidiaries and assets of Terex Corporation used to design, manufacture, and sell hydraulic excavators, surface mining trucks, drills (other than auger drills), highwall miners, and related components, parts, and after-sales service, commonly known as O&K, Unit Rig, Reedrill, Superior Highwall, Halco, and Hypac. The acquisition, which is not subject to shareholder approval by either company, is subject to certain regulatory approvals and other customary closing conditions and is expected to close during the first quarter of 2010. Terex may request to receive S$300 million of the purchase price in the form of Bucyrus shares (based on Bucyrus' current trading price). Bucyrus has entered into a commitment letter with a group of financial institutions to provide funding necessary for the acquisition through an increase in its existing revolving credit facility and a new term loan facility. The commitment letter also provides for modification of certain terms of the Company's existing debt. Greenhill & Co. LLC acted as financial advisor to Bucyrus with respect to the acquisition agreement and commitment letter. Sullivan & Cromwell LLP acted as counsel to Bucyrus in connection with the acquisition agreement, and Foley & Lardner LLP acted as counsel to Bucyrus in connection with the commitment letter. Bucyrus will host an investor teleconference to discuss the announcment Monday at 9 a.m. (CDT). Five Filters featured article: Chilcot Inquiry. Available tools: PDF Newspaper, Full Text RSS, Term Extraction.

CVS Caremark taps Lofberg to run drug benefit side of business - Nashville Tennessean Posted: 21 Dec 2009 09:38 PM PST CVS Caremark Corp. took another step toward combining its drug benefit management services with patients' genetic profiles on Monday, hiring the president of genetic benefits manager Generation Health to lead its Caremark business. CVS is also increasing its stake in Generation Health, but did not provide further details. The president and CEO of Generation Health, Per Lofberg, will take over the Caremark business on Jan. 4. The companies formed a partnership in November to research the interaction between medications and a patient's genes, which can determine whether a drug works for specific patients. That could improve treatment and reduce costs for Caremark, as patients could avoid drugs that don't work for them. CVS has said it will start offering some of these services starting in the second quarter of 2010, focusing first on cancer, heart disease and HIV. Lofberg said CVS plans to counsel patients with certain diseases to undergo genetic tests. It will focus first on diseases where genes are known to play a role in which drugs work. "This will eventually become all pervasive in the way pharmaceuticals are developed and administered," he said. The Caremark pharmacy benefits management business has lost $4.8 billion in business in fiscal 2010. Most of those losses have occurred in recent months. CVS President and CEO Tom Ryan has been running the division since late November when President Howard McLure retired. Lofberg, 62, is a former head of Merck-Medco Managed Care, which became Medco Health Solutions in 2003. He also led a Merck & Co. venture capital company. Lofberg will spend significant time in all of CVS Caremark's major pharmacy benefits management locations, including Woonsocket, R.I., Nashville and offices in Texas and Arizona, a company spokesperson said. — Associated press Five Filters featured article: Chilcot Inquiry. Available tools: PDF Newspaper, Full Text RSS, Term Extraction.

IBM gets $35,000 business incentive from Boulder, will add 500 jobs - Colorado Daily Posted: 21 Dec 2009 11:30 AM PST Boulder business incentives Since 2007, the city of Boulder has provided flexible tax rebates for businesses that expand their operations and meet certain criteria for sustainability. Here's a look at the seven companies that received rebates on sales and use taxes or permit fees this year. Celestial Seasonings (tea manufacturer) -- $56,441 Etown (radio production) -- $50,000 IBM (computer services) -- $35,000 Tundra (restaurant equipment and supplies) -- $34,963 Stratom (engineering firm) -- $12,525 Sea to Summit (outdoor wholesale distributor) -- $10,820 VisionLink (software developer) -- $10,230 More info: For more information about the city's Economic Vitality Program, go to bouldercolorado.gov and click on "Business," or call Liz Hanson at 303-441-3287. For information about job opportunities at IBM in Boulder, visit manpower.com. At a time when many companies are looking at cost-cutting measures such as furloughs and layoffs, IBM Corp. plans to add 500 jobs at its Boulder campus. The Armonk, N.Y.-based company is expected to overtake Sun Microsystems as the largest private-sector employer in Boulder and Broomfield counties, thanks to an expansion of customer-service-related jobs that's being supported by $35,000 in tax rebates from the city. Boulder City Manager Jane Brautigam announced Monday that IBM will receive the money as part of the city's flexible rebate program. It was one of three late-year rebates announced Monday. The rebates are one of the city's business incentives, first approved by the Boulder City Council in September 2006. The incentive covers a wide range of fees and taxes charged by the city, including permit and development review fees and equipment and construction use taxes. To qualify for the rebates, companies must demonstrate that they've met social, community and environmental sustainability guidelines. According to city officials, IBM focused on environmental criteria by achieving Partners for a Clean Environment certification, maintaining a zero-waste facility and by offering employee commuting "trip-reduction" programs. Liz Hanson, Boulder's economic vitality coordinator, said IBM applied for the rebate as part of an expansion of its customer-service program. The 500 jobs being added to the tech giant's Boulder campus will all be hired locally, Hanson said. "It's important that these jobs are going to be locally hired," Hanson said. "It really strengthens this facility as a major employer in Boulder and Boulder County." She said the city's relatively small investment in IBM shows the company that "they have the support of the city and the state to continue growing." Larry Longseth, vice president of global server systems operations and an IBM senior state executive, said the new jobs are already being filled, and new hires will be made in phases through 2014. "It's just part of our overall strategy," he said. "It's an investment." The executive said IBM remains committed to its Boulder operations. "The commitment is strong, and we feel very fortunate for the support from the city and state of Colorado," he said. IBM is now advertising for some of the new jobs, which are full-time positions in a call center that's being shared by AT&T. To accommodate the new workers, IBM has retrofitted 22,000 square feet of an existing building and used 62,000 square feet of existing space. Frances Draper, executive director of the Boulder Economic Council, said the expansion shows IBM's stake in staying in Boulder. "What it really indicates to us is that IBM corporate is feeling like Boulder is a key site for their operation," she said. "That says that IBM supports this site in the long run." Draper said the 500 jobs being created "probably aren't going to be the highest-paying jobs in the county by any means," but they will still be good jobs that come with training and stability. According to a 2008 analysis of the rebate program's impact on the city's bottom line, Boulder received a return of $8.78 for every dollar it invested in tax rebates. Draper said the city's total investment last year of $322,000 netted a return of about $2.5 million. The biggest return came from Namaste Solar, which generated an estimated $25 for each dollar of the $29,000 that the city rebated to it last year, according to the study. This year, the city invested nearly $210,000 among seven local companies. Boulder officials said they expect more applications next year if the economy improves. Contact Camera Staff Writer Heath Urie at 303-473-1328 or urieh@dailycamera.com. Five Filters featured article: Chilcot Inquiry. Available tools: PDF Newspaper, Full Text RSS, Term Extraction.

Third-Quarter Growth Weaker Than First Thought - New York Times Posted: 22 Dec 2009 05:45 AM PST The nascent economic recovery was weaker than expected in the third quarter, the government said Tuesday, held back by slow business construction and dwindling inventories. While the results tempered some of the enthusiasm about the speed of economic renewal, analysts still foresee steady, and stronger, growth in the fourth quarter, as exports rise and an improved jobs market encourages consumer spending. The housing sector also showed signs of stability on Tuesday, with an unexpected surge in existing home sales. Sales climbed 7.4 percent in November as Americans took advantage of a tax credit for first-time home buyers, rising to a seasonally adjusted annual rate of 6.54 million, up from 6.09 million in October. Still, economists expect the momentum from the tax credit, which offered up to $8,000 to home buyers, to taper off, leading to a drop-off in sales in December. "It's a really good number, but we're going to see really bad, ugly numbers soon," said Patrick Newport, an economist at IHS Global Insight, pointing to signs that mortgage applications for December purchases were down. "The housing market is still really weak." Prices were essentially flat from October, with the median sales price at $172,600, but they were down 4.3 percent from a year ago. Markets showed solid gains after the housing numbers, with the Dow Jones industrial average climbing 0.4 percent. Investors continued a large sell-off of government bonds, with the yield curve — the gap between short- and long-term interest rates — widening to record levels. The curve is considered an indicator of economic health and suggests traders are expecting robust economic growth. But it also raises the specter of inflation. Gross domestic product in the third quarter — the total value of goods and services in the economy — grew 2.2 percent from July through September, revised down from 2.8 percent last month and 3.5 percent in October. "We did get off to a slightly slower start than we had thought," said Nigel Gault, chief United States economist for IHS Global Insight. "That would be very worrying if we hadn't had the evidence that we had done well in the fourth quarter." The United States is grappling with high levels of unemployment and businesses and consumers alike remain reluctant to spend. Still, analysts expect exports and consumer spending to rebound in the fourth quarter, helping the economy reach an annual pace of growth of about 5 percent. Though the third quarter was weaker than previously thought, it still marked the first period of growth in a year, suggesting the longest economic contraction since World War II had ended. Government stimulus efforts, like the popular "cash-for-clunkers" program, helped drive spending. The Commerce Department's revisions were based on smaller-than-expected business inventories, which fell by $139.2 billion. Spending by businesses on items like software and equipment was also weaker than expected, rising by 5 percent rather than the 8.4 percent originally predicted. Paul Dales, chief economist for Toronto-based Capital Economics, said the overall drop was "nothing to worry about," but he expressed concern about the decrease in investment. "It may suggest that a lot of the demand pent up during the recession has already been released," Mr. Dales wrote in a research note on Tuesday. "High uncertainty and lots of spare capacity are limiting capital spending." Construction of business space like malls and office buildings fell more than previously thought, by 18.4 percent rather than 15.1 percent. Economists attribute that drop to a frail commercial real estate market, which is facing high vacancy rates and banks that are reluctant to finance business expansions. Spending by state and local governments was also weaker than expected, falling 0.6 percent, compared with the 0.1 percent originally forecast. Consumer spending was revised slightly, growing 2.8 percent in the quarter rather than 2.9 percent. As the New Year approaches, investors are optimistic that the economy will outperform its earlier gains rather than fall into another downturn. Retail sales were higher than expected in November, and the trade deficit unexpectedly narrowed in October. In addition, a weak dollar is making American products overseas cheaper, contributing to hope that exports will rise. Five Filters featured article: Chilcot Inquiry. Available tools: PDF Newspaper, Full Text RSS, Term Extraction.

You are subscribed to email updates from Business - Bing News To stop receiving these emails, you may unsubscribe now.	Email delivery powered by Google
Google Inc., 20 West Kinzie, Chicago IL USA 60610