JPMorgan Chase & Co’s fourth-quarter earnings fell 23 percent, in line with Wall Street expectations, as the European debt crisis depressed trading and corporate deal-making. Its figures show Wall Street firms such as Goldman Sachs and Morgan Stanley are in for a tough quarter as investment banking results suffer.
Private equity firm TPG Capital is willing to invest about $1 billion in Japan’s Olympus Corp in a joint deal with Sony Corp or another suitor circling the scandal-hit firm, a source told Reuters.
Royal Bank of Scotland abandoned ambitions to be a top global investment bank and said it would cut another 4,450 jobs as it bows to pressure from the UK government to shut down risky operations and prepare for tougher international regulations.
General Motors could shift more vehicle production to its European factories in a cost-cutting deal with its German union that could avert a damaging standoff and keep Opel out of bankruptcy, people familiar with the discussions told Reuters.
Twinkies and Wonder Bread maker Hostess Brands Inc filed for bankruptcy protection for the second time in less than three years, after failing to reach an agreement with workers on pension and health benefits. The company, which has about $860 million in debt, said it does not expect disruptions in the manufacturing and delivery of its products during the bankruptcy process.
Deutsche Boerse’s last-ditch lobbying efforts in support of its proposed takeover of NYSE Euronext look set to fail, leaving the deal heading for the rocks with European antitrust regulators expected to block the deal.
Japan’s disgraced Olympus Corp is suing its president and 18 other executives, past and present, for up to $47 million in compensation, as it struggles to recover from one of the nation’s worst accounting scandals.
“Essentially, everyone feels they are on death row. It does seem extremely strange to have the death row cell inside the company,” said Nicholas Smith, head of Japanese equity strategy at CLSA in Tokyo. “Having nobody at the helm makes it easier for a takeover.”
As banks prepare to report fourth-quarter results and make final bonus decisions for 2011, total compensation is likely to be the lowest since 2008, when the financial crisis destroyed some firms and left many survivors on government life support, the WSJ reports.
The Deal Journal takes a look at earnings estimates for banks — How long can they go?
Fresh signs of a mooted wave of Chinese money looking to buy European assets on the cheap emerged, with a major bank said to be in the running for parts of Britain’s RBS and an Italian yacht maker seen in the sights of Shangdong Heavy Industry.
Federal authorities investigating the collapse of MF Global have expanded their inquiry to include the actions of the CME Group, the operator of the main exchange where the commodities brokerage firm conducted business, the DealBook reports, citing people briefed on the matter.
Japan Airlines plans to raise more than $6.5 billion ahead of re-listing its shares as early as September, a source with knowledge of the matter said, marking a sharp turnaround for the carrier following its bankruptcy in 2010. The public offering is expected to rank as Japan’s largest since Dai-Ichi Life Insurance raised 1 trillion yen in 2010, and will likely be carried out against a backdrop of tough industry competition and sluggish economic growth.
Eastman Kodak is preparing a Chapter 11 bankruptcy protection filing in the coming weeks in case it is unable to sell its digital patents to raise capital, The Wall Street Journal reports.
Yahoo Inc appointed Scott Thompson as its chief executive, replacing interim CEO Tim Morse who will resume his role as chief financial officer.
Who is Scott Thompson? The Wall Street Journal has a brief introduction of the former PayPal boss.
As Zynga prepares for the largest technology public offering since Google, Reuters’ tech editor Peter Lauria and reporters Anthony DeRosa and Liana Baker hash it out over Zynga’s estimated $9 billion valuation.
How Zynga ultimately performs as a public company will depend in large part on its ability to break free from Facebook.
Online gaming firm Nexon slipped on its trading debut following a $1.2 billion IPO, Japan’s biggest this year, and may signal a bumpy ride for U.S.-based rival Zynga, which debuts on Nasdaq later this week.
The Deal Journal cautioned investors over the upcoming Internet IPOs such as Zynga and Yelp: “Buying in the open market on the first day of trading with the intent of holding the stock has not been a profitable strategy.”