Lauren's Feed
May 1, 2013

Exclusive: Investor wants buybacks, spinoffs on Tim Hortons menu

NEW YORK (Reuters) – Canadian coffee-and-doughnut chain Tim Hortons Inc has come under pressure from a large investor to aggressively boost returns through debt-funded share buybacks and a scaling back of U.S. expansion plans, according to documents seen by Reuters and two sources familiar with the matter.

Hedge fund Highfields Capital, which owns about 1.5 percent of the company and which has a track record of bringing about change at other firms, wants Tim Hortons to borrow $3.4 billion to buy back more than one-third of its outstanding shares at $59 apiece, the documents show.

Apr 30, 2013

Tim Hortons investor agitates for buybacks, new strategy

NEW YORK (Reuters) – Canadian coffee-and-donut chain Tim Hortons Inc (THI.TO: Quote, Profile, Research) is under pressure from one of its top investors to buy back a large chunk of its shares, pare back in the United States and get more money out of its real estate assets, according to documents seen by Reuters and two sources familiar with the matter on Tuesday.

Hedge fund Highfields Capital, which owns about 1.5 percent of the company, wants Tim Hortons to borrow $3.4 billion to buy back more than one-third of its outstanding shares at $59 apiece, the documents show.

Apr 30, 2013

Exclusive: Tim Hortons investor agitates for buybacks, new strategy

NEW YORK (Reuters) – Canadian coffee-and-donut chain Tim Hortons Inc (THI.TO: Quote, Profile, Research, Stock Buzz) is under pressure from one of its top investors to buy back a large chunk of its shares, pare back in the United States and get more money out of its real estate assets, according to documents seen by Reuters and two sources familiar with the matter on Tuesday.

Hedge fund Highfields Capital, which owns about 1.5 percent of the company, wants Tim Hortons to borrow $3.4 billion to buy back more than one-third of its outstanding shares at $59 apiece, the documents show.

Apr 30, 2013

Few Wall Street banks will survive trading overhaul -report

NEW YORK, April 30 (Reuters) – Just a few Wall Street banks
will be able to maintain large trading operations after
adjusting to new rules and will achieve returns-on-equity of
just 15 percent to 16 percent, according to a Boston Consulting
Group report on Tuesday.

Banks like JPMorgan Chase & Co, Goldman Sachs Group
Inc and Deutsche Bank AG will be able to
maintain large trading operations because of their market share,
reputation and technology investments, according to a
presentation given by the consulting firm’s executives. But
smaller competitors will have to exit businesses altogether or
focus just on particular segments of the market.

Apr 26, 2013

Lazard profit falls 40 percent as bank closes fewer big deals

By Lauren Tara LaCapra and Tanya Agrawal

(Reuters) – Lazard Ltd (LAZ.N: Quote, Profile, Research, Stock Buzz) reported a 40 percent drop in first-quarter profit, missing analysts’ expectations, as the investment bank’s revenue suffered from a lack of big-ticket deals.

Lazard lost significant market share even in a tough first quarter across Wall Street, Thomson Reuters data show, as it advised on a large number of smaller deals that closed in that period.

Apr 25, 2013

Insurers, long squeezed by low rates, now brace for a rise

NEW YORK (Reuters) – Insurance companies are still very concerned about low interest rates pinching their investment profits. But for the first time in years, their second biggest concern is the risk of an unexpected spike in rates hurting investment portfolios instead.

More than half of the global insurance industry views low yields as the biggest near-term investment risk, followed by 32 percent citing rising rates, according to a survey released this week by Goldman Sachs Asset Management (GSAM), a unit of Goldman Sachs Group Inc (GS.N: Quote, Profile, Research, Stock Buzz).

Apr 22, 2013

New rules to wipe out $17 billion in bank trading revenue: report

NEW YORK (Reuters) – New regulations will wipe out $17 billion in trading revenue for global investment banks and force some to exit the bond trading business entirely, according to a Deutsche Bank report released on Monday.

New rules being implemented in Europe and the United States will push bond and derivatives trading onto exchanges as soon as this summer, which is expected to reduce the income banks make from trading with clients.

Apr 22, 2013

New rules to wipe out $17 bln in bank trading revenue-report

NEW YORK, April 22 (Reuters) – New regulations will wipe out
$17 billion in trading revenue for global investment banks and
force some to exit the bond trading business entirely, according
to a Deutsche Bank report released on Monday.

New rules being implemented in Europe and the United States
will push bond and derivatives trading onto exchanges as soon as
this summer, which is expected to reduce the income banks make
from trading with clients.

Apr 18, 2013

Morgan Stanley posts $958 mln profit as wealth management grows

April 18 (Reuters) – Morgan Stanley reported a
stronger-than-expected first-quarter profit of $958 million,
compared with a year-earlier loss of $119 million, as its wealth
management business grew.

The sixth-largest U.S. bank by assets said on Thursday it
earned 49 cents per share on a consolidated basis in the first
three months of the year, compared with a loss of 6 cents per
share a year earlier.

Apr 16, 2013

Goldman’s bond trading slump stirs profit concerns

By Lauren Tara LaCapra and Tanya Agrawal

(Reuters) – Goldman Sachs Group Inc (GS.N: Quote, Profile, Research) said revenue from trading bonds with clients fell 7 percent in the first quarter, raising questions about the health of the bank’s biggest money maker and the prospects for fixed-income trading profits on Wall Street.

Equities trading revenue has been squeezed for years across Wall Street by the growth of online trading platforms, but the fixed-income, currency, and commodities business has only recently begun facing similar pressures.