M & A wrap: Shorting Groupon

November 15, 2011

On paper, Groupon appears to be a juicy target for short sellers: it loses money, it has changed its accounting twice, and its unproven business model faces competition from Google and Amazon. But the shorts may have to wait as betting against the daily deals website is just too expensive right now.

Bank of America’s sale of most of its shares in China Construction Bank earned the U.S. lender a tidy profit, but also underlined that BofA, like other foreign financial groups, found scant strategic gain in the Chinese stake it built.

Japanese regulators appear to be trying to regain the trust of investors unnerved by a scandal engulfing Olympus, with a formula that would punish the executives responsible harshly but let the once-proud firm stay listed on the stock market.

“The Securities and Exchange Commission usually doesn’t let investors keep many secrets. Except if you’re a major player like Warren Buffett,” reports the NYT’s DealBook.

For your morning distraction, the NYT has a great video on Ponzi schemes.

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