Ally, owned by U.S. government to some extent, has announced that they are willing to sell their international operations in 2013 May. They are selling their operations to speed up the repaying of bailout funds. The company is focusing completely on the US business and has already sold few operations in Mexico and Canada.
GM also said that this purchase will certainly increase the sales in Latin America and Europe, which reflects the experience in North America after returning it to the in-house financing with GM Financial.
GM is partially owned by U.S. government after the bailouts that they had during the financial crisis and companies had the entangled history. Ally is the previous financing arm for GM and was known as GMAC.
The automaker is in the process of rebuilding the finance operations after selling the controlling stake in GMAC.
Dan Ammann, Chief Financial Officer in GM said “We are bringing parts of Ally back to the family”. Ammann said that GM realized about the additional 200,000 auto sales in North America. He’s also expecting the sales to get increased by varying the market degrees across the globe; he declined to speak about the expected gains.
GM wanted to expand the in-house financing profile to improve the company relationship with customers beyond the initial sale.
Armann also said that the deal will be approved by the GM director’s board and they haven’t been approved by US government.
Other transactions in the model include operations in Mexico, Brazil¸ Columbia, Germany, Chile, Britain, France, Italy, Netherlands, and Belgium. It includes Ally’s 40% interest in the joint venture of GMAC-SAIC Auto Finance Company.
GM financial work also expands the international operations into the markets; the expansion will be organic and it is not by the acquisitions. Ammann admitted that he has no plans of expanding the operations and financial activities in North America.
This particular deal is expected to add US$ 300 million to US$ 400 million to the financial earnings before taxes.
GM is expecting to contribute almost US$ 2 billion to GM for purchasing. The U.S. automaker bought AmeriCredit Corp in the year 2010. Cerberus and GM remain as Ally shareholders.
Ally said that they have combined the operations in Latin America and Europe, representing almost US$16.1 billion
Out of US$ 17 billion owed by US government, Ally paid US$ 5.8 billion, which includes the dividend payments.
Tesla, Inc. (TSLA), Amazon (NASDAQ:AMZN) Among Most Active Stocks On NASDAQ
Tesla, Inc. (TSLA) closed 5.67% higher to $314.74 after the company’s CEO Elon Musk tips off in a series of tweets that the company will have “news” out tomorrow at 5:00 p.m. eastern time. The announcement will arrive a day ahead of the repayment date for $920M worth of convertible bonds issued by the EV automaker.
Tesla doesn’t have any events scheduled for tomorrow on its investor relations site.
Adding to the intrigue (or confusion), Elon Musk has changed his Twitter handle to Elon Tusk and is rocking an elephant emoji.
Amazon (NASDAQ:AMZN) is scaling back its Seattle expansion by looking to sublet 30 floors of office space it leased, according to GeekWire.
An Amazon spokesperson confirms the plans, but notes that the company has “more than 9,000 open roles in Seattle and will continue to evaluate future growth.”
Last year, Amazon laid off hundreds of area employees and fought against local regulations in its hometown.
The Seattle pullback follows the cancellation of the NYC HQ2 location after local protests.
Latest Developments: Ballard Power Systems Inc. (USA) (NASDAQ:BLDP), EZCORP, Inc. (NASDAQ:EZPW), Fusion-IO, Inc. (NYSE:FIO)
Ballard Power Systems Inc. (USA)(NASDAQ:BLDP)’s shares jumped 16.57% to $4.15. The company on June 3 held the Company’s 2013 Annual General Meeting in Burnaby, British Columbia at which all of the nominees listed in the Management Proxy Circular dated April 11, 2014 were elected as directors of the Company. Each of the Ballard directors was re-elected by a majority of the votes cast by shareholders present or represented by proxy. At the Annual General Meeting Ballard’s leadership team also provided an update on the business, including: 2013 financial results; 2014 outlook; commercial progress; quality and service developments; and the recent acquisition of the intellectual property portfolio from United Technologies Corporation.
EZCORP, Inc. (NASDAQ:EZPW)’s stock fell 2.44% to $11.61. The company on June 18 announced the pricing of its $200 million aggregate principal amount of cash convertible senior notes due 2019 (the “Convertible Notes”). The Convertible Notes were offered in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). The Company granted an option to the initial purchasers for up to an additional $30 million aggregate principal amount of Convertible Notes. The Convertible Notes will pay interest semiannually at an annual rate of 2.125% and will be convertible solely into cash based on the applicable conversion rate at such time.
Fusion-IO, Inc. (NYSE:FIO)’s shares climbed 1.67% to $11.60. SanDisk on June 16 announced a definitive agreement to acquire Fusion-io (FIO), a leading developer of flash-based PCIe hardware and software solutions that enhance application performance in enterprise and hyperscale datacenters. The acquisition will be an all-cash transaction valued at approximately $1.1 billion, net of cash assumed. Under the terms of the agreement, SanDisk will commence a tender offer for all outstanding shares of Fusion-io for $11.25 per share in cash. SanDisk will fund the acquisition with cash available on its balance sheet.
Stocks In Focus: Oi SA (ADR)(NYSE:OIBR), Genco Shipping & Trading Limited(NYSE:GNK), Zale Corporation(NYSE:ZLC), Celldex Therapeutics, Inc.(NASDAQ:CLDX)
Oi SA (ADR)(NYSE:OIBR) stock decreased 9.05% to $1.81. Oi SA, formerly Brasil Telecom SA, is a Brazil-based holding company engaged in the telecommunication sector. The Company is primarily involved in the provision of fixed telephony services in Brazilian states of Acre, Rondonia, Mato Grosso, Mato Grosso do Sul, Tocantins, Goias, Parana, Santa Catarina and Rio Grande do Sul. Additionally, it offers a range of integrated telecommunication services, including mobile telecommunication services, data transmission and Internet service provider (ISP) services, among others.
Genco Shipping & Trading Limited(NYSE:GNK) shares fell 6.60% to $3.54. Genco Shipping & Trading Limited (GS&T) transports iron ore, coal, grain, steel products and other drybulk cargoes along worldwide shipping routes through the ownership and operation of drybulk carrier vessels. As of December 31, 2012, GS&T’s fleet consisted of 53 drybulk carriers, including nine capesize, eight panamax, 17 supramax, six handymax and 13 handysize drybulk carriers, with an aggregate carrying capacity of approximately 3,810,000 deadweight tonnages. The average age of the Company’s fleet was approximately 7.8 years as of December 31, 2012.
Zale Corporation(NYSE:ZLC) shares decreased 8.63% to $14.39. Zale Corporation, through its wholly owned subsidiaries, is a retailer of fine jewelry in North America. The Company operates in three segments: fine jewelry, kiosk jewelry and all other. As of July 31, 2012, the Company operated 1,124 specialty retail jewelry stores and 654 kiosks located mainly in shopping malls throughout the United States, Canada and Puerto Rico. The Company’s fine jewelry segment consists of five brands: Zales Jewelers, Peoples Jewellers, Zales Outlet, Mappins Jewellers, and Gordon’s Jewelers The Company’s kiosk jewelry operates under the brand names Piercing Pagoda, Plumb Gold, and Silver and Gold Connection (collectively, Piercing Pagoda) through mall-based kiosks.
Celldex Therapeutics, Inc.(NASDAQ:CLDX) stock fell 6.27% to $34.41. Celldex Therapeutics, Inc. (Celldex), is a biopharmaceutical company focused on the development and commercialization of several immunotherapy technologies for the treatment of cancer and other difficult-to-treat diseases. The Company’s drug candidates include CDX-110, CDX-011 and CDX-1127. CDX-110, is an immunotherapeutic vaccine that targets the tumor-specific molecule, epidermal growth factor receptor variant III (EGFRvIII). CDX-1127 is a human monoclonal antibody that targets CD27.