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Lehman’s Archstone to raise $3.5 Billion in Closely Watched IPO

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If the listing in the form of REIT or Real Estate Investment Trust takes place in this year, it will be the 3rd largest US IPO for the year 2012, behind Banco Santander’s Mexican unit and Facebook Inc.

Filings of Archstone didn’t reveal the number of shares that the company planned to sell. Few analysts estimated that the company is worth about USD 16 billion, but the company is selling the assets and is difficult to find the value. Archstone has got large and attractive portfolios of the properties.

The huge stake of Lehman in the company is estimated at USD 6 billion – USD 7 billion and the sale of the stake must take place under the bankruptcy. Andrew McCulloch, senior analyst said that there are lots of expectations from the deal.

Archstone is listed on the stock exchange with ASN; it can also avoid the corporate level pay if it starts distributing 90% of the taxable income to the shareholders in the dividend form.

IPO will closely watch the condition of the real estate companies and their performance, and then analyse how well these companies do in the public offering.

Prime Property

Archstone has owned interest in almost 169 US apartment communities as of 30th September, located in all the coastal areas that have got very good rents. Most are in San Francisco Bay Area, Southern California, Washington DC metropolitan areas, and Southeast Florida.

Average monthly rent for the Archstone apartment in these areas was around $2,408 in the 3rd quarter, for the complete portfolio, and the average monthly revenue for the apartment was around USD 2,168 and occupancy rate was around 94.2%.

Archstone in Colorado, Englewood has got 12 more communities, and 3,506 apartments under construction. It owns the land for 28 developments and has got interest in ten apartment properties in Germany.

Tishman Speyer and Lehman acquired Archstone Smith, one amongst the largest owners of United States apartments, via a USD23.7 billion leveraged buyout in the year 2007.

As the real estate values went down and the credit began to sink, Archstone could not sell the buildings for repaying some of the loans. Its lenders ended up in acquiring the company in the year 2010, with Lehman getting 47% and other banks in combined 53 %.

By 2013, Archstone is expecting to sell $1 billion of additional properties, in the substantial portion that is already in the market.

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Business

Top 3 Gainers: Zynga (NASDAQ:ZNGA), Eros International (NYSE:EROS), Borqs Technologies’ (BRQS)

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Zynga (NASDAQ:ZNGA) is up 2.5% after Benchmark reiterated its Buy rating in a look-ahead at Q2 earnings. The firm’s expecting a beat and solid guidance for Q3, and it’s raising its guidance for the fiscal year.

Tailwinds from the pandemic won’t dissipate easily, Benchmark suggests, and the videogame maker’s acquisition of Peak (and with it new “forever franchises” in Toon Blast and Toy Blast) will drive audience, bookings, margins and free cash flow, it says. The firm has an $11 price target, now implying 14% upside.

Eros International (NYSE:EROS) is up 5.8% today, making up the last week’s lost ground, after news that its streaming service Eros Now is partnering with Sony India (SNE +2.3%).

That will mean Eros Now’s app is pre-installed on selected Sony smart televisions in India, along with availability on a large base of existing models (Bravia E series and newer).

The country over the past year has seen a 25% growth in demand for smart TVs, fueled by overall industry growth of 15%, to a record 15M units/year.

Borqs Technologies’ (BRQS) personal safety tracker sees strong market with increased orders from the electronics retail chain in the US.

The boost in product demand comes ahead coronavirus pandemic that provides company to expect delivery of 250K units this year. It reflects over 3x the volume delivered in 2019, the year of its launch.

Borqs’ mobile personal safety devices designed particularly for senior citizens come with panic button, location tracking, and fall detection.

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Biotech

Biotech movers: Pfizer Inc. (PFE), Celgene Corporation (CELG)

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Pfizer Inc. (PFE) said on Thursday it received a request for documents as part of a U.S. investigation related to quality issues involving the manufacture of auto-injectors at its Meridian Medical Technologies site.

Pfizer, in a regulatory filing, said it would be producing records in response to the civil investigative demand from the U.S. Attorney’s office for the Southern District of New York.

Why ASDN Could Massively Outperform PFE in 2019

Meridian, a unit of Pfizer that manufactures EpiPen injectors used to deliver an emergency allergy antidote, has been hit by a series of manufacturing problems in recent years. Mylan NV, which markets EpiPens, has recalled tens of thousands of the devices after complaints that some had failed to activate.

Bristol-Myers Squibb has been meeting with shareholders in Boston and New York over the last two weeks to try to salvage its $74 billion purchase of cancer drugmaker Celgene Corporation (CELG), the biggest acquisition announced so far this year.

Why Investors Are Calling ASDN the CELG of the Sky!

The deal, announced in January, was hard sell to Bristol shareholders from the start. The acquisition adds about $32 billion in fresh debt to Bristol’s balance sheet while assuming $20 billion in Celgene’s debt, the companies said at the time. After factoring in debt, the acquisition was the largest health-care deal on record, according to data compiled by Refinitiv.

Now, hedge funds Wellington Management and Starboard Value say the deal doesn’t sit well with them. Bristol has sent executives to New York to meet with institutional investors several times over the last two weeks and met with investors in Boston on Wednesday and Thursday, according to a person who briefed on the meetings.

Bristol-Myers declined to comment.

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Biotech

Big Losers: Corbus Pharmaceuticals Holdings, Inc. (CRBP), Petróleo Brasileiro S.A. – Petrobras (PBR)

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Corbus Pharmaceuticals Holdings, Inc. (CRBP)’s shares slumped as much as 16% to $6.94 on huge volume. The stock has been showing intense sell off suddenly after a bearish article on seekingalph.com by Alpha Exposure.

The article stated that Corbus has ties to investors convicted of or alleged to have committed securities fraud. We believe lenabasum has failed its major trials in SSc and CF. Lenabasum was also denied Breakthrough Therapy Designation in SSc. We believe lenabasum will fail in its pivotal SSc and Phase 2b CF trials. We are short Corbus with a price target of $0.50.

Wow the future of Autonomous flight is finally here with the launch of ASDN passenger drone Elroy

Petróleo Brasileiro S.A. – Petrobras (PBR) is expanding its ambitious divestment program and has “bold” plans for sales, the Brazilian state-run oil company’s chief executive said after the firm posted its first annual profit in five years.

On a conference call with analysts to discuss fourth-quarter results, CEO Roberto Castello Branco said selling non-core assets will be key to deleveraging.

Petrobras, as the company is known, can reduce its ratio of net debt to earnings before interest, taxes, depreciation and amortization, or EBITDA, to 1.5 or even to 1, he added.

The University of Chicago-educated CEO, who took the reins in early January, has long been vocal about the need to slim down the sprawling firm and focus on core activities such as exploration and production. Thursday’s comments were some of his most assertive on the matter.

Why Investors Are Calling ASDN the TPC of the Sky!

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