World and U.S. Markets at Highs; Groupon to Raise $1 Billion

Arthi Gupta
29 Dec, 2010
New York City

U.S. stock index traded higher as markets in Europe trade near two-year high and Asian markets retained momentum. China cuts rare earth minerals export quota by 35%. Air travel disruption continued on the third day after East Coast snowstorm.

[R]9:31 AM New York – U.S. stock indexes traded higher as markets in Europe trade near two-year high and Asian markets retained momentum. China cuts rare earth minerals export quota by 35%. Air travel disruption continued on the third day after East Coast snowstorm.[/R]

U.S. indexes rose and European markets hovered near two-year highs and Asian markets inched higher. China cuts exports quota for rare earth minerals by 35% and Japanese companies look to South American nations to increase the supply of minerals.

Investors are looking for a quiet trading in New York as travelers and people cope with a snow blizzard. U.S. Treasury is expected to complete its weekly bond offering today.

More than one million people have been stranded and 8,000 or more flights have been canceled. Several flights were stranded at JFK Airport in New York and flights from China Air, Swiss Air, Lufthansa and others spent more than six hours on the tarmac. Air travel in Moscow, Russia was also disrupted after freezing rains in the last two days.

The S&P 500 index soared 6.6% in December and has jumped more than 19% since August 27 after Fed Chairman Bernanke indicated that he is prepared to provide more stimulus if needed.

BJ’s Wholesale Club Inc rose more than 6% in the early trading on the speculation that a private equity firm may make an offer for the wholesale retailer.

Groupon Plans to Raise Finance

Groupon Inc. online coupon seller is now preparing to raise up to $950 million in equity financing, according to venture capital research firm VC Experts on Tuesday.

VC Experts reported that Groupon filed a certificate for a Series G round of preferred stock that would authorize the company to raise up to $950 million that may value the company at $8 billion. Groupon is expected to sell 30 million preferred shares.

Allstate Sues BofA and Countrywide

Allstate Corporation sued Bank of America Corp. and its mortgage division Countrywide Financial Corp. for losses incurred from the purchase of over $700 million in residential mortgage-backed securities, media sources said on Tuesday.

Sara Lee Sells Business Unit to Symex

Sara Lee Corp. signed an agreement to sell its White King and Janola cleaning brands to Australian company Symex Holdings Limited and Pental Products Pty Ltd., a wholly owned subsidiary of Symex for €37.9 million.

Grandpoint Capital Merges with First Commerce Bancorp

Grandpoint Capital, Inc., the parent company of Grandpoint Bank, and First Commerce Bancorp, the parent company of First Commerce Bank, announced that they have completed the merger of the two holding companies and the two banks, after receiving shareholder and regulatory approvals.

The total transaction is valued at approximately $43.9 million, not including any future additional consideration that may be paid based on the performance of a select portfolio of loans.

Blackstone Bids for Centro Properties Group

Blackstone Group LP, the private equity firm made a preliminary offer for Australian shopping-center owner Centro Properties Group, the Wall Street Journal reported Monday, citing people familiar with the matter.

Broadcom Acquires Gigle Networks

Broadcom Corporation, a global leader in semiconductors for wired and wireless communications completed the acquisition of Gigle Networks Inc., a privately-held company that develops system-on-a-chip (SoC) solutions for home networking over power lines.

Broadcom paid approximately $75 million to acquire all of the outstanding shares of capital stock and other rights of Gigle Networks Inc.