U.S. Stock Futures Higher; Facebook Valued at $50 Billion

Arthi Gupta
03 Jan, 2011
New York City

U.S. indexes traded higher on the rising economic expectations and stronger than expected retail sales. Facebook raised $500 million in the latest round that valued the company at $50 billion. CVS agreed to acquire Universal American''s Medicare unit for $1.25 billion.

[R]9:00 AM New York – U.S. indexes traded higher on the rising economic expectations and stronger than expected retail sales. Facebook raised $500 million in the latest round that valued the company at $50 billion. CVS agreed to acquire Universal American''s Medicare unit for $1.25 billion.[/R]

World markets rose buoyed by optimism that there is scope for economic recovery after better-than-estimated global economic data.

This week investors are anticipating U.S. jobs report for December, minutes of the latest FOMC meeting, auto sales, service industry index, construction spending and factory orders.

China''s manufacturing activity moderated in December as new orders and production recorded weaker growth rates during the month, survey results from China Federation of Logistics and Purchasing showed on Saturday.

The country''s Purchasing Managers’ Index fell to 53.9 in December from 55.2 in November.

Estonia Joins Euro Club

Estonia completed the transition to euro, the seventeenth nation and also the first former Soviet Union state to join the currency union.

Obama Signs Health Bill into Law

U.S. President Barack Obama signed into law a bill that provides healthcare and compensation to the first responders of the 9/11 terrorist attacks.

The law, passed by both houses of the Congress late last month, will provide $4.3 billion for the care and compensation of emergency workers who became sick from breathing toxic dust during the terrorist attacks of the World Trade Center in New York and the Pentagon in Washington on September 11, 2001.

Facebook Valued at $50 Billion

Facebook raised $500 million from Goldman Sachs Group, Inc. and Russian investment firm Digital Sky Technologies, a deal which values the social networking Web site at $50 billion, the New York Times reported, citing people involved in the deal.

Under the deal terms, Goldman invested $450 million and Digital Sky $50 million. Goldman has the right to sell part of its stake, up to $75 million, to the Russian investment firm that had already invested $500 million in the social networking company.

CVS Purchases Universal American''s Medicare Unit

CVS Caremark Corporation, the drug store chain operator entered into an agreement to acquire the Medicare Part D business of Universal American for approximately $1.25 billion.

The acquisition will more than double the size of CVS Caremark''s Medicare Part D program.

Nunavat Raises Bid Offer for Baffinland

Nunavut Iron Ore Acquisition Inc. raised its hostile offer for Baffinland Iron Mines Corp. to C$1.45 per share, or $1.4538. The move came just hours after steel giant ArcelorMittal sweetened its offer for Baffinland to C$1.40 per share in cash.

Sara Lee Receives Offer for Shoe Care Business

Sara Lee Corp. received a binding offer from SC Johnson to acquire Sara Lee’s global shoe care business, including brands Kiwi, Kiwi Kleen, Bama, Tana and Meltonian, for €245 million.

CoorsTek Acquires Advanced Ceramics Business of Saint-Gobain

CoorsTek, Inc., the world’s largest technical ceramics manufacturer, announced the completion of the purchase of the advanced ceramics business of Saint-Gobain. CoorsTek now owns and operates 44 facilities on four continents.

LDK Solar Sells Stake in Polysilicon Unit

LDK Solar Co., Ltd., a manufacturer of photovoltaic products, announced on Monday an agreement under which certain Chinese investors would acquire $240 million worth stake in LDK''s polysilicon unit.

Under the deal, LDK Solar and its polysilicon manufacturing units would sell series A redeemable convertible preferred shares of LDK Silicon & Chemical Technology Co., Ltd. to investors, including China Development Bank Capital Corp. Ltd., investment funds affiliated with China Construction Bank Corp and Prosper East Limited, and an investment fund affiliated with another Chinese bank.

Mednax Acquires Neonatal Medical Associates

Mednax, Inc., the national medical group acquired a Long Beach, California-based neonatal physician group, Neonatal Medical Associates, Inc.

Financial terms of the transaction were not disclosed though the company said it paid cash. The company expects the transaction to be immediately accretive to its earnings.