Shares of Dell slid Friday on reports that founder Michael Dell and Silver Lake Partners don’t plan to raise their $24.4 billion buyout offer for the company
Bloomberg, the Wall Street Journal and other media organizations reported that there won’t be an increase in the bid, as Michael Dell and Silver Lake believe the offer they made in February represents fair value for the company. The shares fell as investors became more concerned the offer won’t go through.
Activist investor Carl Icahn, the company’s second biggest shareholder, wants Dell to remain publicly traded and says the company should buy back $16 billion in stock to give shareholders a bigger return on their investment. Shareholders will vote on the buyout offer at the company’s annual meeting July 18.
Dell Inc., based in Round Rock, Texas, declined comment. The company’s shares slid 28 cents, or 2.1 percent, to close at $13.03.
Nokia downgraded after Siemens buyout
Ratings agency Standard and Poor’s on Friday downgraded Nokia Corp.’s credit rating, citing the deal this week to buy out Siemens from its Nokia Siemens Networks joint venture for 2.21 billion.
The agency lowered the Finland-based company’s long-term corporate credit rating to B+ from BB-, warning that its strong balance sheet will weaken as a result of the acquisition.
S&P also affirmed Nokia’s B short-term corporate credit rating, with a stable outlook, and cut the issue rating on Nokia’s senior unsecured debt to B+ from BB-.
The ratings reflect our revised assessment of Nokia’s financial risk profile assessment to aggressive’ from significant,’ the agency said. We continue to assess its business risk profile as weak.’
Nokia said it believes the deal to buy out Siemens, to be completed during the current quarter, added value to the company.
Chrysler minivans recalled for air bags
Chrysler is recalling 282,000 minivans from the 2013 model year because the side air bags can deploy on the wrong side in a crash.
Side air bags are supposed to deploy on the side of the vehicle that’s involved in a crash. Chrysler says a software problem is causing its air bags to deploy on the opposing side of the vehicle.
Affected models are the Dodge Grand Caravan, Chrysler Town and Country and Ram Cargo Van. The campaign involves 224,000 vehicles in the U.S.; 49,300 in Canada; 2,900 in Mexico and 5,300 elsewhere.
Chrysler says it began investigating the issue after a customer complaint. The company says there has been one minor injury related to the defect.
Chrysler will notify affected customers. Dealers will reprogram the software for free.
Japanese company’s bid for Sprint OK’d
The Federal Communications Commission says it approved Softbank Corp.’s bid for Sprint Nextel Corp.
The FCC gave thumbs-up to the $21.6 billion deal Friday, completing the U.S. government’s review of the Japanese company’s investment in Sprint. Softbank will have a 78 percent stake in Sprint, the third largest U.S. wireless carrier.
The FCC also approved Sprint’s plan to buy the half of wireless operator Clearwire that it does not already own.
Softbank, based in Tokyo, has said it expects the Sprint deal to close this month.