BNET Daily Dispatch: Microsoft, GE, British Airways, and Consumer Confidence
By
Andrew Hines
May 18th, 2007 @ 11:18 am
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Categories: General
Tags: British Airways Plc., General Electric Co., Consumer Confidence, Microsoft Corp., Plastics, Andrew Hines
- Microsoft took a big step today to build its presence in the online advertising market with a deal to buy digital marketing group Aquantive for roughly $6 billion cash — an 85 percent premium above Aquantive’s closing price yesterday. The acquisition is Microsoft’s largest to date and comes after several major consolidations in the sector, including Google’s acquisition of market leader DoubleClick.
- General Electric is nearing an agreement to sell its plastics division, one of the oldest GE companies, for $11 billion. According to people briefed on the negotiations, the suitor is most likely Saudi Basic Industries Corporation. GE’s plastics business has endured intense competition and higher raw material costs, pushing 2006 profits down to $674 million, a 22 percent decline from 2005.
- British Airways today announced a fourth-quarter loss of $244.5 million and admitted to anticompetitive behavior amounting to price-fixing. The airline has set aside $690 million to cover potential fines resulting from an investigation into whether corporate officers discussed fuel surcharges with rival companies.
- U.S. consumer confidence showed an unanticipated increase last month despite record fuel prices. Economists attribute the boost in confidence to strong labor and stock markets. The index of consumer sentiment published by Reuters / University of Michigan reported a May index level of 88.7, up 1.7 points from April.
