A bill in Congress could delay IPOs for companies such as Facebook and Twitter; a new Boeing jet may become a bargaining chip in a labor dispute; and more
Boeing: Fighting Over Factories
Boeing's (BA) successor to the popular 737 jet may become a bargaining chip in a dispute that pits the aerospace giant against the National Labor Relations Board. In a hearing before a federal administrative law judge, the NLRB alleged that the company's 2009 decision to build a non-union plant in South Carolina was an act of retaliation against the Machinists union for prior strikes. It may be months before the case is decided—and likely years if the initial ruling is appealed. To reach a settlement, which must satisfy the labor board and judge, the Machinists want Boeing to commit to manufacturing its new jet in the Puget Sound area.
Facebook/Twitter: Bill Could Delay IPOs
A bill in Congress would allow companies such as Facebook and Twitter to put off IPOs, even after acquiring 500 investors. Currently, that's the magic number triggering financial reporting requirements that often lead companies to go public. The legislation would increase the ceiling to 1,000 investors and exclude employees and some wealthy shareholders from the total. Companies would be able to remain private while gaining access to more capital. Critics say the change would lock out ordinary investors.
Carlyle Group: Taking Stakes in Hedge Funds
Private equity firm Carlyle Group is buying a 55 percent stake in hedge fund Tiger Management's Emerging Sovereign Group, which trades on emerging market stocks and macroeconomic trends. As leveraged buyouts have declined, private equity firms have bought asset management and advisory businesses to diversify their holdings. Carlyle took a majority stake in another hedge fund in December, gaining liquidity as it prepares for an IPO.
Bank of America: Challenged Over Foreclosure Review
Bank of America (BAC) "significantly hindered" a federal review into its foreclosure practices, says the inspector general's office of the Housing and Urban Development Dept. The largest U.S. lender did not respond fully to HUD's subpoenas and would not let employees answer certain questions, according to a sworn declaration in a separate suit filed by the state of Arizona. HUD is investigating if large mortgage servicers improperly foreclosed on mortgages insured by the government. The bank says it "fully cooperated" with the review.
Manchester United: May List in Hong Kong
English soccer club Manchester United is looking for ways to trim financing costs, including potentially listing on the Hong Kong Stock Exchange. The team held preliminary talks with several investment banks about the deal, the Sunday Times reported. Man U's management, which declined to comment, wants to put the savings toward paying players, says a person familiar with the matter. In 2005, the Glazer family bought the team in a leveraged buyout that it's now financing with bonds. The club was debt-free before the takeover.
On the Move
JPMorgan Chase (JPM): Mortgage chief David Lowman ousted after improper foreclosures
J.C. Penney (JCP): Apple's (AAPL) stores head Ron Johnson named new CEO
Ambac (ABK): Diana Adams to replace President and CEO David Wallis