NEW YORK (Reuters) – U.S. casino operator Eldorado Resorts Inc has agreed to merge with Caesars Entertainment Corp in a cash and stock deal that values its peer at about $18 billion including debt, people familiar with the matter said on Sunday.
The agreement comes three months after Reuters reported that Caesars had agreed to give Eldorado access to its books under pressure from billionaire investor Carl Icahn, who earlier this year was awarded seats on Caesars’ board.
The deal, which is expected to be announced on Monday, values Caesars at close to $13 a share, according to the sources. The combined company’s ownership would be split roughly between Eldorado and Caesars shareholders, the sources said.
The sources asked not to be identified because the matter is confidential. An Eldorado spokesman said the company did not comment on rumors or speculation. Caesars did not immediately respond to requests for comment.
The combination of the two companies would create a serious competitor to larger casino industry players, such as Las Vegas Sands Corp, Wynn Resorts Ltd and MGM Resorts International.
Caesars’ shares closed on Friday at $9.99. The company, which emerged from bankruptcy in 2017, operates casinos with the Harrah’s and Horseshoe brands. It had 53 properties in 14 U.S. states and five countries outside the United States at the end of December.
Eldorado has a market value of $4 billion. It also had long-term debt at the end of March of $3.1 billion. It owns and operates 26 properties in 12 U.S. states.
(Reporting by Greg Roumeliotis; Editing by Peter Cooney)
Korean Air joint venture provides a strong platform for Delta growth, world-class customer benefits and revenue generation across one of the most comprehensive route networks in the trans-Pacific.
Delta has acquired a 4.3 percent equity stake in Hanjin-KAL.
Delta has acquired a 4.3 percent equity stake in Hanjin-KAL, the largest shareholder of Korean Air. The investment demonstrates Delta’s commitment to the success of its joint venture with Korean Air and the customer benefits, market positioning and growth opportunities the partnership enables. Delta intends to increase its equity stake to 10 percent over time, after receiving regulatory approval.
“Together with the team at Korean Air, we have a vision to deliver the world’s leading trans-Pacific joint venture for our shared customers, offering the strongest network, the best service and the finest experience connecting the U.S. with Asia,” said Delta CEO Ed Bastian. “This is already one of our fastest-integrating and most successful partnerships, and experience tells us this investment will further strengthen our relationship as we continue to build on the value of the joint venture.”
Delta and Korean Air operate the industry’s most robust trans-Pacific joint venture, providing customers with seamless access to more than 290 destinations in the U.S. and over 80 destinations in Asia, including the partnership’s award-winning hub at Seoul-Incheon (ICN).
Since launching in May 2018, Delta and Korean Air have strengthened cooperation by expanding joint operations in the trans-Pacific to include more than 1,400 codeshare flights, including connections throughout Asia and the U.S. Teams at both airlines have also worked closely together to provide the best travel experience for customers between the U.S. and Asia, integrate sales and marketing activities, and enhance loyalty program benefits, such as the ability to earn more miles on both loyalty programs and redeem them on a wider range of flights. Additionally, Korean Air and Delta have launched cargo cooperation across one of the most comprehensive route networks in the trans-Pacific market.
The partnership is contributing to Delta’s first year-over-year growth in the Asia Pacific region since 2012, with new service launched earlier this year between Minneapolis/St. Paul and Seoul, as well as Seattle and Osaka, operated in partnership with Korean Air. Additionally, Korean Air has launched new service linking Boston with Seoul.
The joint venture builds on nearly two decades of close partnership between Korean Air and Delta, both founding members of the SkyTeam airline alliance.
Delta is growing its international footprint and leveraging partnerships with key airlines in regions around the world, including through joint ventures and equity investments. These investments improve alignment between Delta and its partners, creating a more stable environment for growth amid an increasingly dynamic global landscape.
Low-cost Viva Air plans NYSE listing within two years
Budget carriers are disrupting transport across Latin America
Rendering of an Airbus A320neo Viva Air aircraft Source: Airbus SE
Viva Air, the Latin American group of carriers owned by a founder of Ireland’s Ryanair Holdings Plc, has plans for a third airline in the region plus an initial public offering, to cash in on strong demand for discount air travel.
The company aims to sell shares in New York within two years, Viva’s biggest shareholder, Declan Ryan, said in an interview in Lima. The shares could also be listed on another exchange, such as Colombia’s, he said.
Every day, Wall Street analysts upgrade some stocks, downgrade others, and “initiate coverage” on a few more. But do these analysts even know what they’re talking about? Today, we’re taking one high-profile Wall Street pick and putting it under the microscope…
After underperforming the S&P 500 by more than 17 points over the past year, Alaska Air Group (NYSE: ALK) delivered a pleasant surprise to its shareholders last week, outperforming analyst expectations and beating on both earnings and revenue. The $0.17 per share that Alaska earned in fiscal Q1 2019 topped consensus estimates by more than 50% — and the airline even eked out a small sales beat with its $1.88 billion in Q1 revenue.
FRANKFURT, April 9 (Reuters) – A German court on Tuesday approved an application for insolvency from wind turbine manufacturer Senvion, although the company said it was also continuing to look at new funding options and various potential investors had shown interest.
The Hamburg-based company, which has more than a billion euros of debt, said it had applied for preliminary self-administration proceedings because refinancing discussions with lenders had not yet been successful.
Shares in Senvion were down 40.5 percent at 1519 GMT, having fallen as much as 55 percent earlier in the day.
Senvion has faced delays and penalties related to big projects, while the wind industry as a whole has seen falling prices and increased competition as it moves away from governments guaranteeing generous fixed subsidised tariffs for power towards an auction-based system that favours the lowest bidders.
Market leaders Siemens Gamesa and Vestas have more pricing power, putting smaller suppliers under pressure.
Financial sources had told Reuters Senvion needed at least 100 million euros ($112 million) in the short term to keep operating.
“Lenders and major bond holders are currently continuing intensive discussions around a financing offer to secure the continuation of operations which may allow the company to successfully exit this process,” Senvion said in a statement.
Two financial sources said hedge funds Anchorage and Davidson Kempner were prepared to put up the 100 million euros in loans that CEO Yves Rannou – who took the helm in January – needs to continue restructuring and clear the backlog of orders that has recently cost the company revenues and profit.
The sources said majority shareholder Centerbridge was prepared to accept that but the banks – notably Deutsche Bank and BayernLB – would still need to agree. The banks have lent Senvion a total of 950 million euros.
BayernLB and Deutsche Bank declined to comment.
Senvion also has 400 million euros in bonds bought by hedge funds including Anchorage and Davidson Kempner.
Senvion said its management board would remain in office under the initiated procedure and business operations would carry on, with both existing service and maintenance contracts continuing.
The company said the preliminary self-administration proceedings affected Senvion GmbH and a subsidiary called Senvion Deutschland GmbH. It said Senvion S.A., Senvion Topco GmbH and Senvion Holding GmbH were expected to file for insolvency later this week.
Senvion’s website says it has around 4,000 employees globally.
(By Alexander Hübner and Michelle Martin, Additional reporting by Hans Seidenstuecker; Editing by Tom Sims and Mark Potter)
SAO
PAULO (Reuters) – Brazilian planemaker Embraer said on Tuesday a key
shareholder meeting to vote on the sale of 80 percent of its commercial
aviation business to Boeing Co could proceed as scheduled on Tuesday,
after it got an injunction overturned.
A
federal judge had suspended the meeting on Friday at the request of a
union representing some Embraer workers which had lobbied against the
deal, partly on concerns Boeing would slash jobs if the tie-up was
approved.
Shares in Embraer surged 3 percent in early Sao Paulo trading on news the meeting would take place.
Last-minute
legal twists are common in Brazil, and Embraer had already overturned
several injunctions that temporarily blocked the deal.
Under
the proposed terms, Boeing will pay $4.2 billion to control Embraer’s
most profitable division, its commercial aviation business.
The
deal will provide a cash influx that the Brazilian planemaker has
defended as crucial to its survival as increased competition between
Boeing and Airbus squeezes out smaller rivals.
“The
potential operation with Boeing will save Embraer,” lawyers for the
Brazilian planemaker said in July in a court filing as it battled an
earlier challenge to the deal.
But
critics say the arrangement will leave Embraer weaker and financially
dependent on its two remaining divisions, executive jets and defense,
both of which have posted losses in recent quarters.
Foreign shareholders, who own a tiny slice of the company, overwhelmingly voted to approve the deal.
Brazil’s
securities regulator late on Monday denied a separate request filed by
minority shareholders to suspend the shareholder meeting.
Embraer’s
union has vowed to protest the meeting, which will be held at the
planemaker’s headquarters in the city of Sao Jose dos Campos. The
union’s plans prompted Embraer to seek legal restrictions of its own.
A
judge sided with Embraer last week, allowing Brazil’s military police
to safeguard the planemaker’s premises while the meeting takes place.
The
deal has already been approved by Brazil’s government, which holds veto
power over important business decisions at Embraer, which was a state
company until its privatization in the 1990s.
(Reporting by Marcelo Rochabrun in Sao Paulo; Additional reporting by Gram Slattery in Rio de Janeiro; Editing by Jason Neely, Keith Weir and Bernadette Baum)
CHICAGO, Feb. 26, 2019 /PRNewswire/ — The Boeing Company [NYSE: BA] board of directors has nominated Nikki Randhawa Haley to be elected as a director at the company’s annual meeting of shareholders on April 29.
Haley is the former U.S. ambassador to the United Nations, the first female governor of South Carolina, and a three-term legislator in the South Carolina House of Representatives.
“Ambassador Haley brings to Boeing an outstanding record of
achievement in government, industry partnership, and successfully
driving economic prosperity for communities in America and around the
world,” said Boeing Chairman, President and Chief Executive Officer Dennis Muilenburg.
“Boeing will benefit greatly from her broad perspectives and combined
diplomatic, government and business experience to help achieve our
aspiration to be the best in aerospace and a global industrial
champion.”
Ambassador Haley, 47, graduated from Clemson University with a bachelor’s degree in accounting. She was first elected to the South Carolina
House of Representatives in 2004, serving three terms before being
elected Governor of the state between 2011 and 2017. Haley was appointed
U.S. ambassador to the United Nations by President Trump in January 2017, serving until December 2018.
“It’s an honor to have the opportunity to contribute to Boeing’s
continued success as a cutting edge industry leader and a great American
company,” said Ambassador Haley. “Not only is Boeing the largest
aerospace company in the world and America’s biggest exporter, it also
understands the importance of teamwork and building community through
its network of suppliers in all 50 states and around the world.”
This Press Release Does Not Constitute a Solicitation of Proxies This press release is not a solicitation of proxies from holders of common stock of The Boeing Company (the “Company”). The Company will provide shareholders with a proxy statement and other relevant materials in connection with the 2019 Annual Meeting of Shareholders. Any solicitation of proxies by or on behalf of the Company in connection with the 2019 Annual Meeting of Shareholders will be conducted upon and following the dissemination of the proxy statement and other materials in accordance with applicable law. We urge shareholders to read the proxy statement and any other relevant documents to be filed with the SEC when available, as such documents will contain important information. Shareholders will be able to receive the proxy statement and other relevant documents free of charge at the SEC’s website at http://www.sec.gov or at http://www.boeing.com.
Feb
21 (Reuters) – India’s Jet Airways Ltd has approved a rescue deal by
the lenders of the carrier reeling under a net debt of 72.99 billion
rupees ($1.02 billion), but doubts linger over whether the bailout would
help it clear dues on time.
The resolution plan will make Jet’s lenders its largest shareholders and fix a near 85 billion rupee funding gap.
Jet has been steadily losing market share to its rival and low-cost carrier IndiGo, which is owned by InterGlobe Aviation Ltd.
The airline has also seen its share price suffer as it navigated through several negotiations with its lenders and shareholders.
Oct 18 – Report says Indian conglomerate Tata Group is in talks to buy stake in Jet. Jet calls report “speculative”
Oct 30 – U.S.-based Delta Air Lines Inc expresses interest to buy Jet stake from promoter Naresh Goyal and Etihad Airways
Nov 5 – Report says Tata aims to buy the 51 percent stake in the airline owned by Naresh Goyal, and Etihad Airways’ 24 percent stake, and merge Jet with Vistara
Nov 12 – Jet posts third straight quarterly loss
Nov 13 – Tata Sons begins due diligence to buy Jet, reports say
Nov 15 – Shares surge nearly 25 percent following reports that the debt-laden airline was nearing a rescue deal with Tata Sons; another report says the Indian government asked Tata to explore buying Jet
Nov 16 – Tata Sons says discussions on Jet is preliminary and no proposal has been made
Nov 22 – Independent director Ranjan Mathai resigns, citing rising pressure from other commitments
Dec 3 – Jet says it will stop providing free meals to most domestic economy class passengers from January
Dec 5 – Jet and Etihad Airways have been holding rescue talks with Jet’s bankers, sources tell Reuters
Dec 6 – Jet tells its pilot union it will clear all salary dues by April, a source tells Reuters
Dec 14 – Goyal’s penchant for control has come up as a major obstacle as the airline tries to negotiate a rescue deal, several people who have worked closely with him or known him over the years tell Reuters
Jan 2, 2019 – The airline says it has delayed payment to a consortium of Indian banks, led by SBI; ICRA cuts rating again
Jan 10 – Jet proposes to creditors that it will catch up with debt payments in arrears by September, and from April will meet debt payments as they come due, according to a document seen by Reuters
Jan 11 – Some aircraft lessors were prompted to explore taking back aircraft from Jet, people familiar with the matter told Reuters. Etihad is not “in any position to sink new equity into Jet at this juncture”, says a person familiar with Etihad’s position.
Jan 14 – Report states Goyal is likely to step down from the board and give up majority control
Jan 16 – TV channel reports that Etihad offered to buy Jet shares at a 49 percent discount and immediately release $35 million.
Jan 17 – Top creditor SBI says Jet’s lenders are considering a plan to resolve its debt issues, amid further reports that Goyal is willing to invest 7 billion rupees in the airline and pledge all his shares but wants to retain a 25 percent stake.
Jan 24 – India capital markets regulator says it has no “view” on relaxing norms for a Jet bailout
Jan 25 – Etihad appoints Alvarez & Marsal to conduct due diligence on Jet, sources tell Reuters
Jan 30 – Jet denies its aircraft had been grounded by GE Capital Aviation Services
Feb 1 – Jet agrees to most conditions set by Etihad Airways for a lifeline, a report says
Feb 8 – Airline grounds four aircraft after failing to make payments to lessors
Feb 14 – Jet’s board approves a rescue deal which will make its lenders its largest shareholders and fix a near 85 billion rupee funding gap
Feb 15 – Jet is seeking an $840 million bailout from shareholders and a state-backed fund, Business Television India reports
Feb 21 – International lessors have grounded more Jet Airways planes prior to potentially moving them out of India, as scepticism builds whether a state-led bailout of the carrier can clear their dues on time, sources tell Reuters
($1 = 71.2325 Indian rupees)
(Compiled by Arnab Paul and Chris Thomas in Bengaluru; Editing by Subhranshu Sahu and Rashmi Aich)
OSLO
(Reuters) – Norwegian Air’s shareholders overwhelmingly endorsed on
Tuesday the lossmaking airline’s plan for a deeply discounted cash call
to help bolster its finances, Chairman Bjoern Kise said.
Norwegian
Air said on Jan. 29 it would raise 3 billion Norwegian crowns ($348
million) in a rights issue, just days after British Airways owner IAG
ruled out a bid for the budget carrier.
Norwegian
is trying to replicate on transatlantic flights the low-cost model that
dominates the short-haul market, exemplified by the likes of Ryanair
and easyJet, but is struggling to make the business profitable.
The
European airline sector faces overcapacity and high fuel costs, with
several operators going out of business, the latest being British-based
Flybmi which filed for bankruptcy on Sunday.
In
the rights issue, Norwegian’s owners will get the right to buy two new
shares at 33 crowns each for every share they own, compared with
Monday’s closing price of 93 crowns.
Holders of more than 99 percent of Norwegian’s equity backed the proposal at a meeting on Tuesday, company officials said.
By
selling new shares far below the market price, Norwegian will boost the
value of each of the purchasing rights, which can be bought and sold.
This
in turn allows Norwegian Air Chief Executive Bjoern Kjos and his
business partner, the group’s chairman, to sell some of their
subscription rights and reinvest the proceeds in new shares, thus
limiting the dilution of their joint stake which stands at 24.66
percent.
Norwegian said last month that billionaire investor John Fredriksen was among those who had agreed to take part in the issue.
($1 = 8.6295 Norwegian crowns)
(By Terje Solsvik, Editing by Nerijus Adomaitis and David Holmes)
São Paulo and Chicago, January, 10, 2019 – Embraer [B3: EMBR3, NYSE: ERJ] and Boeing [NYSE: BA] have welcomed approval by Government of Brazil of the strategic partnership that will position both companies to accelerate growth in global aerospace markets.
The government’s approval comes after the two companies last month approved terms for the joint venture that will be made up of the commercial aircraft and services operations of Embraer. Boeing will hold an 80 percent ownership stake in the new company and Embraer will hold the remaining 20 percent.
The companies have also agreed to the terms of another joint venture to promote and develop new markets for the multi-mission medium airlift KC-390. Under the terms of this proposed partnership, Embraer will own a 51 percent stake in the joint venture, with Boeing owning the remaining 49 percent.
Once Embraer’s Board of Directors ratifies its prior approval, the two companies will then execute definitive transaction documents. The closing of the transaction will be subject to shareholder and regulatory approvals and customary closing conditions. Assuming the approvals are received in a timely manner, the transaction is intended to close by the end of 2019.
Forward-Looking Information Is Subject to Risk and Uncertainty Certain statements in this release may be “forward-looking” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the proposed terms of the transaction, the ability of the parties to satisfy the conditions to executing or closing the transaction and the timing thereof, and the benefits and synergies of the proposed transaction, as well as any other statement that does not directly relate to any historical or current fact. Forward-looking statements are based on current assumptions about future events that may not prove to be accurate. These statements are not guarantees and are subject to risks, uncertainties and changes in circumstances that are difficult to predict. Many factors could cause actual results to differ materially from these forward-looking statements. As a result, these statements speak only as of the date they are made and neither party undertakes an obligation to update or revise any forward-looking statement, except as required by law. Specific factors that could cause actual results to differ materially from these forward-looking statements include the effect of global economic conditions, the ability of the parties to reach final agreement on a transaction, consummate such a transaction and realize anticipated synergies, and other important factors disclosed previously and from time to time in the filings of The Boeing Company and/or Embraer with the Securities and Exchange Commission.
