Stocks
Looking to bulk up in a rapidly changing industry, Fidelity National Information Services (NYSE:FIS) has agreed to buy payment processor Worldpay (NYSE:WP) for about $35B. Including debt, the deal values Worldpay at about $43B. Worldpay shareholders will receive 0.9287 FIS shares and $11 in cash for each share held, valuing the company at $112.12 per share – a premium of about 14% based on Friday’s closing. WP +10.4% premarket.
Boeing shares have resumed their slide, falling 3.5% premarket, after investigators in Ethiopia said their 737 MAX 8 probe found “clear similarities” between last week’s crash and the October crash of a Lion Air plane that killed 189 people. The U.S. Department of Transportation has also launched a probe into whether there were lapses in the FAA’s approval of the Boeing 737 Max (NYSE:BA). The investigation is said to focus on the aircraft’s MCAS flight control system.
Southwest Airlines and the aircraft mechanics union announced a tentative contract agreement this weekend after six years of negotiations. The five-year agreement must be approved by the 2,400 mechanics who would win a 20% pay raise and $160M in bonuses. The FAA previously warned that the deteriorating relationship between Southwest (NYSE:LUV) and its mechanics threatened to undermine the airline’s safety management system.
Get ready for Lyft’s road show. The fireworks start today with the ride-hailing firm seeking to convince investors to make large commitments to its IPO, rather than hold out for its larger rival Uber Technologies (UBER). Outsized control? A group of investors is also calling on Lyft’s (LYFT) board to scrap a proposed dual-class share structure ahead of its public listing.
The external committee tasked with improving governance at Nissan (OTCPK:NSANY) believes the firm can deepen ties with Renault (OTCPK:RNLSY) without overhauling their broader alliance, Reuters reports. That can include stronger roles for outside directors and establishing committees for board member nominations, auditing and determining executive pay. The two automakers are retooling their partnership to create more equal footing following the arrest of Carlos Ghosn on financial misconduct charges.
“General Motors must get their Lordstown, Ohio, plant open, maybe in a different form or with a new owner, FAST! Toyota is investing $13.5 Billion in U.S., others likewise. G.M. MUST ACT QUICKLY,” President Trump wrote on Twitter. The tweet comes ten days after the plant made its last Chevrolet Cruze. The facility is also the first of five GM plants in North America to end output this year and shutter U.S. production of the Cruze.
Amazon has scored the last approval it was seeking for an incentive plan that helped lure the retailer to Northern Virginia. The five-member Arlington County Board on Saturday unanimously approved $23M in incentives for Amazon (NASDAQ:AMZN) to construct its HQ2 in Crystal City and agreed to spend an estimated $28M on infrastructure improvements and open space around the buildings. Amazon has also been offered a subsidy package of up to $750M over 15 years by the Virginia General Assembly.
PG&E is likely to name Bill Johnson – retiring head of the Tennessee Valley Authority – as its new CEO as early as this week, as well as initiate an overhaul of the PG&E (NYSE:PCG) board backed by some of its largest investors, WSJ reports. The troubled California utility filed for bankruptcy protection in January, facing a fight to survive billions of dollars in potential wildfire liability costs, including the 2018 Camp Fire blaze that killed 85 people.
U.S. casino operators Eldorado Resorts (NASDAQ:ERI) and Caesars Entertainment (NASDAQ:CZR) are in the early stages of exploring a merger, Reuters reports. The talks come after Caesars agreed this month to give Carl Icahn, who has been pushing the company to sell itself, three board seats and a say on the selection of its next CEO. Caesars and Eldorado have market caps of $5.4B and $3.6B, as well as debt piles of $9.1B and $3.3B, respectively.
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