U.S. markets closed

  • S&P Futures

    4,193.00
    +7.50 (+0.18%)
     

  • Dow Futures

    34,316.00
    +45.00 (+0.13%)
     

  • Nasdaq Futures

    13,692.75
    +36.50 (+0.27%)
     

  • Russell 2000 Futures

    2,213.00
    +7.50 (+0.34%)
     

  • Crude Oil

    65.95
    -0.12 (-0.18%)
     

  • Gold

    1,898.30
    +0.30 (+0.02%)
     

  • Silver

    28.10
    +0.04 (+0.16%)
     

  • EUR/USD

    1.2255
    0.0000 (-0.00%)
     

  • 10-Yr Bond

    1.5640
    -0.0440 (-2.74%)
     

  • Vix

    18.84
    +0.44 (+2.39%)
     

  • GBP/USD

    1.4148
    -0.0003 (-0.02%)
     

  • USD/JPY

    108.7700
    +0.0100 (+0.01%)
     

  • BTC-USD

    38,329.19
    -724.78 (-1.86%)
     

  • CMC Crypto 200

    994.54
    +10.81 (+1.10%)
     

  • FTSE 100

    7,029.79
    -21.80 (-0.31%)
     

  • Nikkei 225

    28,553.98
    0.00 (0.00%)
     

SHAREHOLDER NOTICE: Brodsky & Smith Announces an Investigation of Legato Merger Corp. (NASDAQ:LEGO)

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·2 min read
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

BALA CYNWYD, PA / ACCESSWIRE / May 25, 2021 / Law office of Brodsky & Smith announces that it is investigating potential claims against the Board of Directors of Legato Merger Corp. ("Legato" or the "Company") (NASDAQ:LEGO) for possible breaches of fiduciary duty and other violations of federal and state law in connection with a merger agreement pursuant to which Legato, a special purpose acquisition company, will combine with Algoma Steel Inc. ("Algoma"), a leading independent steel producer, and result in Algoma becoming a publicly-listed company. Under the terms of the agreement, Legato shareholders will retain ownership of only 15% of the combined company.

The investigation concerns whether the Legato Board breached its fiduciary duties to shareholders by failing to conduct a fair process, including the dilution of ownership interest in the combined company.

If you own shares of Legato stock and wish to discuss the legal ramifications of the investigation, or have any questions, you may e-mail or call the law office of Brodsky & Smith who will, without obligation or cost to you, attempt to answer your questions. You may contact Jason L. Brodsky, Esquire, or Marc L. Ackerman, Esquire at Brodsky & Smith, Two Bala Plaza, Suite 805, Bala Cynwyd, PA 19004, visit https://www.brodskysmith.com/cases/legato-merger-corp-nasdaq-lego/, or call toll free 855-576-4847.

Brodsky & Smith, LLC is a litigation law firm with extensive expertise representing shareholders throughout the nation in securities and class action lawsuits. The attorneys at Brodsky & Smith have been appointed by numerous courts throughout the country to serve as lead counsel in class actions and have successfully recovered millions of dollars for our clients and shareholders. Attorney advertising. Prior results do not guarantee a similar outcome.

SOURCE: Brodsky & Smith, LLC



View source version on accesswire.com:
https://www.accesswire.com/649098/SHAREHOLDER-NOTICE-Brodsky-Smith-Announces-an-Investigation-of-Legato-Merger-Corp-NASDAQLEGO

Recommended Stories

  • Kim Kardashian says she's 'not responsible' for labor disputes in lawsuit against her

    A new lawsuit filed by maintenance workers and gardeners claims reality star Kim Kardashian violated labor laws at her Hidden Hills home.

  • Green Bond Seller Investing in Coal Shows How Tricky ESG Can Be

    (Bloomberg) -- When a South Korean electric utility issued green bonds last year while investing in new coal-fired power plants in Southeast Asia, the mixed environmental messages fueled investor skepticism about sustainability debt that’s only been growing since.Korean issuers have shot up the rankings for green note sales this year with $10.5 billion in deals, the most in Asia after China, according to data compiled by Bloomberg, but the sellers include many companies in emission-intensive industries. Nonprofit firm Anthropocene Fixed Income Institute calculates that more than half of all green bonds from Korea come from “potentially controversial sectors” such as autos, chemicals, power producers and oil and gas, according to founder Ulf Erlandsson.Issuers exaggerating or misrepresenting their environmental credentials in marketing sustainability debt, known as greenwashing, is a risk facing investors around the world. It’s a danger for Korean borrowers because smokestack industries are such a big part of its export-reliant economy. While raising funds via green notes can be a way for companies to transition to more climate-friendly operations, if they mislead on how funds will be used that could make investors more hesitant to buy the debt in the future.“Greenwashing can ruin the Korean green bond market’s reputation and depress the demand for Korean green bonds,” said Christina Ng, senior lead analyst of fixed income at the Institute for Energy Economics & Financial Analysis. “This is something, I think, the Korean government is very aware of.”The utility that stirred debate about some of the issues confronting investors was Korea Electric Power Corp., which sold a $500 million green bond last year. The debt deal, whose proceeds were to go to renewable energy projects, attracted more orders than the notes available. But it came while the firm was set to invest in new coal-fired power plants in Indonesia and Vietnam. The green bond proceeds weren’t used for the investment in the plants.That combination “sent wrong signals to the international market,” Hong Jong Ho, a professor at Seoul National University Graduate School of Environmental Studies, said by phone. “Being a major public company, it’s raising skepticism among global investors over whether South Korea’s green bonds are transparently managed.”A Kepco spokesperson said the company announced last October that it will make a transition to low carbon businesses, and it won’t be funding any new coal projects. For the investment in Vietnam and Indonesia plants, the firm had to consider various elements including its ties to those countries, as well as partnerships with other companies, the spokesperson said.Rising investor scrutiny over Korea’s environmental, social and governance debt has prompted the government to work on releasing a draft of a labeling system, known as a taxonomy, in the next two months to help investors classify green investments, according to the Ministry of Environment.The government unveiled guidelines for green bonds in December, but it lacks binding power. While the rules require borrowers to seek an external review before issuing such notes, getting a post-issuance verification or rating by a second party is voluntary. There’s also a lack of clarity now on who is qualified to be an external reviewer.As investors from private asset-managing firms to public pension funds face mounting pressure to boost sustainability-focused bonds and stocks in their portfolio, the lack of clarity is pushing them to create their own frameworks and screening processes to determine if an asset or project deserves the green label.Seoul-based NH-Amundi Asset Management Co. evaluates green bonds using its own credit research, in addition to external analysis and rating systems, said Han Sooil, chief investment officer of the firm’s fixed-income division. ESG-related information from issuers can often be insufficient, particularly for companies that are not listed, he said.“The Asian green bond market is still evolving, and that means that we can expect changes in investor reaction and regulatory frameworks,” Ng from IEEFA said. “It’s a learning process, sorting through good and bad issuances.”More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

  • Homebuilder Stocks Rally as Housing Prices Climb Higher

    A key housing index just turned in its best performance in more than seven years, giving investors a reason to celebrate housing stocks.

  • VW Says It’s Keeping Lamborghini After $9.2 Billion Offer Report

    (Bloomberg) -- Volkswagen AG reiterated plans to maintain ownership of Lamborghini after a car magazine said it was offered 7.5 billion euros ($9.2 billion) for the brand.A Volkswagen spokesman said there’s been no change in the group’s position to retain the Lamborghini brand. Autocar reported earlier Tuesday that the company had received the offer from Quantum Group AG, a new Zurich-based holding company that has formed a consortium with London-headquartered investment firm Centricus Asset Management.VW took a step in November toward preparing Lamborghini and its Italian motorcycle brand Ducati for strategic options such as an initial public offering or sale, but announced a month later it was committed to keeping them in the fold. The assurances were made as part of a broader resolution of conflicts between Chief Executive Officer Herbert Diess and key stakeholders including labor leaders.Lamborghini is owned by the VW group through its Audi subsidiary. A spokesperson for Audi also said it is not for sale.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

  • Cathie Wood Ditched Virgin Galactic Stock Before It Surged

    (Bloomberg) -- Cathie Wood has just missed out on a blistering rally in Virgin Galactic Holdings Inc., in a rare misstep for one of Wall Street’s biggest proponents of futuristic technologies.As Virgin Galactic’s dramatic rebound gathered pace in the three days through Monday -- culminating in a 28% surge -- her firm Ark Investment Management slashed its remaining stake to just 45 shares, according to data compiled by Bloomberg.The money manager has been gradually selling from May, after Richard Branson’s space-travel company plunged on technical issues and rising competition from rivals funded by Jeff Bezos and Elon Musk.Ark held more than 1.7 million shares worth over $100 million when Virgin Galactic notched its all-time high in February. By the start of May, with the company down more than 60%, it had boosted holdings to more than 2 million shares valued at $45 million.Virgin Galactic was down 5.1% as of 9:34 a.m. in New York, and remains more than 50% down from records. But in less than two weeks it had rallied 73% thanks to a successful test flight that revived confidence in its ambition to commercialize space tourism.The Ark Autonomous Technology & Robotics exchange-traded fund (ticker ARKQ) held the bulk of the New York-based asset manager’s Virgin Galactic shares, but has now sold them all. The Ark Space Exploration & Innovation ETF (ARKX), which was started in late March, had more than 220,000 shares worth almost $7 million shortly after its launch. It now holds the remaining few shares, worth about $1,200. ARKQ and ARKX both rose around 1% on Tuesday morning.An Ark representative didn’t immediately respond to a request for comment.Wood’s funds weren’t alone in missing the bounce. The VanEck Vectors Social Sentiment ETF (BUZZ) also sold its holdings in Virgin Galactic just before the rebound.The Dave Portnoy-backed fund, which picks stocks based on favorable sentiment detected in social media and blogs, sold its remaining shares in Branson’s company last week, the data show. BUZZ climbed 0.6% on Tuesday.(Updates with Tuesday trading)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

  • Bitcoin ETF Backers See Canada Fund’s Slump as Reason to Believe

    (Bloomberg) -- This month’s cryptocurrency meltdown has at least one bright spot for advocates of a Bitcoin exchange-traded fund in the U.S.As the price of the largest digital asset cratered, the $660 million Purpose Bitcoin ETF (ticker BTCC) in Canada -- North America’s first such fund -- moved in lockstep.That may not sound like a good thing, but it kept the ETF’s price stable relative to the value of assets it holds.The ability to keep trading without huge premiums or discounts appearing in a fund’s price is a key argument in the case for an exchange-traded crypto vehicle. In contrast to BTCC, for example, the $23.9 billion Grayscale Bitcoin Trust (GBTC) at one point traded about 21% below its net-asset value during the turmoil.Regulators have yet to approve a U.S. ETF, in part because of concerns on how a fund would be able to handle the token’s infamous volatility. But if Canada’s ETF is anything to go by, the concern might be misplaced.The reason why BTCC was able to keep its price discount to a minimum during the selloff boils down to the fact that it is an ETF. To keep its price in line with its holdings, specialized traders either create or redeem shares of the ETF to adjust the outstanding supply as demand shifts. That process doesn’t exist for trusts like GBTC, which doesn’t allow for share redemptions -- which can create dramatic dislocations.“While the recent nasty selloff in Bitcoin will likely spook the SEC, it should do the exact opposite and give them maximum confidence to approve, as it showed once again how well the ETF can handle pressure thanks to their fungibility,” said Eric Balchunas, Bloomberg Intelligence ETF analyst. Investors “deserve to get something that tracks the price well -- and ETFs have shown they are the best structure to do that.”Bitcoin has plunged over 33% so far this month, dragged down by renewed regulatory concerns from China and criticism from Tesla Inc.’s Elon Musk about its energy usage. The world’s largest cryptocurrency is hovering near $37,900 per coin, down roughly 40% from a mid-April peak.At least 11 companies are looking to launch a Bitcoin ETF in the U.S., and nine of them have filed since the end of 2020, according to a tally kept by Bloomberg Intelligence. VanEck renewed that push with a filing in late December, but the SEC has delayed a decision on its application until at least June. VanEck also filed for an ETF tracking the second-largest cryptocurrency Ether.Hopes for a Bitcoin ETF approval in 2021 have faded somewhat in the past few weeks. New SEC chairman Gary Gensler told Congress that the crypto market “could benefit from greater investor protection,” and later a letter from the Securities and Exchange Commission staff warned that Bitcoin is “highly speculative” and volatile.But Bitcoin’s turbulence shouldn’t prevent the SEC from giving the green light, according to CFRA Research’s Todd Rosenbluth.“The regulatory approval process for a U.S. Bitcoin ETF appears more focused on whether they have comfort in the risks related to Bitcoin in a fund and whether the fund could become too large to handle the lack of liquidity in the market,” said Rosenbluth, the firm’s head of ETF and mutual fund research. “I don’t think the volatility for Bitcoin impacts the decision-making process, but the fact that demand remains high could add data to support their concerns about the impact of the fund’s potential size and inability to close to new investors.”More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

  • GBP/USD Daily Forecast – U.S. Dollar Is Under Pressure Against British Pound

    GBP/USD settled above the resistance at 1.4150 and is testing the next resistance level at 1.4180.

  • Price of Gold Fundamental Daily Forecast – Prices Consolidate as Fed Speakers Dampen Inflation Fears

    Fed’s Bullard said Monday that the central bank is not yet ready to pull back on its aggressive monetary stimulus, but could be ready soon.

  • Of Course China Is Anti-Bitcoin: Look What Happened to Jack Ma

    China's assault on Bitcoin is part of a broader struggle to foster innovation while maintaining control, says our columnist.

  • Obese Pigs in China Are Fueling Relentless Slump in Pork Prices

    (Bloomberg) -- Obese pigs in China are being blamed for worsening a sudden rout in the country’s pork prices.Farmers have been fattening hogs since late last year to almost double their normal weight -- roughly the size of a pygmy hippo or a female polar bear -- in the hope the animals will generate higher returns should prices rebound.Cao Tao, a pig trader in the northwestern province of Shaanxi, said many of the swine he’s buying weigh more than 200 kilograms, compared with their usual size of around 125 kilograms. “Some farmers are holding onto their larger pigs on hopes of a price rebound,” he said.Instead, Chinese wholesale pork prices have plunged more than 40% since mid-January amid sluggish demand, increased imports and panic selling by farmers after fresh outbreaks of African swine fever. Muyuan Foods Co., the country’s biggest pig breeder, said this week it’s expecting a continued drop in domestic hog prices, with the slump not bottoming out until next year or even 2023.Many farmers had fattened their pigs in anticipation of a recovery in pork prices, but the rout since February has triggered a sell-off of these large animals that may be delaying a rebound in prices, according to Lin Guofa, a senior analyst at consultancy Bric Agriculture Group.“When these farms sell together, the sell-off causes an explosive price slump,” he said. Farms in the southwest and south are still holding a large number of “cow-sized” pigs, which could be sold as the weather warms and push down prices for a while yet, Lin said.China’s hog herd was devastated by African swine fever in 2018 and, while numbers have recovered since then, a recent resurgence has driven up pork imports. The agriculture ministry said in April that the country’s pig herd may recover to usual levels by June or July, although the number of hogs available for slaughter may take another four months to get back to normal.“Super-sized” pigs are partially to blame for the drop in pork prices, Qiu Huaji, the head of swine infectious diseases at Harbin Veterinary Research Institute, said at a conference last week. A price rebound had been expected in the third quarter due to the resurgence of African swine fever cutting herds by almost half in some areas, he said.See also: China’s Swine Fever Borders to Reshape $300 Billion IndustryThe impact of the obese hogs on pork prices is also being complicated by new rules that prohibit the transport of live pigs across the boundaries of five areas. The regulations -- aimed at combating the spread of African swine fever - are reshaping the market and leading to regional price differences.Qian Xiaoyun, a farmer in the northern city of Tianjin, said her family wouldn’t be breeding larger pigs after the price slump and had sold all of their animals that weighed more than 150 kilograms. “The falling pork prices and high corn prices give poor returns on those larger hogs as they eat more,” she said.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

  • Bets Against $357 Billion S&P 500 ETF Jump to Highest This Year

    (Bloomberg) -- Investors are increasing wagers against the S&P 500 by shorting the world’s biggest exchange-traded fund.With the benchmark U.S. equity gauge oscillating near its all-time high, short interest in the $357 billion SPDR S&P 500 ETF Trust (ticker SPY) has jumped to the highest this year, according to IHS Markit Ltd. data.About 4.8% of the fund’s shares are now out on loan, the data show. That compares with 2% less than two months ago and 1.7% at the start of the year.While the measure remains well below highs of the last two years -- it rose above 7% more than once in 2020 -- the bearish turn comes at a fragile time in markets.“The surging short interest in the S&P 500 is in part due to skepticism that the rally can continue or at least that we are due for a pullback,” said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance. “We don’t think the bull market is in any danger of ending prematurely. But with a 10% or greater pullback happening on average once every two years (at least since 1980), we do believe a pullback of that magnitude is likely this year.”Investors have been rotating to stocks more exposed to the economic cycle, but episodes of volatility have hit as they also fear faster inflation and the prospect of higher interest rates. Meanwhile, drama in the most speculative parts of the market like cryptocurrencies have fueled worries that sentiment is stretched too far on the bullish side.Indicators at Citigroup are still in “euphoria territory,” strategists led by Tobias Levkovich said in a report Friday. That’s generating a “100% historical probability of down markets in the next 12 months at current levels,” they wrote.Meanwhile, Chris Murphy, co-head of derivatives strategy at Susquehanna International Group, noted on Tuesday that real dividend yield and real earnings yield for the S&P 500 have both recently turned negative.“This is a pretty rare occurrence, and in general does not bode well for SPX returns both in the near term (when SPX dividend yield turns negative) and in the longer term (when SPX earnings yield turns negative),” he wrote.However, the Susquehanna team said they expect any pullbacks to be short-lived. They also noted that short interest in U.S. stocks remains low by historical standards.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

  • Old-School Tycoons Who Made Hong Kong Are Losing to China’s Rich

    (Bloomberg) -- The prediction was vintage Jack Ma, as provocative as it was prescient.“This is the era of the internet,” the Chinese billionaire proclaimed in October 2013, just weeks after his plan to take Alibaba Group Holding Ltd. public in Hong Kong had been scuttled by regulators. “It no longer belongs to Li Ka-shing.”Ma’s dig at the famed Hong Kong tycoon raised plenty of eyebrows at the time, but few would disagree with him now. The past few years have seen a remarkable shift in fortunes between China’s tech-savvy moguls and their old-school Hong Kong counterparts -- a trend that shows few signs of fading any time soon.Even as Xi Jinping’s government moves to curb the clout of Ma and some of his peers, the combined wealth of China’s 10 richest people has surged threefold since 2016 to $425 billion, according to the Bloomberg Billionaires Index. For Hong Kong, it doubled to $218 billion during the same period. Li, once Asia’s richest person, is now ranked No. 12, several spots below Ma, who eventually listed Alibaba in New York in 2014.The changes underscore the fading relevance of Hong Kong businessmen who built their empires on real estate, ports, infrastructure, telecommunications, aviation and retail.At their peak, when the former British colony was the indispensable gateway to a rapidly developing mainland China, Li and his peers were courted by Beijing for their business acumen and access to overseas capital. These days their political clout is waning and their businesses are increasingly viewed by investors as stale.What’s more, Hong Kong’s future as a financial hub is facing an existential threat as China’s Communist Party chips away at the “one country, two systems” framework that has underpinned the city’s success for decades.One consequence has been a dramatic slide in the stock-market valuations for Hong Kong’s biggest conglomerates. Over the past five years, five of the city’s top groups -- CK Hutchison Holdings Ltd., New World Development Co., Henderson Land Development Co., Sun Hung Kai Properties Ltd. and Wharf Holdings Ltd. -- have consistently traded at deep discounts to their net assets.Their shares now fetch just 0.5 times book value on average, versus 10 for the five companies controlled by some of China’s richest tycoons, data compiled by Bloomberg show.“The main businesses of the large Hong Kong companies don’t have much growth,” said Andy Wong, founding partner at LW Asset Management in the city. “Investors prefer to focus on growth more than on a company’s value,” he said, adding technology-driven sectors are attractive, especially after the pandemic.While private family offices of some of the city’s tycoons have pivoted to high-growth investments, their listed businesses have been slow to catch up. Their counterparts across the border have leveraged technology to provide a range of consumer services and create wealth. Chinese tycoons have also benefited from the $14.3 trillion economy’s quick recovery from the Covid outbreak. China was the only major economy to expand last year, while Hong Kong saw back-to-back recessions in 2019 and 2020.Most of China’s richest billionaires come from the tech industry, including Tencent Holdings Ltd.’s Pony Ma, Bytedance Ltd. founder Zhang Yiming and NetEase Inc.’s William Ding. The wealth of Zhong Shanshan, China’s current richest person and founder of bottled water giant Nongfu Spring Co. is almost $69 billion, more than double that of Li’s.Many of Hong Kong’s business empires owe their success to government policies that encouraged only a small group of deep-pocketed developers to bid at auctions of land parcels, a system that turned Hong Kong into the world’s most expensive property market. The windfall from rising prices allowed the tycoons to diversify into utilities, retail, ports and infrastructure.But that formula has been difficult to replicate in larger markets like mainland China due to high capital requirements, local competition and regulatory barriers, said Richard Harris, founder of Hong Kong-based Port Shelter Investment Management.The result is that many of the city’s tycoons have focused on defending their current turf rather than expanding into new businesses, Harris said. “Many of them are quite happy making sure they don’t lose” what they have, he said.Yet even that has proven difficult in recent years as Hong Kong’s economy was battered by anti-government protests and the pandemic.Sun Hung Kai Properties, the developer led by billionaire brothers Raymond and Thomas Kwok, reported the biggest decline in underlying profit since 2013 for the year ended June. Swire Pacific Ltd., one of city’s two centuries-old British trading firms, recorded an underlying loss last year, the first since listing in 1959. Its flagship Cathay Pacific Airways Ltd. is struggling despite a government-led rescue.Some of Hong Kong’s conglomerates have started looking further afield for growth opportunities. New World Development Co., which is into infrastructure building, hotels and shopping malls, is accelerating its expansion into insurance, health care and education in mainland China. Chief Executive Officer Adrian Cheng has said he wants to grow the non-property service businesses. Much of the effort “revolves around non-traditional businesses,” a spokeswoman said.Swire Pacific is investing in health-care groups in mainland China. Jardine Matheson Holdings Ltd., the owner of luxury hotel group Mandarin Oriental International Ltd., is partnering with private equity firm Hillhouse Capital Management Ltd. to look for investment opportunities in Greater China and Southeast Asia.Representatives for Sun Hung Kai declined to comment, while CK group and Wharf didn’t respond to requests for comment. Swire said the group’s financial strength and ability to invest remain strong, and is looking at new sectors. Henderson Land said it’s been diversifying from property, with a strong presence in Hong Kong and China, and has been incorporating sustainable technologies.CK group, which Li built after his family fled to Hong Kong from the mainland as refugees in 1940, is the most diversified among them. Li’s personal investment vehicle, Horizons Ventures, has been investing in plant-based food, renewable energy and digital services. The firm’s early bet in Zoom Video Communications Inc. surged to $11 billion last year during the pandemic, or one-third of Li’s wealth. He was also an early backer of Facebook Inc., Spotify Technology SA and Siri.The post-pandemic recovery will be crucial time for Hong Kong’s tycoons to consider similar bets on emerging industries, according to Falcon Chan, a partner at Deloitte China.“It’s critical to think about what’s the next big bet,” Chan said. “What some of these big guys do in the next one or two years will have a tremendous impact if they want to pivot.”More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

  • S&P 500 Price Forecast – Stock Markets Testing Major Figure Again

    The S&P 500 has rallied quite significantly during the trading session on Monday as we continue to see upward pressure yet again.

  • PG&E to Sell San Francisco Headquarters for $800 Million

    (Bloomberg) -- PG&E Corp. has reached a deal to sell its iconic San Francisco headquarters to real estate joint-venture Hines Atlas for $800 million as the utility giant moves to cut costs after it emerged from bankruptcy last year.PG&E, which plans to move to Oakland next year, needs approval from state regulators to sell the 1.7 million-square-foot (158,000-square-meter) complex, which includes 77 Beale Street and 245 Market Street, according to a statement Monday.The sale comes as office markets around the globe have been battered by the coronavirus pandemic. One broker estimated in 2019 that PG&E’s headquarters could bring in more than $1 billion. The utility giant is one of the most high-profile companies to leave San Francisco for Oakland, a less expensive city located across San Francisco Bay.Nearly a dozen bids were submitted for the property, according to a person familiar with the matter. That level of interest suggests real estate investors are willing to bet on a rebound for office demand in the city.“It’s a fantastic bet on San Francisco,” said J.D. Lumpkin, executive managing director at commercial real estate brokerage Cushman & Wakefield in San Francisco, who wasn’t involved in the deal. “While San Francisco has taken its lumps through Covid, perhaps more than other cities, there’s a lot of evidence that we will rebound over the next two or three years.”PG&E didn’t immediately respond to a request for comment about the bids. The company’s shares rose as much as 2.1% Monday.Unlike some other large property sales in San Francisco since the pandemic, the complex will require a substantial amount of renovation. It also doesn’t have a tenant in place, so the buyers will have to fill it in a few years once the redevelopment is finished.Also See: KKR Said to Buy $1.08 Billion San Francisco Dropbox OfficesSan Francisco’s overall office vacancy rate in the first quarter shattered the previous record high hit during the dot-com bust at the turn of the century, according to CBRE Group Inc. That’s pushed rent down and weighed on the value of buildings.The sale price is about $200 million less than expected, Citigroup Inc. utility analyst Ryan Levine wrote in a research note Monday. That raises the prospect that PG&E may need to raise equity this year, he said.Offset BillsPG&E intends to distribute about $400 million from its gain on the sale to customers over five years to offset bill increases as it invests in safety and operational improvements. In an added benefit, most PG&E workers will have shorter commutes to their new office, the company said.CBRE’s San Francisco Capital Markets team brokered the deal.PG&E filed for bankruptcy in early 2019 after collapsing under liabilities from wildfires sparked by its equipment. Though the company exited Chapter 11 last year, it remains burdened by about $42 billion of debt, raising concerns about its financial durability and ability to make the investments required to fire-proof its grid.Hines is one of the biggest private real estate investors and managers in the world, according to its website. Hines Atlas is a joint venture between Hines and another investor, a Hines spokesman said. He declined to name the other investor.(Adds details of bid beginning in fourth paragraph.)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

  • 3 Things You Need to Know About China’s Crypto Crackdown

    The crackdown notice from the State Council has sent shockwaves across the crypto industry in China.

  • VW says Lamborghini is not for sale after reported $9.2 billion bid

    The non-binding offer sets out terms for the purchase of Automobili Lamborghini by Switzerland's Quantum Group AG, which has formed a consortium with London-based investment firm Centricus Asset Management, Autocar reported. The report, citing offer documents, also said that the consortium would include job assurances for existing Lamborghini employees for up to five years and the creation of 850 new jobs.

  • Belize Defaults on Debt for Second Time in a Year, S&P Says

    (Bloomberg) -- Belize is on course for its second default in less than a year after missing an interest payment, triggering a downgrade by S&P Global Ratings.The Central American nation was cut to SD, or “selective default,” from CC by S&P on Monday after failing to make a $6.5 million interest payment on its $526.5 million so-called superbond due in 2034. It marks the country’s fifth restructuring or default event in the past 14 years.“We do not expect the missed interest payment to be made during the stated 30-day grace period, since the Belizean government recently announced a consent solicitation seeking to extend the grace period applicable to the May 20 coupon to Sept. 19,” Mexico City-based analysts Omar De la Torre and Livia Honsel wrote in a statement announcing the move.The nation’s 2034 notes were little changed near 41 cents on the U.S. dollar as of 10:20 a.m. on Tuesday.In February, the rating company warned that Belize would struggle to stay current on payments, and by the following month, the government said it was looking to engage bondholders in restructuring negotiations. Since then, Belize has asked its creditors to accept a 30% haircut and a maturity delay on its notes, while an investor committee complained of a lack of transparency.On May 19, the government said in a statement that it was seeking an extension to the grace period until September. Bondholders have until 5 p.m. in New York on June 1 to accept the nation’s consent solicitation.Acceptance of the request by a sufficient share of bondholders would likely be treated by S&P as a distressed exchange, given the nature of the request and relatively few options for creditors, according to the rating company.“Belize faces a constrained fiscal position and has low external liquidity,” the analysts wrote. “Social and financial pressures caused by the pandemic, given Belize’s precarious economy and health system, have shifted the government’s policy priorities and weakened its capacity to pay its debt service.”S&P announced its decision after the bond market close on Monday.(Updates pricing in fourth paragraph; adds S&P comments in seventh.)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

  • Singapore clears LSE deal for Refinitiv after FX pledge

    Singapore's competition authority has approved the London Stock Exchange Group's $27 billion acquisition of data and analytics company Refinitiv provided the bourse continues to offer certain foreign exchange benchmarks to rivals. The Competition and Consumer Commission of Singapore (CCCS)gave the conditional approval after examining whether the deal, which transforms the 300 year old bourse into a one-stop shop for data, trading and analytics, threatened competition in the currency market. The LSE has committed to making Refinitiv's WM/Reuters foreign exchange benchmarks available to existing and future customers to provide index licencing services or clearing services in Singapore, CCCS said in a statement, adding that the commitment, effective from Monday, was for 10 years.

  • 4 Little-Known Cryptocurrencies That Beat Bitcoin During the Crash

    Polygon, Helium, Celsius, and Maker may not be household names, but they are being explored as potentially useful technologies.

  • Israel's Elbit Systems eyes growth from night-vision tech

    Israeli defence electronics specialist Elbit Systems reported higher quarterly profit on Tuesday and said it expects its night-vision business and other acquired operations to prosper as global defence spending continues to rise. The company's U.S. business last year won a U.S. Army contract for enhanced night-vision systems that use thermal imaging and augmented reality, with the deal worth up to $442 million. Elbit Systems of America in 2019 bought the night-vision business of L3Harris Technologies for $350 million and has also won German and Dutch military deals.