Spotlight Stocks: CIT, General Electric, Occidental, UBS
Tuesday's top stories and stocks with potential to move.
Stocks to watch for Tuesday, July 1, 2008:
- CIT Group (CIT) will reportedly sell its home lending business to Lone Star Funds for $1.5 billion in cash and $4.4 billion in assumed debt. The company hopes to shift its focus to its commercial finance operations, reported the Associated Press. The company also is selling its $470 million manufactured housing portfolio to Vanderbilt Mortgage and Finance Inc. at a loss, for about $300 million. CIT expects a 2Q loss of a record $2 billion on the home lending segment.
- General Electric (GE) bought a portfolio of property loans from Credit Suisse (CS) valued at 642 million euros, or $1.01 billion, reported Reuters. The purchase involves 10 loans on properties in Germany, Switzerland, Spain and Britain.
- Occidental Petroleum (OXY) said it will spend $1.1 billion to invest in growing production in the oil producing Permian Basin in Texas. The company, according to The Wall Street Journal, expects to produce an additional 50,000 barrels of oil per day over the next five years. This marks a 25% increase in West Texas production. OXY is teaming up with SandRidge Energy (SD) to build a plant that will separate carbon dioxide from natural gas, making difficult oil easier to get to the surface.
- UBS (UBS) has adopted new rules on corporate governance as four of its board members will step down and be replaced on October 2, according to The Wall Street Journal. The company had been criticized for the close relations between its board and management. Stepping down will be Stephan Haeringer, Rolf Meyer, Peter Spuhler and Lawrence Weinbach; their replacements have not yet been named.
Asian trading closed with the Nikkei -0.13%, Sensex -3.71%, Taiwan -1.54% and Shanghai -3.09%.
Over in Europe, we find the CAC -2.56%, DAX -2.08%, FTSE -2.63%, ATX -2.01%, Swiss Mkt. -1.83% and Stockholm -2.55%.
Commodities are in the green as crude oil trades higher +2.46 to 142.47 and gold +4.1 to 932.4 this morning.
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