Stocks in the news: Citigroup, General Motors, Microsoft
Citigroup Inc. (C) is using its $45 billion in TARP funds it received to make nearly that much in new loans. The loans being offered by Citigroup to state and local governments, municipal agencies, universities and non-profit hospitals would not likely have been made had the bank not received the aid. C shares gained about 2 percent in pre-market trading.
General Motors Corp. (GM) executives, including Vice Chairman Bob Lutz, have sold what was left of their personal stakes, according to SEC filings on Monday. This only compounded remarks made Monday by CEO Fritz Henderson, who said that bankruptcy is still the likely outcome for the automaker. He also left the door open to the automaker moving its corporate headquarters out of Detroit. GM shares sank over 13 percent before the bell.
MBIA (MBI) reported first quarter net income of $3.34 per share, handily beating analysts expectations of a 33 cent loss. Revenue also recovered and the stock jumped over 11 percent in pre-market trade.
Microsoft Corp. (MSFT) on Monday sold its first-ever long-term debt. Microsoft's bond offering is taking advantage of interested debt markets and its AAA debt rating to raise money easily and cheaply. While most believe it would use the money for "boring, shareholder-friendly moves like buying back stock," it could also use it for another acquisition. And the rumor is it is interested in SAP (SAP). MSFT and SAP shares were higher ahead of the bell.
Bank of America (BAC) has raised $7.3 billion from the sale of 13.5 billion shares of China Construction Bank, according to reports in the Financial Times and Wall StreetJournal. The transaction reduces Bank of America's stake in China Construction Bank to just under 11 percent from 16.7 percent. BAC shares climbed over 2 percent in pre-market action.
Alpha Natural Resources (ANR) will buy Foundation Coal (FCL) for about $1.4 billion, the companies announced Tuesday, creating one of the nation's largest coal producers. FCL shares jumped 35 percent in premarket trading. ANR shares climbed 4 percent.
Applied Materials (AMAT) is reporting financial results today and is expected to post a second-quarter loss of 10 cents a share.
Ford (F) announced Monday that it plans to sell 300 million shares to use in funding the automaker's obligations to it employees as part of last year's contract with the UAW which created a retiree health-care trust. F shares declined 3.8 percent in pre-market trading.
Anadarko Petroleum Corp. (APC) will also offer 30 million common shares. Proceeds from the offering are expected to be used for general corporate purposes. APC shares declined over 6 percent in pre-market trade.
Bank of New York Mellon Corp. (BK) will offer $1 billion in common shares in a secondary offering. BK shares traded 2 percent lower in pre-market action.
New York Times (NYT) -- Fortune reports that media mogul David Geffen tried to buy a stake at market price in NYT from hedge fund Harbinger Capital Partners, but was rejected as Harbinger wanted a premium. Apparently, a Times board member also approached Google (GOOG) to try to get it to buy the Times.