Article Abstract:
The pending merger between America Online Inc (AOL) and Time Warner Inc could prove to be the long-anticipated event that would deflate overwhelming investor interest in Internet stocks. The merger has the potential to make investors in Internet startup companies ask themselves just how much the issuing companies' might actually be worth when these companies mature. This is not to say that the proposed deal would be detrimental for Time Warner or AOL. However, it would give consumers a chance to distinguish between a firm and its stock as well as the time to evaluate how the deal was struck using currency that has been inflated by speculators' money.
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Article Abstract:
US Airways Chmn Steve Wolf would achieve a substantial victory if he succeeds in closing a winning deal for shareholders that would become his fourth winning deal since 1986: the sale of the airline to United Airlines' parent UAL Corp for $4.3 billion in cash. However, if Wolf succeeds in selling US Airways to UAl at $60 a share, he stands to make roughly more than $123 million. This figure includes his salary and annual bonus, stock, stock options and reimbursements for personal income taxes on stock grants, moving expenses, and 1998 financial/tax planning services. It is argued that this is unconscionable pay for an executive who is already considerably wealthy.
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Article Abstract:
General Re, the US' largest reinsurer, will be purchased by billionaire investor Warren Buffet for $22 billion of stock through his Berkshire Hathaway holding firm. The deal, which is scheduled to be finalized by late 1998, would give Gen Re shareholders 18% of Berkshire Hathaway, 32% of which is still owned by Buffett. As a result, Berkshire will rank second only to Royal Dutch/Shell in corporate net worth with $56 billion. The move aims to combine Berkshire's superior financial strength and flexibility with Gen Re's prominent position in reinsurance. The offer exceeds the value of Berkshire's $16 billion stake in Coca-Cola for which Buffet paid $1.3 billion and is five times more expensive as any deal that Buffet has ever undertaken.
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Will be purchased billionaire investor Warren Buffet for $22 billion of stock through his Berkshire Hathaway holding firm
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