Family Dollar Stores Inc. may be in play again after a standstill with activist investor Nelson Peltz expired.
The shares have rallied 6.2 percent through Tuesday and options prices showed record takeover speculation since July 22, when Peltzs restriction on raising his stake to more than 9.9 percent was lifted, according to data compiled by Bloomberg.
Private-equity bidders could be drawn to the opportunity to make Family Dollar more efficient, Edward Jones & Co. said. The retailers margins lag behind those at Dollar General Corp., which KKR & Co. bought in 2007 and took public two years later. A buyout by Dollar General, which has more than double Family Dollars $8.3 billion market value, may cut costs at the smaller company, Albert Fried & Co. said. The expiration of the pact with Peltz would certainly make it easier for an acquisition, said Scott Mushkin, a New York-based analyst at Wolfe Research Securities.
Macy’s stock dips on sales decline
Macys Inc. sank the most in more than eight months after cutting its forecast for earnings this year and posting second-quarter profit that trailed analysts estimates amid an unexpected sales decline.
Macys fell 4.5 percent to $46.33 at the close in New York for the biggest decline since Nov. 26. The shares have risen 19 percent this year compared with an 18 percent gain in the Standard & Poors 500 Index.
Chief Executive Officer Terry Lundgren used promotions to clear inventory that had built up as a cool spring curtailed purchases of summer clothing and the bumpy economy restrained consumers spending. Profit in the year through January will be as much as $3.90 a share, down from a previous forecast for a maximum of $3.95, the company said. Analysts estimated $3.95.
Net income in the fiscal second quarter ended Aug. 3 rose 0.7 percent to $281 million, or 72 cents a share, from $279 million, or 67 cents, a year earlier.
Famed piano maker sold for $499 million
Steinway has been sold for about $499 million and will again become a private company.
The company struck a deal with Paulson & Co., the investment firm founded by John Paulson, for $40 a share. That topped an earlier $35-a-share offer from Kohlberg & Co.
Steinway will discard its sales agreement with Kohlberg and pay a termination penalty of about $6.7 million.
The sale price was music to the ears of investors and shares of Steinway Musical Instruments Inc. jumped nearly 6 percent in early trading.
Steinway has been in business for 160 years. Its pianos have been a status symbol and a must-have luxury in concert halls for more than a century.
Hyundai braces for 2nd year of strikes
Hyundai and Kia workers in Seoul agreed to strike for a second straight year to demand higher wages.
More than 70 percent of Hyundais 45,000 guild members voted in favor of authorizing union leader Moon Yong Moon to call for a walkout at the company, said Kim Gi Hyuk, a union spokesman said.
Workers at Hyundais affiliate Kia also voted in favor of a strike plan Tuesday. The strike may begin as soon as Aug. 20, Kim said earlier.
Hyundai is used to stoppages; workers have gone on strike in 22 of the past 26 years.