During Wednesday’s current trade, Bank of America Corporation (NYSE:BAC)’s shares declined -0.60% to $15.73, after BAC stated net revenue of $3.4 billion, or $0.27 per diluted share, for the first quarter of 2015, contrast to a loss of $276 million, or $0.05 per share, in the year-ago period.
Proceed, net of interest expense, on an FTE basis, declined $1.3 billion from the first quarter of 2014 to $21.4 billion. Nearly $1 billion of this decline was related to a $757 million reduction in equity investment revenue as the preceding year comprised of a gain on sale of a portion of an equity investment, and $211 million was related to additional market-related adjustments on the company’s debt securities portfolio due to the influence of lower long-term interest rates. Not including these two items, in addition to net debit valuation adjustments (DVA) in both periods, proceed reduced 1 percent to $21.9 billion in the first quarter of 2015 from $22.1 billion in the year-ago quarter.
Net interest revenue, on an FTE basis, was $9.7 billion in the first quarter of 2015, down $616 million from the year-ago quarter. The decline was driven by the market-related adjustments mentioned above and lower loan balances and yields. These were partially offset by reductions in funding yields, lower long-term debt balances and commercial loan growth. Not including the influence of market-related adjustments, net interest revenue was $10.2 billion in the first quarter of 2015, contrast to $10.4 billion in the preceding quarter and $10.6 billion in the year-ago quarter.
Noninterest revenue was down 6 percent from the year-ago quarter to $11.8 billion. Not including net DVA and equity investment revenue in both periods, noninterest revenue was up 1 percent from the year-ago quarter, driven by higher mortgage banking revenue and higher investment and brokerage services revenue, partially offset by lower sales and trading results and lower gains on sales of debt securities.
Bank of America Corporation, through its auxiliaries, provides banking and financial products and services for individual consumers, small and middle market businesses, institutional investors, large corporations, and governments worldwide. The company operates through Consumer & Business Banking; Consumer Real Estate Services; Global Wealth & Investment Administration; Global Banking; Global Markets; and Legacy Assets & Servicing segments.
During morning trade, Nokia Corporation (NYSE:NOK)’s shares declined -2.73% to $7.74, as Nokia and Alcatel-Lucent declared their intention to combine to create an innovation leader in next generation technology and services for an IP connected world. The two companies have reached a memorandum of understanding under which Nokia will make an offer for all of the equity securities issued by Alcatel-Lucent, through a public exchange offer in France and in the United States, on the basis of 0.55 of a new Nokia share for every Alcatel-Lucent share. The all-share transaction values Alcatel-Lucent at EUR 15.6 billion on a fully diluted basis, corresponding to a fully diluted premium of 34% (equivalent to EUR 4.48 per share), and a premium to shareholders of 28% (equivalent to EUR 4.27 per share) (see Appendix 1), on the unaffected weighted average share price of Alcatel-Lucent for the previous three months. This is based on Nokia`s unaffected closing share price of EUR 7.77 on April 13, 2015.
Each company`s Board of Directors has approved the terms of the projected transaction, which is predictable to close in the first half of 2016. The projected transaction is subject to approval by Nokia`s shareholders, completion of relevant works council consultations, receipt of regulatory approvals and other customary conditions.
Nokia Corporation, together with its auxiliaries, provides network infrastructure and related services in Finland, the United States, Japan, China, India, the Russian Federation, Germany, Taiwan, Indonesia, Italy, and internationally.
Alcatel-Lucent (NYSE:ALU), during its Wednesday’s current trading session dipped -17.85%, to $4.04, as Nokia declared it would buy its French rival.
Nokia will attain Alcatel-Lucent in an all-share deal that values the French company at 15.6 billion euros, or $16.6 billion. The deal should assist Nokia beef up its telecommunications equipment business to compete with market leader Ericsson (ERIC).
The new combined company will have about 114,000 employees and combined sales of about 26 billion euros. The company would rank second in mobile equipment with global market share of 35%, according to Reuters. The Swedish Ericsson will have 40%, while Huawei would rank third at 20%.
Alcatel-Lucent provides Internet protocol (IP) and cloud networking, and ultra- broadband access worldwide. The company’s Core Networking segment offers IP routing, carrier Ethernet, network functions virtualization, and software defined networking applications and infrastructure to meet the challenges of network traffic growth while supporting the delivery of cloud-enabled business, mobile, and residential services for service providers, mobile network operators, cable/multiple system operators, transportation, utilities, and large-scale enterprises.
Finally, North American Palladium Ltd. (NYSEMKT:PAL), drowned -49.66% Wednesday, hitting its lowest level today, after PAL declared that, following discussions with Brookfield Capital Partners Ltd., the Company has reached an contract with Brookfield aimed at significantly reducing the Company’s debt and enhancing the Company’s liquidity.
The Company has retained CIBC World Markets Inc. to act as its financial advisor in connection with the Recapitalization and to conduct a planned review process to solicit interest in a sale of the Company. The Company has until June 30, 2015 to obtain a superior proposal to the Recapitalization, with closing to occur within a specified timeframe thereafter.
The Company has obtained covenant relief from its senior secured lenders in respect of certain financial and other covenants until August 15, 2015. Although the Company produced about 45,600 payable ounces of palladium in the first quarter of 2015, covenant relief was required as a result of a decline in palladium prices and weakening of the Canadian dollar, and lower production volumes in March combined with higher expenses, which influenceed the minimum shareholders’ equity and leverage ratio covenants.
The Company has also reached an right away accessible US$25 million interim credit facility with Brookfield. NAP is ongoing normal business operations at its Lac des Iles mine and the Company’s obligations to employees, trade creditors, equipment leases and suppliers will not be affected by the Recapitalization.
North American Palladium Ltd. produces precious metals in Canada. It explores for palladium, platinum, gold, nickel, copper, and other metals. It primarily holds interest in the Lac des Iles mine comprising about 8,623 hectares of mineral claims and leases, located to the northwest of Thunder Bay, Ontario. The company was founded in 1968 and is headquartered in Toronto, Canada.
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