On Monday, Goodyear Tire & Rubber Co (NASDAQ:GT)’s shares declined -0.89% to $31.03.
The Goodyear Tire & Rubber Company (GT) declared that it has reached agreement with Sumitomo Rubber Industries, Ltd. (SRI) to dissolve the global alliance between the two companies.
Goodyear and SRI formed the global alliance in 1999. It primarily comprises of four joint venture operating companies, one each in North America and Europe, and two in Japan.
The agreement declared, when closed, would resolve the pending arbitration filed in January 2014. The agreement enables both companies to avoid the cost and uncertainty of the arbitration process.
Financial Terms of Agreement
Under the terms of the agreement, Goodyear will pay SRI $271 million upon closing of the transaction, which is predictable in the fourth quarter of 2015. The transaction does not impact the company’s existing 2015 and 2016 financial targets or capital allocation plan. The outlay is comprised of in the about $600 million designated for restructurings under the capital allocation plan. In addition, Goodyear will repay a pre-existing debt of about $55 million to SRI within three years from the date of closing. As a result of the agreement, Goodyear will also sell its 3.4 million shares of SRI common stock.
Goodyear anticipates the transaction to be accretive to its earnings starting in the first quarter of 2016, related mainly to the elimination of minority interest in GDTE. Based on the company’s 2015 operating plan, the annual benefit to adjusted net income would be about $40 million to $50 million (15-18 cents per share).
The Goodyear Tire & Rubber Company develops, manufactures, distributes, and sells tires, and related products and services in North America, Europe, the Middle East, Africa, Latin America, and the Asia Pacific. The company offers various lines of rubber tires for automobiles, trucks, buses, aircraft, motorcycles, farm implements, earthmoving and mining equipment, industrial equipment, and various other applications under the Goodyear, Dunlop, Kelly, Debica, Sava, Fulda, and various other Goodyear owned house brands, in addition to under the private-label brands.
ITT Educational Services, Inc. (NYSE:ESI)’s shares dropped -12.44% to $3.38.
ITT Educational Services Inc. (ESI) received a public reprimand letter dated June 1, 2015 from NYSE Regulation, Inc. as a result of the Company’s failure to contact the New York Stock Exchange (the “Exchange”) by telephone on May 29, 2015 in advance of its issuance of a press release and Form 8-K containing material news during Exchange trading hours. In failing to contact the Exchange staff at least ten minutes in advance of issuing the release, the Company did not comply with Section 202.06 of the NYSE Listed Company Manual. The Letter indicates that in determining to issue a public reprimand letter and not initiate the delisting of the Company’s securities, the Exchange took into consideration, among other things, the fact that the Exchange does not believe that the Company has formerly violated its material news policy.
On the morning of May 29, 2015, prior to the opening of trading, the Company filed its overdue Form 10-K for 2014. However, the subsequent press release was not distributed prior to the open of trading on the Exchange. The press release was distributed 30 minutes later. Since trading had begun, the Company should have contacted the Exchange prior to release. The Company views its failure to notify the Exchange as an unintentional and isolated incident.
ITT Educational Services, Inc. provides postsecondary degree programs in the United States. It offers master, bachelor, and associate degree programs to about 53,000 students; and short-term information technology and business learning solutions for career advancers and other professionals.
At the end of Monday’s trade, EXCO Resources Inc (NYSE:XCO)‘s shares surged 3.49% to $1.78.
EXCO Resources Inc. (XCO) reached an Acknowledgement of Amendment to Services and Investment Agreement with Energy Planned Advisory Services LLC (“ESAS”), which is effective as of March 31, 2015. The Acknowledgement amends that certain Services and Investment Agreement, dated March 31, 2015, by and between EXCO and ESAS (the “Services and Investment Agreement”), a copy of which was filed as Exhibit 10.1 to EXCO’s Amendment Number 1 to the Current Report on Form 8-K/A filed with the Securities and Exchange Commission (“Commission”) on May 26, 2015. The description of the Services and Investment Agreement, contained in Item 1.01 of EXCO’s Current Report on Form 8-K filed with the Commission on April 2, 2015 is incorporated herein by reference.
The Acknowledgement amends a clerical error regarding cross references to certain closing conditions in the Services and Investment Agreement and acknowledges that such amendment is an accurate reflection of the original intent of EXCO and ESAS.
The foregoing is only a brief description of the Acknowledgement and such description is qualified in its entirety by reference to the full text of the Acknowledgement, which is filed as an exhibit to this Current Report on Form 8-K and is incorporated herein by reference.
EXCO Resources, Inc., an independent oil and natural gas company, engages in the acquisition, exploration, exploitation, development, and production of onshore oil and natural gas properties with a focus on shale resource plays in the United States.
UnitedHealth Group Inc. (NYSE:UNH), ended its Monday’s trading session with 0.27% gain, and closed at $116.89.
American Idol star Clark Beckham and volunteers from UnitedHealth Group Incorporated (UNH) will staff a Second Harvest Food Bank of Middle Tennessee Mobile Pantry, the 115th Mobile Pantry to be funded by UnitedHealthcare through a $300,000 donation.
The Mobile Pantry will be at the White House First United Methodist Church, 3403 Highway 31W North in White House.
Mobile Pantries deliver food directly to individuals and families in need during large-scale, one-day food distributions. Second Harvest works directly with its network of partner agencies throughout its 46-county service area and partners with organizations like UnitedHealthcare to provide these distributions.
On average, each Second Harvest Food Bank of Middle Tennessee Mobile Pantry supplies 15,000 pounds of fresh fruits and vegetables, counting nonperishable products, providing about 250 families in rural communities with one to two weeks of groceries.
Since 2012, UnitedHealthcare has donated $300,000 to Second Harvest Food Bank of Middle Tennessee, which has enabled the nonprofit to fight hunger by distributing 2 million pounds of food to more than 1.7 million children, families and individuals in the region.
UnitedHealth Group Incorporated operates as a diversified health and well-being company in the United States. The company’s UnitedHealthcare segment offers consumer-oriented health benefit plans and services for national employers, public sector employers, mid-sized employers, small businesses, and individuals; and health care coverage, and health and well-being services to individuals aged 50 and older addressing their needs for preventive and acute health care services.
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