Roundup: American Capital Strategies, CapitalSource, Legg Mason
From staff and wire reports
*American Capital Strategies was sued by Merisel after the asset manager canceled its purchase of the communications firm for $5.75 a share. The shares have been trading below $2. Merisel, based in New York, contends Bethesda-based American Capital violated the contract and asked a judge to award it a $3.5 million termination fee, according to a complaint.
*CapitalSource said it priced an offering of 30 million shares of common stock at $11 a share. The stock of the Chevy Chase company will be offered at a discount of about 2 percent to Monday's closing price of $11.19. Underwriters have the option to purchase as many as 4.5 million additional shares to cover overallotments.
*Legg Mason, a Baltimore fund manger whose stock dropped 50 percent in the past year, cut the pay of chief executive Mark Fetting and founder Raymond "Chip" Mason.
Fetting's compensation dropped 6.6 percent in the 12 months ended March 31 compared with the corresponding period a year earlier, to $4.7 million, according to a regulatory filing. Mason, who founded the company 46 years ago, made $8.1 million in his last year as chief executive, down 40 percent from a year earlier, according to the filing.
*Vehicle retailer CarMax said it plans to open new stores and expand even amid difficult economic environment and rising gas prices. The comments came at the company's annual meeting, one week after CarMax said its first-quarter profit plummeted 55 percent on tumbling new-car sales, the fastest drop in used-vehicle values in company history.
The Richmond-based company said it expects to increase its stores from 97 to 200 to 300 within 10 years and expand outside its current markets. "We have so much opportunity out there," CEO Tom Folliard told investors at the company's annual meeting. "We feel like it's in the best interest of the shareholders to continue to grow the company."
*OAO Severstal officials say the Russian steelmaker will spend $10 million to upgrade the blast furnace at the Sparrows Point steel mill it recently purchased. The late summer renovation will close the blast furnace for about two weeks. The furnace creates raw steel from ore and company officials say the upgrade will increase production and profitability.
*Sinclair Broadcast Group said it has agreed to buy Richmond television station WTVR-TV, a CBS affiliate, for $85 million from Raycom Media.
Sinclair said it would also simultaneously sell the license assets of WRLH-TV, a Fox affiliate, also in Richmond, to Carma Broadcasting. Sinclair said it would continue to provide sales and other non-programming services to WRLH.
The Hunt Valley-based broadcasting company said the transactions are subject to approval by the Federal Communications Commission and are expected to close late in the third quarter.
Following the sale, Sinclair said it will own and operate, program or provide sales services to 59 television stations in 35 markets. Sinclair stations reach about 22 percent of U.S. television households.
Please email us to report offensive comments.
Posted by: tb1 | July 6, 2008 8:10 PM
The comments to this entry are closed.