Consumer borrowing up
WASHINGTON » Americans increased their borrowing in May at the fastest pace in a year. Borrowing in the category that includes credit cards reached its highest point since the fall of 2010. Americans borrowed $19.6 billion in May compared with $10.9 billion in April, the Federal Reserve said Monday in its monthly report.
Buffett donating $2.6 billion to 5 charities
OMAHA, Neb. » Billionaire Warren Buffett is giving five charities more than $2.6 billion worth of Berkshire Hathaway Inc. stock as part of his overall plan to give away his fortune gradually.
Buffett announced the annual gifts Monday. The biggest block of Class B shares of Berkshire stock worth $2 billion is going to the Bill and Melinda Gates Foundation.
Buffett also gave 1.75 million shares to his own foundation and 1.2 million shares to each of his three children’s foundations. The Class B shares closed up 5 cents at $115.01 Monday and have gained 28 percent this year.
Last year Buffett announced plans to double the amount of stock he gives to his children’s foundations because he has been pleased with the work they’ve done.
The chairman and CEO of Berkshire outlined his charitable plans in 2006 and has been making annual gifts since then.
ISS supports vote for Dell founder’s offer
NEW YORK » Three top proxy advisory firms are recommending that Dell shareholders vote in favor of a deal that would allow the company’s founder and an investment firm to buy the computer maker and take it private.
Michael Dell and Silver Lake Partners have offered to buy Round Rock, Texas-based Dell Inc. for $13.65 per share, or a total of $24.4 billion. Michael Dell believes he can turn around the company by taking it private and diversifying into niches, such as business software, data storage and consulting. But Carl Icahn, a billionaire investor and Dell’s second-largest shareholder, says he wants Dell to remain publicly traded and boost value for shareholders by buying back $16 billion in stock.
The company has backed Michael Dell’s proposal and said that Icahn doesn’t have adequate financing for his plan. Shareholders will vote on the buyout offer at the company’s annual meeting July 18.
In its report, Institutional Shareholder Services pointed to the offer’s hefty premium, about 26 percent over the company’s share price before the offer became public, and the certainty that comes with an all-cash bid.
Restructuring Alcoa posts $119M loss
NEW YORK » Alcoa Inc.’s second-quarter loss widened due to weak aluminum prices, although the results were slightly better than expected after excluding restructuring and legal costs.
The company continues to see strong sales of aluminum products for automobiles and airplanes.
Alcoa said Monday that its loss in the April-through-June quarter was $119 million, or 11 cents per share. That compared with a loss of $2 million, or break-even on a per-share basis, a year earlier.
Excluding $195 million in special items such as restructuring expenses, Alcoa said that it would have earned 7 cents per share, a penny more than analysts expected.
Barnes & Noble CEO William Lynch resigns
NEW YORK » Barnes & Noble Inc. said Monday that William Lynch has stepped down as CEO, effective immediately, just weeks after the book retailer announced weak sales, big losses and the declining popularity of its Nook e-readers. Lynch’s resignation comes after just three years in the role. No successor was named, but the New York company said that it is reviewing its strategic plan and will provide an update "when appropriate." Shares fell nearly 5 percent in after-hours trading on the news.
In the wake of his departure, Chief Financial Officer Michael Huseby will become president of the company and CEO of its Nook Media unit. Controller Allen Lindstrom will succeed Huseby as CFO. Huseby and Mitchell Klipper, CEO of Barnes & Noble Retail Group, will report directly to Leonard Riggio, the company’s chairman and largest shareholder with a nearly 30 percent stake.
Regulators examine sales of advance data
The financial industry is bracing for new scrutiny of services that give trading firms an advance look at market-moving data and news.
The New York attorney general’s office has been taking a broad look at the common practice. On Monday one prominent data provider, Thomson Reuters, under pressure from the attorney general, announced that it was suspending an early release of a consumer confidence survey to clients who paid extra.
Financial products that give traders first access to data have become widely accepted within the industry. Dow Jones recently announced the creation of DJ Dominant, a program that will release news stories two minutes early to subscribers who pay more.
On the Move
The University of Hawaii Foundation has elected the following to its board of trustees:
>> Dr. Rosita Leong is a pathologist by training. Her experience includes working as director at the Persis Corp. and as a member of the advisory board for the Wo International Center at Punahou School.
>> Dr. Earl Miller is an aviation medical examiner who holds a locum tenens position at Aliron International. Miller was previously serving in private medical practice since 1985 in Orange County, Calif.
>> Jim Pappas is the former president and owner of Honsador Lumber Corp. He previously served as chief financial officer and executive vice president of Lewers & Cooke.
>> William K. Richardson has been a general partner of HMS Hawaii Management since 1994. Previously he was an attorney in Hawaii specializing in commercial law and finance, and he also worked for nine years in various sales and marketing capacities for Wang Laboratories.
