The daily business briefing: April 9, 2019
Wynn Resorts proposes a $7.1 billion takeover of Crown, Lampert makes bid for Sears Hometown and Outlet Stores, and more


1. Wynn Resorts proposes $7.1 billion takeover of Crown
Las Vegas-based Wynn Resorts has made a $7.1 billion takeover bid for Australia's Crown Resorts, Crown said Tuesday. A deal would give Wynn security in Asia as its licenses come up for renewal in Macau, the Chinese gambling hub. Crown shares surged by 20 percent after the announcement. A deal would make James Packer, who owns 47 percent of Crown, Wynn's biggest shareholder with 9.8 percent of its shares. The proposal represented a 26 percent premium on Crown's last share close, but the talks are just getting started. "The discussions between Crown and Wynn are at a preliminary stage," Crown said. "There is no certainty that these discussions will result in a transaction."
2. Lampert makes bid for Sears Hometown and Outlet Stores
Sears Hometown and Outlet Stores announced Monday that Sears Holdings, the parent company that spun it off in 2012, has proposed buying it back. Sears Holdings Chairman Eddie Lampert's hedge fund, ESL, already owns a nearly 59 percent stake in Sears Hometown. Transform Holdco, the company ESL created to buy Sears out of bankruptcy earlier this year, now wants to buy the remaining shares for $2.25 per share, a 23.6 percent premium. Sears Holdings reportedly rejected the offer but is continuing talks with Transform Holdco. The move, part of an attempt to focus Sears' turnaround effort on selling more big-ticket appliances, comes after Sears Holdings has shed stores under Lampert's effort to save the struggling, iconic retailer.
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3. U.S. threatens retaliatory tariffs over EU Airbus subsidies
The Trump administration on Monday hit the European Union with $11 billion worth of retaliatory tariffs over illegal subsidies to Airbus, the European aerospace firm. The World Trade Organization ruled last year that the subsidies had "adverse effects" on the U.S. The Office of the U.S. Trade Representative said it was considering tariffs on EU goods, including aircraft, fish, cheeses, and wine. It estimated the harm on the U.S. from Airbus subsidies to be $11 billion in trade per year. A source at the European Commission said the U.S. retaliation was "greatly exaggerated," adding that "the amount of WTO authorized retaliation can only be determined by the WTO-appointed arbitrator." Airbus shares fell by 2.3 percent early Tuesday.
4. Oil prices surge as Libya turmoil raises supply concerns
The price of U.S. crude oil jumped to a five-month high on Monday as fighting in oil-rich Libya raised concerns about the North African nation's output. "The violence in Libya is captivating the market," said John Kilduff, a partner at Again Capital in New York. "Given the intense efforts of Saudi Arabia and other countries to restrict output, there is a sense that losing the Libyan oil, again, has the makings of a supply crunch." U.S. West Texas Intermediate crude rose by 2.1 percent to $64.40 per barrel, its highest level since Nov. 1. International benchmark Brent futures rose by 1 percent.
5. Pinterest sets IPO price valuing company at $9 billion
Pinterest set a conservative price range of $15 to $17 per share for its upcoming initial public offering of stock. Pinterest, now embarking on its so-called road show to drum up investor interest, aims to raise up to $1.5 billion in the IPO. The high end of the range would value the digital scrapbooking site at about $9 billion. Pinterest is treading carefully after ride-sharing company Lyft's stock dropped after its closely watched debut. Lyft's stumble served as a "major gut check time for Lyft and the tech IPO world to see how this stock trades given it was the first one out of the box," said Wedbush Securities analyst Dan Ives.
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Harold Maass is a contributing editor at The Week. He has been writing for The Week since the 2001 debut of the U.S. print edition and served as editor of TheWeek.com when it launched in 2008. Harold started his career as a newspaper reporter in South Florida and Haiti. He has previously worked for a variety of news outlets, including The Miami Herald, ABC News and Fox News, and for several years wrote a daily roundup of financial news for The Week and Yahoo Finance.
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