In the news: Delta softens Import/Export bank stance, Allergan to raise earnings outlook and more
Tuesday headlines include Delta Airlines softening its anti-Import-Export Bank stance, Dean Foods and Clorox getting subpoenaed in an investigation into insider trading that also involves Carl Icahn, BHP Billiton considering more potential job cuts, Allergan tipping investors to a planned increase in its earnings outlook and J.C. Penney securing a new credit facility.
Delta Airlines ( DAL ) is on the board as being in favor of loan assistance to Boeing ( BA ) from the U.S. Import-Export Bank. The CEO of the airline, Richard Anderson, is softening his stance as critics in Congress are calling for the agency to be closed. According to the Wall Street Journal Anderson is expected to give a speech to the Aero Club that supports continued support for sales of Boeing jets to a limited number of airlines that do not have alternative financing available. Delta has been critical of the Import-Export Bank for providing lending assistance to its competitors.
Food processor Dean Foods ( DF ) and Clorox ( CLX ) have both received subpoenas from investigators looking into possible insider trading by Carl Icahn. Clorox was reportedly asked in 2011 to provide information related to trades in the company's shares, while Dean Foods received its subpoena in recent weeks according to the Wall Street Journal .
Global mining giant BHP Billiton ( BHP ) is considering more cuts to staffing levels at its iron ore operations in Australia. The potential cuts come as iron ore prices are down as demand growth for iron ore and copper have slowed, largely fueled by reductions in demand from China.
The CEO of Drugmaker Allergan (AGN) told shareholders that it plans to raise its earnings outlook when it reports second quarter results. CEO David Pyott provided the preview as a way to try to convince investors not to sell shares to Valeant Pharmaceuticals (VRX), which has offered to buy Allergan. Allergan's offer is "grossly inadequate" according to Pyott.
Struggling retailer J.C. Penney (JCP) closed on a credit facility that company executives say will give the company more flexibility in how it handles its cash situation. The $2.35 billion senior-secured credit facility replaces a $1.85 billion facility that was set to expire in April 2016. The new facility, which includes a $1.85 billion revolving credit line and a $500 million term loan, also has better pricing terms than the one it is replacing. The company plans to use the facility for working capital and general corporate purposes.
This article was originally published on MarketIntelligeneCenter.com