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In the news: Dollar General and Family Dollar trade barbs, Sears keeps losing and more

Thursday headlines include Dollar General questioning Family Dollar's CEO, Sears continuing to lose money, Russia taking action against McDonald's, Bank of America nearing a $17 billion settlement and Carl Icahn buying a big stake in Hertz.

Dollar General

Discount retailer Dollar General ( DG ) is questioning the motives of Howard Levine, the CEO of Family Dollar ( FDO ) after Levine came out in support of Dollar Tree's bid to purchase his company. In a letter to the board of Family Dollar, Rick Dreiling, the CEO of Dollar General, said that Levine did not indicate that his company was in discussions with any other potential buyers during a meeting on June 19. Dollar Tree entered exclusive negotiations with Family Dollar days later. Dollar General also claims Levine is acting in his own best interest rather than the interest of shareholders, as Levine would be the CEO of the combined company were Family Dollar to merge with Dollar Tree, but would likely lose his job if Dollar General to acquire Family Dollar.

Sears Holdings

Retailer Sears ( SHLD ) said Thursday that it lost $5.39 per share in the quarter ended Aug. 2. Revenue was $8 billion. On an adjusted basis, the company said it lost $3.00 per share. Analysts had expected the company to earn $2.63 per share on $8.13 billion in revenue. The company is still exploring its options for its remaining stake in Sears Canada and has also had talks with third parties about the future of the Sears Auto Center business.

McDonald's

Restauranteur McDonald's ( MCD ) is being investigated by food-safety regulators in Russia. Four stores in Moscow were closed by regulators on Wednesday and unscheduled inspections were conducted at stores across the country Thursday. The Russian government claims the actions are a response to violations of sanitary rules, but the closures do come as Russia and West are exchanging sanctions in response to Russia's actions in Ukraine.

Bank of America

Financial giant Bank of America ( BAC ) is reportedly close to a $17 billion settlement in connection with activities in the lead up to the financial crisis. Many of the issues to be resolved by the settlement are connected to Merrill Lynch and Coutrywide Financial, both of which Bank of America bought as they were nearing collapse. The deal is expected to be paid partially in cash and partially in assistance to borrowers, with more than $9 billion to be paid in cash.

Hertz

Activist investor Carl Icahn declared an 8.5 percent stake in rental-car giant Hertz Global Holdings (HTZ) Wednesday. Icahn said he may seek a seat on the company's board and that he plans to pressure management over accounting and operational issues.

This article was originally published on MarketIntelligeneCenter.com

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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