Thursday headlines include: Dollar General extending its offer for Family Dollar, Coca-Cola changing its executive compensation plan, Sears selling rights to its stake in Sears Canada, Tesla founder Elon Musk hinting about “unveiling” the “D”, and a judge ruling that Citigroup and Wells Fargo will have to face a trial in connection with credit bureau reporting.
Discount retailer Dollar General (DG) extended its tender offer for shares of Family Dollar (FDO) by more than three weeks. Dollar General is offering to buy shares for $80 per share. Family Dollar's board is sticking with its choice to merger with Dollar Tree (DLTR) for $74.50 per share, but the board has yet to call a meeting that would allow shareholders to accept or reject that deal.
Beverage giant Coca-Cola (KO) is changing its executive compensation plan after it was widely criticized by a number of investors and analysts, including Warren Buffett. The company will contract the number of executives eligible to receive shares under the company's long-term compensation program, opting to pay other executives with cash bonuses. Coke is also changing the plan to make more the equity awards payable as performance shares as opposed to stock options.
Struggling retailer Sears Holdings (SHLD) is selling its business in Canada in order to raise money it needs to keep funding its other operations. After apparently being unable to find another buyer, the company's board approved a rights offering to shareholders of most of the company's 51 percent stake in Sears Canada. The offer covers up to 40 million shares. After the sale, Sears will hold about 12 million shares of Sears Canada, worth about $113 million.
Elon Musk, the CEO and founder of electric car firm Tesla Motors (TSLA) said in a tweet Wednesday that it is “about time to unveil the D and something else.” An accompanying photo suggests Musk is alluding to the launch of a new vehicle. The image mentions the date Oct. 9, but other details are unavailable.
About time to unveil the D and something else pic.twitter.com/qp23yi59i6
— Elon Musk (@elonmusk) October 2, 2014
A federal judge ruled Monday that the mortgage units of Citigroup (C) and Wells Fargo (WFC) will have to face claims they violated federal laws when they falsely reported that bankruptcies or foreclosures to credit reporting agencies. The judge said consumers had offered enough evidence to support their claims to justify a trial.