The Journal says Lehman is working several options, including an asset sale, to shore up confidence in it after its stock plunged 17 percent on Friday. It says the SEC is about to subpoena Lehman trading records from several hedge funds.
Fast-growing mall anchor Steve & Barry’s declared bankruptcy, and the Journal on A1 looks at how that will hurt the mall industry as a whole. Rather than make money from, you know, selling clothes, the chain profited from mall landlords paying them millions of dollars to come to their properties.
When the payments slowed, Steve & Barry’s collapsed.
The likely liquidation of the company will result in the closure of 276 stores, leaving gaping holes in malls who depend on the big stores to draw to their smaller, profitable stores.
The King has abdicated
The iconic American brewer Anheuser-Busch agreed to sell itself to the Belgian company InBev for $52 billion, the FT says on page one and the Journal on B1. The new global beer behemoth will have 300 brands. The Journal:
The agreement is evidence that even though the global mergers-and-acquisitions market has slowed as a result of the credit crisis, the appetite of many corporations for takeovers is still strong. It also shows that banks, despite the losses they have suffered on risky debt they took on in recent years, are willing to open their checkbooks to help fund combinations of strong companies.