Bank of America Corp is looking to sell collection rights on at least another $100 billion of mortgages after announcing similar deals for more than $300 billion on Monday, according to two sources familiar with the situation. Any sale would be the latest example of a big bank deciding that collecting mortgage payments on some loans is too costly, and the cost of capitalising the business was too high given new capital rules. Banks have been unloading these assets for years. These sales are an opportunity for smaller companies like Nationstar Mortgage Holdings and Walter Investment Management that specialise in managing these collection rights, known as mortgage servicing rights, and do not have to follow bank capital rules.
Peugeot Q4 sales decline 20% on Europe woes
PSA Peugeot Citroen, Europes second-largest carmaker, delivered 20% fewer vehicles in the fourth quarter as a push abroad failed to protect the company from a recession in its home region. Sales of cars, vans and kits of components ready for assembly fell to about 720,000 vehicles from 901,000 a year earlier, based on calculations derived from nine-month and full- year published figures. Deliveries last year dropped 17% to 2.97 million, Paris-based Peugeot said Tusday in a statement. The sales figures look as bad as one would expect, said Sascha Gommel, an analyst at Commerzbank AG with a reduce recommendation on the shares. The company is suffering heavily in Europe, but also in other regions like Latin America, and losing market share to competitors such as Volkswagen AG and Hyundai Motor Co.
Dish betters Sprints buyout offer for Clearwire
Dish Network put in a bid for Clearwire Corp on Tuesday that trumped Sprint Nextels $2.2 billion offer, setting the stage for a takeover battle for the wireless service provider that owns crucial mobile spectrum. Dishs $2.28 billion offer appeared to affirm the satellite television providers ambitious plan to buy its way into the wireless services industry, on which it has already spent $3 billion acquiring much-needed capacity. Dishs straight-talking chairman Charlie Ergen says he wants to enter the mobile broadband market, and one way of doing it is to partner with another operator.
Telefonica raises 1.5 bn euros with 10-year bond
Spains Telefonica raised 1.5 billion euros ($1.96 billion) on Tuesday via a 10-year bond, the first debt sale this year by a company from southern Europe. The telecoms group, with debts of 56 billion euros ($73.35 billion) as of September, is facing bond redemptions this year and next and is seeking to preserve a coveted investment grade credit rating. Telefonica has 7.4 billion euros of debt expiring in 2013 and 7.35 billion euros due for repayment in 2014, according to the companys last quarterly results statement.
Alcoa q4 earnings in line with expectations
Alcoa Inc said Tuesday that its fourth-quarter earnings met Wall Streets expectations, and it sees slightly higher demand for aluminum this year. The sluggish global economy has weakened prices for aluminum used in everything from airplanes to soda cans. But Alcoa sees demand growing 7% in 2013, up from a 6% gain in 2012, with the best prospects in aerospace but slower improvement in demand for autos, packaging, and segments such as building and construction materials.
Nestle working with Rothschild for asset sale
Nestle SA is working with Rothschild to sell Latin American assets valued at more than $1 billion to win regulatory approval for its purchase of Pfizer Incs nutrition unit, three people with knowledge of the matter said. The company, based in Vevey, Switzerland, is in the early stages of a process to sell the Latin American assets, said one of the people, who asked not to be named as the plans are private. The assets may draw interest from HJ Heinz Co, Danone SA, Abbott Laboratories, Mead Johnson Nutrition Co and Grupo Lala SA, two people said.