JPMorgan Chase: Settles Mortgage Security Case
JPMorgan Chase (JPM) paid $153.6 million to settle SEC civil charges that it misled investors who bought a mortgage security it issued in 2007. The SEC says the bank didn't tell buyers that hedge fund Magnetar Capital picked assets for the complex security and stood to profit if housing prices fell and the underlying mortgages soured. JPMorgan didn't admit or deny wrongdoing. Most of the settlement will go toward repaying investors, including pension funds and a nonprofit affiliated with the Lutheran Church. The SEC is investigating the mortgage businesses of other banks, including Citigroup (C), Deutsche Bank (DB), UBS (UBS), and Morgan Stanley (MS), says a person with knowledge of the matter.
Airbus: More Than 600 Narrowbody Orders
Airbus dominated the Paris Air Show, racking up more than 600 orders for its new, fuel- efficient jets in the first three days of the show. The largest order, for 150 of the narrowbody A320neos, came from Indian low-cost carrier IndiGo. Other big buyers were airlines in emerging markets, such as Garuda Indonesia, and Western carriers looking to update their fleets, such as JetBlue Airways (JBLU). Boeing (BA) sold few of its rival plane, the older 737. The tables were turned with jumbo jets, with Boeing inking 19 orders for 747s and Airbus's A380 sealing no deals.
Hulu: Entertaining a New Suitor
Online video service Hulu is weighing an unsolicited buyout offer. The company's management views the bid as more serious than previous offers, according to a person with knowledge of the situation. Hulu, a four-year-old service that streams popular TV shows for free, is currently owned by News Corp. (NWS), Comcast's (CMCSA) NBCUniversal, and Walt Disney (DIS), as well as Providence Equity Partners. A new owner could give Hulu extra capital to take on Netflix (NFLX), its chief rival, by building up its library of TV shows and films.
Subaru: A Driver for Change In Saudi Arabia?
A women's group in Saudi Arabia is calling on Subaru to pull out of the kingdom until the government lifts its ban on female drivers. Saudi Women for Driving targeted Subaru, owned by Fuji Heavy Industries, because of its progressive brand image. It may extend the campaign to include Hyundai Motor and General Motors' (GM) Cadillac, two brands associated with Manal al-Sharif, who was arrested in May for violating the ban. On June 17, at least 50 Saudi women took the steering wheel to protest the edict.
Encana/PetroChina: Canada Gas Venture Collapses
Encana (ECA), Canada's largest gas producer, must find new partners after PetroChina (PTR) walked away from a $5.5 billion joint venture to develop shale gas deposits in Western Canada's Cutbank Ridge. The deal fell apart over the valuation of assets, a sign that Chinese energy companies may be starting to drive harder bargains. Chinese companies have been looking for new gas sources and technical expertise to develop local shale formations and meet a government goal of having gas provide 10 percent of the country's energy by 2020.
On the Move
• Michelin: Pete Selleck named head of North America group
• UBS Head: M&A banker Liam Beere moves to Moelis
• FIFA: VP Jack Warner resigns amid bribery allegations
• Fannie Mae (FNMA): Susan McFarland named CFO