Today - Tuesday, December 10, 2013
8:24 AMFidelity National exploring sale of non-core businesses
- The title insurer has hired JPMorgan to identify ways to monetize its portfolio company investments - possibilities include tracking stock, spin-offs, outright sales.
- Chairman William Foley: "The portfolio company investments have significant value which may not be fully reflected in our stock price and we believe there are attractive alternatives we can pursue to unlock the value of these investments for the benefit of FNF and our shareholders."
- Press release
- FNF +0.8% premarket
8:17 AMPebblebrook buys San Francisco hotel
- Pebblebrook Hotel Trust (PEB) buys the Radisson Hotel Fisherman's Wharf - 355 rooms and 44K square feet of retail space - for $132M, with an expectation of spending $18M-$20M over the next two years to completely renovate the hotel.
- The hotel is expected to operate at 89% occupancy in 2013 with RevPAR of $165 and NOI of $11M. The retail space is 95% net leased with average rent/foot of more than $100. Pebblebrook estimates the hotel will generate $9.3M-$9.8M in NOI in 2014.
- Pebblebrook expects acquisition costs of about $2.1M and $1M of costs related to transition of the new management team.
- Press release
3:33 AMDetails of Volcker rule set to be unveiled
- A panoply of regulators are due to disclose the details of the Volcker rule this morning and then formally adopt the measures later in the day.
- The new regulations will ban banks from proprietary trading, and prevent them from owning over 3% of hedge funds and private-equity funds.
- Banks fear that the rules could cost them billions of dollars by making it more difficult to engage in activities that are permitted under the regulation, such as market-making, underwriting and hedging against risks. Expect the lawyers to go through the proposals to see what could be struck down in court.
- Tickers: C, JPM, MS, WFC, BAC, COF, GS, BK, USB
- ETFs: FAS, XLF, FAZ, UYG, KRE, KBE, VFH, IYF, SEF, IAT, IYG, PFI, FXO, KBWB, RKH, QABA, RWW, KRU, FINU, KBWR, RYF, PSCF, FNCL, KRS, FINZ