EMC shareholders to vote July 19 on Dell’s acquisition
Shareholders of EMC Corp. will finally have their say on Dell Inc.’s proposed acquisition of the giant data storage company. A special shareholder vote is set for July 19 at EMC’s headquarters in Hopkinton, according to a proxy statement filed on Monday with the Securities and Exchange Commission. The proposed acquisition, one of the biggest ever in the US technology sector, was originally valued at $67 billion. But the value of the deal has fluctuated considerably since it was announced in October of 2015, mainly because of the volatile stock price of VMware, a software company that is majority-owned by EMC. VMware shares plummeted in value after the deal was announced, though they have since recovered much of the loss. EMC shares have also slipped since October. Also on Monday, Denali Holding Inc., the holding company that controls Dell, announced the issuance of $3.25 billion in new debt to cover the costs of the EMC acquisition. Dell is expected to borrow as much as $50 billion to pay for the purchase.
Prices are unchanged
Gasoline prices in Massachusetts remained unchanged from last week’s average, according to AAA Northeast. The average price Monday for self-serve regular unleaded remained at $2.28 per gallon in Massachusetts, according to the latest AAA survey. The average this time last year was $2.66 per gallon. The price in Massachusetts is 8 cents below the national average for regular unleaded of $2.36 per gallon. Gasoline prices in Massachusetts as of Monday ranged from a low of $2.13 to a high of $2.59 for regular unleaded, according to the auto club. Monday’s average gas prices per gallon for other grades were $2.50 for midgrade unleaded and $2.67 for premium unleaded. Diesel averaged $2.33 per gallon.
Hostess to recall snack cakes over peanut contamination concerns
Hostess Brands has voluntarily recalled various snack cakes and doughnuts over concerns they may have come in contact with peanut residue not included in the ingredient list. The Kansas City, Mo.-based company’s recall, announced Friday, covers more than 700,000 cases of Ding Dongs, Zingers, Chocodiles, and various doughnuts sold in grocery, dollar, drug, and convenience stores in the United States and Mexico. The recall covers single-serve products and multipack boxes. As of Friday, Hostess said it has received notice of two allergic reactions involving the recalled products, and that the recall was launched ‘‘out of an abundance of caution.’’
Traders to stay overnight to monitor vote to leave European Union
British politicians won’t be the only ones settling in for a long night as the polls close on June 23. JPMorgan Chase & Co., Royal Bank of Scotland Group PLC, Morgan Stanley and Lloyds Banking Group PLC are among banks in London that plan to keep traders overnight to monitor the markets and handle client trades as results of the referendum on European Union membership trickle in, people with knowledge of the plans said. Currency traders, whose market stays open 24 hours, are among those most likely to remain in the office as they grapple with moves in the pound that have grown more volatile as the vote approaches.
Burberry head takes a 75 percent pay cut as sales lag
Burberry CEO Christopher Bailey has taken a 75 percent pay cut after the UK luxury retailer failed to hit profit targets amid a challenging global environment, including a slowdown in the Chinese economy. The company’s annual report, released Monday, says that Bailey will be paid 1.9 million pounds ($2.75 million), down from 7.5 million pounds the previous year. He and other top executive directors received no bonuses as adjusted profit before tax ‘‘was below the threshold target set by the Remuneration Committee.’’ A slowdown in Chinese consumer spending and a sluggish eurozone economy, together with geopolitical tensions and volatile financial markets, hit the sector hard, with growth of between 1 percent and 2 percent, from 7 percent just two years ago.
Best Buy CEO sells more than $12 million in stock
Best Buy Co. shares declined after chief executive Hubert Joly sold $12.8 million in stock, cutting his equity stake in the electronics retailer by 44 percent. Joly, who joined Best Buy in 2012, sold 398,000 shares for an average price of $32.24, according to a regulatory filing. That left him with about 511,000 shares as of June 2. His total holdings in the company, including options, unvested shares and stock, are valued at about $40 million. The news rattled investors, who are looking to the 56-year-old Joly to complete a turnaround of the retail chain. While the CEO has been lauded for cutting costs and selling off foreign divisions, the company has yet to return to steady sales growth. Revenue is expected to be flat this year. Best Buy said on Monday that Joly has no plans to leave his role.
John Oliver buys delinquent medical bills and forgives them
Some 9,000 people stuck with delinquent medical bills had their debts forgiven courtesy of HBO host John Oliver. Oliver, on his ‘‘Last Week Tonight’’ program Sunday, took the action to illustrate a story about the practices of companies that purchase the records of debtors and attempt to collect on them. The show set up its own company to acquire $15 million worth of debt owed to hospitals in Texas, paying $60,000. Oliver added a little show-biz flair, pressing a big red button to symbolize the debt forgiveness. He claimed it eclipsed the $8 million giveaway by talk-show host Oprah Winfrey when she gave a car to each member of her studio audience one day, making it the biggest ever. Oliver said it was ‘‘disturbingly easy’’ for his show to set up a company, which it called Central Asset Recovery Professionals, and incorporate it in Mississippi to make the purchase.
Uber initiates software improvements for drivers
Tensions have long simmered between Uber and its drivers who power the ride-hailing service. Drivers held protests when Uber cut fares with little warning and have filed class-action lawsuits to be recognized as company employees rather than independent contractors. Uber is now trying to improve the experience of its drivers. On Monday, the company announced a host of software improvements to its app to address driver demands. Among the changes, drivers can now more easily pause ride requests, making it easier for them to take bathroom breaks and fill their gas tanks. Drivers can now also be paid instantly for each ride they complete, rather than weekly, and see on the app’s dashboard how much they have earned. The changes come after the recent settlement of a pair of class actions by drivers. Under the terms of the settlement, Uber said it would pay as much as $100 million to roughly 385,000 drivers.
NEW YORK TIMES