SEC fines UPS $45M, saying it improperly valued freight business
(TNS) — UPS has agreed to pay $45 million to settle a complaint with the U.S. Securities and Exchange Commission, which alleges the Sandy Springs-based shipper improperly valued one of its businesses.
The SEC alleges UPS misrepresented its earnings because of improper valuation of its UPS Freight unit, which it agreed to sell in 2021.
The SEC said it found UPS violated accounting and disclosure controls required by federal law, failing to follow generally accepted accounting principles, or GAAP, in valuing “one of its worst performing businesses.”
In the settlement, UPS did not admit or deny the SEC’s allegations. But in addition to the civil penalty, UPS agreed to cease and desist from further violations, adopt training requirements for certain employees and directors and retain a compliance consultant, according to the SEC.
Container Store’s $40M bailout deal in jeopardy as financing efforts ‘fall short’
(TNS) — The Container Store Group Inc.’s deal for $40 million from Beyond Inc. is in trouble in yet another challenge for the North Texas retailer.
The Coppell-based company does not expect the conditions for closing the agreement will be satisfied — or that the transactions in the deal will be consummated under the terms of the deal with Beyond, according to a filing on Thursday. It also said the agreement remains in effect.
“The Company remains focused on the successful execution of its strategic initiatives,” The Container Store said in a statement.
Utah-based Beyond said earlier this week it has concerns about the Coppell, Texas-based retailer’s ability to reach an agreement with lenders on terms that would satisfy the financing requirements under the deal, according to a statement. If the Container Store is unable to get something acceptable by Jan. 31, then either party may terminate the purchase agreement.
Bond futures bounce on Bessent pick for US Treasury
SINGAPORE (Reuters) — Bonds rallied, U.S. stock futures rose and the dollar eased in early trade on Monday as investors cheered the appointment of fund manager Scott Bessent as the next U.S. Treasury secretary, figuring he would be a voice for markets in Washington.
Benchmark 10-year Treasury futures were up 13 ticks, ahead of the cash open and S&P 500 futures rose 0.4% to just shy of a record high while the dollar was weaker across the board, lifting the battered euro by 0.5% to $1.0484.
“The market view that Bessent is a ‘safe hands’ candidate,” said Stephen Spratt, strategist at Societe Generale, a relief as the risk of a more unorthodox pick was priced out of markets.
Australia’s share market touched a record high. Futures pointed to a stronger open in Japan and a weaker start in Hong Kong. The week’s trade is likely to be lightened by Thursday’s Thanksgiving holiday.
US SEC issues summons for India’s Adani, nephew on bribery allegations
(Reuters) — The U.S. Securities and Exchange Commission has issued a summons to Indian billionaire Gautam Adani, indicted on U.S. bribery allegations related to a bombshell federal indictment against him, a court filing showed.
The SEC is suing the head of the Adani Group and his nephew Sagar Adani, alleging they engaged in hundreds of millions of dollars in bribes to help an Adani company while “falsely touting the company’s compliance with antibribery principles and laws in connection with a $750 million bond offering.”
The summons requires an answer within 21 days, according to the filing dated Wednesday in federal court in the Eastern District of New York.
The SEC suit seeks unspecified monetary penalties and restrictions on the Adanis from serving as officers of listed companies.
Adani Group representatives did not immediately respond to a Reuters request for comment on Sunday.
Goldman funds to take $900 million hit on Northvolt, FT reports
(Reuters) — Funds managed by Goldman Sachs will write off nearly $900 million after Swedish lithium-ion battery producer Northvolt filed for Chapter 11 bankruptcy earlier this week, Britain’s Financial Times reported on Saturday.
The Goldman private equity funds, which together ranked as the second-largest shareholders in Northvolt, plan to write down their $896 million investment to zero by year end, the report said, citing letters to investors seen by the FT.