The General Gets Hostile; Alibaba’s IP-Whoa!; No Sugar High for Krispy Kreme

Oh no you didn’t…

Image courtesy of lam nee/FreeDigitalPhotos.net

Image courtesy of lam nee/FreeDigitalPhotos.net

In the dollar store wars, things just got uglier as Dollar General went hostile on potential acquisition target, Family Dollar. If you recall, the powers that be over at Family Dollar dissed the two offers that Dollar General made – offers that were higher than Dollar Tree’s, Family Dollar’s other admirer. Dollar General is eager to bring Family Dollar into its fold, especially because Wal-Mart is getting a bit too cozy in the deep discount dollar store arena. Dollar General graciously offered to yank 1,500 of its stores to avoid antitrust issues. It even offered to pay a $500 million break-up fee if indeed antitrust issues killed the deal. Now Dollar General is going right to the shareholders to entice them with its very generous offer  CEO Howard Levine, who happens to be the largest Family Dollar shareholder, would probably be out of a job, if the deal goes through. However, he still stands to pocket as much as $750 million – which should tide him over for a little while.

Can I get in on that?

Image courtesy of cute image/FreeDigitalPhotos.net

Image courtesy of cute image/FreeDigitalPhotos.net

Wall Street is gearing up to welcome the newest addition to one of its indexes. Alibaba, whose IPO is expected to leave Facebook’s 2012 $16 billion record-breaking IPO in the dust, is looking to offer those shares for between $60-$66 per share. About 320 million of those shares will be eagerly offered up to retail and institutional investors. It’s likely the mega e-commerce site is going to raise around $20 billion. Alibaba, is a lot like Amazon. Except that it’s China-based. And ridiculously larger on so many levels. Good thing Yahoo owns a sizable chunk of it. The company’s value is expected to reach somewhere in the stratosphere of $160 billion, give or take a few billion.

Kreme’d…

Image courtesy of holohololand/FreeDigitalPhotos.net

Image courtesy of holohololand/FreeDigitalPhotos.net

Krispy Kreme released its earnings with mixed signals.  You see, the makers of arguably the most delectable donut on the planet experienced a 22% rise in profit, as it should. A proper reward for making such a delicious pastry. But alas, the company missed expectations, causing shares of Krispy Kreme to go down 6%. I know, it just isn’t right. Or fair. Net income was $5.75 million from $4.7 million a year ago gaining around $0.07 per share.  Revenue was up around 7%. The North Carolina-based company is currently in the process of bringing its delicacies abroad to bestow its sugary happiness on other parts of the world. This is expected to not only cause great joy and sugar highs, but a nice fiscal boost, as well.

 

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