News Briefs

CEO compensation; Liberty Media; Computer Associates; MetLife; Tripos.

  • Sixty-three percent of 124 senior executives at Fortune 1,000 companies say that CEO compensation, salary, bonuses, and options are not aligned with shareholder interests and corporate key performance indicators, according to Christian & Timbers.
  • Liberty Media Corp. announced that it would spin off its international businesses with an estimated value of nearly $9 billion as part of its effort to simplify the company’s structure. The company said it plans for the spin-off to be tax-free to shareholders and that it will create a new publicly traded company called Liberty Media International Inc.
  • Moody’s Investors Service cut the debt ratings of Computer Associates to junk, citing investigations by the Securities and Exchange Commission and the Department of Justice into the company’s accounting, as well as the company’s maturing debt and intensifying competition in information technology. Uncertainty associated with the investigation into the company’s revenue recognition practices, added Moody’s, may hamper the company’s refinancing of upcoming maturing debt, including $825 million of senior notes maturing in April 2005.
  • MetLife Global Funding I, a unit of MetLife Inc., issued $1 billion of floating rate notes in a three-part offering in the private placement market, according to Reuters. Lehman Brothers Inc. and Merrill Lynch & Co. were the joint lead managers for the two-year notes; Lehman and Morgan Stanley, for the three-year notes; Lehman and Bear Stearns & Co., for the five-year notes.
  • MetLife Inc. announced last week that an affiliate agreed to sell the Sears Tower, the tallest building in the United States, and expects an after-tax gain of about $90 million.
  • Tripos Inc., a provider of drug-discovery chemistry and informatics products, announced that it will delay the release of its 2003 fourth-quarter and year-end financial results. The delay stems from additional work needed to revise the company’s revenue recognition for certain software licenses and to restate financial results for prior fiscal years, which Tripos announced on February 12.

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