“For the most part, the conditional limits of one-to-one,
with the exception of (natural) gas, we are not terribly
disappointed with that except with the one product,” CME
Executive Chairman Terrence Duffy said in an interview.
Dingmann said the deal would make sense as Patterson has
some fracking business and has always said it would like to have
more.James Landers, vice president of corporate finance at RPC,
declined to comment but said rumors could be the reason for the
jump in the company’s shares.Shares of the Atlanta, Georgia-based company were trading up
2 percent at $18.27 on the New York Stock Exchange. They had
touched $19.91 earlier in the session.
* UCB was 9th biggest bank failure during crisisBy Dan Levine and Sarah N. LynchSAN FRANCISCO/WASHINGTON, Oct 11 (Reuters) - Two former
executives of a bank that received a $300 million federal
bailout before its collapse during the financial crisis are
facing criminal and civil fraud charges for their role in
trying to conceal loan losses.Ebrahim Shabudin and Thomas Yu, the former chief operating
officer and first vice president respectively at San
Francisco-based United Commercial Bank, face four criminal
counts, according to an indictment unveiled on Tuesday.The bank’s former chief executive, Thomas Wu, faces civil
charges from the U.S. Securities and Exchange Commission, as do
Shabudin and Yu.UCB, the ninth-largest bank to fail during the financial
crisis, catered to California’s Asian community and expanded
rapidly before regulators closed it in 2009.The Federal Deposit Insurance Corporation also said it is
seeking to prohibit 10 former UCB officers from further
participation in the banking industry. Three additional
officers who cooperated in the investigation consented to
prohibition orders, it said.Before his court appearance on Tuesday, Shabudin was led
down a hallway in the San Francisco federal courthouse, the
last in a line of shackled prisoners. Shabudin was the only
detainee in line not wearing a prison jumper.Yu, who appeared in a suit, was not detained during his
court appearance.Neither Shabudin nor Yu entered a plea before a U.S.
magistrate, and each was released on a $500,000 bond.”This is an ongoing criminal investigation,” Assistant U.S.
Attorney Adam Reeves said in court.Shabudin’s lawyer James Lassart declined to comment after
the court hearing. Yu’s lawyer George Cotsirilos Jr. was not
immediately available for comment.The SEC complaint alleges that Wu, Shabudin and Yu
concealed loan losses from investors, leading the bank to
understate its 2008 operating losses by about $65 million.Wu was chief executive of UCB from 1998 through September
2009, the SEC lawsuit said. He appeared in a list of 25 notable
Chinese-Americans recognized in Forbes Asia magazine in 2008.”Hundreds of banks failed in the financial crisis, and the
regulators need to blame someone,” Wu’s attorney, Steven Bauer,
said in a statement. “When the full facts are revealed, Thomas
Wu is counting on our justice system to clear his good name.”United Commercial Bank received a $298.7 million bailout
from the U.S. government in November 2008. One year later,
regulators shut down the bank and its operations were taken
over by East West Bancorp .None of the TARP funds have been repaid, according to the
indictment. The collapse also led to a $2.5 billion loss to the
FDIC fund that backs customer deposits.The FDIC cited a lack of management oversight as a primary
reason for UCB’s failure, according to a 2010 government
report.The indictment charges Shabudin and Yu with conspiracy to
commit securities fraud, securities fraud, falsifying corporate
books and records, and making false statements to the
accountants of a public company.Shabudin said in court that he currently works as a
consultant for Capco, which provides business and technology
advice for the financial services industry. Capco spokeswoman
Diana Buxton said in an email that Shabudin has been placed on
administrative leave, and that the allegations only relate to
Shabudin’s former employer.Yu and Shabudin are scheduled to be arraigned in court on
Oct. 20.
** 99 Cents Only Stores said it will be
acquired by affiliates of Ares Management LLC and Canada Pension
Plan Investment Board for about $22 per share in cash, or $1.6
billion.** Jones Group Inc , a maker of clothing,
shoes and accessories, is in talks to sell its stagnatin
jeanswear division as it continues to shift its focus to its
more profitable luxury brands for up to $400 million.** Sinopec International Petroleum Exploration and
Production Corp (SIPC), a wholly-owned unit of state-owned
Sinopec Group, has completed the purchase of an 18 percent stake
in Chevron Corp’s Indonesian deep-water project for $680
million, a Sinopec official told Reuters on Tuesday.** Broadband technology and software provider
ARRIS Group Inc said it is to buy BigBand Networks
, a video networking service provider, for $2.24 per
share in cash — a premium of 76 percent — to strengthen its
networked video technology capabilities.** Payment processor Heartland Payment Systems Inc
said its unit Heartland School Solutions acquired
privately held School-Link Technologies Inc, for an undisclosed
amount, to expand its market share in the school services
payments industry.** Murata Manufacturing Co said on Tuesday it
plans to acquire Finland’s sensor maker VTI Technologies for 20
billion yen ($261 million), including debt, as it seeks to
expand in the growing market for smaller and low-energy sensors.** Eurasian Natural Resources Corp said it plans to
buy the outstanding 75 percent of Kazakh coal producer Shubarkol
Komir for up to $600 million plus assumed debt of about $50
million.** UK based holding company Chime Communications PLC
said it will buy Gulliford Consulting Limited for an initial
consideration of 2.5 million pounds ($3.9 million) in a cash and
stock deal.
** 99 Cents Only Stores said it will be
acquired by affiliates of Ares Management LLC and Canada Pension
Plan Investment Board for about $22 per share in cash, or $1.6
billion.** Jones Group Inc , a maker of clothing,
shoes and accessories, is in talks to sell its stagnatin
jeanswear division as it continues to shift its focus to its
more profitable luxury brands for up to $400 million.** Sinopec International Petroleum Exploration and
Production Corp (SIPC), a wholly-owned unit of state-owned
Sinopec Group, has completed the purchase of an 18 percent stake
in Chevron Corp’s Indonesian deep-water project for $680
million, a Sinopec official told Reuters on Tuesday.** Broadband technology and software provider
ARRIS Group Inc said it is to buy BigBand Networks
, a video networking service provider, for $2.24 per
share in cash — a premium of 76 percent — to strengthen its
networked video technology capabilities.** Payment processor Heartland Payment Systems Inc
said its unit Heartland School Solutions acquired
privately held School-Link Technologies Inc, for an undisclosed
amount, to expand its market share in the school services
payments industry.** Murata Manufacturing Co said on Tuesday it
plans to acquire Finland’s sensor maker VTI Technologies for 20
billion yen ($261 million), including debt, as it seeks to
expand in the growing market for smaller and low-energy sensors.** Eurasian Natural Resources Corp said it plans to
buy the outstanding 75 percent of Kazakh coal producer Shubarkol
Komir for up to $600 million plus assumed debt of about $50
million.** UK based holding company Chime Communications PLC
said it will buy Gulliford Consulting Limited for an initial
consideration of 2.5 million pounds ($3.9 million) in a cash and
stock deal.
The Negative Outlook reflects the limited headroom TI has amidst a worsening macroeconomic
backdrop which could reduce demand for telecom services and negatively impact TI’s domestic
revenue and profitability. In addition, any extended period of sovereign weakness could impair
the company’s access to capital markets to refinancing debt maturities.Any expectation that TI could not keep leverage as measured by unadjusted net debt to EBITDA
(excluding Telecom Argentina ) sustainable below 3.0x could result in TI’s IDR being
downgraded to ‘BBB-‘. Another key consideration for further negative rating action would be a
worsening of the company’s domestic business’s operating and financial profile.”Telecom Italia is at risk from any additional Italian government austerity measures given
the limited headroom it has at the current rating level,” says Damien Chew, Senior Director in
Fitch’s European Telecoms, Media and Technology team. “However, Fitch recognises that management
has capex flexibility in its domestic fixed business to protect free cash flow generation.”TI’s current rating is not directly impacted or limited by the Italian sovereign rating. A
multi-notch downgrade of the sovereign rating would have to take place before Telecom Italia’s
rating would be directly impacted. (see “Euro-Zone Sovereign Pressures and Corporates”,
published April 5, 2011 at www.fitchratings.com).TI’s key strength is its strong market position in the domestic fixed line business, which
underpins TI’s high domestic EBITDA margin and cash flow generation. A lack of cable competition
in Italy means that TI has the ability to phase capex as required without significantly
impacting its competitive position. This gives TI an important financial lever, in perserving
cash flow generation at times when EBITDA comes under pressure, as highlighted in Fitch’s recent
report (see “Southern European Telecom Capex Flexibility”, published Sept. 30, 2011 at
www.fitchratings.com).TI can also rely on the growth potential of its mobile operations in Brazil, along with
management’s disciplined approach to operating costs and capex, to offset the drag from the
domestic mobile business.Fitch anticipates leverage - as measured by unadjusted net debt to EBITDA, excluding Telecom
Argentina - to reach 3.0x at the end of 2011, after factoring in payments for Italian spectrum
(partly deferred), the recently announced Brazilian acquisition, AES Atimus for EUR700m and the
TIM Brasil capital increase which resulted in a net cash inflow of EUR200m. Fitch’s base case
forecasts show leverage reducing moderately to 2.8x by the end of 2013. However, Fitch scenario
analysis shows that under certain conditions, TI’s leverage could breach the key 3.0x threshold.For the purpose of calculating leverage and credit metrics, Fitch does not take into account
the full contribution of Telecom Argentina, where TI has a 21.1% indirect economic interest.Liquidity at TI remains healthy. Excluding cash held at its Brazilian and Argentine
subsidiaries, TI had EUR4.2bn of cash and cash equivalents on its balance sheet at the end of
June 2011 as well as EUR7.8bn undrawn committed facilities. Together, this should allow TI to
cover EUR10.4bn of debt maturities until the end of 2013.
