BNET Daily Dispatch: Thomson, Dell, Microsoft, and Retail
- Thomson announced that it will sell its educational textbook and academic testing businesses to raise money for the Reuters acquisition. London-based buyout firm Apax Partners will buy the companies for a total of $7.75 billion cash, which will contribute substantially to financing the $17.5 billion Reuters deal. Thomson shares rose 3.8 percent to C$46.71 on the news.
- Investor confidence in Michael Dell and his new management team has sent Dell stock up more than 8 percent since the end of March. Shares in Dell Computer are now more highly valued than HP stock, despite the investigation into Dell's accounting practices and HP's recent ascent to the number one position in the PC market. Analysts expect that Michael Dell can navigate a successful turn-around.
- Microsoft announced today that it's joining forces with SanDisk, a computer peripherals manufacturer, to develop a storage device that would allow users to keep their entire "PC environment" on something akin to a USB flash drive. Will Poole, Microsoft VP, said the effort will lift "simple flash storage to a whole new level of customer benefit."
- Two government reports released today show that U.S. retail sales last month dropped sharply by 0.2 percent, but prices have remained stable with the notable exception of gasoline. These reports add to continued concern that a slowdown in consumer spending is dragging on the economy. The Fed held fast to its forecast of "moderate growth," and emphasized that inflation is the primary concern.