Stocks In Action: General Motors Company (NYSE:GM); Burger King Worldwide Inc (NYSE:BKW); Ascena Retail Group Inc (NASDAQ:ASNA)
Dallas, Texas, 09/24/2014 (ustrademedia) – U.S car maker General Motors Company (NYSE:GM) has disclosed that it would be hiving off its luxury car model Cadillac into a separate business unit. It has shortlisted New York as the headquarters of the new unit. It hopes to open operations at the new office starting next year. This complete revamp of the luxury segment of its offerings, by General Motors Company (NYSE:GM) comes on the back of increased competition from foreign brands in this segment. The increased competition has in turn steadily eaten into the market share of Cadillac cars. With the separation, the car maker feels that the luxury segment would be better placed to pursue a more focused approach to win back lost market share.
Burger King Worldwide Inc (NYSE:BKW) previously announced deal to merge with Canadian firm Tim Hortons Inc. (USA) (NYSE:THI) is said to be moving ahead, in spite of regulators having a close look at the deal. The U.S firm was pursuing this deal in order to increase its size and at the same time relocate its corporate headquarters to Canada, so that it would be paying substantially less corporate tax as against what it would have had to pay, if it continued to remain a U.S enshrined company. Parallel to this development, the U.S. Treasury Department has served notice to corporate America that going forward it would not be easy for firms to purse reverse immersion deals in their bid to avoid paying corporate tax.
Ascena Retail Group Inc (NASDAQ:ASNA) which owns popular cloths brands like Dressbarn and Lane Bryant saw its share price plummet by nearly 16.7 percent yesterday after it provided a weak full-year profit forecast which was well below analyst expectations. The downgraded outlook estimates that EPS for 2015 would be in the range of 90 cents to a dollar, where as analyst estimates had pegged the EPS at $1.24 per share.