NEW YORK -- Both Tyco International Ltd. and CIT Group exhaled in relief late Monday when the former successfully spun off the latter in an initial public offering, but a bear market Tuesday caused CIT shares to fall $1, or 4 percent, to close at...
NEW YORK--Both Tyco International Ltd. and CIT Group exhaled in relief late Monday when the former successfully spun off the latter in an initial public offering, but a bear market Tuesday caused CIT shares to fall $1, or 4 percent, to close at $22 in its first day of trading on the New York Stock Exchange.CIT fetched $4.6 billion for former parent Tyco when the beleaguered conglomerate divested itself of the finance unit in Monday's IPO. Tyco sold 200 million shares at $23 each, substantially lower than the $25 to $29 a share it had hoped to garner.Although the amount of money raised was well below the expected range of $5 billion to $5.8 billion--and less than half of the $9.5 billion Tyco spent to acquire CIT a year ago--the IPO was a crucial success for the health of both companies.After nearly eroding to below 9,000, the Dow Jones Industrial Average finished the day at 9,007.25, down 102.04 points or 1.1 percent. The Nasdaq was down 45.95 points, or 3.3 percent, to close at 1,357.85.In a related development, Standard & Poor's removed CIT from CreditWatch with a stable outlook. Senior unsecured was upgraded to "A" from "BBB."Tyco needed to unload CIT to reduce its $27 billion debt and to help pay $7.7 billion in debt coming, due over the next 18 months. CIT, as the nation's largest and most diverse finance company with a $48 billion portfolio, is now out from under the shadow of Tyco's ongoing liquidity concerns and other issues.While CIT is a global commercial finance firm in operation since 1908, it is also believed to be the biggest player in the area of factoring, an often-used source of capital for the fashion industry. The company went public in 1997 and was acquired by Tyco in a cash-and-stock deal in July 2001.The overall factoring business is a $50 billion to $60 billion industry, financial experts said, with CIT controlling at least 30 percent of the market.CIT is now free of Tyco, which is embroiled in a number of scandals. Early last month, former Tyco chief executive officer Dennis Kozlowski was indicted by the Manhattan district attorney's office for scheming to avoid $1 million in sales tax on artwork that he purchased. Last Wednesday, prosecutors expanded their probe to include evidence tampering in the case. The criminal probe, according to sources, also has widened to include an investigation of whether other Tyco executives used corporate funds to buy artwork and homes.Tyco's business dealings and balance-sheet accuracy have been under investigation since the beginning of the year following the collapse of Enron and other accounting scandals. As part of its restructuring, Tyco tried to sell CIT but couldn't find a buyer even at what analysts described as fire-sale prices.By being severed from Tyco, analysts said the companies financed by CIT will be more secure and CIT will be better run as a standalone entity rather than as one part of a big conglomerate machine. CIT also is now safe in case Tyco declares bankruptcy.Even at the lower price, the CIT deal was the fourth-largest IPO in U.S. history, an impressive feat given poor market conditions that have led Prada to delay its own IPO three times.
Taking the final spot on the mens’ portion of New York Fashion Week calendar next month will be none other than @tomford. Though he’s shown his men’s wear in New York in the past, this will mark the first time the designer has shown his men’s collection alone during New York Fashion Week: Men’s. His runway show will debut on February 6 at the Park Avenue Armory. #wwdfashion
London-based couture house @ralphandrusso has certainly been in the spotlight, having its dresses worn by @beyonce, Angelina Jolie, Meghan Markle in her engagement photos and more. For couture, Tamara Ralph focused on ornamentation — think: feathers with chain mail, jet embroidery and clusters of pearls and crystals. See the rest of the collection on WWD.com #wwdfashion #couture (📷: @giovanni_giannoni_photo)
Minnie Mouse celebrated her 90th birthday by getting her own star on the Hollywood Walk of Fame. For her celebratory luncheon, @coach’s creative director @stuartvevers dressed her in a custom made prairie dress, complete with Vever’s take on the polka dot – black sequined versions – under a cropped motorcycle jacket. The designer also put his own mark on Minnie’s classic red shoes, infusing the color with sparkles and adding some Coach crystals. “We chose colors that were very Minnie and also represented quintessential Coach elements,” said Vevers. #wwdfashion #nationalpolkadotday (📷: George Chinsee)
@nickjonas is unveiling his first-ever apparel collection through a partnership with John Varvatos. The limited-edition capsule, which makes its debut in spring, also marks the first time the designer has collaborated with anyone on a line. “The process in working with Nick is amazing. It’s inspiring to be around someone who is not only connected with the trade that they do, but also with what’s happening in the environment around him, and how that connects to what we do with style,” said Varvatos. (RG: @johnvarvatos) #wwdfashion
@margotrobbie steps out onto the red carpet wearing @miumiu. The actress is nominated for “Outstanding Performance by a Female Actor in a Leading Role” in “I, Tonya” at the #SagAwards. (📷: Stewart Cook) #wwdfashion
For @massimogiorgetti of @msgm, the Nineties are his favorite decade. “They had a huge impact on my personal growth. What I like of the Nineties is that they are not so precise in terms of style as other decades…there was actually a bit of everything,” he said. As seen on MSGM’s Spring 2018 show: tie-dye and a bit of grunge, two styles that are synonymous with the decade #wwdfashion #wwddecades (📷: @kukukuba)