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.
“My personal philosophy to beauty is paying attention to oneself. I love to be outdoors, lots of fresh air, trying to take care of yourself as best you can. I always notice that comes through,” says Felicity Jones, the global face of @shiseido-owned @cledepeaubeauteus, which launches today. Head to WWD.com to read more about the actress’ love for beauty and how she prepared for her new role in “The Basis of Sex,” playing the young Ruth Bader Ginsburg. #wwdbeauty (📷: @dandoperalski)
For men’s fall 2018, @giuseppezanotti drew on elements from streetwear, sport, biker, combat and rock ‘n’ roll. Pictured here are a pair of shoes from the collection, featuring zippers, rhinestones, and silver hardware. Head to WWD.com to see a roundup of the accessories from Milan’s men’s fall 2018 shows. #wwdfashion (📷: Andrea Delb)
To celebrate the 25th anniversary of @ralphlauren’s snowboarding collection, the brand is mining its archives. The iconic brand is reintroducing vintage styles and dropping new designs for a color capsule that will be available in Ralph Lauren stores and @openingceremony on January 25. The capsule will consist of 10 pieces, including the Snow Beach Pullover, pictured here, which is a collector’s item that rapper Raekwon wore in Wu-Tang Clan’s “Can It Be All So Simple” video. #wwdfashion (📷: Tom Gould)
For @rochasofficial’s pre-fall 2018 collection, creative director Alessandro Dell’Acqua channeled the sophisticated and intriguing Catherine Denevue in the film “Belle de Jour.” Polished collarless coats, midi skirts, suits and ’60s graphic motifs were all featured in the collection, adding a sense of discreet luxury. See the rest of the photos on WWD.com #wwdfashion
“We tried to produce clothing of that couture quality, but the most daunting part was that we only had a matter of days [to do it],” said costume designer Lou Eyrich, who recreated Gianni Versace’s iconic looks for @americancrimestoryfx. Eyrich searched online retailers and vintage shops for original pieces from the design house and for @penelopecruzoficial, who plays Donatella Versace. Head to WWD.com to read how she created the Versace world. #wwdfashion
Only three months after her stellar debut catwalk season, @kaiagerber has inked her first big design collaboration –– with @karllagerfeld. The collection blends Lagerfeld’s Parisian chic aesthetic and the model’s signature West Coast casual style via RTW, accessories, footwear and more. The #KarlLagerfeldxKaia collection will launch in September with a series of events. Get all the details on WWD.com. #wwdnews #wwdfashion
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews