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.
In his new book “Hollywood Royale,” Andy Warhol’s Protégé Matthew Rolston celebrates the Eighties revival of Hollywood glamour. Featuring more than 100 portraits taken by Rolston from 1977 to 1993, the book contains photos of icons like Michael Jackson, Cyndi Lauper, and @drewbarrymore, pictured here in 1991. “Hollywood Royale,” out today, will be accompanied by an exhibition opening at Los Angeles’ Fahey/Klein Gallery on March 1. #wwdeye
"Nowadays when life is not so happy with everything going on in the world, I think people come to me for a little bit of whimsy and color and fun." - Designer Rebecca De Ravenel on her cult-favorite jewelry line. (📸 : @vsteves) #wwd40
“Everyone is talking about how the retail industry is struggling, but I think it’s an incredible time because brands who are doing something different and innovative are setting themselves up for the future,” said @adamgoldston, who founded the luxury athletic brand @apl with his brother @ryangoldsten. The Goldston’s are part of WWD’s 40 under 40: a group of industry notables. See the rest of the list on WWD.com. (📷: @vsteves) #wwd40
@eyeswoon blogger Athena Calderone debuted her first-ever cookbook, “Cook Beautiful,” which is heavily centered on the presentation and visual expression of food. Pictured here are her miso glazed carrots from the book. Get the recipe on WWD.com. (📷: @johnny_miller_) #wwdeye
“It’s passion that helps get anybody to a certain point and it’s what’s propelled me,” said Kith founder @ronniefieg, one of WWD’s 40 under 40: a group of industry notables who are changing the face of retail, fashion and beauty. Fieg, who opened a Manhattan flagship on October 7, began his career at age 13 as a stock boy and salesman for footwear chain David Z. “I think staying true to [my] beliefs, hard work and passion have gotten me to where [Kith] is today.” See the rest of the 40 at WWD.com. (📷: @vsteves) #wwd40
25-year-old @samweaving is about to break out this fall, starring in Netflix’s horror film “The Babysitter,” fittingly out today on Friday the 13th. That’s not the only place you’ll be seeing her, though — Weaving’s got a role Showtime’s “SMILF” and another alongside Frances McDormand and Woody Harrelson in “Three Billboards Outside Ebbing, Missouri.” Though she’s got a full plate at the moment, there’s one role she’s got her eye on: Marilyn Monroe. “I’m a little too young at the moment, but it’s on my bucket list,” the actress told WWD (📷: @dandoperalski) #wwdeye
BFF's Poppy Jamie and Suki Waterhouse celebrated the launch of their bag line Pop x Suki at Nordstrom last night. "The line is really about our friendship, and how we are so different but complement each other," said Waterhouse. 👯 (📷: Katie Jones) #wwdeye
After designing the new @louisvuitton and @bulgariofficial flagships and a @chanelofficial boutique opening in Japan, @petermarinoarchitect has another project on his plate: The Lobster Club. Located in the Seagram Building, it’s the famed architect’s first restaurant project in New York, serving up modern Japanese brasserie-style cuisine. Bronze hues, bespoke material detailing, blush and chartreuse tones and a heavy emphasis on Picasso can be seen throughout. Mark your calendars for Nov. 1 for the much-anticipated opening. (📷: @clint_spaulding) #wwdeye
Did you know: @carlychaikin of "Mr. Robot" has been painting for about a decade? The actress, who plays Darlene on the show, is a self-taught artist who lists Salvador Dalí and Chuck Close as some of her idols. Chaikin told WWD that painting is a form of meditation for her — A much-needed one given the intensity of "Mr. Robot." See a piece Chaikin is working on at WWD.com (📷: @jilliansollazzo) #wwdeye