Good Tuesday morning. Here’s what we’re watching:
• What’s next for business after Eric Schneiderman?
• D.E. Shaw grapples with an ousted executive who’s fighting back.
• What Rupert Murdoch will weigh if Comcast makes another bid for Fox assets.
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As New York state’s top law enforcement official, Eric Schneiderman took on both President Trump and Harvey Weinstein. His resignation, hours after The New Yorker published allegations of physical abuse by four women, was a stunning fall for a public official who prominently allied himself with women’s rights advocates.
More from Matt Stevens of the NYT:
Mr. Schneiderman has denied the women’s allegations.
Our big question: Mr. Schneiderman had also become a sharp critic of business and Wall Street practices, going after mortgage lenders and sellers of fake followers on social media. Will his replacement be as tough?
Elsewhere in misconduct allegations: The New Yorker profiles Lauren Bonner, the Point72 executive suing over sexual discrimination.
In a surprise move on Tuesday, Valeant Pharmaceuticals said that it planned to change its corporate name to Bausch Health Companies, taking on the name of one of its many acquisitions, Bausch & Lomb.
Why would the company possible do this? We can think of a few reasons.
Here’s what Joe Papa, the company’s C.E.O., said:
— Michael de la Merced
D.E. Shaw said yesterday that it had fired Daniel Michalow, a longtime executive at the hedge fund, for what it said were “gross violations of our standards and values.” Citing unnamed sources, Business Insider andBloomberg reported that he faced accusations of mistreating women.
Mr. Michalow responded in a letter to David Shaw, D.E. Shaw’s founder, saying the firm had told him he hadn’t been accused of sexual misconduct. He admitted “an abrasive and intolerant management style,” but denied sexually mistreating anyone.
From what Mr. Michalow tweeted was “the letter D.E. Shaw spent all day trying to make sure you couldn’t read”:
If Comcast goes through with a higher bid for the 21st Century Fox assets that Disney has agreed to buy for $52.4 billion, as Reuters and the WSJ report, would Rupert Murdoch be swayed? Two reasons he might not be:
• Mr. Murdoch already spurned a Comcast offer 16 percent higher than what Disney’s, saying regulators were more likely to block it. (Comcast would move again only if AT&T gets its Time Warner deal.)
• He prefers receiving stock, as he would from Disney, because that’s a tax-free transaction.
The context: Comcast is also making life difficult for Mr. Murdoch and Disney by challenging Fox’s bid for full ownership of Sky, the British satellite broadcaster.
• President Trump’s expected withdrawal from the Iran nuclear deal is likely raise oil prices, already at $70 a barrel.
• Tokyo is becoming closer politically to Beijing, partly because it fears a U.S.-China trade war. (Axios)
• Mr. Trump is asking Congress to withdraw $15 billion in agreed spending, primarily from the Children’s Health Insurance Program and the Affordable Care Act. (WaPo)
• Qatar has reportedly expressed interest in investing in Newsmax, a publisher that supports Mr. Trump. (Politico)
• Mick Mulvaney has made his biggest mark in Washington not in the federal budget but at the C.F.P.B. (NYT)
• Don Blankenship, the former Massey Energy C.E.O. seeking a Senate seat in West Virginia, shrugged off Mr. Trump’s opposition to him ahead of a primary today. (Politico)
He’s had a cartoon mini-series made from his book “Principles.” Here’s what the billionaire Bridgewater founder told friends in a note:
• Shire’s board formally accepted a $62 billion takeover bid by Takeda Pharmaceuticals of Japan, one of the biggest ever in the drug industry. (FT)
• Walmart’s deal to buy control of Flipkart of India for nearly $15 billion could be announced as soon as this week. (WSJ)
• Carl Icahn and Darwin Deason said that they would consider any bid for Xerox worth at least $40 a share, as they continued to try and oust the company’s C.E.O., Jeff Jacobson. Separately, Mr. Icahn appears to have scaled back his A.I.G. investment.
• Elliott Management offered to buy Athenahealth for $6.5 billion. Citigroup’s shares rose in postmarket trading after the WSJ reported that ValueAct has a $1.2 billion stake in it.
• Within T-Mobile and Sprint, their $26.5 billion deal was code-named “Lakes,” with T-Mobile being “Tahoe” and Sprint “Salt.” (Bloomberg)
• The European payments start-up iZettle plans to go public. (iZettle)
The business world has chortled over an unlikely spat: Warren Buffett and Elon Musk trading barbs over the candy industry and business moats. But there’s a legitimate concern in there, Andrew writes in his latest column: Moats still exist, and it remains hard for upstarts to break into banking, tech or, yes, automobiles.
More from Andrew:
Critics’ corner: Investors are already choosing sides in the fight, John Foley of Breakingviews writes.
More on Mr. Musk: Tesla’s 10-Q raises more questions he might find “boring.” A rare glimpse inside Tesla’s Model 3 factory.
More on Mr. Buffett: Why Berkshire shareholders love going to “the meeting.”
• The Uber self-driving car involved in a fatal accident in March reportedly detected the pedestrian it hit, and decided she was a false positive. Egyptian lawmakers want ride-hailing companies to turn over passenger data if asked. Drive.ai, an autonomous cab service, plans to open in Dallas.
• The parent company of the N.Y.S.E. has been working on an online Bitcoin trading platform. Warren Buffett and Bill Gates still aren’t into cryptocurrencies. Researchers at the San Francisco Fed blamed Bitcoin’s price drop on futures trading.
• Microsoft wants to position itself as the tech industry’s conscience. (NYT)
• Piazza Technologies, computer science students’ favorite social network, wants to be Silicon Valley’s new recruiting service. (Bloomberg)
• Snap has hired Tim Stone, a vice president of finance at Amazon, as its C.F.O. (Recode)
• Uber has hired Christopher Hart, the former head of the National Transportation Safety Board, as an adviser. (Bloomberg)
• Abernathy MacGregor, the P.R. firm, named Carina Davidson as its president. (Abernathy MacGregor)
• Unions have rejected a pay offer at Air France-KLM, testing Emmanuel Macron’s labor policies. (NYT)
• California now has the world’s fifth largest economy. (NYT)
• Ant Financial’s sprawling business interests could increase its exposure to new regulations in China. (Bloomberg)
• Bank of America is preparing a critical loan for Remington Outdoor just weeks after it said it would stop financing “military-style” firearms for civilians. (Reuters)
• Deliveroo will spend $13 million on free medical insurance for 35,000 food delivery drivers worldwide, but stopped short of further benefits to avoid the risk of having to treat them as employees. (CNBC)
• Private placements are a fast-growing type of investment, but frequently involve brokers with red flags in their records. (WSJ)
• Samsung Securities said it intended to file a criminal lawsuit against employees who sold shares the company mistakenly issued during a “fat finger” incident last month. (WSJ)
• Britain’s oldest bank has made a 32-year-old member of the controlling family a partner, hoping for what it called “millennial thinking.” (FT)
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