Tesla CEO Elon Musk Confirms He Bought $25 Million in Stock - Barron's

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Tesla CEO Elon Musk confirmed in a regulatory filing late Monday that he purchased $25 million of his company’s stock in a public offering last week.

The electric-car maker’s offering of 3,086,419 shares was priced at $243 each last week. Musk had shown “preliminary interest” in purchasing up to 102,880 of Tesla’s offered shares for a total of $25 million through a trust that he controls.

He bought the shares on Thursday, May 2. A form that Musk filed with the Securities and Exchange Commission shows that he now owns 33,927,560 Tesla shares through the trust.

This is Musk’s first purchase of Tesla stock (ticker: TSLA) this year, and he’s buying at a cheaper price than he did last year. Musk bought a total of $44.8 million of Tesla stock on the open market in 2018, paying an average per-share price of $330.80 for 135,344 shares, Barron’s calculates.

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Tesla’s latest stock offering could be expanded up to 3,549,381 if underwriters use their options to purchase additional shares. Tesla said it would use proceeds from the stock offering and a concurrent $1.60 billion offering of senior notes (that could be expanded to $1.84 billion) “to further strengthen our balance sheet, as well as for general corporate purposes.”

Write to Ed Lin at edward.lin@barrons.com

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2019-05-07 04:24:00Z
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Beyond Meat, Lyft Slide as Mood on Street Slaps Recent IPOs - Yahoo Finance

Beyond Meat, Lyft Slide as Mood on Street Slaps Recent IPOs

(Bloomberg) -- Shares of recently listed companies like Beyond Meat Inc. and Lyft Inc. are getting hit after sentiment on Wall Street soured over the weekend as investors weighed the prospect of a U.S. trade war with China.

With S&P 500 index down 1.3 percent at 9:50 a.m., Wall Street darling Beyond Meat -- the maker of plant-based burgers that more than doubled its IPO price of $25 after only two days of trading late last week -- is underperforming, falling as much as 6.4 percent in Monday’s trading.

Shares in Zoom Video Communications Inc. drop as much as 5.9 percent. while ride-hailing service Lyft tumbles 4.2 percent. If the mood doesn’t change soon that may bode ill for key competitor Uber Technologies Inc. when Uber’s IPO prices on Thursday.

(Updates shares throughout.)

To contact the reporter on this story: Cristin Flanagan in New York at cflanagan1@bloomberg.net

To contact the editors responsible for this story: Catherine Larkin at clarkin4@bloomberg.net, Scott Schnipper

For more articles like this, please visit us at bloomberg.com

©2019 Bloomberg L.P.

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2019-05-06 13:54:00Z
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Hudson's Bay to review strategic alternatives for Lord & Taylor - CNBC

Shopper on Fifth Avenue in New York with a Lord & Taylor shopping bag.

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Saks-owner Hudson's Bay Company is exploring strategic alternatives for its Lord & Taylor brand, including a possible sale or merger.

Like other U.S. department stores, Lord & Taylor has been struggling as customers shop less at malls and more online. The brand has been closing stores, including its iconic Fifth Avenue location earlier this year after selling the building to WeWork.

Last month, Hudson's Bay reported that fourth-quarter same-store sales for Lord & Taylor, Home Outfitters and its namesake brand declined by 5.2%. Meanwhile, its luxury department store brand Saks Fifth Avenue reported same-store sales growth of 3.9%.

Lord & Taylor's parent company has been trying to simplify its organization, strengthen its retail operations and improve its cost structure.

The company announced Monday that it has retained PJ Solomon as its financial advisor for its review of the department store brand.

"This review of strategic alternatives for Lord + Taylor is another example of how we are exploring options to position HBC for long-term success," Helena Foulkes, CEO of Hudson's Bay, said in a statement.

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2019-05-06 13:53:25Z
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Bausch Health Q1 2019 earnings - CNBC

Joseph Papa

Scott Mlyn | CNBC

Shares of Bausch Health, formerly known as Valeant Pharmaceuticals, jumped as much as 3% in premarket trading Monday after the company raised its 2019 outlook.

The drugmaker raised its full-year revenues from between $8.3 billion and $8.50 billion to a range of $8.35 billion and $8.55 billion. It raised its full-year earnings from between $3.35 billion and $3.5 billion to a range of $3.4 billion and $3.55 billion.

It also generated first-quarter revenues of $2.02 billion, up slightly from $2 billion a year ago. It narrowed its loss to $52 million from a loss of $2.58 billion during the same period last year. The company did not provide a number for adjusted earnings, but Wall Street analysts were expecting 86 cents per share.

The company's Bausch & Lomb International business comprised approximately 55% of its revenue in the first quarter, bringing in $1.118 billion compared with $1.103 billion a year ago.

Late last month, Bausch Health said its dermatology business, Ortho Dermatologics, received FDA approval for its DUOBRII lotion to treat plaque psoriasis. The drugmaker conducted two clinical trials, with 36% of patients in the first study and 45% in the second study seeing their skin clear up.

Bausch Health shares are up more than 26% this year. The stock has risen more than 30% over the last 12 months through Friday's close.

For more on investing in health-care innovation, click here to join CNBC at our Healthy Returns Summit in New York City on May 21.

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2019-05-06 12:10:15Z
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Kraft Heinz to restate earnings for 2016 and 2017, citing employee misconduct - CNBC

Bottles of Heinz Kraft Co. Heinz brand Tomato Ketchup and Yellow Mustard are arranged for a photograph in Dobbs Ferry, New York, on Wednesday, Feb. 20, 2019.

Tiffany Hagler-Geard | Bloomberg | Getty Images

Kraft Heinz said in a filing Monday it will restate its financial statements for 2016 and 2017 by $181 million, after a review into its procurement and accounting procedures discovered employee misconduct.

Kraft Heinz disclosed in February a $15 billion write-down on its Kraft and Oscar Mayer brands, as well as an investigation by the Securities and Exchange Commission into its accounting and procurement practices.

The SEC investigation launched an internal review, which caused Kraft Heinz to delay filing its annual report twice. Standard & Poor's also put the company on CreditWatch negative.

According to Monday's filing with the SEC, the miscalculations were due in part to recognizing the benefits of costs and rebates in the wrong time period, which the company said it has since corrected.

"During the course of a thorough internal investigation, some discrepancies were uncovered which affected the way earnings were calculated between periods," a Kraft Heinz spokesperson said in a statement to CNBC. "While we don't believe that the misstatements are quantitatively material to any prior period, due to the qualitative nature of the matters identified, the Company determined that it is appropriate to correct the errors in previously issued financial statements."

The spokesman, who said the investigation is "now substantially complete," said the findings did not identify misconduct by members of the senior management team. The company has initiated "employee personnel actions" and "improvements to its internal controls" to address the issues, the filing said. After Monday's filing, Kraft Heinz shares lost 1.4% in premarket trading amid a broad sell-off for the market.

Shortly after the filing was released, Warren Buffett, who has a $10.6 billion stake in Kraft Heinz through Berkshire Hathaway, told CNBC's Becky Quick, "The company has my confidence."

Berkshire Hathaway, Kraft Heinz's largest shareholder, said Saturday it was forced to exclude Kraft Heinz's results from its first-quarter earnings report because it had not yet seen the food company's financials.

Berkshire Hathaway and private equity firm 3G Capital created Kraft Heinz by merging Kraft Foods and H.J. Heinz in 2015. The investment team previously worked together to take Heinz private two years prior.

But the Kraft Heinz deal has created headaches for Buffett. More recently, Buffett has been asked to defend 3G's once-lauded operational excellence, as Kraft Heinz's performance has deteriorated. Shares of the food giant have tumbled more than 24% through the year. The company in February reduced its dividend by 36%.

Berkshire Hathaway in February wrote down over $3 billion related to its investment in Kraft Heinz.

Buffett has since said he overpaid for Kraft. On Saturday, he repeated previously expressed sentiments that both he and 3G under-estimated the strength of retailers like Amazon and Costco. U.S. retailers have reacted to increasing online competition by squeezing brands on margins and turning to private label brands, where the retailers can make higher profit margins. Kraft Foods' portfolio is particularly vulnerable to the shift, with its offering of products like Planters nuts and Maxwell House coffee.

"Time usually works it out but it means capital could have been better deployed in other areas. You can always pay too much for a business. I've done it with stocks many times; I've done it with businesses," Buffett said Monday. "At Berkshire, we have at least a half dozen businesses — and I can't even use a 'we' there — I've got to say I paid too much."

Buffett last year stepped down from the Kraft Heinz board to decrease his travel commitments. Berkshire's Tracy Britt Cool and Gregory Abel still sit on the company's board.

– CNBC's Fred Imbert contributed to this report.

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2019-05-06 11:41:34Z
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Kraft Heinz to restate earnings for 2016 and 2017, citing employee misconduct - CNBC

Bottles of Heinz Kraft Co. Heinz brand Tomato Ketchup and Yellow Mustard are arranged for a photograph in Dobbs Ferry, New York, on Wednesday, Feb. 20, 2019.

Tiffany Hagler-Geard | Bloomberg | Getty Images

Kraft Heinz said in a filing Monday it will restate its financial statements for 2016 and 2017 by $181 million, after a review into its procurement and accounting procedures discovered employee misconduct.

Kraft Heinz disclosed in February a $15 billion write-down on its Kraft and Oscar Mayer brands, as well as an investigation by the Securities and Exchange Commission into its accounting and procurement practices.

The SEC investigation launched an internal review, which caused Kraft Heinz to delay filing its annual report twice. Standard & Poor's also put the company on CreditWatch negative.

According to Monday's filing with the SEC, the miscalculations were due in part to recognizing the benefits of costs and rebates in the wrong time period, which the company said it has since corrected.

"During the course of a thorough internal investigation, some discrepancies were uncovered which affected the way earnings were calculated between periods," a Kraft Heinz spokesperson said in a statement to CNBC. "While we don't believe that the misstatements are quantitatively material to any prior period, due to the qualitative nature of the matters identified, the Company determined that it is appropriate to correct the errors in previously issued financial statements."

The spokesman, who said the investigation is "now substantially complete," said the findings did not identify misconduct by members of the senior management team. The company has initiated "employee personnel actions" and "improvements to its internal controls" to address the issues, the filing said. After Monday's filing, Kraft Heinz shares lost 1.4% in premarket trading amid a broad sell-off for the market.

Shortly after the filing was released, Warren Buffett, who has a $10.6 billion stake in Kraft Heinz through Berkshire Hathaway, told CNBC's Becky Quick, "The company has my confidence."

Berkshire Hathaway, Kraft Heinz's largest shareholder, said Saturday it was forced to exclude Kraft Heinz's results from its first-quarter earnings report because it had not yet seen the food company's financials.

Berkshire Hathaway and private equity firm 3G Capital created Kraft Heinz by merging Kraft Foods and H.J. Heinz in 2015. The investment team previously worked together to take Heinz private two years prior.

But the Kraft Heinz deal has created headaches for Buffett. More recently, Buffett has been asked to defend 3G's once-lauded operational excellence, as Kraft Heinz's performance has deteriorated. Shares of the food giant have tumbled more than 24% through the year. The company in February reduced its dividend by 36%.

Berkshire Hathaway in February wrote down over $3 billion related to its investment in Kraft Heinz.

Buffett has since said he overpaid for Kraft. On Saturday, he repeated previously expressed sentiments that both he and 3G under-estimated the strength of retailers like Amazon and Costco. U.S. retailers have reacted to increasing online competition by squeezing brands on margins and turning to private label brands, where the retailers can make higher profit margins. Kraft Foods' portfolio is particularly vulnerable to the shift, with its offering of products like Planters nuts and Maxwell House coffee.

"Time usually works it out but it means capital could have been better deployed in other areas. You can always pay too much for a business. I've done it with stocks many times; I've done it with businesses," Buffett said Monday. "At Berkshire, we have at least a half dozen businesses — and I can't even use a 'we' there — I've got to say I paid too much."

Buffett last year stepped down from the Kraft Heinz board to decrease his travel commitments. Berkshire's Tracy Britt Cool and Gregory Abel still sit on the company's board.

– CNBC's Fred Imbert contributed to this report.

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2019-05-06 11:37:30Z
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Kraft Heinz to restate earnings for 2016 and 2017 - CNBC

Bottles of Heinz Kraft Co. Heinz brand Tomato Ketchup and Yellow Mustard are arranged for a photograph in Dobbs Ferry, New York, on Wednesday, Feb. 20, 2019.

Tiffany Hagler-Geard | Bloomberg | Getty Images

Kraft Heinz said in a filing Monday it will restate its financial statements for 2016 and 2017.

Shortly after the filing with the Securities and Exchange Commission was released, Warren Buffett, who has a $10.6 billion stake in Kraft Heinz through Berkshire Hathaway, told CNBC's Becky Quick,  "The company has my confidence."

Kraft Heinz disclosed in February a $15 billion write-down on its Kraft and Oscar Mayer brands, as well as an investigation by the SEC into its accounting and procurement practices.

The SEC investigation launched an internal review of Kraft Heinz's procurement accounting and procedures. The review caused Kraft to delay filing its annual report twice and Standard & Poor's to put the company on CreditWatch negative.

"During the course of a thorough internal investigation, some discrepancies were uncovered which affected the way earnings were calculated between periods," a Kraft Heinz spokesperson said in a statement to CNBC. "While we don't believe that the misstatements are quantitatively material to any prior period, due to the qualitative nature of the matters identified, the Company determined that it is appropriate to correct the errors in previously issued financial statements."

"The findings from the investigation did not identify any misconduct by any member of the senior management team. We are pleased to report that the investigation is now substantially complete," the statement added.

After the filing Monday with the SEC, Kraft Heinz shares lost 2.6% in premarket trading amid a broad sell-off for the market.

Berkshire Hathaway, Kraft Heinz's largest shareholder, said Saturday it was forced to exclude Kraft Heinz's results from its first-quarter earnings report because it had not yet seen the food company's financials.

Berkshire Hathaway and private equity firm 3G Capital created Kraft Heinz by merging Kraft Foods and H.J. Heinz in 2015. The investment team previously worked together to take Heinz private two years prior.

But the Kraft Heinz deal has created headaches for Buffett. More recently, Buffett has been asked to defend 3G's once-lauded operational excellence, as Kraft Heinz's performance has deteriorated. Shares of the food giant have tumbled more than 24% through the year. The company in February reduced its dividend by 36%.

Berkshire Hathaway in February wrote down over $3 billion related to its investment in Kraft Heinz.

Buffett has since said he overpaid for Kraft.

"Time usually works it out but it means capital could have been better deployed in other areas. You can always pay too much for a business. I've done it with stocks many times; I've done it with businesses," Buffett said Monday. "At Berkshire, we have at least a half dozen businesses — and I can't even use a 'we' there — I've got to say I paid too much."

Buffett last year stepped down from the Kraft Heinz board to decrease his travel commitments. Berkshire's Tracy Britt Cool and Gregory Abel still sit on the company's board.

– CNBC's Fred Imbert contributed to this report.

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2019-05-06 11:12:55Z
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