WYNN RESORTS
Macau Resort Delay Extends to August
Wynn Resorts Ltd. expects to open its Wynn Palace casino resort
in Macau on Aug. 22, another delay for the $4 billion hotel project
in the Chinese gambling enclave.
Last year, Wynn said the big hotel project in the Cotai area of
Macau would open in June, instead of March.
Gambling revenue in Macau, which had been a growth area for the
casino industry, is in the midst of a prolonged slump, as an
anticorruption drive in China has led to a decline in the number of
high rollers that generate the bulk of the sector's revenue.
Wynn's latest project, and those by other operators, were
planned when Macau's casinos were booming but are now seen weighing
on prospects for a recovery there.
In May, Wynn reported a first-quarter profit, reversing a
year-ago loss, and its smallest quarterly decline in revenue from
Macau since the third quarter of 2014.
--Tess Stynes
GANNETT
Publisher to Buy Digital Services Firm
Gannett Co. agreed to buy digital marketing services company
ReachLocal Inc. for about $156 million, the latest move by a
traditional newspaper publisher to diversify beyond print
media.
The deal is worth $4.60 a share, a hefty premium to ReachLocal's
closing price of $1.66. ReachLocal shares, which resumed trading
following a halt, surged to $4.57.
Gannett said the deal will expand its digital revenue by roughly
50%.
ReachLocal, based in Woodland Hills, Calif., has more than
16,000 customers in markets including home services, health care,
automotive and professional services.
"ReachLocal's focus on local small and medium sized businesses
aligns well with Gannett's local-to-national strategy and extends
our reach into new local markets," Gannett said.
Gannett expects the deal to be approximately neutral to earnings
per share in its first full year and add to earnings modestly in
the second full year.
Gannett, whose holdings include USA Today, has been active on
the deal front since the 2015 split of the company's print and
television assets. The TV assets are now included in a separate
company, Tegna Inc.
Gannett bought Journal Media Group's 15 daily newspapers for
$280 million and in May, sweetened its unsolicited bid to buy
Tribune Publishing Co.
--Josh Beckerman
WAL-MART STORES
New Chief Is Tapped for Canada Business
Wal-Mart Stores Inc. on Monday said Lee Tappenden would take
over the helm of its Canadian business from Dirk Van De Berghe, who
was earlier tapped to lead the retailer's operations in China.
Mr. Tappenden has been with Wal-Mart for 20 years in various
positions globally and is currently chief operating officer of the
company's Canadian division, the company said in a news
release.
His appointment is effective Aug. 15.
"Lee is extremely well poised to lead Wal-Mart Canada and
continue the momentum of growth we are seeing in this market," said
David Cheesewright, chief executive of Wal-Mart International.
Wal-Mart has been expanding its presence in Canada and now has
more than 400 stores across the country. Last year it announced
plans to build 29 new supercenters and expand its distribution
network in the country.
It also agreed a year ago to buy a dozen store leases and other
assets from rival Target Corp. after Target's failed attempt to
expand beyond the U.S. into Canada.
Mr. Tappenden takes the helm of the Canadian operations as
Wal-Mart and Visa Inc. face off over credit-card fees. The retailer
has said it would stop accepting Visa cards at its stores across
the country after failing to agree on terms with the credit-card
processor.
The move will start with three stores in northern Ontario on
July 18 and will be phased in for other locations. Visa is the
largest payments network in Canada.
In a surprise move earlier this month, Wal-Mart said it would
replace the chief executive of its struggling U.K. business Asda
with its China head, Sean Clarke.
The world's largest retailer at that time said Mr. Van De
Berghe, who has headed Canadian operations since 2014, would head
the China operations starting in late August.
--Judy McKinnon
ION WORLDWIDE
Wearables Maker Files for Bankruptcy
ION Worldwide Inc., a maker of wearable digital recorders that
competes with industry leader GoPro Inc., has filed for bankruptcy
protection after seeing its revenue drop significantly last
year.
The New Jersey company has already reached a restructuring
support agreement with one of its lenders, which would cut more
than $15 million in debt from its balance sheet and allow iON to
stay in business.
ION Chief Financial Officer Chris Oatway said in court papers
filed last week that the cash-starved company has been mired with
problems, including disputes with one of its licensed brands and an
intellectual-property lawsuit with GoPro.
ION makes a line of wearable cameras in a variety of sizes,
home-security products and dash cams, among other products, under
the iON and Contour brands.
ION saw its revenue drop to $12.4 million in 2015 from more than
$25 million in 2014, Mr. Oatway said in court papers. The company
sought to cut costs, and it laid off employees, but that wasn't
enough to stave off bankruptcy.
Litigation involving the company has also cut into iON's bottom
line. The company filed a patent lawsuit against GoPro late last
year. And though the lawsuit is "likely years from producing any
result," the company will be incurring high legal costs, Mr. Oatway
said in court papers.
Contour LLC also sued iON earlier this year in a bid to get out
of its licensing agreement. The two companies have since reached an
agreement that allows iON to continue selling Contour products,
according to court papers.
ION expects to keep its business going and said in court papers
that it will launch a new 4K camera by the end of the summer, which
the company says will be priced to compete with GoPro.
ION's debt load includes roughly $5.4 million in secured debt
owed to supplier and manufacturer Skylight Holdings Ltd., which has
agreed to provide a $1.5 million bankruptcy loan to the
company.
In addition, iON's debt includes a $4.6 million secured
convertible promissory note and about $12.6 million in trade and
other unsecured debt. ION also owes approximately $7.8 million to
affiliate World Wide Licenses Ltd., which owns the trademarks and
intellectual property related to iON's camera designs. World Wide
isn't under bankruptcy protection.
ION will seek permission to use its bankruptcy loan and pay
employee wages at a hearing Tuesday in the U.S. Bankruptcy Court in
Wilmington, Del.
--Lillian Rizzo
ALCOA
Australian Partner Files Counterclaim
Alcoa Inc.'s Australian partner, Alumina Ltd., filed a
counterclaim in a U.S. court that aims to block Alcoa's planned
split without its consent and threatens to delay a breakup that
would separate Alcoa's more profitable parts-making businesses from
its raw aluminum operations.
New York-based Alcoa laid out plans last September to split in
two to boost its sagging stock market value, weighed by weak
aluminum markets.
But the move raised the ire of Alumina which said it has serious
concerns its new partner would be financially weaker.
Alcoa and Alumina are joint-venture partners in AWAC, or Alcoa
World Alumina & Chemicals, the world's biggest producer of
alumina and largest bauxite miner. Alcoa owns 60% of the venture,
while Alumina holds the rest.
In May, Alcoa filed a suit in the Court of Chancery in the U.S.
state of Delaware seeking a declaration that Alumina has no rights
to block the breakup it aims to complete in the second half of
2016.
In the counterclaim, Alumina asks the court to prevent Alcoa
from moving ahead with the split without its permission and that it
be given the right to buy Alcoa's interests in the joint venture if
it chooses. The court has set a trial date of Sep. 20, Alumina
said.
Under plans for a breakup of Alcoa, the aluminum giant wants to
create a "value-add company," to be named Arconic, that will
comprise its global rolled products, engineered products and
solutions, and transportation-and-construction businesses. The
remaining raw metals business, which will retain the Alcoa name,
includes its stake in AWAC, a partnership the pair established two
decades ago.
A representative for Alcoa couldn't immediately be reached.
Alcoa said last week it intends to file a Form 10 on how it will
structure the split on June 29. Alcoa has previously said splitting
its businesses would enable it to sharpen its focus and make each
entity individually more attractive to investors.
--Rhiannon Hoyle
(END) Dow Jones Newswires
June 28, 2016 02:48 ET (06:48 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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