In the News:
Will McDonald's Buy Wendy's? Wal-Mart Nab Sears?
Some believe the current financial crisis is the most serious since the Great Depression and if so some of the largest companies in the country could be taken over and cease to be independent public corporations. Huge firms with vulnerable businesses, competitive pressures, and weak balance sheets may end up being takeover targets. Here is 24/7 Wall St.'s predictions of possible takeovers that could happen in the near future if the current crisis persists. They include McDonald's buying Wendys, VW acquiring Ford Motor, Wal-Mart getting Sears, Wells Fargo buying out Washington Mutual, J&J nabbing Boston Scientific and more.
Companies at Risk
Already this year, 24 public companies with assets worth $9.9 billion have filed for bankruptcy protection. Things will likely get much worse. If S&P is right, that could mean as many as 74 additional defaulting companies within the next 12 months. While nobody knows exactly which companies will default and which will turn themselves around, S&P's latest list of its "weakest links" shows companies that have the lowest credit ratings and face a strong possibility of additional downgrades. There are now 93 U.S. companies on the list, including some household names, such as Eddie Bauer, Sbarro, Guitar Center, Blockbuster, Six Flags, Krispy Kreme and Linens 'n Things.
Your Bank Deposits Are Safe
Sheila Bair, the nation's top banking regulator, tells Fortune that a tiny number of banks may fail during this crisis, but ordinary bank customers have nothing to fear.
Cash in on Lower Interest Rates
Borrowers with stellar credit will grab the best deals on mortgages, credit cards and car loans.
Why It's Not Too Late to Refinance?
Rates have crept up from recent lows, but even now, a refi can be a smart move.
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Reader Comments (Page 1 of 1)
3-24-2008 @ 10:50AM
william lindblad said...
Sure does sound precarious. On FDIC-read the fine print. On credit cards-you have to call. Great credit gets great cooperation when looking for low rates. In other words, read your statement and check your rate-monthly. They do play games and all companies are not equal. On Re-FI- sometimes, but you had better know what you are doing as there are associated costs with just about all moves of this type. To anyone contemplating this move - shop and educate yourself as this area has a lot of options on the finance end.
On the companies? Old hat- happens everyday.
3-25-2008 @ 4:39PM
Joe Smaha said...
There is no way some of these companies could legally buy one another due to conflicts within franchise agreements ala McDonalds buying Wendy's.
Anytime you have franchise or license agreements between franchisors or licensors with franchisees or licensees, the products offered in those agreements cannot conflict or compete with each other within the same licensed area.