Dow’s CEO, Andrew Liveris, blames the US Government’s long-standing policy of inaction towards the rising energy crisis for the company’s recent hike in prices on all products across the globe by up to 20%. Dow claims a 42 percent increase in cost of their energy and “feedstock” (the raw petroleum from crude oil) for the first quarter compared to a year ago. My concern : Dow’s extensive list of products and services is a far reaching bohemeth and this price increase will gouge into the pockets of other industries that are already hit hard by the increase in fuel prices.
Today’s the final day for Yahoo to respond to Microsoft’s takeover offer from February 1st 2008. The truth is, they have already responded. Yahoo’s told them that at $31 a share, they’re undervaluing the company. Yahoo feels the massive organization is worth $40 a share. Microsoft has threatened that to not accept this offer may instead cause them to receive worse offers in the future. It’s possible that Yahoo’s stockholders may vote pro-Microsoft members onto the board at the next opportunity. I still say we haven’t seen the last of it yet. It seems as though it will be tough for Yahoo to avoid it in the long term.
Fortune 500′s posted their Biggest Losers of 2007. Some I was not surprised by and some I’m rather shocked about.
- General Motors (loss 38.73 billion USD)
- Sprint/Nextel (loss 29.58 billion USD
- Merrill Lynch (7.77 billion USD)
- Advanced Micro Devices (3.38 billion USD)
We knew GM was having problems. With losing as much as ExxonMobil made in profits during 2007, I’m staggered by the irony. With Sprint, we all knew it was just a bailout of Nextel and to provide a transition as people move to more standard wireless connectivity. Merrill Lynch was hit hard by the falling real estate so we all expected it. The one I was surprised about was AMD. The CEO, Hector Ruiz, sees it like I do though. With the acquisition of ATI, AMD had to spend a little to prepare themselves for the future, calling 2007 a “transitional year”. This is going to mean excellent big things for them because of GPU and CPU integration, but the combination of the purchase and the slow release of Opteron and Phenom processors set them back shiny gem.