Sunday, September 12, 2010
Each week check out the MarketWatch feature on myBiz. We will report on facets of the economy to keep you informed and prepared for the internship and full-time job markets.
What a Whopper
Burger King Holdings Inc. agreed to be acquired by 3G Capital, a New York investment firm backed by Brazilian investors, for $3.3 billion in the biggest restaurant acquisition in at least a decade. The chain’s sales growth has slowed for two straight years as consumers ate out less during the U.S. economic slump. Burger King, which trails only McDonald’s Corp. in the U.S., has seen a slower recovery than its larger rival as its customers tend to be young males who were hit harder by the recession. The transaction with 3G amounts to about $4 billion including debt.
Nokia Corp. Makes a Leadership Change
Nokia announced it will replace embattled Chief Executive Olli-Pekka Kallasvuo with Microsoft Corp.'s Stephen Elop. Mr. Elop, the 46-year old head of Microsoft's business division, is scheduled to start on September 21. Nokia has faced growing competition from rivals like Apple with its iPhone, Blackberry-maker Research in Motion Ltd. and devices based on Google Inc.'s Android platform, which has hit its high-end market share and margins, forcing it into recent profit warnings. Nokia has seen its market value fall over 70%, or more than $90 billion, over the past three years. Nokia's choice of the Microsoft executive robs Hewlett-Packard Co. of a possible corner office occupant. H-P, which forced out CEO Mark Hurd last month, had been considering Mr. Elop among other outside prospects, according to the informed individual.
(Sources: Wall Street Journal, Bloomberg Businessweek)