Private-equity firm, KKR &Co. (KKR), has agreed to pay almost $30 million to settle charges it improperly allocated more than $17 million in expenses, hurting some investors while benefiting others. Private-equity firms invest money on behalf of pension funds, endowments and wealthy investors in private investments aiming to deliver market-beating returns in exchange for relatively high fees. The SEC alleges KKR allocated costs to its flagship private-equity funds, which were comprised of pension funds and endowments, instead of assigning some of the overall expensive to its co-investment vehicles- made up of KKR insiders and large clients. The charges against KKR were the most significant in the private-equity industry since the SEC received more power from the Dodd-Frank legislation.
Sysco (SYY) is scrapping its proposed $3.5 billion buyout of US Foods after the Federal Trade Commission won its legal pursuits to temporarily block the deal to combine the two food-service companies. The FTC had opposed the deal, saying it would reduce competition among the nation’s suppliers of restaurants and food-service operations. To end the deal, Sysco will have to pay a $300 million breakup fee to US Foods and $12.5 million to Performance Food Groups, who had a deal to purchase 11 of US Foods facilities across the nation. The deal, which was announced in December 2013, had been set to close in 2014, however early opposition for antitrust regulators kept the closing on hold. Sysco will continue to purse cost-saving opportunities and acquisition. The company’s board recently approved an additional $3 billion stock buyback program over the next two years. Shares of Sysco closed down on Monday.
Asian markets rebounded from Monday’s heavy loss despite Greece’s default looming in the background.
European markets tumbled on Monday, with investors rattled by the events in Greece.
U.S. markets followed the trend on Monday, closing down triple digits. The S&P suffered its biggest decline in more than a year as fears over Greece had investors pushing the sell button. DJIA: -350.33 17,596.35 S&P: -43.85 2,057.64 NASDAQ: -122.42 4,958.00.
Word of the Day:
A bond issued by the Germany federal government in 10- and 30- year denominations. German bunds are the equivalent of U.S Treasury bonds.
Dinner or Drink:
Pour into a mixing cup with 2 or 3 ice cubes, and chill to make a shooter. Strain into a shot glass or test tube.