Markets Defused gives an easy-to-understand and straightforward recap of the day’s most engaging business and stock market news.
- Hargreaves Lansdown up on improved takeover
- ChatHGV: Uber and Nvidia invest in AI truck startup
- Fisker stock collapses as it enters bankruptcy
- Six Flags readies first dividend since the pandemic
- Buffett bought more Occidental Petroleum
Hargreaves Lansdown advanced on improved takeover pitch
Shares in Hargreaves Lansdown PLC (LSE:HL.) advanced around 5% higher on Tuesday, after the stockbroker said it would be willing to accept a new cash offer priced at 1,140p per share from a consortium of investors.
The buyers consisting of private equity firms CVC and Nordic Capital, along with the Abu Dhabi Investment Authority.
The FTSE 100 stockbroker and pensions firm noted that this proposed offer follows three previous approaches from the consortium in recent months – the highest prior offer of 985p per share was rejected last month.
According to the Hargreaves board the new offer "would provide the certainty of value in cash to shareholders" and, as a result, it had decided to engage with the consortium and provide access for due diligence to be carried out.
Moreover, the board indicated to the consortium that the new bid is at a value that the board would be willing to recommend unanimously to shareholders, should a formal offer be made.
The improved offer includes a 30p final dividend, with an option for shareholders to choose ‘rollover’ equity instead of cash, to co-invest in the consortium's unlisted acquisition vehicle.
ChatHGV: Uber and Nvidia invest in AI truck driving startup Waabi
Waabi, an AI-driven trucking start-up backed by NVIDIA Corp (NASDAQ:NVDA, ETR:NVD) and Uber Technologies Inc (NYSE:UBER, ETR:UT8), has drummed up $200 million of new funds via a Series B round.
Porsche and Volvo were also among the other big-names reportedly backing the firm through the oversubscribed investment round.
Proceeds are expected to help Waabi launch its fully driverless trucks in Texas, as soon as next year.
Waabi is taking a different route to autonomous driving to the likes of Tesla, as it the start-up is using generative AI systems.
The startup says its technology “on the verge of Level 4 autonomy”, within just three years since the company’s inception.
‘Level 4’ is seen as a major threshold for automomous driving, it means that the system is able to intervene with action itself if something unexpected happens, whereas at Level 3 human drivers must remain attentive, watch the road and supervise the vehicle.
At Level 4, it is predicted that vehicles could travel with minimal human oversight or supervision. There is a fifth level, in which there would be zero need for human drivers to be present at all.
“Waabi has pioneered a single end-to-end AI system that is capable of human-like reasoning, enabling it to generalize to any situation that might happen on the road, including those it has never seen before,” the company said in a statement.
“Because it is able to reason, the system requires significantly less training data and compute resources compared to other end-to-end approaches.”
Nvidia chief executive Jensen Huang added: “Waabi is developing autonomous trucking by applying cutting-edge generative AI to the physical world.
“I’m excited to support Raquel’s vision through our investment in Waabi, which is powered by NVIDIA technology.”
Fisker stock collapses as it enters Chapter 11 bankruptcy
Fisker Inc (NYSE:FSR) shares collapsed on Tuesday, falling around 55%, after it filed for Chapter 11 bankruptcy, following failed attempts to secure a rescue deal with a large automobile manufacturer.
At 2 cents per share, Fisker is down close to 99% for 2024 to date.
It comes after a series of financial struggles and what market analysts see as strategic missteps.
Back in February, Fisker gave the market a "going concern" warning, citing issues with cash burn.
That triggered the halting production of Fisker’s Ocean electric vehicle, and it also mothballed the development of its hatchback, Pear, in March.
Six Flags readies first dividend since the pandemic
Six Flags Entertainment (NYSE:SIX) confirmed it will pay its first dividend since the pandemic, ahead of the company’s agreed merger with Cedar Fair.
A special dividend of $1.53 per share will be payable on 1 July.
On the same day, the merger is expected to close.
The merger will result in a new company trading on the NYSE under the stock ticker ‘FUN’.
It sees the combination of the two largest theme park operators that aren’t owned by movie studios.
Together they run 42 theme parks across the United States, Canada, and Mexico. The companies reckon they can deliver $200 million worth of ‘synergies’ each year, with specifically $120 million of savings also expected in the first two years.
Going into the summer, on the eve of the merger, both stocks traded strongly on Tuesday.
Six Flags shares were up around 5% to $31.67, whilst Cedar Fair gained nealy 8% to $51.75.
Buffett bought more Occidental Petroleum
Occidental Petroleum Corp (NYSE:OXY) shares traded up 1.5% changing hands at $61.15 amid reports of further share buying from Warren Buffett’s Berkshire Hathaway.
Buffett’s investment company has now increased its stake in Occidental up to nearly 29%, with its latest purchase of 2.95 million shares, according to a regulatory filing.
That represents a transaction of approximately $176 million, through separate purchases.
Berkshire Hathaway is understood to hold around 255.3 million Occidental shares, with its holding worth around $15.37 billion at current prices.
Buffett is ‘approved’ to purchase up to 50% of the company, though it is reported that he has no plans to acquire the company.
The so-called ‘Oracle of Omaha’ is famous for his value investing philosophy which seeks to meticulously pick out investment opportunities where the market has significantly under priced “good companies”.