Page 25 - ARUBA TODAY

BUSINESS Friday 17 February 2017
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Snap values itself at up to $22B ahead of Wall Street IPO

NEW YORK (AP) — The par- matched the $30.72 per- 2014. But Snap, based in proceeds from shares sold own. The Class A stock be-
ent company of the social share price obtained in Los Angeles, draws com- by those stockholders. Un- ing sold in the IPO has no
network Snapchat is valu- its last round of financing, parisons to social networks derwriters of the IPO have voting power, while anoth-
ing itself at up to $22 billion Snap would have a market like Facebook and Twitter. an option to buy up to an er class has one vote per
as it prepares for the tech value of about $30 billion, Facebook raised $16 billion additional 30 million shares. share. Snap anticipates its
industry’s biggest initial based on the quantity of when it went public in 2012. Co-founders Evan Spiegel net proceeds will be $2.1
public offering in years. outstanding stock listed in Snap said that it’s offering and Robert Murphy will billion, or about $2.3 billion,
Snap Inc. said in a regula- its IPO documents. 145 million Class A shares, have controlling power if underwriters buy all the
tory filing Thursday that the Snap’s highly anticipated while existing stockholders over all matters at Snap shares they are entitled to.
IPO is likely to be priced IPO would be the larg- are offering an additional through a special class of These amounts are based
between $14 and $16 per est since China’s Aliba- 55 million Class A shares. stock that gives them 10 on the IPO being priced at
share. Had the IPO price ba Group went public in Snap won’t receive any votes for every share they $15 per share.q

Nestle earnings weighed down by weak food pricing

GENEVA (AP) — Pressure end of our expectations.”
on food prices globally Organic growth was stron-
weighed on the earnings gest in the Americas, up
of consumer goods giant 4.2 percent.
Nestle, which on Thursday Nestle rode currency de-
said it would step up its valuations in Latin America
drive to cut costs. to increase prices there,
The company based in with double-digit growth
Vevey, Switzerland, re- in KitKat and Nestle Dulce
ported a 6 percent drop Gusto. It said performance
in net profit to 8.53 billion in U.S confectionary was
Swiss francs ($8.53billion), “disappointing,” though,
with double-digit declines citing competition and
at its Chinese unit drag- low growth in mainstream
ging on growth. Revenue chocolate.
barely rose, by 0.8 percent Nestle pointed to a “dou-
to 89.47 billion francs. ble-digit decline” of its Yin-
CEO Mark Schneider said lu food unit in China, where
the company behind the company has cited
Maggi noodles, Stouffer’s tough price pressures.
frozen foods and KitKat “Several initiatives to turn
chocolate bars plans to in- around the business are
crease restructuring costs Nestle’s new CEO Ulf Mark Schneider, left, and Nestle’s CFO Francois-Xavier Roger, right, speak in place and stabilisation
before the 2016 full-year results press conference of the food and drinks giant Nestle in Vevey,
“considerably” this year. Switzerland, Thursday, Feb. 16, 2017. Nestle SA, the world’s biggest food and drinks producer, said is expected in 2017,” the
He did not specify how net profit fell 6 percent last year, with double-digit declines at its Chinese food unit dragging on Swiss company said.
those costs would increase, growth and core growth overall at the low end of its expectations. The arrival of Schneider, a
but alluded to the compa- (Laurent Gillieron/Keystone via AP) former health care industry
ny’s history of finding effi- at the low end of its expec- prices. “2016: I think the punchline executive and Nestle’s first
ciencies when needed. tations. It is expected to rise At the same time, the costs was organic growth was, CEO to come from outside
Nestle, which does not 2 to 4 percent this year. of some raw materials have certainly, for our company the company in 95 years,
break out earnings by Consumer goods compa- increased. at the higher end of indus- has aimed to help move
quarter, said that organic nies have been squeezed Pricing saw some improve- try,” Schneider told report- the food and drinks gi-
growth, which excludes in recent years by low infla- ment in late 2016, and is ers. “But it did come in — ant evolve into a nutrition,
the impact of acquisitions, tion, which has prevented expected to get better this there’s no beating around health and wellness busi-
rose 3.2 percent last year, them from charging higher year, Nestle said. the bush — at the lower ness. q
GM chief in talks with UK amid alarm over possible unit sale

LONDON (AP) — Britain’s There are worries in Britain unions and governments, tober that it had received the EU would not harm the
biggest trade union de- that a takeover of GM’s as PSA has a track record assurances from the British competitiveness of its prod-
manded Thursday that the loss-making European di- of focusing on cost cuts in government that leaving ucts. q
government protect the lo- vision, which include the recent years. The news of
cal unit of General Motors Germany-based Opel the potential deal comes
from the impact of leav- brand and Vauxhall in Brit- only weeks before Britain
ing the European Union as ain, could threaten thou- is expected to formally
the company discusses a sands of jobs in the U.K. begin the process of leav-
possible sale to French car- GM and PSA, which makes ing the EU. Automakers are
maker PSA Group. Peugeot and Citroen cars, concerned about losing
The comments from Len have said they are in talks a place in the EU’s single
McCluskey, general-secre- about “strategic alterna- market because car parts
tary of Unite, came after tives” for GM’s European go back and forth across
a meeting with General operations. A deal could borders, making them
Motors President Dan Am- include a sale to Peugeot particularly susceptible to
mann and Business Secre- or simply greater coopera- higher tariffs.
tary Greg Clark. tion, but it has unnerved Nissan announced in Oc-