Facebook investors OK new share class to keep Mark Zuckerberg at helm

Facebook investors OK new share class to keep Mark Zuckerberg at helm

Facebook Inc shareholders approved a proposal to create a new class of non-voting shares, a move aimed at letting Chief Executive Officer Mark Zuckerberg give away his wealth without relinquishing control of the social media company he founded.

The company's plan to issue two "Class C" shares for each Class A and Class B share held by shareholders, in what is effectively a 3-for-1 stock split, was approved by Facebookshareholders at the company's annual general meeting on Monday.

The Class C shares will be publicly traded under a new symbol.

Zuckerberg said in December that he intended to put 99% of his Facebook shares into a new philanthropy project focussing on human potential and equality.

The creation of the Class C shares would allow Zuckerberg to sell the non-voting stock, but keep the voting Class A and Class B shares that would let him retain control of Facebook.

Zuckerberg plans on running Facebook "for a very long time", the 32 year-old CEO told shareholders at a Q&A session at the AGM.

Shareholders also approved the continued tenure of all the eight board members, including billionaire investor Peter Thiel, who were up for re-election.

Facebook announced the plan to create the new class of non-voting shares on April 27. The approval of the plan was virtually certain since Zuckerberg controls the company. Read More

Mallya received part of Diageo funds in offshore accounts

Vijay Mallya, chairman of UB group, received part of the proceeds from the sale of shares in United Spirits Ltd (USL), including the sale of South African breweries from Diageo in his offshore accounts, banking sources said.

The USL sale proceeds were not used to repay loans to Indian banks in 2012 which lent Rs 7,200 crore to Mallya-owned Kingfisher Airlines.

Diageo had spent nearly Rs 11,000 crore for acquisition of United Spirits in November 2012. Besides, it spent another $58 million (approx Rs 394 crore) in two tranches for the acquisition of South African breweries from Mallya. Read More

Asian Shares Tentative, Dollar Shines On Fed Outlook

Asian share markets were cautious on Wednesday as another bomb scare in Europe days after the deadly Paris attacks left investors in a contemplative mood, giving a boost to safe-haven US bonds and the dollar.

The greenback held firm at seven-month highs against a basket of currencies as US economic data also backed up the case for December interest rate hike.

MSCI's broadest index of Asia-Pacific shares outside Japan were little changed, while a softer yen helped Japan's Nikkei rise 1.0%.

Wall Street shares ceded earlier gains to end almost flat on Tuesday after German authorities called off a soccer game which German Chancellor Angel Merkel was due to attend, citing threats of bombing, sparking fears of another attack coming only days after the deadly assault in Paris.

"Coming less than a week after the incident in Paris, it would be a natural reaction, even though consensus seems to be growing earlier that the impact of the terror attack would be limited," said Hirokazu Kabeya, chief global strategist at Daiwa Securities.

"Markets are likely to be going back and forth for now," he added.

US Treasuries also bounced back on safety bids, with the 10-year yield slipping to 2.273% from day's high of 2.313%.

Earlier on Tuesday, US economic data affirmed a solid economic picture, supporting the case for the Federal Reserve to raise interest rates in December.

US consumer prices increased in October from the previous month after two straight months of declines, putting annual core inflation at 1.9%.

Industrial output fell short of market expectations but the output in the manufacturing sector posted a solid increase.

All of these helped to support the dollar against other major currencies, lifting its index against six major currencies to the highest level in seven months.

The dollar index rose 0.2% on Tuesday to 99.63, hitting a high of 99.745 at one point, coming within sight of its 12-year peak of 100.39 set in March.

Against the yen, the dollar rose to 123.49 yen, edging near a 2-1/2-month high of 123.60 yen hit on November 9.

The euro also slipped to $1.0630, a seven-month low, as the common currency continues to be undermined by expectations that the European Central Bank will take fresh monetary easing steps next month.

The dollar's strength was even more impressive against precious metals and commodities.

1. Gold hit a 5-1/2-year low of $1,065.30 per ounce, extending its fall this year to 10%. It last stood at $1,070.

2. Copper continued to suffer, hitting a 6-1/2-year low of $4,590 a tonne, a decline of 27% year-to-date.

3. Oil prices rebounded a tad after data showed an unexpected stockpile draw for last week.

4. US crude future slast stood at $40.94 per barrel, off Tuesday's low of $40.58.

5. Still, they remained not far from 6-1/2-year lows hit in August on concerns about a global supply glut.

6. The global benchmark Brent last stood at $43.99, less than $2 away from its August low of $42.23.

7. Most emerging market currencies, however, fared better, staying well above multi-year lows hit earlier this year.

8.The Brazilian real stood at 3.81 to the dollar, off its record low of 4.2482 hit in September.

9.One exception was the Chilean peso, which hit a 12-1/2-year low on the slide in copper prices.

Article Source:Business Standard