NEW YORK (
) -- Here are the top stock market headlines for the morning of Monday, June 14, 2010.
Monday's Early Headlines
- U.S. Banks Set to Lose Swaps Fight -- Banks are likely to lose a key lobbying battle in the U.S. over whether they will be forced to spin off their lucrative swaps desks, The Financial Times reports, citing people familiar with financial reform negotiations in Congress. The plan, lead by Senate agriculture chairman Blanche Lincoln, would force banks to create a separately capitalized subsidiary to house the derivatives dealing operations, a significant source of profits for big banks such as JPMorgan Chase (JPM) - Get Report, the FT reports. Former Federal Reserve chairman Paul Volcker has softened his opposition to the provision, the newspaper adds, which would be a further blow to Wall Street banks.
- BP Says Costs of Oil Spill Response $1.6 Billion -- BP (BP) - Get Report said Monday the costs of the response to the oil spill in the Gulf of Mexico so far are $1.6 billion. The figure includes new grants of $25 million each to the states of Florida, Alabama and Mississippi and the first $60 million in funds for the Louisiana barrier islands construction project. On its Web site Monday, BP said the total volume of oil collected by the lower marine riser package containment cap, which was installed on June 3, was about 127,000 barrels.
- Cablevision Buys Bresnan for $1.4 Billion -- Cablevision (CVC) said Monday it will acquire medium-sized cable company Bresnan Communications for $1.365 billion. Cablevision expects Bresnan to be acquired by a newly-formed subsidiary with standalone financing. The subsidiary is expected to be financed using debt of about $1 billion and an equity investment by Cablevision of less than $400 million. Cablevision also said Monday it is repurchasing up to $500 million of its class A common stock. Bernstein analyst Craig Moffett said the deal highlights the gaping differential between private and public market values in the industry. "The repurchase program is a welcome development, though investors will be frustrated by the decision to buy Bresnan at 8.3x instead of acquiring more of Cablevision itself at 6.3x," Moffett wrote in an email.
- Mosaic in Talks to Buy Mexico's Fertinal -- Mosaic (MOS) - Get Report is in talks to acquire Mexican fertilizer company Grupo Fertinal for up to $1 billion, The Wall Street Journal reports. The companies have been in talks for about six months, people familiar with the matter told the newspaper. A Mosaic acquisition of Grupo Fertinal, one of Latin America's leading fertilizer makers, would the company its first footprint in Mexico, the Journal notes.
-- Written by Robert Holmes in Boston
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