Digest: TW covered; Mexico's gamble
Lehman Bros. restarted coverage of Time Warner at "overweight," saying Wednesday that it thinks the prospects of a restructuring into a simpler content and advertising company could increase over the next 18-24 months with Jeff Bewkes as the CEO heir apparent. Lehman Bros. said that among potential moves is a complete separation of Time Warner Cable, a spinoff of publishing assets and a public offering of Internet asset AOL. TW closed 1.4% higher Wednesday at $18.56.
A proposal to tax gaming and betting in Mexico at a rate of 20% was approved Wednesday by a congressional committee. The measure still has to be voted on in the lower house of Congress. The move, part of a major tax overhaul proposed by President Felipe Calderon, is likely to hit broadcaster Grupo Televisa, entertainment company CIE and privately held firm Caliente, which have gaming and betting businesses.