Digest: Telenet plunges; WWE expecting
Shares of Telenet fell 8.5% on Tuesday after the Belgian cable operator, 52% controlled by John Malone's Liberty Global, released lower-than-expected forecasts for 2008. Telenet expects revenue to rise by just 5%-6% this year, and CEO Duco Sickinghe said the company would focus on controlling costs this year. "We remain cautious about the increasingly challenging environment we operate in, which is currently being driven by strong competition, the ongoing rapid pace of technological change and increasing national and European regulation," he said. The stock decline came even though Telenet's 2007 profit rose 21% to 442.9 million euros ($647.8 million).
World Wrestling Entertainment expects to increase the quarterly cash dividend on its Class A common shares by 50% to 36 cents a share, subject to getting a favorable tax ruling, the company said Tuesday. The new Class A dividend would represent an 8.6% yield based on the company's closing stock price last week, the firm said.
Thomson on Tuesday won conditional permission from the European Commission to buy financial news provider Reuters in a deal that will create the world's largest provider of news and data for professional markets. The EC said Thomson and Reuters agreed to divest databases with financial information products and related assets. After all, the EC argued the deal, as proposed, would have eliminated competition in the so-called "aftermarket broker research reports," which provide data such as financial statements, financial ratios and earnings per share. Also on Tuesday, Canada's Competition Bureau indicated it will not challenge the takeover, concluding it will not lessen competition there.