Weds News - Citi Sale, Disney Sequel, and CAT Expands
Today’s news includes Citi firesale-ing subsidiaries, Disney putting out a sequel for Epic Mickey, and Caterpillar expanding a manufacturing plant in China.
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On Tuesday, Citigroup Inc. (NYSE:C) announced it sold a 2.71 percent stake in Shanghai Pudong Development Bank, raising $668 million. Why would an American bank sell a chunk of a rapidly growing institution in one of the most rapidly growing economies in the world? Well, for the past few years, Citi has been holding the world's largest and perhaps longest-running garage sale. Since the onset of the financial crisis, Citi, which once held the title of the nation's largest bank, has been downsizing. To make up for the hits it had to take to its capital base as a result of the bank's highly reckless extension of credit, Citi took $45 billion in capital from the government, raised new cash and then publicly committed to selling off assets and generally slimming down. Fewer loans, businesses and consumer entanglements would mean fewer opportunities to get into trouble. Never again would it be so large that it could threaten the whole financial system and the Federal Deposit Insurance Corporation fund. – Contrary Indicator
Warren Spector realizes that he made a mistake with "Epic Mickey," his 2010 action-adventure game for The Walt Disney Company (NYSE:DIS) starring the world's most famous mouse. Despite his insistence on crafting an interactive homage to the silent cartoons that inspired him to create "Epic Mickey," the veteran designer acknowledges that the game's characters should have actually spoken. "I made a choice. In retrospect, I wish I made a different one," said the mastermind behind such games as "Deus Ex" and "Thief." Now Spector is more than fixing that flub with "Disney Epic Mickey 2: The Power of Two." He's not only tapped voice actors to portray the game's colorful cast, he's also making the sequel a musical. Jim Dooley and Mike Himelstein, the composer and lyricist who wrote the music for the upcoming animated film "Dorothy of Oz," are crafting original tunes for "Epic Mickey 2."
Caterpillar Inc. (NYSE:CAT) plans to significantly expand one of its Chinese manufacturing plants to produce more wheeled excavators. CAT said Wednesday that this roughly $200 million project will expand the capacity of its Xuzhou, China, plant by 80 percent. CEO Doug Oberhelman says this will expand the range of products the company offers in China. The expansion is expected to be completed by 2016 but Caterpillar expects the first tracked out excavators to be produced in Xuzhou in early 2014. Caterpillar has 17 facilities in China and another nine under construction. CAT shares closed the day at $109.01, down -1.58% after 7.72M shares traded hands.