SEC Looking Into Computer Science’s Stock Grants
Computer Sciences Corp. received informal notice from the U.S. Securities and Exchange Commission related to stock-option grants.
The El Segundo-based defense contractor was added to a list of 52 companies the SEC is investigating. “We believe that all grants were above board, proper, and in adherence with the law,” company spokesman Mike Dickerson told Bloomberg News.
The company also decided against putting itself up for sale, electing instead to buy back $2 billion worth of stock, the company said in a statement. It announced in early April that it would look into strategic alternatives. The buyback will begin with a $500 million purchase of shares from Goldman, Sachs & Co., the company said. The company’s shares were up 1 percent, to $55.88 in trading and are up 28 percent for the past year.
Herbalife Gets Ratings Bump From S & P;
Standard & Poor’s Ratings Services said it raised its credit ratings on Herbalife International Inc., to ‘BB+’ from ‘BB’. Standard & Poor’s also raised its ratings on Herbalife’s parent, Herbalife Ltd. to ‘BB+’ from ‘BB’. The outlook is stable.
Herbalife’s sales have increased 20 percent in fiscal 2005, attributed mainly to success in the growing Mexican market while the core U.S. market continues to recover.
Zenith Insurance Lowers Rates In California
Woodland Hills-based Zenith National Insurance Corp. said that its wholly owned subsidiary, Zenith Insurance Company, will lower its workers’ compensation rates for policies in California started or renewed on or after July 1. The new rates represent an average reduction of 5 percent when compared to rates in effect since Jan. 1. “Continued deflationary cost trends make rate reductions appropriate,” said Chairman Stanley R. Zax in a statement.
Cadiz Restructures Debt
Cadiz Inc., a land and water resource management company, announce a new capital facility and development of 45,000 acres in San Bernardino County. Los Angeles-based Cadiz said that we have completed an agreement with Peloton Partners LLP to provide it with a new long-term capital facility of $36.375 million. Peloton currently owns about 9 percent of Cadiz’s outstanding common shares. Peloton entered into this facility in order to retire existing secured debt of approximately $26 million, Cadiz said.
