National / International News

Clifford 'pinned woman against wall'

BBC - Mon, 2014-03-17 05:26
Max Clifford pinned a receptionist against the wall and tried to grope her, a court hears.

Top Stories: Sanctions Follow Crimea Vote; SEALs Board Hijacked Tanker

NPR News - Mon, 2014-03-17 05:13

Also: Army general agrees to plea deal in sexual assault case; winter storm wallops the mid-Atlantic; mayors and Guinness pull out of St. Patrick's Day parades because of bans on gay marchers.

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Where to sell Alibaba's treasure?

Marketplace - American Public Media - Mon, 2014-03-17 05:06

In the folk tale, Ali Baba and the Forty Thieves, Ali Baba found a pile of treasure. 

In the stock market, Alibaba is the pile of treasure.  Alibaba Group -- the company -- is like a Chinese Amazon, connecting buyers and sellers and exporters and importers.  It's valued at upwards of $150 billion.  And every stock exchange in the world would love to host it. 

In a post on its company blog, Alibaba says it will choose an exchange in New York.  Which means it may be ditching its home stock exchange in Hong Kong. But what is a company looking for when it decides where to list? 

Power

Some stock exchanges let you have it. Some don't.

"Hong Kong was rejected for New York, because leadership at Alibaba wants to have control over voting shares," explains Max Wolff, chief economist with Citizen.VC, a venture capital advisory firm.  

When you sell shares of your company, you're selling control over your company. Every share can equal one vote. Votes on things like whether to fire you. Or whether to hire a board you don't like. This is reassuring to some investors, but sometimes terrifying for management. So some companies like to weight the vote from the get-go.

"You can attach ten times the voting weight to some shares versus others," explains Wolff, and then you save all of those special shares for yourself, giving you "super voting rights."

That way, you could own only 5.1 percent of your shares, make a ton of money by selling the rest, and still have 51 percent of the voting rights.

One small problem: In Hong Kong, you're not allowed to do that. Those are the rules. It's viewed as more equitable.

But in New York, you can do that. So for Alibaba, which has a very centralized management team headed by Jack Ma, known for his "large personality," the decision to go public in New York was a no-brainer. 

But there's more to it than just power. 

Home field advantage

If you list at home, more people know you. Investors will be more comfortable with you and view you as less of a risk.

"It's akin to a sports team playing at home," says Scott Kessler, internet equity analyst with S&P Capital IQ. 

Marketing

On the other hand, listing abroad – especially in New York – can be seen as prestigious.

Pai Ling Yin is at the Stanford Institute for Economic Policy Research. She says where companies choose to list can send a message that, "We are good enough in our practices that we can withstand the scrutiny of being on a more developed and more rigorous exchange with higher standards."

Scott Kessler says many Chinese companies in particular have been going direct to the U.S. stock markets in recent years.

A big fish needs a big pond

It is possible, of course, to list on multiple exchanges simultaneously.  But it's not advisable for a new company, says Yin, because "early on people aren't sure of your true value, so splitting  your listing across markets adds a dimension of uncertainty."

If there's excess supply or demand on one exchange but not the other, it can make the stock price volatile as investors try to compare the two. 

"You want all the people who could buy your stock to be there" together, says Yin. 

Fundamentally though, "the U.S. is still the place to be when it comes to technology companies and internet companies," says Kessler. 

And with a valuation of upwards of $150 billion, rivaling Facebook’s valuation, it helps Alibaba to be where investors are the savviest, the most numerous, and wealthy.

Irish in last-ball win over Zimbabwe

BBC - Mon, 2014-03-17 04:50
Ireland clinch a dramatic final-ball victory over Zimbabwe in their World Twenty20 opener in Bangladesh.

TV cook Clarissa Dickson Wright dies

BBC - Mon, 2014-03-17 04:45
One half of television cookery duo Two Fat Ladies, Clarissa Dickson Wright, dies at the age of 66, her agent confirms.

Six months for Clutha break-in teens

BBC - Mon, 2014-03-17 04:42
Two teenagers are detained for stealing alcohol and cash from the Clutha bar in Glasgow, less than three weeks after 10 people died in a helicopter crash.

Law 'will tackle' human trafficking

BBC - Mon, 2014-03-17 04:34
It is claimed Scotland could have some of the most effective human trafficking laws in the world if new government proposals are accepted.

Day in pictures: 17 March 2014

BBC - Mon, 2014-03-17 04:32
A collection of news photos: 17 March

'Independent' Crimea in Russia bid

BBC - Mon, 2014-03-17 04:31
Crimea's parliament declares the region's independence and formally applies to join Russia, a day after a referendum approves leaving Ukraine.

VIDEO: Will EU vote pledges affect 2015 election?

BBC - Mon, 2014-03-17 04:26
Giles Dilnot reports on where parties stand on an EU referendum and how it may affect the 2015 general election result.

Father died in beach diving accident

BBC - Mon, 2014-03-17 04:26
A man from south Wales died in front of his wife and children after diving head first into shallow water on a beach in Qatar, an inquest hears.

Nigeria stampede: No resignation

BBC - Mon, 2014-03-17 04:19
Nigeria's interior minister rejects calls for him to step down after he blamed job-seekers for their deaths in Saturday's stampede.

Last Words From Cockpit May Be Clue To Jet's Disappearance

NPR News - Mon, 2014-03-17 04:18

There's still no sign of Malaysia Airlines Flight 370, which went missing on March 8. Was the informal "good night" from the jet a sign it had been taken over or that the crew is involved?

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Ex-boyfriend admits killing Jayden

BBC - Mon, 2014-03-17 04:13
The ex-boyfriend of Jayden Parkinson admits killing the teenager and disposing of her body, but will still face trial for murder.

A tasty tech takeaway for London?

BBC - Mon, 2014-03-17 04:11
A tasty flotation for London’s stock exchange

Prisoner legal aid bid rejected

BBC - Mon, 2014-03-17 04:07
The High Court rejects a challenge by two charities against the government's decision to cut legal aid for prisoners.

West End's Full Monty to close early

BBC - Mon, 2014-03-17 04:07
The West End version of hit 1997 film The Full Monty is to close after five weeks, two-and-a-half months earlier than planned, due to poor ticket sales.

VIDEO: Boyzone on Beards and Ballads

BBC - Mon, 2014-03-17 03:57
Irish band Boyzone talk about getting back together and why they still love performing

US to give up net oversight powers

BBC - Mon, 2014-03-17 03:51
The US government has declared it wants to stop being in charge of how the internet is run.

Time up on export bar for dictionary

BBC - Mon, 2014-03-17 03:50
The deadline on an export bar to keep a 500-year-old dictionary in the UK has passed, the Department of Culture, Media and Sport says.

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