Saab Gets Last Minute Funding

Tallahassee, FL 12/19/11 (StreetBeat) -- Saab (Pinksheets: SAABF) is back in action! The Swedish automaker was just about to switch off the lights when a lifeline appeared from Chinese partner Youngman. Reuters is reporting that a Swedish newspaper stated that Youngman dealt out around $5 million to cover taxes and expenses, as well as another payment of $26.42 million that will show up on December 14 to deal with unpaid salaries. The Swedish automaker will also get $13.18 million by the end of the year.

At this point, it remains unclear if this new cash investment will help convince the Swedish courts to continue to protect the automaker from the creditors that are hungry for payments. Until now, Saab has been under the warm blanket of protection, thanks to the Swedish government. The courts are set to rule if that will continue on Friday.

There has been some internal conflict within the company, as an administration applied to have the company’s creditor protection removed, due to the fact that the automaker no longer has any money. Saab has stated that this administration should be removed from the hearings. No matter the outcome or the evidence that leads to it, a decision will be made on Friday.

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Sprint (NYSE: S): Carrier IQ has been disabled on our devices

Tallahassee, FL 12/19/11 (StreetBeat) -- A recent rumor has hit the internet stating that Sprint (NYSE:S) has asked its manufacturer partners to remove Carrier IQ's software from all of the devices that it carries. We reached out to Sprint for a comment on the matter, and while the carrier said that it does not comment on rumors, it did confirm for us that it is disabling the Carrier IQ software on its phones and it is no longer collecting data from it.

Geek.com initially reported that "Sprint has ordered that all of their hardware partners remove the Carrier IQ software from Sprint devices as soon as possible." Whether or not Sprint is asking for the software to be removed entirely or not is still up in the air, but the carrier is doing something on its end to stop the Carrier IQ software from functioning.

"We have weighed customer concerns and we have disabled use of the tool so that diagnostic information and data is no longer being collected," said Sprint in an email to Mobile Burn. "We are further evaluating options regarding this diagnostic software as well as Sprint's diagnostic needs."

Sprint reiterated that it was not using Carrier IQ software to look at the content of text messages, emails, photos and other information stored on phones by users. The carrier also clarified that Carrier IQ was not used for any form of targeted advertising or profiling of customers. The software's sole purpose was to report network deficiencies and allow Sprint to improve its network and service for its customers.

It appears that Sprint has stopped collecting the data obtained by Carrier IQ, and that it may have remotely disabled it on devices on its network. It is not clear if the software will be removed by future software updates for existing phones, or if it will not be installed on new devices going forward.

This week, Sprint revealed that Carrier IQ software can be found on 26 million of its devices in the U.S. from a range of manufacturers in its response to Senator Al Franken's inquiry on the matter. It did state that only 1.3 million devices were actively reporting data obtained with Carrier IQ at any given time. AT&T also confirmed that it used Carrier IQ on its devices, but to a lesser extent than Sprint apparently had been until now.

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3 Things To Know Before Trading

Tallahassee, FL 12/19/11 (StreetBeat) --Stocks were generally weak in Asian trade. Australia was among the worst with a decline of 2.4%, the Nikkei fell one and a quarter percent, the Hang Seng was down by about 1.2% and Shanghai fell 0.3%. The worst performer in the region was Korea’s Kospi, this fell 3.4% on uncertainty over what happens next in North Korea following the death of Kim Jong-il over the weekend; his third son, Kim Jong-un, has been named the successor. European indexes are broadly higher this morning, with the Dax up about 1.0% and the Footsie better by a slight fraction. US stock futures are up about a half percent as I write.

*The November reading of Japan’s Nationwide Department Store Sales was -1.9% on a year on year basis.

*EU FinMins will begin a teleconference meeting at 8:30am CST. The discussion is likely to touch upon the ESM rescue fund and how to implement a qualified majority voting mechanism that is supposed to replace the previous unanimity voting.

*The Senate and House are not getting along on the spending and tax legislation they were both hoping to pass before the holiday break. The Senate has adjourned for the season, but will have to come back if something is to get done.

*The December reading of the NAHB Housing Market Index is due out at 9:00am CST, it is expected to be steady on the month at 20.

*The Fed is scheduled to buy Treasuries today that are due to mature between 12/31/17 and 11/15/19; the results of the operation will be announced just after 10:00am CST.

*The Treasury plans to sell $35 billion 2 Year Notes today; the auction results will be announced just after noon CST.

*Richmond Fed’s Lacker is set to speak on the economic outlook at 11:30am CST.

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BlackBerry delay darkens Research in Motion’s (Nasdaq: RIMM) future

Palm Beach, FL 12/16/11 (StreetBeat) -- A months-long delay in Research in Motion's (Nasdaq: RIMM) new BlackBerrys and a dreary quarterly report sent RIM shares tumbling again on Friday and pushed some analysts to sound the death knell for the mobile device that once defined the industry.

RIM's announcement late Thursday that it expected to launch smartphones powered by its new QNX operating system months after initially expected revived calls for the ouster of RIM's co-CEOs Mike Lazaridis and Jim Balsillie.

The delay, combined with a dismal performance outlook issued along with the quarterly results, sparked renewed chatter about the break-up of the Canadian tech giant, which has floundered as nimbler competitors claw away at its market share.

"RIM confirmed the BlackBerry 10 smartphones will be delayed until the latter part of calendar 2012. This could be game over for the BlackBerry franchise," analysts at Canadian brokerage National Bank Financial wrote in a note to clients. BlackBerry 10 is the name the company has given to the QNX phones, which RIM had initially expected to deliver in the first quarter.

On Friday, the delay spurred several brokerage firms to cut their price targets and ratings on RIM shares and sent the Waterloo, Ontario-based company's shares tumbling more than 12 percent on Friday.

"We see a high risk that this is too late to turn around RIM's position and believe the risk of further delays is meaningful," Nomura analyst Stuart Jeffrey said in a research note. "Even in the best case, however, it seems unlikely RIM will have large volumes of its BB10 devices on sale within 15 months."

RIM has been counting on the new QNX operating system to make up ground lost to Apple Inc's iPhone and iPad and the slew of devices that use Google Inc's Android software. The delay portends another long year of transition for RIM, allowing rivals to make further in-roads into RIM's market share.

RIM on Thursday also provided a gloomy outlook for earning as sales of an interim line of legacy BlackBerry 7 smartphones lag during the crucial holiday season. Even if shipments hit the high-end of RIM's expectations during Christmas, the company will still post the first annual decline in its history.

The constant stream of bad news from RIM over the last year has driven its shares to their lowest since early 2004, and it has led to analyst and investor demands for Balsillie and Lazaridis to step down.

"RIM reminds me of a beloved grandparent. You love them, but they are very outdated and sooner or later they will be gone," said independent analyst Jeff Kagan in an email.

"Either the existing CEOs must update their thinking or bring in a new CEO to lead the company out of the darkness and back into the sunshine before it is too late."

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Cablevision (NYSE: CVC) Plunges after Key Executive Departs

Palm Beach, FL 12/16/11 (StreetBeat) -- Cablevision (NYSE: CVC) fell 14% in morning trading after Chief Operating Officer Tom Rutledge said late on Thursday that he would resign from the company. Rutledge’s departure is a big loss for the cable company, and he will be difficult to replace, some analysts said. Bernstein Research analyst Craig Moffett called it a “staggering loss” for Cablevision, because he thinks Rutledge is the “hand-down-best executive in the cable business.”

In a release about the departure, Rutledge does not give a reason for leaving; the company said it has begun a search for his replacement.

“Cablevision indicated that it has an experienced senior management team in place overseeing cable and its other businesses, and that it has commenced a search for an executive with responsibility for oversight of the cable operations.”

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StemCells (Nasdaq: STEM) Plans to Sell More Stock, Shares Fall

Orlando, FL 12/16/11 (StreetBeat) -- After announcing that the first group of spinal cord injury patients in an early-stage trial received its transplanted neural stem cells, StemCells Inc. said Thursday that it will sell more common stock and warrants.

Newark-based StemCells (NASDAQ: STEM) said it would use the money for working capital and operations, including product development. The company did not say how many shares and warrants would be issued but said it is under a current shelf registration.

StemCells stock fell 7.3 percent Thursday to $1.40 per share and was down another 13.5 percent, to $1.21, in after-hours trading.

The move follows disclosure by StemCells earlier Thursday that neural stem cells, extracted from fetal brain tissue, had been successfully transplanted in three patients classified as having the most chronic spinal cord injury.

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United Rentals (NYSE: URI) to boost industrial sales with RSC buy

Orlando, FL 12/16/11 (StreetBeat) -- World's largest equipment rental company United Rentals Inc (NYSE: URI) will buy rival RSC Holdings (NYSE: RRR) for about $1.9 billion to beef up its industrial business, as it looks to counter a weak commercial construction market.

With the deal, the company now expects to reduce its revenue share from the commercial construction market, which is yet to see a recovery as rising unemployment and inadequate finance for non-residential projects have dragged down business spending.

After the deal, industrial equipment rentals will form 35 percent of United Rental's revenue, up from the current 16 percent. Commercial construction revenue will fall to about half of its total sales from the present 60 percent level.

RSC, which rents out equipment like forklifts, pumps and power distribution systems, is United Rental's second acquisition in the industrial equipment segment this month, following its purchase of Blue Mountain Equipment Rental Corp.

Entrepreneur and investor Bradley Jacobs founded United Rentals in 1997 and, some 250 acquisitions later, turned it into the world's largest equipment rental company.

Private equity firm Cerberus Capital Management offered $6.6 billion for the company in 2007, but later withdrew the bid.

DEAL DETAILS
United Rentals said it will pay $10.80 in cash and 0.2783 of its share for each RSC share. The $18 per share offer is a 58 percent premium to Scottsdale, Arizona-based RSC's Thursday close of $11.37 on the New York Stock Exchange. The cash portion will be financed through new debt and current loan facilities, the company said.

The deal will add to United Rentals' earnings in the first full year after closing, and is expected to save over $200 million annually. Three of RSC's independent directors will get seats on United Rentals' board after the deal is closed.

Centerview Partners and Morgan Stanley advised United Rentals on the deal, while Barclays Capital and Goldman Sachs were lead financial advisors to RSC.

Shares of RSC were up 55 percent at $17.65 Friday morning on the New York Stock Exchange, after touching a life high of $17.75 earlier in the session. United Rental shares were up 4 percent at $26.99.

The stock of Smaller rival H&E Equipment Services was also up 14 percent at $13.70 on Nasdaq.

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