Online coupon company Groupon said it elected Howard Schultz, the chief executive of Starbucks Coffee Co., to its board amid media reports that it is preparing for an initial public offering in the spring. The company also said Maveron LLC, a venture capital firm co-founded by Schultz, had invested
an undisclosed amount in Groupon. Private companies typically add outsiders to their boards before going public. Schultz’s investment follows a $950 million investment from private investors in January, which Groupon planned for expansion.
Amazon shuts down center in tax dispute
Online retail giant Amazon.com is closing a suburban Dallas distribution center and scrapping plans to expand Texas operations after a dispute with the state over millions of dollars in sales taxes, an executive informed employees Thursday. Dave Clark, Amazon’s vice president of operations, writes in an e-mail that the center will close April 12 due to Texas’ “unfavorable regulatory climate.” Amazon spokeswoman Mary Osako would not say how many employees work at the Irving center. Texas contends Amazon is responsible for taxes not collected on online sales and the comptroller’s office last year demanded $269 million from the company. Amazon sued, demanding to see the audit that generated the figure.
Reagan lives forever, on a postage stamp
Now you can have Ronald Reagan forever, courtesy of the post office. The U.S. Postal Service has put the former president on a “forever stamp,” which costs 44 cents now and can be used at any time in the future. The late president would have turned 100 last Sunday. The stamp honoring Reagan’s centennial went on sale Thursday at the Ronald Reagan Presidential Library in Simi Valley.
Mortgage rates rise above 5 percent
The days of the absurdly low mortgage rate are over. The average rate for a 30-year home loan rose above 5 percent this week for the first time since last April — just as Americans are feeling more secure in their jobs and confident about the economy, and just before the big spring home-buying rush. Freddie Mac said Thursday that the average rate was 5.05 percent, almost a full percentage point higher than in November, when it hit a 40-year low.
Ford to trim debt by another $3 billion
Ford Motor Co. plans to reduce its debt by another $3 billion. The action is part of the company’s ongoing effort to improve its balance sheet and return to investment-grade status. Ford took out $23.5 billion in loans in 2006 to restructure the company. Ford cut its debt by $14.5 billion last year. Its total debt stood at $19 billion at the end of 2010. In the latest action, Ford will redeem for cash all of its 6.5-percent cumulative convertible trust securities on March 15. Holders can take $50.33 per trust security.
From Herald news services
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