Three stories making news across the Midwest today:
1. Groupon gets mixed reviews. Three investment banks that sold Groupon’s initial public offering in November have mixed views of the company’s stock. Credit Suisse analysts rated the stock “neutral” in research reports released today. Morgan Stanley advised its clients to wait to buy shares of the Chicago-based company until the stock price fell, according to our partner station, WBEZ. Only Goldman Sachs rated the stock a “buy.” Banks that lead an IPO traditionally deliver favorable ratings. Shares were sold to the public at $20 each in the IPO, and traded at $22.20 this morning.
2. Saab files for bankruptcy. Concerned that its technology could land in the hands of Chinese competitors, General Motors blocked a sale of Saab, which subsequently filed for bankruptcy. Experts tell the Detroit Free Press that the 60-year-old company will likely be sold off in parts. Saab CEO Victor Muller purchased the company from GM in 2010 intent on restoring it. But GM still owned some technology licenses for the car, and feared that reorganizing the company through Chinese and Russian financing could mean the technology would be used by competitors. Saab filed the bankruptcy in southwestern Sweden.
3. Harley-Davison layoffs begin. Harley-Davidson Inc. has started sending layoff notices to hourly workers in its Milwaukee-area manufacturing facilities as part of its plan to reduce its headcount by 26 percent, according to the Chicago Tribune. The company plans to lay off approximately 250 of its 950 union workers, and then will hire 150 to 250 temporary employees to handle seasonal production increases. The company expects to save $50 million per year. The move comes as part of CEO Keith Wandell’s push to make the company and its workforce more flexible while courting a wider set of buyers.