Turmoil in the Business World: Shareholders React to Massive Losses

Strategic Insights -

The recent market turmoil has led to widespread losses for several companies, including Triton Energy Ltd. and General Motors Corp. Triton's shares have plummeted by about 60 percent since early May, while GM is reeling from the costliest labor dispute in its history. As investors grapple with the consequences of these losses, shareholders are speaking out about the impact on their investments.

Key Takeaways:

  • Triton Energy Ltd. shares have fallen about 60 percent since early May, with investors accusing the company of artificially inflating its stock.
  • General Motors Corp. has agreed to settle a labor dispute that ended the costliest labor dispute in the automaker's history, but investors are left wondering why the company took such a hit for seemingly modest gains.
  • Zapata Corp. is expanding into the Internet business, with plans to use the profit from a spinoff of its fish-meal and oil processing unit to fund its expansion.
  • The company plans to build its own site, www.zap.com, with services such as chat and electronic mail.
  • Avram Glazer, President of Zapata Corp., likens the company's approach to the "roach motel" of the Internet - people will go in but never come out.
  • Paul Allen, Microsoft Corp. co-founder, has agreed to buy Charter Communications for $4.5 billion, with some shareholders expressing skepticism about the deal.
  • Fadel Gheit, an analyst at Fahnestock & Co., compares the situation at Triton Energy Ltd. to a failed marriage: "Triton wore too much make-up, investors drank too much on the honeymoon, and now they've woken up next to an ugly duckling."

Statistics:

  • Triton Energy Ltd. shares have fallen by 60 percent since early May.
  • General Motors Corp. has settled a labor dispute that cost the automaker a significant amount in damages.
  • 25 Internet companies have been acquired by Zapata Corp. in the past month.
  • The spinoff of Zapata's fish-meal and oil processing unit is expected to generate significant profit.
  • Charter Communications will be acquired by Paul Allen for $4.5 billion.

Sources:

  • Fadel Gheit, an analyst at Fahnestock & Co.
  • Avram Glazer, President of Zapata Corp.
  • David Healy, a Burnham Securities Inc. analyst.
  • Christopher Tennyson, a Chevrolet dealer in Livonia, Mich.
  • Marvin Roffman of Roffman Miller Associates, a Viacom Inc. shareholder.
  • Peter von Reichbauer, a council member in Kings County, Wash.
  • The Wall Street Journal (cited in the original text, but no specific date or publication date mentioned)