Argentina’s government said Monday that it will make another effort to reach a deal with U.S. creditors ahead of a deadline that risks sending the country into its second default in 13 years.
Cabinet Chief Jorge Capitanich said an Argentine delegation will travel to New York to meet a court-appointed mediator Tuesday, a day ahead of the deadline.
“Argentina’s position is to reach a dialogue that establishes fair, legal and sustainable conditions for negotiation with 100 percent of the bondholders,” Capitanich said at a news conference at the presidential palace.
But the mediator, Daniel A. Pollack, said in a statement that although the Argentines will meet him, they have not accepted his recommendation of face-to-face talks with the plaintiffs in the dispute, led by New York billionaire Paul Singer’s NML Capital.
Those creditors bought Argentine bonds on the cheap and rejected the government’s restructuring offers following its record $100 billion default in 2001. They are demanding payment of some $1.5 billion in unpaid debts.
By Wednesday, Argentina has to make a payment to other creditors who accepted the restructured bonds or fall into default. But U.S. District Judge Thomas Griesa has forbidden Argentina to pay them without paying the holdouts as well.
In June, Griesa ordered Bank of New York Mellon to return to Argentina $539 million it had deposited to pay holders of restructured debt.
— Associated Press
Zillow said it would buy smaller rival Trulia for $3.5 billion, combining the top two U.S. real estate Web sites to cut costs after they failed to produce profits from a rising number of home buyers shopping online.
The deal, which antitrust experts say is unlikely to face regulatory hurdles as there are very few barriers to enter the market, will enable the companies to cut marketing costs that have resulted in heavy losses for both.
The companies, rivals for nine years, said the all-stock deal would help save at least $100 million a year by 2016. Between them, the companies spent $382 million in 2013, more than their revenue. Their combined loss was $30 million.
Trulia’s shares jumped 15.4 percent to close at $65.04, still well short of the offer, which values the company at $70.53 per share. Zillow’s shares rose 0.9 percent to close at $160.32.
Zillow and Trulia list properties for sale or rent on behalf of homeowners and real estate agents and generate revenue through subscriptions and advertising.
Zillow, known for estimated home values called “Zestimates,” reported 83 million unique users in June, ranking above Web sites such as Buzzfeed and Pandora. Trulia had 54 million users.
● Southwest Airlines may have to pay one of the largest fines in Federal Aviation Administration history for continuing to fly some airplanes after being told that repairs to the aircraft didn’t comply with U.S. regulations. The FAA is proposing a $12 million civil penalty against Southwest for operating “numerous flights” in 2009 with inadequate repairs to the fuselage skins. The maintenance in question was designed to eliminate potential cracks on 44 of the airline’s Boeing 737s, the FAA said. The issues raised by the FAA were resolved and don’t relate to any aircraft currently being used, Southwest said.
● Former San Antonio Mayor Julian Castro was sworn in as head of the Department of Housing and Urban Development. The brief ceremony took place Monday at HUD headquarters and was administered by Chief Judge Richard W. Roberts of the U.S. District Court for the District of Columbia.
● Lloyds Banking Group is paying $369 million to U.S. and British authorities to settle allegations that it manipulated a key global interest rate. Lloyds became the sixth financial firm penalized in the international rate-rigging scandal. The London interbank offered rate, known as Libor, is the rate used by banks to borrow from one another and affects trillions of dollars in contracts around the world, including mortgages, bonds and consumer loans. The $369 million that Lloyds is paying includes about $178 million levied by the U.K. Financial Conduct Authority, an $86 million criminal penalty to the Justice Department and a $105 million civil penalty to the Commodity Futures Trading Commission.
— From news services
● 9 a.m.: S&P/Case-Shiller home-price index for May.
● 10 a.m.: Consumer confidence index for July.
● Earnings: Marriott International, Twitter, UPS.