Business Watch -- WSJ
30 June 2016 - 5:05PM
Dow Jones News
AstroTurf
Patent Loss Spurs Bankruptcy Filing
AstroTurf LLC has filed for bankruptcy protection after a $30
million loss in a patent fight with France's Tarkett, which makes
the rival FieldTurf synthetic-grass product.
The bankruptcy filing is meant to preserve AstroTurf's ability
to challenge the judgment while allowing it to sell its business in
a deal that promises a return to creditors. Private equity-owned
Sportfield Deutschland Holding GmbH has offered $92.5 million.
Court papers indicate AstroTurf will receive only about $16
million of the purchase price if the deal clears bankruptcy court.
Other sellers, including AstroTurf owner Textile Management
Associates Inc., would collect the rest of the money under the
proposed transaction. Court papers say Textile Management controls
AstroTurf's intellectual property and the deal won't work without
it.
AstroTurf's lawyers said the sale will allow "substantial
distributions to creditors, whereas continued operation of the
debtor's business under a cloud of litigation would likely result
in a decrease in value."
--Peg Brickley
Wal-Mart Stores
Two-Day Shipping Program Is Expanded
Wal-Mart Stores Inc. is stepping up its battle with Amazon.com
Inc., expanding a free two-day shipping program and seeking to list
even more items on its website.
On Wednesday the retailer said it would open its free two-day
shipping program to any U.S. customer, an expansion of the
$49-per-year service designed to grab shoppers from Amazon's
popular $99-a-year Prime program. Until now Wal-Mart allowed only a
limited and undisclosed number of shoppers to sign up.
The move shows Wal-Mart believes the steps it has taken to
improve its fulfillment capabilities have prepared it to compete
head on with Amazon Prime for the growing slice of online retail
sales. Wal-Mart, which has been struggling with sluggish U.S. sales
growth, has made bolstering its e-commerce operation a priority and
is investing $2 billion in that business.
A Wal-Mart spokesman said that ShippingPass is still a "pilot"
that could change, and that only products sold directly by Wal-Mart
are currently eligible for free shipping under the service.
--Sarah Nassauer and Loretta Chao
Apollo Global
Deal Reached to Buy Diamond Resorts
Apollo Global Management LLC agreed to buy Diamond Resorts
International Inc. for about $2.2 billion, the timeshare resort
company said Wednesday.
Diamond, based in Las Vegas, announced in February that it was
working with investment bank Centerview Partners on strategic
alternatives. The company has a network of more than 420 vacation
destinations in 35 countries, according to its website.
Apollo will pay $30.25 a share for Diamond, a 26% premium over
Diamond Resorts' closing share price Tuesday.
The deal is expected to close in the next few months and is
subject to regulatory approvals and customary closing
conditions.
Barclays PLC and Royal Bank of Canada advised Apollo.
--Matt Jarzemsky and Dana Mattioli
(END) Dow Jones Newswires
June 30, 2016 02:50 ET (06:50 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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