Shares of Ameriprise Financial Inc. (AMP) lost nearly 9% a day after the company said it would raise $900 million in a common equity offering and use the proceeds for potential acquisitions.

The Minneapolis-based financial adviser that declined federal bailout money last month also plans to grant underwriters an option to purchase up to an additional 15% more shares to cover over-allotments.

Ameriprise had indicated last month that it was looking for acquisitions to expand its retail and asset management businesses. Last November, the company bought H&R Block Financial Advisors for $315 million.

While Ameriprise did not specify if it had identified a potential target, industry experts believe the company is trying to take advantage of the recent interest in new equity offerings.

However, investors speculated that the secondary offering would lead to significant dilution of their current holdings and took Ameriprise shares down more

...

By Jason Simpkins Associate Editor Consumer spending in the United States rose an unexpected 0.8% in the month of May, the biggest increase since last November, as nearly $50 billion worth of rebate checks were cashed and put to use. Incomes grew 1.9% in May - their biggest jump in nearly three years - and the Commerce Department said rebates fueled a 1% surge in retail sales for the month. However, analysts have been quick to dismiss the figures as an apparition that will dissipate along with government assistance. “This is the tax rebate that you’re seeing here,” Chris Low, chief economist at FTN Financial, told Bloomberg. “It’s a sense of hope, but it doesn’t last. Call it a holiday from reality.” Story continues below… Sign up right now, ...

Article Source: Consumers say they're gloomy, but why are they still spending? A surprising report from the Commerce Department today, which indicated that seasonally adjusted nominal sales for retail trade and food services were 1% higher in May compared with April. The new estimates of March and April sales (in red in the figure below) were also revised substantially up from the previous (blue) estimates that had been reported last month. Source: ALFRED Although a 1% monthly gain would translate into a 12% annual rate if maintained, the newly revised April numbers are still barely above the values last November in nominal terms. Calculated Risk notes that the year-on-year comparisons, when adjusted using an anticipated PCE deflator, remain negative even with the strong new estimates. Source: Calculated Risk The latest numbers ...

Fellow Stockmasters, what if I told you that you could buy shares of one company and within a relatively short amount of time have that convert to shares of 5 different public companies, with over 60 brands? Sounds crazy doesn’t it? IACI announced the news last November, and the deal is still in the works. I think Wall Street has overlooked the magnitude of this spinoff and buying IACI before the spin could potentially be a great investment. Here is the plan to split IACI into five publicly traded companies: IAC, which will include: • The businesses currently comprising its Media & Advertising sector: Ask.com, Bloglines, Citysearch, CursorMania, IAC Advertising Solutions, Evite, Excite, InsiderPages, iWon, My Fun Cards, My Way, Popular Screensavers, Smiley Central, Webfetti and Zwinky; • Match.com, ServiceMagic, Shoebuy.com, Entertainment Publications and ReserveAmerica; • The ...