Business & Finance
Krispy Kreme Doughnuts said it has been informed that it's under formal investigation by the Securities and Exchange Commission for suspect accounting practices. Both parties declined comment on the matter, according to Bloomberg.com, which reported that Krispy Kreme shares have dropped 30 percent since the SEC announced July 29 that it was examining how the company accounted for the repurchase of franchises. The industry's No. 2 company behind Dunkin' Donuts began selling shares publicly in 2000. It recorded its first loss as a public company in the first quarter of this year.
Almost $5 billion worth of stock in Deutsche Telekom will be offered for sale by the German government, its banking arm announced. In making the move, the government becomes the fourth in the past six weeks to sell off prime assets to bring its debt within the limit required by membership in the European Union. France, Italy, and the Netherlands are the others. The divestment will lower the government's share in the former monopoly to 36 percent. Meanwhile, Deutsche Telekom said it plans to buy back full control of its digital subscriber line subsidiary by the end of next year - an investment that could cost as much as $3.6 billion.
Royal & Sun Alliance Group, the No. 2 insurance company in Britain, said it will outsource 1,200 jobs to India, a move that's expected to save almost $18 million a year. The announcement was the second of its type by a major British insurance carrier in less than a month. Earlier, Aviva PLC said it is shifting 950 jobs to India and Sri Lanka to save money.