| To: richardred who wrote (2014) | 4/22/2008 8:46:46 PM | | From: Glenn Petersen | | | | Finally I will engage in a bit of pure speculation here on another positive for the market for Kapstone's products. Kraft paper, which is a large share of its business, finds its heaviest use in paper grocery bags. This business was shattered over the last 20 years as paper was largely replaced by plastic. I suspect that trend may reverse. There is a strong environmental movement to restrict or ban the use of thin plastic grocery bags.
There are two sides to the plastic bag versus paper bag debate. Personally, I prefer plastic bags, but I do make sure that they are recycled. It appears that I am in a very small minority.
Whole Foods, others to stop using plastic bags
McClatchy-Tribune
1:14 AM CDT, April 22, 2008
RALEIGH, N.C.
The bag wars have begun.
Disposable plastic bags, which are made of petroleum, are under siege these days. Americans use 100 billion plastic bags a year and only about 1 percent are recycled, according to the Worldwatch Institute, an independent research organization that focuses on environmental issues.
And that, as Earth Day is celebrated Tuesday, is cause for concern.
Some states and cities have considered banning or taxing disposable plastic bags. Several grocery store chains have cut their use.
But are the bags that bad?
The American Chemistry Council, a trade association that represents chemical manufacturers, has opposed bans on plastic bags and said they have their benefits. The council said one truck can carry the same number of plastic bags as it takes seven trucks hauling bulkier paper bags.
And then there is the issue of trees. Plastic bags aren't made of trees, and when they're recycled, they save more trees.
The Trex Company, a Winchester, Va., manufacturer, makes building materials such as composite lumber for decking from plastic bags and reclaimed wood.
Among their suppliers of plastic is Harris-Teeter, which collects about 1.9 million pounds of plastic a year, said Jennifer Panetta, director of communications for the Charlotte, N.C.-based grocery store chain, with stores in eight states.
"We feel it's the consumers' choice," Panetta said. "If they stop using plastic bags, we would not carry them."
Still, some cities have banned their use.
Last March, San Francisco became the first U.S. city to bar large supermarkets from handing out disposable plastic bags. China has banned grocery stores and shops from handing them out after June 1.
The natural foods supermarket Whole Foods plans to stop handing them out at its 270 stores as of Tuesday. That means roughly 100 million plastic bags will be kept out of the environment by the end of 2008, the company says.
"It's really a part of our core values as a company, caring for our communities and our environment," said Darrah Horgan, a spokesperson for Whole Foods. "We're really encouraging people to re-use and bring in their own bags if possible."
Kroger collects plastic bags, dry-cleaning bags, and other plastic shrink wrap in bins near the entrance to stores. It sells reusable bags for 99 cents.
"One reusable bag has the potential to eliminate 1,000 plastic bags over the course of the reusable bag's life time," said Meghan Glynn, spokeswoman for the Kroger Company.
chicagotribune.com |
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| To: richardred who wrote (1713) | 4/23/2008 11:29:09 AM | | From: richardred | | | | River Bend Industries Acquires Victor Plastics
Wednesday April 23, 10:43 am ET
Arkansas Company to Integrate Iowa Operations
NORTH LIBERTY, Iowa--(BUSINESS WIRE)--River Bend Industries of Fort Smith, Arkansas, has acquired Victor Plastics, Inc. following a bankruptcy court auction. The deal closed April 22, according to Ron Embree, president and chief executive officer of River Bend Industries. The acquisition will save approximately 300 jobs in the eastern Iowa area.
Victor Plastics filed for Chapter 11 bankruptcy protection on January 15, 2008 in U.S. Bankruptcy Court, District of Minnesota in Minneapolis. Victor Plastics, founded in 1983, has plants in Victor and North Liberty, Iowa.
River Bend Industries and its predecessor companies have been a leader in plastic injection molding for more than 40 years. It is a supplier to Whirlpool, Exide Industries and the Husqvarna Group of Sweden.
“Two years ago our company faced many of the challenges that Victor Plastics sees today,” said Ron Embree. “With our employees and customers we have made a tremendous turnaround.” In 2006, River Bend acquired soon-to-be-closed custom molding facilities based in Fort Smith and has been very successful reorganizing and operating that business.
River Bend Chairman Chuck Butler said, “This acquisition significantly complements our existing successful operations in Fort Smith, Arkansas. Our current customers and employees were the key to making this deal very attractive to us.”
Both Butler and Embree noted that the integration of Victor Plastics into the River Bend Industries portfolio enhances the company’s position as one of the largest custom molders in the United States.
“Ron Embree is demonstrating his ability to maintain the plastics business for our present work force including adequate salary levels,” said Leonard Seda, DVM, president of the Victor Community Development Association. “We are extremely excited about having a buyer of this caliber,” Dr. Seda said. “There are about 200 employees at the Victor plant and 200 employees at the North Liberty plant, so it's a big deal in our rural community to keep the jobs in this industry.”
Palomino Capital LLC of Dallas represented River Bend while Chicago-based MorrisAnderson was retained by Victor Plastics as its investment banker.
Contact:
River Bend Industries
Ron Embree, 479-648-6424
Source: Palomino Capital LLC
biz.yahoo.com |
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| To: richardred who wrote (1252) | 4/23/2008 1:01:13 PM | | From: richardred | | | | Schering 1Q profit drops 48 pct mostly from takeover costs
Wednesday April 23, 12:10 pm ET
By Linda A. Johnson, AP Business Writer
Schering-Plough posts 48 percent drop in first-quarter profit after major acquisition
TRENTON, N.J. (AP) -- Schering-Plough Corp. on Wednesday reported a 48 percent plunge in first-quarter profit, primarily from costs related to its biggest acquisition ever, and the drugmaker trounced Wall Street expectations.
Schering-Plough posted net income of $253 million, or 15 cents per share, down from $543 million, or 36 cents a share in 2007's first quarter. Last November, Schering-Plough bought biotech company Organon BioSciences, which makes women's and animal health products, for nearly $14.5 billion.
Excluding approximately $690 million in acquisition-related costs and some other one-time items, Schering-Plough said it would have reported earnings of $862 million, or 53 cents per share.
That beat by 16 cents the forecast of analysts surveyed by Thomson Financial, who expected 37 cents per share, excluding one-time items.
Revenues, boosted by $1.3 billion from sales of Organon products, jumped 56 percent to $4.66 billion, slightly more than the $4.5 billion analysts anticipated.
Shares were up 6 percent, or $1.02, to $18.16 in midday trading Wednesday.
"The 16-cent beat was spectacular," Morgan Stanley pharmaceuticals analyst Jami Rubin told company executives during a conference call.
Chief Executive Officer Fred Hassan told The Associated Press in an interview that analysts likely expected the acquisition would reduce earnings per share until later this year, but it increased them by 4 cents in the quarter.
He said results also were boosted by favorable exchange rates, rising sales in the combined company's animal health business -- which leapfrogged to No. 1 worldwide -- and strong growth in foreign markets for medicines, including arthritis and inflammatory disease treatment Remicade and cholesterol drugs.
Kenilworth, N.J.-based Schering-Plough and partner Merck & Co. jointly sell Vytorin and Zetia, whose U.S. sales fell 5 percent in the quarter after the companies' study showed pricey Vytorin controls plaque buildup in arteries no better than generic Zocor; it did reduce bad cholesterol more. Vytorin combines Zetia and Zocor.
Despite controversy over whether the companies delayed releasing the results to protect sales, including ongoing congressional probes, overseas sales jumped 44 percent and amounted to nearly one-third of their total $1.2 billion in first-quarter revenues. Counting Schering-Plough's share, its revenues totaled $5.3 billion.
Hassan told analysts the company is on track with its plan to cut annual costs by $1.5 billion by 2012, announced earlier this month. About 10 percent of its 55,000 jobs are to be cut.
"They will start soon, some this quarter, some next quarter," he told the AP, adding that changes to integrate Organon already have begun.
The company's biggest division, pharmaceuticals, had revenues of $3.6 billion, led by Remicade, which saw sales jump 36 percent to $507 million.
Animal health products sales totaled $723 million, while sales of consumer products were $377 million.
On the Net: sgp.com
biz.yahoo.com |
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| To: richardred who wrote (2103) | 4/24/2008 9:21:17 AM | | From: richardred | | | | Triarc buys Wendy's in a $2.3 billion deal
13 minutes ago
NEW YORK (Reuters) - Wendy's International Inc has agreed to be bought by Triarc Cos Inc (TRY.N), the investment arm of billionaire investor Nelson Peltz, in a deal valued at $2.34 billion that would bring Triarc's Arby's restaurant chain and Wendy's under one umbrella.
Under the terms of the deal, Wendy's shareholders would receive 4.25 Class A Triarc shares for each Wendy's share they own, the two companies said on Thursday. That would represent a premium of 5.7 percent to Wendy's shares, which closed at $25.32 on Thursday.
The deal is worth $2.34 billion based on the 87.41 million outstanding shares Wendy had as of February 14, 2008, according to Reuters data.
Triarc would change its corporate name to include "Wendy's," but Arby's and Wendy's would operate as autonomous brand business units headquartered in Atlanta, Georgia, and Dublin, Ohio, respectively, both companies said.
Triarc's board of directors will be reconstituted with 12 members, including two directors nominated by Wendy's.
Roland Smith, Triarc's chief executive officer, will continue in that role for the combined company and will also become CEO of the Wendy's brand.
The new company expects to pursue expansion, primarily focused on breakfast meals, global expansion for both brands, and growth through future acquisitions and new unit development.
"Working together with the Wendy's team, we expect to improve margins significantly at Wendy's company-owned stores," Smith said. "We also expect to drive significant synergies and improve efficiency, resulting in substantial annual savings for our combined organization."
The deal, subject to regulatory approvals, is expected to close in the second half of 2008.
Investment bank JPMorgan Chase (JPM.N) advised Wendy's on the transaction.
(Reporting by Jui Chakravorty, editing by Gerald E. McCormick and Dave Zimmerman)
news.yahoo.com |
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| From: richardred | 4/24/2008 10:03:02 AM | | | | | | | New buy -EK-to establish a position. 18.68. It will be the first time since the early 1980's I've owned this stock. I've even been to a few shareholders meetings when they were held in Rochester. The balance sheet is still far from perfect, but IMO it's moving in the right direction. Perez have been selling his shares by way of acquired options at these low ball prices. Not usually a good sign, but I want to be prepared to have something here, if he steps down. Nothing in the works that I know, other than a guess. I suspect Legg Mason wants to see a quick return on it's investment money now. They along with long time big holders might press for some action. If nothing develops. The switch to digital is progressing to IMO the rate of increasing profitability down the road. |
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| To: richardred who wrote (2122) | 4/25/2008 11:18:59 AM | | From: Glenn Petersen | | | | It appears as if the Peltz controlled SPAC, Trian Acquisition I, almost participated in the Wendy's transaction:
The Wendy’s Deal That Wasn’t
April 24, 2008, 11:22 am
Wendy’s International and Triarc were sounding quite chummy on Thursday as they announced their proposed $2.3 billion stock-for-stock merger. But as recently as last week, the two sides were sniping at each other over several things, including two other deals proposed by Triarc that the Wendy’s board shot down.
One of the rejected bids was especially interesting because it came with $900 million in cash for Wendy’s shareholders, as opposed to Thursday’s all-stock arrangement. And there was particular controversy over the role played by Trian Acquisition I – one of the largest of the “special purpose acquisition companies,” or Spacs, that have become all the rage in the last year or so.
First, some explanations of the various “Tri-” entities in this complex merger dance.
Triarc is the publicly traded parent of the Arby’s restaruant chain; its chairman is Nelson Peltz, the billionaire investor. Mr. Peltz and Peter May, Triarc’s vice chairman, own about 35 percent of the voting rights in Triarc.
Mr. Peltz and Mr. May also run Trian, a hedge fund that has a stake of nearly 10 percent in Wendy’s. For the last two years or so, Trian has been pushing for an overhaul of Wendy’s operations.
And then there is Trian Acquisition I, which went public in January, raising about $906 million. As a Spac, Trian needs to complete an acquisition within a certain amount of time, or else liquidate and give its remaining cash back to shareholders. Mr. Peltz is the Spac’s chairman, and Mr. May is its vice chairman.
Got that? Now back to Wendy’s: Just last week, Mr. May wrote a letter to James Pickett, Wendy’s chairman, criticizing his company for the fact that Triarc’s two merger proposals had been “summarily rejected.”
The letter, which was filed with the Securities and Exchange Commission, indicated that neither proposal depended on third-party financing. That should be a major selling point, because the failure to get (and keep) outside financing has derailed many deals of late.
Mr. Pickett begged to differ. In a reply that was also filed with regulators, Mr. Pickett said the Triarc deal that came with a $900 million cash component was actually offering cash held by Trian Acquisition, the Spac.
“So far as we can tell, that is financing that is not Trian’s or Triarc’s to offer,” Mr. Pickett said in his letter, which called Mr. May’s letter “very misleading” several times. “Rather, it belongs to the shareholders of the Spac. I believe our shareholders would consider that a substantial third-party financing condition.”
In the end, it seems as if the Spac-related deal is dead. There was no mention of the Spac in Thursday’s announcement of the merger between Triarc and Wendy’s.
Still, it is worth noting how this Spac popped up as a potential source of financing. With banks suddenly leery of lending to fund acquisitions, could Spacs — which collectively have tens of billions of dollars that they are itching to spend — help pick up the slack?
This strategy has its own problems, as Mr. Pickett was quick to point out: Spac shareholders have the right to vote down any transaction, which could leave buyers in a lurch.
dealbook.blogs.nytimes.com |
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