American Apparel Gets Offer with Strings; Another US Company Heads to the Emerald Isle; The Yogurt Wars. Enough Said.

Down but not out…


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American Apparel might be bankrupt but that are still a few investors who would like to help revive the company. And it’s the latest offer that’s got people talking. Hagan Capital Group, along with Silver Creek Capital Partners, want to scoop up American Apparel for a sweet $300 million. And one more thing…they want Dov Charney reinstated. It’s the same Dov Charney who is also the founder and former CEO of American Apparel, and who was booted following some sexual misconduct allegations, not to mention other allegations involving the misuse of corporate funds. Just saying. Incidentally, Dov Charney hired Cardinal Advisors to help him line up investors who would see to it that he would be reinstated at the company he founded. How clever indeed. Several backers strongly feel that the company’s performance went down after Charney was shown the door.  Chad Hagan of Hagan Capital Group feels Charney was wronged adding, “We are willing to be friendly and genteel, but the fact is we want this company and we want Dov back in…We are deadly serious.” Not sure what he means about the deadly serious part but that is still nothing short of a ringing endorsement for Mr. Charney.

Invert this…


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After six long months, pharmaceutical company Baxalta International Inc. finally said yes. Of course that yes comes with a $32 billion check but hey, it’s still a yes. The lucky suitor is Ireland-based pharmaceutical company, Shire Plc., which is offering Baxalta shareholders approximately $45.57 in cash and stock – an offer that represents an approximately 38% premium. The two companies expect to crank out $20 billion in revenues in the next year.  It’ll be helped by that fact that Baxalta’s corporate tax rate will drop from a very onerous 23%-24% in the United States, to a more corporate friendly tax rate of 16%-17% in Ireland. Gotta love an inversion. Shire’s main product is Vyvanse, used to treat symptoms related to ADHD.  But it’s Baxalta’s drug treatments that has corporate pharmaceutical tongues wagging. The company’s treatments focus on rare blood conditions, cancer and immune system disorders. While a relatively small population requires those treatments, those treatments are insanely lucrative, bringing in mega bucks for drug companies that offer them. In fact, 65% of Baxalta’s revenues come from treatments for rare blood disorders.

Not so good bacteria…


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Believe it or not it’s a yogurt smack down as Greek yogurt churner Chobani took aim at its competition last week. But now that competition is fighting back. Just three years ago, the Greek yogurt industry was growing at a rate of 60%. How ironic that the opposite is true for Greece. But I digress. In any case, the industry is now only growing at about 5%, with Chobani being the largest Greek yogurt seller in the world. The competition to differentiate is fierce – that is, if such a term can be applied to yogurt. Chobani launched an ad campaign on January 6 targeting Dannon’s use of sucralose – an artificial sweetener that has been FDA approved for food for the last 15 years. Sucralose apparently has chlorine in it and should therefore cause a potential yogurt enthusiast to purchase a container just to go ahead and chuck it – just like in Chobani’s ad. Which is weird because wouldn’t you first read the ingredients before shelling out money for the product? Just saying. Chobani also goes after Yoplait Greek 100 over its use of potassium sorbate, an ingredient that Chobani’s commercial actor points out is also used to kill bugs. Yum. Dannon wasted no time in sending out a cease and desist to Chobani charging that its claims are “false, misleading, disparaging and deceptive.” Chobani filed a complaint against that cease and desist letter arguing that its campaign for it “is not false, misleading…” Well, you get the picture.


Brazil Companies Bananas for Chiquita: Another Valeant Effort for Allergan?; Cruisin for an iBruisin’

Top banana…

Image courtesy of Aduldej/

Image courtesy of Aduldej/

As you were sitting at the edge of your seat waiting for weeks now to find out who would be victorious in the corporate battle to acquire Chiquita (yes – the banana people), you can now relax as a winner has emerged. Actually two of them. Brazilian companies, The Safra Group and Cutrale Group, both of which happened to be owned by two of the wealthiest men in Brazil, scooped up the fresh fruit seller to the ripe number of $681 million. But, alas, what became of Irish company Fyffes, who was also bidding on Chiquita, and which many thought would get the fresh fruit company? Well, it wasn’t the luck of the Irish but rather the votes of the shareholders who preferred the Brazilians’ offer. You see Fyffes was offering up stock in exchange for Chiquita. But with Safra/Cutrale’s offer, shareholders get to see more cash up front. And who doesn’t like a little cash up front? Besides, the inversion appeal of Fyffes wasn’t going to net Chiquita all that much to make the transaction worthwhile for Chiquita. But don’t feel too bad for Fyffes. The Irish firm stands to gain a break up fee worth as much as $23 million.

Ironing out the wrinkles…

Image courtesy of artemisphoto/

Image courtesy of artemisphoto/

Canadian company Valeant Pharmaceuticals still so very badly wants to takeover Irvine, California-based Allergan. And why not? Allergan makes everybody’s favorite wrinkle-smasher Botox. Allergan also happens to make Latisse, another invaluable, behind the counter, yet highly-essential beauty cosmetic, in my opinion. It also helps that Allergan reported net income of $312.5 million on $1.8 billion in revenue. The stock nearly doubled over the past year. In fact, Valeant wants Allergan so so so badly, that it is once again upping its offer from $179 per share to around $200 per share. And if it has to happen hostilely, then so be it. Which it probably will, mind you. A  “special” shareholder’s meeting is taking place on December 18 where replacing board members will be the theme of the day (in particular, the ones opposing Valeant’s offer). Besides Valeant, Bill Ackman, of Pershing Square Capital Management LP would also like to see a “few” changes made to Allergan’s board as he has a hefty stake in the Botox-making company and would be tickled pink to see Allergan gobbled up by Valeant.

Maybe it’s not you after all…

Image courtesy of sattva/

Image courtesy of sattva/

Technology is grand. But maybe not so much in your new car. At least according to Consumer Reports 2014 Annual Auto Reliability Survey. Turns out all those really cool super awesome electronic features that you absolutely have to have are putting a damper on the overall quality of your ride. There are 23 million of us out there who have internet “savvy” cars. By 2020, that number will hit 152 million users. But the problem now, in 2014, is that in-car electronics defects logged the most complaints in 17 categories of the survey. In fact, the problem was called, ahem, “a growing first year reliability plague.” Ouch. Drivers start to question the overall quality of their vehicles when electronic issues begin to arise. Want the most reliable car? Lexus took the number one spot. The Infiniti Q50 sedan, however, took a big hit plunking down to the number 20 spot.