French Company Goes Organic for U.S. Acquisition; U.S. Airlines Gear Up for Cuba; U.S. Banks Bond Over Brexit

Let them eat organic cake!

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Dannon Yogurt’s parent company, Danone (said with a French accent) is looking to pick up  a major U.S company that will effectively double its size. That’s assuming all goes according to plan. Danone wants to offer organic food provider, WhiteWave, purveyor of favorites like Silk Almond and Soy Milk, Horizon Milk and Earthbound Farms, $10.4 billion in cash for the fiscal pleasure of its company. That’s a 24% premium over WhiteWave’s thirty day average closing price and comes out to about to $56.25 per share. But for Danone, whose looking to make itself a bigger presence in the United States, it’s well worth it, since WhiteWave’s offerings tend to attract wealthier consumers. WhiteWave generates annual sales of about $4 billion and with this acquisition, Danone expects to see a $300 million boost in operating profit. Danone has also been struggling in other parts of the world and this acquisition would ease the burden of some of those lesser-performing markets. FYI, when companies offer to buy other companies, their offers tend be at least at a 30% premium. Because this offer was not, it theoretically means that the bidding door is still open to other offers from companies like Coca Cola, PepsiCo and Kellogg Co, to name but a few. In a regulatory filing, though, WhiteWave did graciously say that it wouldn’t solicit other offers. However, there are exceptions. Should WhiteWave go with another offer, Danone still wins because it will get a $310 million break-up fee.

Bienvenido…

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Believe it or not, Hillary Clinton wasn’t the only topic of conversation today coming out of Washington DC. President Obama announced a proposal to allow eight U.S. airlines to provide nonstop service between Cuba and ten U.S. cities, beginning this fall. This will mark the first time in 50 years that travel of this kind will be available. And all this just one year after diplomatic relations were re-established. The city and airline selections were made by the Department of Transportation and the lucky airline winners are: Alaska Airlines, American Airlines, Delta Airlines, Frontier Airlines, JetBlue Airways, Southwest Airlines, Spirit Airlines and United Airlines. American Airlines is actually no stranger to the island nation, as it has been offering charter services there since 1991. Just last year the airline made over one thousand chartered flights to Cuba, while JetBlue made over 200 chartered trips. That’s awfully welcome news for an industry that took a fiscal beating lately. The cities that can look forward to the new service had to have have substantial Cuban-American populations already in place. Hence, Florida finds itself the recipient of 14 out of the 20 daily nonstop flights, since it boasts the largest Cuban-American population. The cities include: Atlanta, Charlotte, Fort Lauderdale, Houston, Los Angeles, Miami,  Newark, New York City, Orlando and Tampa. According to Cuban officials, the number of American travelers to Cuba is up 84%, compared to last year, in just the first half of the year.  But there is still a trade embargo in place, which does include a travel ban. However, there are twelve convenient categories of reasons to fly to Cuba that you can check off should you decide to make your way to Havana any time soon.

Come together…

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It’s a fiscal kumbaya as four U.S. banks offered up their sincerest support for London following the Brexit vote. The gracious supporters include, JPMorgan, Goldman Sachs, Bank of America Merrill Lynch and Morgan Stanley. The banks agreed to help British Finance Minister George Osborne find ways to ensure that the U.K. remains the prominent financial player that it always was, pre-Brexit. And of course they all will try and find new and exciting ways to lure and retain big banking to London so that the consequences of the Brexit don’t do the country in completely. While that sentiment no doubt warmed the hearts of investors all over the world, the investment banks could not offer up as much optimism as far as the jobs situation is concerned. After all, “no one in their right mind would currently invest in Britain.” Keeping those jobs there might might be the biggest challenge of all and no one wants to make any promises on that. Especially Jamie Dimon, who had previously mentioned that around 4,000 jobs could make their way out of London. In the meantime, the French wasted no time – I mean NONE! – in announcing to the world that it would make its tax regime as enticing as possible, in a not at all subtle attempt to grab some pricey banking business from London.

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Where in the World is Über?; Harvard Professor Gives Whole New Meaning to Chinese Take-out; See Which Company Made “The List”

Mo’ money, mo problems…

Image courtesy of renjith krishnan/FreeDigitalPhotos.net

Image courtesy of renjith krishnan/FreeDigitalPhotos.net

Über just picked up another $1.2 billion in funding and is now valued at $40 billon. Awesome, right? Not even close. On the heels of its most recent “tracking-customers” scandal comes even more…problems. So on which part of the globe should we begin? How about Portland, Oregon? You might have downloaded the Über app there but don’t bother using it. Hours after it launched, the city put the kibosh on the ride-sharing device. In Über’s home state of California, San Francisco D.A. George Gascón and Los Angeles D.A. Jackie Lacey have filed suit against Über for, among other issues, not being totally honest about the quality of the background checks it conducts on its drivers. Which brings us to Chicago where an Über driver allegedly raped a female rider. And just because gambling and prostitution is legal in Nevada, that doesn’t mean Über is. Yes, oddly enough, it’s banned there too. On the other side of the pond, good luck finding an Über ride. Denmark and Norway have filed complaints, a Dutch court ruled it illegal, France has yet to decide, while Spain already but the brakes on Über’s operations. In Asia, Thailand also nixed the service and India’s having huge issues with it as well. But on his blog, Travis Kalanick did mention that Über operates in 250 cities on 50 countries. He must mean on a different planet.

Can I get the sauce on the side?

Image courtesy of patrisyu/FreeDigitalPhotos.net

Image courtesy of patrisyu/FreeDigitalPhotos.net

If you’re going to overcharge your clientele, you best make sure they aren’t professors from Harvard’s Business School. Just ask Sichuan Garden’s Ran Duan. Except, he’s not so talkative lately. When Professor Benjamin Edelman ordered four dishes from the Boston eatery, he was over-charged a dollar more than the advertised price on the restaurant’s website.  So Professor Edelman, who, by the way,  fiercely and diligently took on the airline industry for misrepresenting fees, did the same with Mr. Duan. First, the professor suggested that Sichuan Garden refund him three times the amount of the over-charge. Mr. Duan, instead, offered to refund $3.00. After several emails were exchanged, which seemed to only fuel Professor Edelman’s irritation, he decided it was time to take the issue to the regulators, just as he had done with the airlines.  The lesson is? Well, there are several, aren’t there.

You call this work?

Image courtesy of portal/FreeDigitalPhotos.net

Image courtesy of portal/FreeDigitalPhotos.net

Is your company on Glassdoor’s 2015 50 Best Places to Work list? If not, maybe it’s time to polish your resume and start spending lots of time on LinkedIn, which by the way, takes the number 23 spot. It’s no surprise, I guess that Google made the list. After all, didn’t Vince Vaughn and Owen Wilson make a movie just about being interns there? However, this was the first time Google took the top spot. Among the many storied perks behind the company is twelve weeks maternity leave…for the father. So where does that leave mom? With an additional six weeks’ quality time with baby. Thinking of trekking down to Antarctica? Bain and Company, which ranks second, has got an expedition with your name on it. Just make sure they have a position you can fill. Facebook ranks at lucky #13 with one employee writing about it: “Transparency. Trust. Compassion. Food.” ‘Nuff said. Got IT problems? Great. Grab a beer and talk it over at Zillow’s “IT Happy Hour.” The real estate site ranks 33. Who is not in the top 50? Glad you asked. Twitter is noticeably absent from top 50 this year presumably thanks to some management “changes.”