Zacks Market Edge Highlights: FEMSA, American Movil, Bancolombia, iShares Mexico ETF and Global MSCI Colombia ETF
Zacks Market Edge Highlights: FEMSA, American Movil, Bancolombia, iShares Mexico ETF and Global MSCI Colombia ETF
Icahn, Paulson Suffer Large Losses as Energy-Related Bets Sour (WSJ) Oil Investors Keep Betting Wrong on When Market Will Bottom (BBG) U.S. to sell final $1.25 billion shares of Ally Financial from bailout (Reuters) Ally Financial Gets Subpoena Related to Subprime Automotive Finance (WSJ) Russia's parliament rushes through bill boosting banking capital (Reuters) How a Memo Cost Big Banks $37 Billion (WSJ) ECB considers making weaker euro zone states bear more quantitative easing risk (Reuters) How the U.S. Could Retaliate Against North Korea (BBG) U.S. backed talks with ISIS over American hostage (Reuters) Oil Crash Exposes New Risks for U.S. Shale Drillers (BBG) Exxon Mobil Shows Why U.S. Oil Output Rises as Prices Plunge (BBG) Eight children killed in Australia in reported mass stabbing (Reuters) No Selfies, Tweets or Leaks: Why Cuba Talks Had to Be Kept Top Secret (BBG) Sony Hackers Seen Having Snooped for Months, Planted Bomb (BBG) Oil-Led Slump Spurring Fastest Investor Exit From Commodities Since 2008 (BBG) Despite billions in aid, U.S. unable to get Pakistan to confront militants (Reuters) Overnight Media Digest WSJ * Ripples from Sony Pictures' decision not to release its controversial comedy "The Interview" immediately reached other entertainment projects in the works as producers and studios sought to distance themselves from productions involving North Korea. (http://on.wsj.com/1xtc4g3) * If the Obama administration's move to normalize ties with Cuba does lead to an end to the U.S. embargo, it could reignite battles over the U.S. rights to sell two of the island's most prized exports: cigars and rum. (http://on.wsj.com/13FSjFJ) * Car makers are not pulling out of Russia yet, but they are growing increasingly nervous and moving to control the damage from plunging consumer demand and exposure to Russia's swooning currency. (http://on.wsj.com/1AlBM5G) * Deezer, the French music streaming service, has appointed a new boss as it prepares for a full-scale launch in the already crowded U.S. market. (http://on.wsj.com/1C6d2R5) * Madison Square Garden Co, which said in October that it would explore separating its entertainment businesses from its media and sports operations, added on Thursday that it would consider breaking up further. (http://on.wsj.com/1wRAPQh) * Computer-services company Atos will buy Xerox's information technology outsourcing business for $1.05 billion in cash, a deal that would bolster the French company's position in the U.S. (http://on.wsj.com/1AlCyQa) * Luxembourg agreed Thursday to share with the European Commission information on tax deals secured by multinational companies with operations in the small nation. (http://on.wsj.com/1DQYVRq) * RadioShack Corp said its head of marketing is leaving the company, the second top level executive departure in the middle of its all-important holiday sales drive, as the electronics chain tries to stave off bankruptcy. (http://on.wsj.com/1AlCAHY) * Liberty Media Corp's CommerceHub is set to announce it has agreed to acquire e-commerce advisory firm Mercent as it seeks to broaden its clients' reach online, particularly through Amazon.com Inc and Google Inc . (http://on.wsj.com/1x3VjbL) * American Apparel Inc has been approached by Irving Place Capital about a possible takeover, according to people familiar with the matter. (http://on.wsj.com/1sMC70C) * Unilever Plc on Thursday said it was withdrawing a high-profile lawsuit it filed against a California food startup over the marketing of mayonnaise. (http://on.wsj.com/1GwXqpz) * Hulu has won the rights to a large trove of FX Networks shows like "The Strain" and "Tyrant" in a deal designed to minimize the damage many media executives fear streaming services are wreaking on traditional cable TV. (http://on.wsj.com/1w4B6vv) FT Germany's BASF and Russia's Gazprom neft' OAO have decided to call off an energy asset swap due to "difficult political environment", the chemical producing company said on Thursday. Hampton Creek, maker of Just Mayo spread, has raised $90 mln from Horizons Ventures, Li Ka-shing's investment fund, and Khosla Ventures, a Silicon Valley venture-capital firm, both of which are already investors in the company. France's competition authority has issued a 951 million euros ($1.17 billion) fine to companies including L'Oreal and Unilever after finding them guilty of secretly fixing prices of household and personal care products. Ireland's former flag carrier Aer Lingus said on Thursday that it rejected a takeover bid from British Airways owner IAG as it "fundamentally undervalued" the business. NYT * Within hours of President Obama's historic move to restore full diplomatic relations with Cuba, companies in the United States are already developing strategies to introduce their products and services to a market they have not been in for the better part of 50 years - if ever. (http://nyti.ms/1AlCu2O) * Switzerland is introducing a negative interest rate on deposits held by lenders at its central bank, moving to hold down the value of the Swiss franc amid turmoil in global currency markets and expectations that deflation is at hand. (http://nyti.ms/1zCKcEG) * The European Union announced new sanctions over Ukraine on Thursday, outlawing European investment in Crimea, the Black Sea peninsula annexed by Russia in March, as leaders of the 28-nation bloc gathered in Brussels to review their strategy toward Russia. (http://nyti.ms/1uYtB97) * A White House official said the administration was considering a "proportional response" against those who hacked into Sony Pictures computers, a retaliation that could thrust the United States into a direct confrontation with North Korea. (http://nyti.ms/1sF66lr) * A European Union investigation into possible price fixing by Europe's largest truck manufacturers appeared to be gathering momentum after Daimler of Germany said it had set aside 600 million euros to cover possible costs resulting from the inquiry. (http://nyti.ms/1wRxT69) * Under pressure from regulators, Ford Motor Co is expanding nationwide the recall of vehicles with airbags manufactured by the Japanese supplier Takata Corp, the automaker said. (http://nyti.ms/1DQYcjh) * The private equity firm Westbrook Partners has thrown in the towel and says it will sell the New Era Estate, a London housing block whose tenants protested its plans to raise rents. (http://nyti.ms/13jhFs4) * Ally Financial Inc said it had received a Justice Department subpoena as part of an investigation "related to subprime automotive finance and related securitization activities." (http://nyti.ms/1sNaYuG) * Xerox Corp has agreed to sell its information technology outsourcing business to Atos, the French technology company, for just over $1 billion. (http://nyti.ms/1wpZaOm) * Goldman Sachs Group Inc named John E. Waldron as one of its co-heads of investment banking, succeeding John S. Weinberg, a vice chairman and a member of one of the firm's most prominent families. (http://nyti.ms/1AN8meT) Canada THE GLOBE AND MAIL ** In its continuing bid to boost competition in the wireless industry, Ottawa confirmed it will reserve the majority of cellular airwaves in a coming public auction for small carriers. At the same time, the federal government, which has pushed pro-consumer policy, assured Canadians in rural areas they will not lose what Internet access they already have and revealed plans to hold another auction of valuable low-band airwaves. (http://bit.ly/1x4qJi4) ** Grupo Bimbo SAB de CV is buying the Vachon family of snack cakes from Saputo Inc for C$120 million ($103.55 million) as the Mexican baked-goods company widens its footprint in Canada. (http://bit.ly/1GvrK3O) ** U.S. ambassador Bruce Heyman is urging Canada to continue sharing security information with the United States in the wake of a damning report on the CIA's brutal interrogation methods. In a recent interview with The Globe and Mail, Heyman said co-operation between the two countries is critical to keeping citizens safe. (http://bit.ly/1xtt5Xx) NATIONAL POST ** BlackBerry Ltd unveiled a new phone that harks back to the company's glory days of being the world's leading smartphone maker, capping a year dedicated to stabilizing finances and winning back investor confidence. Earnings on Friday will shed light on how successful the turnaround has been. (http://bit.ly/1wrzGQL) ** The Ontario government wants Ottawa to pony up C$1 billion for the massive "Ring of Fire" mineral belt, but the federal natural resources minister is warning that key structural challenges still need to be overcome. The Ring of Fire, named after the famous Johnny Cash song, is a vast but very remote mineral belt located in Ontario's James Bay Lowlands. (http://bit.ly/1wKeYvr) ** Court documents allege the Ontario Liberal party paid the spouse of a top aide to Dalton McGuinty C$10,000 to wipe computer hard drives in the premier's office. The allegation is contained in police documents used to obtain a search warrant that was executed in November at an Ontario government cyber security office in downtown Toronto. (http://bit.ly/1wIC45o) China CHINA SECURITIES JOURNAL - Corn starch futures would start trading on Dec. 19 in Dalian Commodity Exchange (DCE), which would be the 44th commodity futures in China, the Dalian Futures Exchange said. CHINA DAILY - China is to set up an offshore observation network by 2020 to cope with disasters, guarantee development of the coastal economy and protect the country's maritime interest, according to a guideline released by the State Oceanic Administration. - Domestic solar panel producers are looking to emerging markets to offset mounting difficulties they face in the United States, where they fear they may be squeezed out completely by a new ruling on dumping duties. SHANGHAI DAILY - A former housing official has been sentenced to 25 years in prison for bribery, corruption and embezzlement by a court in Zhengzhou, capital of central China's Henan Province. The Zhengzhou court said Zhai illegally owned 20 properties, of which 11 were registered under his daughter's names and nine under his son's. Britain The Times JOHN LAING BUILDS HEAD OF STEAM TO BE FIRST BIG 2015 LONDON FLOAT John Laing is on the verge of being brought back to the stock market seven years after it was taken private. The infrastructure investor and construction project management firm is likely to be one of the first big London floats of 2015. John Laing's owner, Henderson, the international investment house and private equity firm, has hired HSBC Holdings Plc and Barclays Plc to marshal an initial public offering. (http://thetim.es/1sEGLrV) The Guardian FRANCE FINES 13 CONSUMER GOODS FIRMS 951 MLN EUROS FOR PRICE-FIXING Some of the world's biggest consumer products companies, including Unilever , Reckitt Benckiser, Procter & Gamble and Gillette, have been fined a combined 951 million euros ($1.17 billion) by the French competition watchdog for price fixing in supermarkets. (http://bit.ly/1w3W4ug) ROYAL MAIL SELL-OFF UNDERVALUED FIRM BY 180 MLN STG, REPORT FINDS The government could have made 180 million pounds ($281.97 million) more from the 2 billion pounds sale of Royal Mail Plc last year but this would have involved "considerable risk," a report commissioned by business secretary Vince Cable concluded. (http://bit.ly/1w1Rlt2) The Telegraph UK GOVERNMENT RECOVERS 1.36 BLN STG OF MONEY USED TO BAIL OUT SAVERS IN ICELANDIC BANK The government has now recovered 85 percent of the money it spent bailing out hundreds of thousands of British consumers who risked seeing their savings wiped out when Icesave collapsed. The Treasury announced on Thursday that it had recovered another 1.36 billion pounds from the estate of Landsbanki, which went bust in 2008. (http://bit.ly/16wSnbR) Sky News MOBILE NETWORKS AGREE DEAL TO BOOST UK COVERAGE A 5 billion pound project to guarantee mobile phone voice and text coverage to 90 percent of the UK geographical area by 2017 will go ahead. The deal means the four mobile networks - EE, O2, Three and Vodafone Group Plc - have all agreed to tackle poor coverage in so-called partial "not spots." (http://bit.ly/1w3LyDk) The Independent NORTH SEA JOBS TO BE AXED AS OIL PRICE DIVES Aberdeen could suffer devastating employment cuts say analysts, after warnings that the North Sea oil industry is "close to collapse" because of the dramatic fall in oil prices. (http://ind.pn/1x3k7k9) AER LINGUS REJECTS TAKEOVER BID FROM BRITISH AIRWAYS OWNER IAG Irish airline Aer Lingus Group Plc has rejected a takeover bid by the International Consolidated Airlines Group , the parent company of British Airways. (http://ind.pn/1wQqWCm) Fly On The Wall Pre-market Buzz ECONOMIC REPORTS Domestic economic reports scheduled for today include: Kansas City Fed manufacturing index for December at 11:00--consensus 7 ANALYST RESEARCH Upgrades CVS Health (CVS) upgraded to Buy from Neutral at SunTrust EPR Properties (EPR) upgraded to Hold from Underweight at KeyBanc First Marblehead (FMD) upgraded to Buy from Neutral at Compass Point Medical Properties Trust (MPW) upgraded to Hold from Underweight at KeyBanc Orange SA (ORAN) upgraded to Buy from Hold at Deutsche Bank Potash (POT) upgraded to Buy from Neutral at UBS Ryanair (RYAAY) upgraded to Outperform from In-Line at Imperial Capital Unum Group (UNM) upgraded to Buy from Neutral at Compass Point WPP PLC (WPPGY) upgraded to Buy from Neutral at Citigroup Downgrades Actuant (ATU) downgraded to Hold from Buy at Jefferies EastGroup Properties (EGP) downgraded to Neutral from Buy at Goldman Hartford Financial (HIG) downgraded to Neutral from Buy at Citigroup Healthcare Realty Trust (HR) downgraded to Hold from Buy at KeyBanc Kinross Gold (KGC) downgraded to Neutral from Buy at UBS Maxim Integrated (MXIM) downgraded to Neutral from Buy at Goldman OGE Energy (OGE) downgraded to Hold from Buy at Wunderlich Otonomy (OTIC) downgraded to Underperform from Neutral at BofA/Merrill RPC, Inc. (RES) downgraded to Neutral from Buy at Citigroup STAG Industrial (STAG) downgraded to Hold from Buy at MLV & Co. Teekay Tankers (TNK) downgraded to Neutral from Buy at UBS The Pantry (PTRY) downgraded to Underperform from Sector Perform at RBC Capital Wesco Aircraft (WAIR) downgraded to Sell from Hold at Deutsche Bank Worthington (WOR) downgraded to Hold from Buy at KeyBanc Initiations Adept Technology (ADEP) initiated with an Overweight at Piper Jaffray AeroVironment (AVAV) initiated with a Neutral at Piper Jaffray Anadarko (APC) initiated with a Buy at Guggenheim Ashford (AINC) initiated with a Buy at MLV & Co. BE Aerospace (BEAV) resumed with a Buy at Citigroup Capitala Finance (CPTA) initiated with a Buy at UBS Clean Harbors (CLH) initiated with a Neutral at Macquarie Continental Resources (CLR) initiated with a Buy at Guggenheim Corrections Corp. (CXW) initiated with a Market Perform at Wells Fargo Customers Bancorp (CUBI) initiated with a Market Perform at Keefe Bruyette Demandware (DWRE) initiated with an Outperform at RBC Capital Ellie Mae (ELLI) initiated with an Outperform at RBC Capital Ellington Residential (EARN) initiated with a Market Perform at JMP Securities Geo Group (GEO) initiated with a Market Perform at Wells Fargo GrubHub (GRUB) initiated with an Outperform at Oppenheimer Intermolecular (IMI) initiated with a Market Perform at Northland Internap (INAP) initiated with a Buy at Stifel iRobot (IRBT) initiated with an Overweight at Piper Jaffray Jumei (JMEI) initiated with a Hold at Brean Capital KLX Inc. (KLXI) initiated with a Hold at Deutsche Bank Microchip (MCHP) reinstated with a Neutral at Goldman Newfield Exploration (NFX) initiated with a Buy at Guggenheim Oasis Petroleum (OAS) initiated with a Buy at Guggenheim Opco unsure if Twitter (TWTR) has mass market appeal, starts at Perform RSP Permian (RSPP) initiated with a Neutral at Guggenheim Rackspace (RAX) coverage resumed with a Buy at Stifel Rexford Industrial (REXR) initiated with a Hold at Jefferies SM Energy (SM) initiated with a Neutral at Guggenheim Sotherly Hotels (SOHO) initiated with an Outperform at JMP Securities Southwestern Energy (SWN) initiated with a Neutral at Guggenheim Stericycle (SRCL) initiated with an Outperform at Macquarie Telefonica (TEF) reinstated with a Sell at Deutsche Bank Travelport (TVPT) initiated with a Perform at Oppenheimer Ubiquiti Networks (UBNT) initiated with a Sell at Goldman Wabtec (WAB) initiated with a Neutral at Macquarie Whiting Petroleum (WLL) initiated with a Neutral at Guggenheim Wright Medical (WMGI) initiated with a Market Perform at Wells Fargo COMPANY NEWS Ally Financial (ALLY) received DOJ subpoena over subprime automotive finance Ally Financial (ALLY) to exit Troubled Asset Relief Program Atos to buy Xerox's (XRX) IT outsourcing business for $1.05B Carnival (CCL) announces two new ship orders with Fincantieri DuPont (DD) announces restructuring, spinoff of chemicals company Eli Lilly (LLY), Adocia to co-develop BioChaperone Lispro FMC Technologies (FTI) awarded $393M subsea systems contract ImmunoGen reports Phase III MARIANNE study met non-inferiority endpoint Journal Communications (JRN) and DISH reach retransmission agreemnt Madison Square Garden (MSG) board directs management to consider additional spin-offs Maximus (MMS) awarded North East Yorkshire, Humber work Work Programme contract Men's Wearhouse (MW), Eminence in standstill agreement amendment MetLife (MET) says 'disappointed' in FSOC decision NQ Mobile (nq) to sell FL Mobil to Tack Fiori International RCS Capital (RCAP) issues statement regarding recent market developments Red Hat (RHT) CFO to retire in next 12 months Roche (RHHBY) says breast cancer study did not meet PFS superiority endpoint Roche (RHHBY) to discontinue Phase III study of Alzheimer's disease drug Solazyme (SZYM) begins restructuring plan to reduce 2015 operating expenses by $18.0M Stadium Capital Management urges Big 5 Sporting (BGFV) to eliminate 'staggered board' Transocean (RIG) to scrap seven floaters, sees Q4 charge of $100M-$140M Wabash (WNC) authorizes stock repurchase program for up to $60M Xerox (XRX) to sell IT outsourcing business to Atos for $1.05B EARNINGS Companies that beat consensus earnings expectations last night and today include: Cintas (CTAS), Nike (NKE), AAR Corp. (AIR), Red Hat (RHT) Companies that matched consensus earnings expectations include: Pier 1 Imports (PIR) Xerox (XRX) lowers FY14 adjusted EPS to $1.04-$1.06 from $1.11-$1.13, consensus $1.12 Xerox (XRX) lowers Q4 adjusted EPS view to 28c-30c from 30c-32c, consensus 31c Xerox (XRX) lowers FY15 adjusted EPS to $1.05-$1.11 from $1.11-$1.17, consensus $1.17 Nike (NKE) sees Q3 constant dollar revenue growth in low teens Nike (NKE) backs FY15 constant dollar revenue growth view Nike (NKE) sees FY15 China revenue growth in mid teens range Red Hat (RHT) sees Q4 EPS 40-41c, consensus 41c Red Hat (RHT) raises FY15 EPS to $1.57-$1.58, consensus $1.55 NQ Mobile (NQ) raises FY14 revenue view to $325M-$326M from $320M-$325M Cintas (CTAS) sees FY15 EPS ex-tems $3.20-$3.25, consensus $3.15 Pier 1 Imports (PIR) backs FY15 EPS view 95c-$1.05, consensus 98c NEWSPAPERS/WEBSITES Fortress (FIG) looks to sell TRAC Intermodal, Reuters says Google's (GOOG) next version of Android to be built directly into cars, Reuters says Obama administration to ease many parts of Cuba embargo, NY Times says Oracle (ORCL) looks like a 'buy', Barron's says Sony (SNE) loss on 'Interview' may not be covered by insurance, NY Post says Sony (SNE) shares could climb 50%, Barron's says Sony (SNE) unable to find outlet for film as relationships damaged, NY Times reports Toyota (TM) to consolidate seat-making operations, Nikkei reports SYNDICATE Alcoa (AA) files to sell 36.52M shares of common stock for holders Ally Financial (ALLY) files automatic common stock shelf Juno Therapeutics (JUNO) 11M M share IPO priced at $24.00 PlasmaTech (PTBI) 3.5M share Secondary priced at $4.00 Teekay Tankers (TNK) files to sell 20M shares of Class A common stock
Nature is valuable. But figuring out how valuable has been challenging. By some measures, the services that nature provides business and society — clean water, food and metals, natural defense from storms and floods, and much more — are worth many trillions of dollars. But that number is not helpful to companies trying to assess how dependent they are on natural resources, or how to value them as business inputs. In recent years, many large companies have realized that they need to get a handle on these issues, and that doing it well creates business resilience. But figuring out what steps to take has been challenging. Into that void steps a new, very helpful tool, the Natural Capital Business Hub. The Hub is a project run by the Corporate EcoForum, The Nature Conservancy, and The Natural Capital Coalition (and built by Tata Consultancy Services). It builds off a partnership launched at the Rio+20 summit in 2012 with companies such as Alcoa, Coca-Cola, Disney, Dow, GM, Kimberly-Clark, Nike, Unilever, and Xerox. At the time, they produced a report with case studies showing how companies have managed natural capital issues. The Hub expands that effort, making much more information available and searchable. The Hub basically does four things: Provides case studies of corporate action for benchmarking and learning, which you can search by industry, region, ecosystem, or value-creation focus (cost reduction, brand building, etc.). Offers perspective on how to make the business case internally by laying out how valuing natural capital helps business. Gives us a framework for implementation and a thorough description of (or links to) the best tools for valuing and managing natural capital. Opens up collaboration opportunities by listing programs that need more partners and builds a network of professionals (with 2Degrees Network) who are working on these issues. The case studies are ostensibly the core of the site. Project managers, facility heads, executives who make capital decisions, sustainability managers, and many others can learn from the work that leading companies have done already. Managing natural capital is a young field, but Dow, for example, is now three years into its six-year partnership with The Nature Conservancy to “recognize, value, and incorporate the value of nature into business decisions, strategies and goals.” (The company just released the latest update on the partnership.) The Hub is a place to start your research and learn from Dow and many others. On the site, you can find stories of completed projects or prospective collaborations that need more partners to get off the ground. In the first category, you’ll find stories like the one about Grupo Bimbo, the Mexican food company that owns Sara Lee, Hostess, and Pepperidge Farms. Bimbo needed to manage stormwater around a site in Pennsylvania. Using natural or “green” infrastructure such as rain gardens and forest buffers — versus “gray”, manmade systems like retention ponds and pipes — the company reduced ongoing operating costs and avoided the complications of burying pipes in sensitive ecosystems. On a somewhat larger scale, consider Darden restaurants (owner of Olive Garden, Red Lobster, and many more) and its efforts to save fisheries. As companies like Unilever and McDonald’s have long recognized, ensuring healthy fish stocks isn’t a philanthropic nice-to-have, but core to business survival: no fish, no fish sticks, lobster plates, or Filet-O-Fish sandwiches. Darden is working with the National Fish & Wildlife Foundation and others to target valuable fisheries and manage them closely. What’s interesting about the Darden case study, and the Hub in general, is that this project is just getting started — essentially, it’s an open call for collaboration. The Hub is innovative and helpful because of the partnership tools. Natural capital issues are not easy and cross many lines – every company, city, and home in a region, for example, depends on water and flood protection. No organization or region can act alone, and it shouldn’t. By listing the major collaborations that are actively searching for new partners, the Hub has done a great service.
Grupo Bimbo Moves into Highly Saturated Canadian Bakery Market
Investors are looking at Flower Foods (FLO +1.6%) in a different light following Grupo Bimbo's acquisition of Canada Bread for a sweet premium. Right away the deal takes away the worry that Flower Foods would try to stretch too far to acquire Canada Bread for itself - while down the road the narrowed field of bread makers in the U.S. could support pricing and give a boost to Flower Foods' profits. Shares of FLO cracked $20 for the first time this month off the development.A little insider buying never hurts sentiment either. (SEC Form 4) Post your comment!
Grupo Bimbo (OTCPK:GRBMF) will purchase Canada Bread for $1.83B. The deal price comes at a hefty premium to Canada Bread's (OTC:CBDLF) projected earnings track and could be of interest to investors of Flower Foods (FLO) and Post Holdings (POST). Post your comment!
Twinkies will be back on the market by late July and the rest of the well-known Hostess brands will follow later in the summer, according to a Hostess Brands exec. The quick turnaround out of the bankruptcy bin has implications for Flower Foods (FLO) and Grupo Bimbo which were hoping to jump into the snacks food void with their own brands.
Twinkies will be back on the market by late July and the rest of the well-known Hostess brands will follow later in the summer, according to a Hostess Brands exec. The quick turnaround out of the bankruptcy bin has implications for Flower Foods (FLO) and Grupo Bimbo which were hoping to jump into the snacks food void with their own brands. 1 comment!
Grupo Bimbo (GRBMF.PK) plans to launch knock-off Hostess products before the well-known brands can be brought back to the market by Apollo Global Management (Twinkies, Ho Hos, Ding Dongs) and Flower Foods (Wonder Bread, Nature's Pride) from the bankruptcy bin. The new snack products could be on the market within a month or two.
Grupo Bimbo (GRBMF.PK) plans to launch knock-off Hostess products before the well-known brands can be brought back to the market by Apollo Global Management (Twinkies, Ho Hos, Ding Dongs) and Flower Foods (Wonder Bread, Nature's Pride) from the bankruptcy bin. The new snack products could be on the market within a month or two. 1 comment!
The billionaire Servitje family of Mexico, led by Roberto Servitje, owns Grupo Bimbo, Mexico’s largest bakery company, with household brands including Nutella and Sara Lee sold throughout the Americas, Europe, and Asia. Grupo Bimbo is being threatened by the criminal group Los Caballeros Templarios (The Knights Templar). The organization, a savage cartel that operates in the drug-plagued Mexican state of Michoacán, has threatened to burn trucks owned by Bimbo, Marinela (the pastries division of Grupo Bimbo), Barcel (a Bimbo unit that makes tortillas, potato chips and snacks) and Sabritas (a Pepsi-Cola subsidiary that makes snacks), if they distribute their products during the next three weeks in the state’s Apatzingán region, Mexico City’s leading daily, Reforma, reported on April 17.
NEW YORK — A bankruptcy judge has approved the sale of Twinkies to a pair of investment firms, one of which has said it hopes to have the cakes back on shelves by summer. Hostess Brands Inc. is selling Twinkies, Ding Dongs, Ho Hos and other brands, to Apollo Global Management and Metropoulos & Co. for $410 million. Evan Metropoulos, a principal of the latter firm, said in an interview that he wants to have the snack cakes back on shelves by June and that the brands could benefit from new flavors and other product extensions. "There's no mistake, we've got to move smartly, we've got to move quickly," Metropoulos said. He also said that comedians Will Farrell and Zack Galifianakis are at the top of his "wish list" for potential pitchmen. But he doesn't plan on formally approaching anyone about marketing deals until after the sale closes in coming weeks. Metropoulos, which owns Pabst beer, has already used Farrell in its ads. Apollo's investments include the fast-food chains Hardee's and Carl's Jr., which is known for indulgent burgers and splashy ads starring scantily clad women. Judge Robert Drain of the U.S. Bankruptcy Court of the Southern District of New York also approved the sale of Wonder bread to Flowers Foods, which makes Tastykakes and other breads. Flowers, based in Thomasville, Ga., would also get Nature's Pride, Butternut, Home Pride and Merita as part of the $360 deal. Hostess has said the Justice Department is reviewing that sale. The sale of Beefsteak to Grupo Bimbo was also approved. Grupo Bimbo makes Entenmann's cakes and Thomas' English muffins and is paying $31.9 million for the regional bread brand. A separate hearing is scheduled for April 9 to approve the sale of Drake's cakes, which include Devil Dogs and Yodels. Hostess picked McKee Foods, the maker of Little Debbie snack cakes, as the buyer for those brands at $27.5 million. Taken together, a Hostess spokesman said 29 of the bankrupt company's 36 bakeries were sold as part of the transactions. It will be up to the new owners whether to hire back the thousands of workers who lost their jobs when the company went out of business. In a statement, the company's bakers union said it shared the enthusiasm exhibited by the new owners to bring Hostess brands back to shelves quickly. The Bakery, Confectionery, Tobacco Workers and Grain Millers International Union said it believed "our highly-motivated and skilled workforce will serve as indispensable partners in the seamless re-opening of factories." Hostess closed its factories in late November following a strike by the union. The company had been struggling financially for years.
NEW YORK -- Hostess is moving forward with the sale of Devil Dogs, Yankee Doodles and Yodels to the maker of Little Debbie cakes. The bankrupt company says it picked McKee Foods as the buyer for the Drake's cakes after nobody stepped forward with a qualifying bid to top its $27.5 million offer. The auction scheduled for Friday will be canceled as a result, according to a filing in bankruptcy court. A hearing to approve the sale is scheduled for April 9. McKee Foods, based in Collegedale, Tenn., isn't projecting when it plans to have the cakes back on shelves. "McKee Foods is a family-owned bakery, similar to how Drake's was established as a family bakery 125 years ago," CEO Mike McKee noted in a statement. "We have generations of experience in baking, and we will strive to bake the Drake's cakes, not just for taste and quality, but also to deliver on the memories of the loyal Drake's fans." Separately, Metropoulos & Co., which is teaming up with Apollo Global Management to buy Twinkies and other Hostess cakes such as CupCakes, Ding Dongs and Ho Hos, said it hopes to have the cakes back on shelves by this summer. Metropoulos owns Pabst beer. Apollo's investments include fast-food chains Carl's Jr. and Hardee's. A source who requested anonymity because the sale process is private had said the pair of investment firms had expressed interest in Drake's as well but that the offer ultimately did not qualify. Hostess Brands Inc. had also canceled auctions for Twinkies and its major breads after nobody stepped forward with competitive offers for those brands. Flowers Foods was picked as the buyer for the breads, including Wonder. Grupo Bimbo, which makes Thomas' English muffins, was picked to buy its Beefsteak bread. A hearing to approve those sales is set for March 19. The company plans to go ahead with an auction for its Sweetheart, Eddy's, Standish Farms and Grandma Emilie's breads on March 15. United States Bakery was chosen as the lead bidder for those brands for $30 million. That includes four bakeries and other equipment. Hostess shuttered its factories in late November following a strike by its second biggest union. The company had been struggling financially for years.
Bidders have until 5 pm today to submit their offers for Twinkies and other Hostess Brands snack cakes, with a bankruptcy court auction set to take place on Wednesday. Stalking horse bidders Apollo Global Management (APO) and veteran food executive Dean Metropoulos could reportedly be joined by Hostess creditor Silver Point Capital and hedge-fund newcomer Hurst Capital in concert with other private-equity firms, as well as by Mexico's Grupo Bimbo (GRBMF.PK).
Bidders have until 5 pm today to submit their offers for Twinkies and other Hostess Brands snack cakes, with a bankruptcy court auction set to take place on Wednesday. Stalking horse bidders Apollo Global Management (APO) and veteran food executive Dean Metropoulos could reportedly be joined by Hostess creditor Silver Point Capital and hedge-fund newcomer Hurst Capital in concert with other private-equity firms, as well as by Mexico's Grupo Bimbo (GRBMF.PK). Post your comment!
(Reuters) - Flowers Foods Inc is set to buy Hostess bread brands including Wonder bread for $360 million after no other bidder stepped up to make a competing offer, a source familiar with the matter said on Wednesday. The bankrupt bakery company was set to run an auction on Thursday for the brands, which also include Butternut, Home Pride, Merita and Nature's Pride, but there will be no auction since there were no other bids, the source said. There will be an auction for the Beefsteak brand, for which Flowers bid $30 million, since Hostess received a higher bid from Mexico's Grupo Bimbo, said the source, who declined to be named as the process is private. The deal with Flowers is still subject to approval by a bankruptcy court. Flowers agreed in January to be the "stalking horse" bidder, which set a floor for the bidding and was subject to a court-supervised auction. Hostess declined to comment. Flowers and Bimbo were not immediately available to comment. (Reporting by Martinne Geller in New York; editing by Soyoung Kim and Matthew Lewis)
GRUPO BIMBO is on the prowl in el Norte again. In 2009 the Mexican baking giant bought part of Weston Foods for $2.3 billion, becoming the biggest baker in the United States. Two years later it bought Sarah Lee’s American baking operations for $960m. In the past month it has been in a battle over the tastiest bits of Hostess Brands’ bread business, as that once-iconic and now-bankrupt company winds up its affairs.Bimbo brings more than a shopper’s eye to its expansion. It is a master at bread-related breakthroughs. It helped introduce Spaniards to sliced loaves and pioneered the packaging of bread in clear cellophane. It is also a master of efficiency and logistics: Bimbo lorries with their teddy-bear logo are familiar sights in Mexico and Central America. The combination of savvy dealmaking and relentless cost-squeezing has made Bimbo a behemoth of baked goods, with $10.8 billion of sales in 2011.Together the emerging-market countries now have more than 1,000 firms with annual sales above $1 billion. Many are content to stay at home—after all, their markets are growing at least twice as fast as the rich world’s. But some, like Bimbo...
UK Only Article: standard article Issue: How will history see me? Fly Title: Schumpeter Rubric: Giant emerging-market firms continue to advance everywhere Main image: 20130119_WBD000_0.jpg GRUPO BIMBO is on the prowl in el Norte again. In 2009 the Mexican baking giant bought part of Weston Foods for $2.3 billion, becoming the biggest baker in the United States. Two years later it bought Sarah Lee’s American baking operations for $960m. In the past month it has been in a battle over the tastiest bits of Hostess Brands’ bread business, as that once-iconic and now-bankrupt company winds up its affairs. Bimbo brings more than a shopper’s eye to its expansion. It is a master at bread-related breakthroughs. It helped introduce Spaniards to sliced loaves and pioneered the packaging of bread in clear cellophane. It is also a master of efficiency and logistics: Bimbo lorries with their teddy-bear logo are familiar sights in Mexico and Central America. The combination of savvy dealmaking and ...
Apollo Global Management (APO) has reportedly joined up with veteran food executive Dean Metropoulos to potentially bid for Hostess Brands' snacks business. While Apollo has no food interests, Metropoulos has a record of making money for investors after taking on struggling food brands. A possible rival for the snacks ops is Mexico's Grupo Bimbo (GRBMF.PK), which is also interested in Hostess' bread brands.
Apollo Global Management (APO) has reportedly joined up with veteran food executive Dean Metropoulos to potentially bid for Hostess Brands' snacks business. While Apollo has no food interests, Metropoulos has a record of making money for investors after taking on struggling food brands. A possible rival for the snacks ops is Mexico's Grupo Bimbo (GRBMF.PK), which is also interested in Hostess' bread brands. Post your comment!
The bread business—brands like Wonder Bread, Nature's Pride and Butternut—could fetch around $350 million.
NEW YORK (AP) — The makers of Thomas' English muffins and Tastykake snacks are emerging as the two of the bidders for Wonder Bread and other Hostess bread brands as the company tries to sell off its assets under bankruptcy-court oversight, a newspaper reported Saturday. The Wall Street Journal said Hostess Brands Inc. could reveal as early as next week that Flowers Foods Inc. and Grupo Bimbo SAB are in discussions to acquire the bread brands, which also include Nature's Pride. The report said the brands could command $350 million. Grupo Bimbo's brands include Arnold breads, Thomas' English muffins and Entenmann's cakes. Flowers Foods Inc.'s brands include Nature's Own breads and Tastykake snacks. Hostess sells Twinkies, Ding Dongs and Ho Hos, along with Dolly Madison cakes, which includes Coffee Cakes and Zingers. Hostess also sells Devil Dogs, Funny Bones, and Yodels under the Drake's brand. Hostess, which is based in Irving, Texas, announced in November that it was shutting down its business and selling its bread, snacks and cakes brands along with its 33 bakeries and other operations. The company's demise came after years of management turmoil and turnover. Workers said the company failed to invest in updating its snack cakes and breads. Hostess filed for its second Chapter 11 bankruptcy in less than a decade last year, citing steep costs associated with its unionized workforce. The company was able to reach a new contract agreement with its largest union, the Teamsters, but the bakers union rejected the terms and went on strike Nov. 9. A week later, Hostess announced its plans to liquidate, saying the strike crippled its ability to maintain normal production. In 2011, the company's revenue was $2.5 billion. Hostess declined to comment, as did Grupo Bimbo's U.S. division, Bimbo Bakeries USA. Bimbo's parent company is headquartered in Mexico. A message left with Flowers Foods, which is based in Thomasville, Ga., was not immediately returned. Hostess said in bankruptcy court proceedings in December that it was narrowing down the bids it had received and that it expects to sell off its snack cakes and bread brands to different buyers. Hostess said in December that it expects to file binding bids for many of its brands this month, followed by a four-week auction process to allow competing bids. Closings for many brands could come as soon as mid-March, according to Joshua Scherer of Perella Weinberg Partners, which is advising Hostess. An attorney for Hostess said in court in December that 1,100 employees had been retained to shut down plants and perform other tasks as it winds down its operations. The liquidation of the company will ultimately mean the loss of 18,000 jobs, not including those shed in the years leading to the company's failure.