Bronfman gathers backers for Vivendi bid
New York: A group of private equity players has joined a consortium formed by Edgar Bronfman Jr to bid for the US entertainment assets of Vivendi Universal, people familiar with the matter said on Thursday. Bronfman, who lost a big portion of his family's Seagram distilling fortune betting on Vivendi Universal, has had talks with several potential investors and has recruited Boston-based private equity firm Thomas H Lee to buy back the media and music empire his family once owned, the sources said. One of the sources said Bronfman has also lined up private equity shop Blackstone to join the group, which includes a syndicate led by Wachovia. Bronfman joins several suitors interested in all or parts of the entertainment assets, which include cable TV networks, Universal Studios and theme parks. Other suitors include oilman Marvin Davis, Viacom, Liberty Media and Metro-Goldwyn-Mayer. Spokesmen for Bronfman and Thomas H Lee had no comment. A spokesman for Blackstone was not immediately available.
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Big Mac adopts new ad blitz to woo back fans
Eager to capitalise on a crumb of sales momentum after years of shortfalls, foul-ups and blunders, the McDonald's Corporation is taking a new creative direction in its advertising and marketing, based on persuading fast-food fans to rekindle their onetime love affair with the struggling restaurateur. The ambitious effort by McDonald's is encapsulated by a theme that will be introduced worldwide in fall: "I'm lovin' it." The campaign will be the first in which the company commits itself to a comprehensive consolidated effort with a single idea shared globally, yet interpreted to suit local markets at the same time. The new theme of the campaign, scheduled to run at least two years, will replace the many slogans now seen and heard in 118 countries, including "Smile", the exhortation aimed at Americans since last year. McDonald's spends about $1.5 billion a year in advertising, about half of that in the US.
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Ex-Freddie Mac CEO gets $24 mn deal
New York: Leland Brendsel, who resigned as chairman and chief executive of Freddie Mac late last week, will get more than $24 million of stock, bonus and benefits, the US No 2 mortgage finance company says. The generous leaving package, detailed on Wednesday on Freddie Mac's website, comes as the company faces criminal and regulatory probes, and is in the process of restating three years of earnings after problems surfaced in its accounting. Brendsel, CEO of the company since 1987, can cash in $21.1 million in Freddie Mac stock grants and will get two years salary, worth $2.36 million. He will also get a bonus of $860,417 for the part of 2003 that he was employed and five years of life insurance and health care benefits. The package is subject to approval by the Office of Federal Housing Enterprise Oversight, which regulates Freddie Mac. President and Chief Operating Officer David Glenn, who was fired, forfeits $11.2 million in stock grants and will receive no new compensation, the company said. Freddie Mac gave no details of compensation for Chief Financial Officer Vaughn Clarke, who also resigned late last week. The publicly traded company, which is sponsored by the US government, has been generous to its top executives in recent years. It paid Brendsel $8.5 million in salary, bonus and other compensation in the three years 1999 to 2001 and awarded him almost $12 million worth of restricted stock, part of the awards he can now cash in.
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3 ex-Dynegy employees charged with fraud
Houston: Federal prosecutors on Thursday filed criminal fraud charges against three former Dynegy employees in connection with a series of complex energy trades designed to boost the company's results. The three -- Jamie Olis, 37, Gene Shannon Foster, 44, and Helen Christine Sharkey, 31 -- were charged with conspiracy, securities fraud, mail fraud and wire fraud. All three were in federal custody, the prosecutors said. In Washington, the US Securities and Exchange Commission also filed civil securities fraud charges against the trio. "This case is about truth in the marketplace. These defendants are accused of withholding the truth about Dynegy's true fiscal condition from the SEC, shareholders and the public," Michael Shelby, US Attorney for the Southern District of Texas, said in a statement. According to the federal indictment, the three former Dynegy employees hatched a plan to borrow money and disguise it as cash flow from operations rather than accounting for it as debt
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Xerox in $3.1 bn recapitalisation plan
Los Angeles: Office equipment maker Xerox on Wednesday announced a $3.1 billion recapitalisation plan as part of its ongoing efforts to cut debt and return to sustained profitability. The move marked another step by the company best-known for its office copiers to put behind a cloud of recent troubles, which included a now-settled regulatory probe into its accounting practices.
After cutting 15,000 jobs and shedding unprofitable units, Stamford, Connecticut-based Xerox posted a full-year profit in 2002, its first since 1999. Xerox said it had commitments from Citigroup, Deutsche Bank, Goldman Sachs, JP Morgan, Merrill Lynch and UBS for a $700 million revolving facility and a $300 million term loan, which both mature in September 2008.
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3Com to cut 10 pc of work force
Chicago: Network equipment maker 3Com on Thursday said it will cut 10 per cent of its work force over the next two quarters to reduce costs amid weak demand for its products. 3Com said the decision will mostly affect employment in the United States, Europe, the Middle East and Africa. Within the United States, the largest impact will be in the company's headquarters in Santa Clara, California. 3Com employed 3,900 people at the end of its fiscal third quarter, which ended in February. 3Com's stock was up 4 cents at $5.00 in early trading on the Nasdaq.
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