‘Transitions 2011’ conference program additions announced

New family business speakers have been added to the program for "Transitions 2011: Family Governance, Legacy, Wealth and Generational Change." The event -- the second annual conference presented by Family Business Magazine and Stetson University's Family Enterprise Center -- will be held April 7-8 at the Grand Bohemian Hotel in Orlando, Fla.

Jim Ethier, chairman of the board of Bush Brothers & Company, will participate in a panel discussion on Business Governance. Anthony (Tony) Wilson, the chair of Bush Brothers & Company's Family Senate, will be part of a panel discussing Family Governance. Mitchell Kaneff, chairman and CEO of Arkay Packaging, will deliver a keynote address on "Transforming Legacy into Long-Term Sustainability."

The conference -- created by family companies for family companies -- will feature three half-day sessions:

Family Legacy as a Strategic Advantage
Governance, Growth and the Next Generation
Preserving Family Values and Growing Family Wealth

Previously announced family speakers include:

Thomas M. Bloch, former CEO, H&R Block
Ross Born, co-CEO, Just Born Inc.
Phillip A. Clemens, chairman and CEO, The Clemens Family Corporation
Lansing Crane, former chairman and CEO, Crane & Co.
Timothy B. Hussey, president and CEO, Hussey Seating Company
Richard C. Kessler, chairman and CEO, The Kessler Collection (owner of the Grand Bohemian Hotel)
Anne Eiting Klamar, M.D., president and CEO, Midmark Corporation
Charlotte Lamp, Ph.D., a third-generation shareholder of Port Blakely Companies
Scott Livingston, president & CEO, Horst Engineering
Mark Peters, president, Butterball Farms
Sylvia Shepard, chair of Menasha Corporation's family council
Harold L. Yoh III, chairman and CEO, Day & Zimmermann Inc.

Family business advisers who will be speaking at the conference include Allison P. Shipley, principal, tax -- personal financial service practice, PricewaterhouseCoopers; Dirk Jungé, chairman and CEO, Pitcairn; Ann M. Dugan, founder of the Institute for Entrepreneurial Excellence at the University of Pittsburgh's Joseph M. Katz Graduate School of Business; and John Benevides, chairman of the YPO/WPO Family Business Network and president of family office services at Harris myCFO.

Also on the agenda is special content for next-generation family business members. Family business members aged 15-25 will work in a small group with Stetson Professor Greg McCann and current students in Stetson's Family Business Program. The young people will share questions and concerns about their future in the family business.

Members of YPO's Family Business Network will enjoy special programming and preferred registration fees.

The event's Gold sponsor is PricewaterhouseCoopers. Bronze sponsors are Pitcairn and the University of Pittsburgh Joseph M. Katz Graduate School of Business.

To view the complete conference agenda and speaker bios and to register, visit www.familybusinessmagazine.com/transitions

Posted Wednesday, December 29, 2010 • Permalink

Phila.-area family bank survived downturn without loss

Firstrust Bank, which has 24 offices in the Philadelphia area, survived the economic downturn "without posting a money-losing year, and without taking a government bailout or other outside investment," the Philadelphia Inquirer reported.

According to the report, the bank, founded in 1934 and still owned by the founding Green family,

has more capital than it had five years ago, helped by the Green family's decision to forgo dividends in all but two quarters from the summer of 2007 through this year's first quarter, according to the ... bank's quarterly reports to the Federal Deposit Insurance Corp.

The bank plans to add a Small Business Administration lending unit and a residential-mortgage division, the article said. (Source: Philadelphia Inquirer, Dec. 27, 2010.)

Posted Tuesday, December 28, 2010 • Permalink

Tishman Speyer makes acquisitions as market recovers

Tishman Speyer Properties, run by father and son Jerry and Rob Speyer, has purchased an office tower at 353 N. Clark St. in Chicago for $385 million, the Wall Street Journal reported. It also bought an office building in a Paris suburb for about $131 million and is regaining sole ownership of a Silicon Valley office complex, according to the report.

Tishman Speyer built its reputation in the office market. But during the boom years it played a leading role in the ill-fated acquisitions of multifamily company Archstone-Smith Trust and Manhattan's Stuyvesant Town and Peter Cooper Village apartment complex. Those deals and a few others collapsed, tarnishing the firm's image. Now, as it puts its problems behind it, Tishman Speyer is cranking up its deal engine focusing on the types of acquisitions it knows best.

The firm owns more than 50 million square feet globally, the Journal article said. The report noted that the Speyers' shared their losses with investors, some of whom are sticking with them. (Source: Wall Street Journal, Dec. 22, 2010.)

Posted Wednesday, December 22, 2010 • Permalink

N.J. housewares retailer fends off suitors

Kitchen Kapers, a Cherry Hill, N.J., retailer of upscale housewares, was founded 35 years ago by Harold Kratchman, now deceased, who at age 50 took out a loan against his house to open a store. Today, Kitchen Kapers has 150 employees and 14 stores and is run by Kratchman's three sons, the Philadelphia Inquirer reported.

Over the years, Kitchen Kapers has fended off competition from out-of-state chains, some of which have since gone out of business, the article said. The independent retailer has also been approached by several larger chains that wanted to acquire it. One reportedly threatened to put Kitchen Kapers out of business by opening stores in its area; that chain also has gone out of busines.

The company is now focusing on online sales, the Inquirer article said. Two third-generation members now work at the company. (Source: Philadelphia Inquirer, Dec. 22, 2010.)

Posted Wednesday, December 22, 2010 • Permalink

LVMH raises stake in Hermes to 20.2%

LVMH Moët Hennessy Louis Vuitton, the luxury goods giant controlled by Bernard Arnault, has raised its stake in Hermès to 20.2%, up from 17.1%. According to a New York Times report, Arnault is now the largest individual shareholder.

The family that controls Hermès has said the company is not for sale. On Dec. 5, the family shareholders announced that they would create a holding company that would enable family members to trade among themselves. The move would "effectively guarantee that fewer than 10% of the stock traded freely on the market," the Times article said.

Shareholder advocates have asked regulators to make the family offer to take the company private, according to the Times report. In addition, Arnault faces an investigation by French regulators into whether his derivatives-based purchases of Hermès stock violated disclosure laws. (Source: New York Times, Dec. 21, 2010.)

Posted Wednesday, December 22, 2010 • Permalink

Hyundai deal is scrapped

Creditors of Hyundai Engineering & Construction Co. said they will scrap an agreement to sell their controlling stake to Hyundai Group for about $4.8 million, the Wall Street Journal reported.

In November, Hyundai Group was named the preferred bidder for the 34.88% stake in Hyundai E&C over Hyundai Motor Group. "However, questions were raised almost immediately about Hyundai Group's ability to fund its bid," the Journal article said. Creditors will discuss the possibility of starting negotiations with Hyundai Motor, according to the report.

Hyundai Group has filed for an injunction to the Seoul Central District Court to protect its rights as the preferred bidder for Hyundai E&C, the article said. (Source: Wall Street Journal, Dec. 21, 2010.)

Posted Tuesday, December 21, 2010 • Permalink

New speakers added to ‘Transitions 2011’ conference roster

New speakers have been added to the faculty roster for "Transitions 2011: Family Governance, Legacy, Wealth and Generational Change." The event -- the second annual conference presented by Family Business Magazine and Stetson University's Family Enterprise Center --will be held April 7-8 at the Grand Bohemian Hotel in Orlando, Fla.

Anne Eiting Klamar, M.D., president and CEO of Midmark Corporation, Sylvia Shepard, a member of Menasha Corporation's family council, and Jim Ethier, Chairman of the Board of Bush Brothers & Company are three newly added speakers from family companies.

Newly announced family business advisers who will be speaking at the conference are Allison P. Shipley, principal, tax -- personal financial service practice, PricewaterhouseCoopers; Dirk Jungé, chairman and CEO, Pitcairn; Ann M. Dugan, founder of the Institute for Entrepreneurial Excellence at the University of Pittsburgh's Joseph M. Katz Graduate School of Business; and John Benevides, chairman of the YPO/WPO Family Business Network and president of family office services at Harris myCFO.

The conference -- created by family companies for family companies -- will feature three half-day sessions:

Family Legacy as a Strategic Advantage
Governance, Growth and the Next Generation
Preserving Family Values and Growing Family Wealth

Previously announced family speakers include Thomas M. Bloch, former CEO, H&R Block; Ross Born, co-CEO, Just Born Inc.; Phillip A. Clemens, chairman and CEO, The Clemens Family Corporation; Lansing Crane, former chairman and CEO, Crane & Co.; Timothy B. Hussey, president and CEO, Hussey Seating Company; Richard C. Kessler, chairman and CEO, The Kessler Collection (owner of the Grand Bohemian Hotel); Charlotte Lamp, Ph.D., a third-generation shareholder of Port Blakely Companies; Scott Livingston, president & CEO, Horst Engineering; Mark Peters, president, Butterball Farms; and Harold L. Yoh III, chairman and CEO, Day & Zimmermann Inc.

Members of YPO's Family Business Network will enjoy special programming and preferred registration fees.

The event's Gold sponsor is PricewaterhouseCoopers. Bronze sponsors are Pitcairn and the University of Pittsburgh Joseph M. Katz Graduate School of Business.

To view the complete conference agenda and speaker list and to register, visit www.familybusinessmagazine.com/transitions

Posted Monday, December 20, 2010 • Permalink

Setback in Hyundai Group’s bid for control of Hyundai E&C

A legal adviser to the nine creditors-turned-shareholders of Hyundai Engineering & Construction Co. determined that a financing document provided by Hyundai Group is inadequate, the Wall Street Journal reported.

Hyundai Group hopes to buy a controlling stake in E&C. In November, Hyundai Group was named a preferred bidder for the stake over "heavily favored cash-rich rival" Hyundai Motor Group, the Journal article said.

The creditors have repeatedly threatened to walk away from the current agreement to sell their stake to Hyundai Group should the conglomerate fail to provide sufficient information on how it plans to finance the transaction.

Analysts have questions whether Hyundai Group can afford the acquisition, according to the Journal report.

Hyundai E&C, founded by Chung Ju-yung in 1947, was the founding piece of the Hyundai Group. The company was once the country's largest conglomerate but lost many of its affiliates in the wake of the 1997-1998 Asian financial crisis.... Chung Mong-koo, Hyundai Group founder's second son, is chairman of Hyundai Motor. Hyundai Group Chairwoman Hyun Jeong-eun is founder Chung's daughter-in-law. The construction firm and the two conglomerates, although they share a name and a common heritage, currently have no direct links. Analysts said Hyundai Group's strong bid also reflects its determination to protect itself from potential hostile takeovers. E&C holds an 8.3% stake in Hyundai Merchant Marine, a key component in the Hyundai Group's cross-shareholding structure. Losing that 8.3% stake, analysts say, poses a significant threat to Hyundai Group's ability to hold itself together.

(Source: Wall Street Journal, Dec. 15, 2010.)

Posted Thursday, December 16, 2010 • Permalink

Pritzker Group enters health care: Hyatt Center to be sold

The Pritzker Group -- a private family investment firm led by brothers J.B. and Tony Pritzker -- has bought medical device maker Clinical Innovations LLC from a Chicago private equity firm, Crain's Chicago Business reported. Tony Pritzker, who is based in Los Angeles, will become Clinical Innovations' chairman; J.B., based in Chicago, will serve on the board, according to the report. The acquisition is the Pritzker Group's first investment in the health care industry, the article said.

Meanwhile, the Irvine Co., a real estate company in Newport Beach, Calif., is close to an agreement to buy the 29-story Hyatt Center in Chicago for about $625 million from the Pritzkers, according to a Wall Street Journal report. The Pritzker family owns a majority stake in the Hyatt Hotels Corp. chain.

The Pritzkers, who control a business empire founded by Nicholas J. Pritzker more than a century ago, have sold billions of dollars in assets in recent years after a family dispute arose over their management.

(Sources: Crain's Chicago Business, Dec. 14, 2010; Wall Street Journal, Dec. 15, 2010.)

Posted Wednesday, December 15, 2010 • Permalink

IKEA gives bicycles to its U.S. employees

IKEA -- which is owned by a Dutch trust controlled by the family of founder Ingvar Kamprad -- gave bicycles as a holiday gift to 12,400 U.S. employees, the Philadelphia Inquirer reported.

The bicycles -- which were flat-packed and required assembly -- were made specifically for IKEA employees, according to the report.

Company spokeswoman Monica Liss wrote in an e-mail to the Inquirer that the employees received the gift to thank them for "great results and great team work" and because bikes support "a healthy lifestyle and everyday sustainable transport." (Source: Philadelphia Inquirer, Dec. 8, 2010.)

Posted Monday, December 13, 2010 • Permalink

Parmalat’s ex-CEO sentenced to 18 years

Calisto Tanzi, former CEO of Italian dairy Parmalat, was sentenced to 18 years in jail for his role in the 2003 collapse of the company, which had $18.5 billion in debt, the Financial Times reported. Prosecutors had requested a 20-year sentence, the article said.

A court in the northern town of Parma found Mr. Tanzi, 72, guilty of fraudulent bankruptcy and criminal conspiracy. Fausto Tonna, former finance director, was handed a 14-year jail sentence and 13 other former executives were also found guilty while two were acquitted.

Tanzi's lawyers said they would appeal, according to the report.

In May. Tanzi lost his appeal of a separate ten-year sentence handed down two years ago by a Milan court that had found him guilty of falsifying accounts, market rigging and misleading investors and market regulators, the FT report said.

The Parma court also ordered the defendants to pay 2 billion euros in compensation to the newly restructured Parmalat. Both the Parma and the Milan courts ordered the defendants to compensate a committee of creditors who had filed for civil damages, according to the FT report. (Source: Financial Times, Dec. 10, 2010.)

Posted Friday, December 10, 2010 • Permalink

Bettencourt, daughter to bolster family control of L’Oreal

Liliane Bettencourt, daughter of the founder of L'Oréal SA, and her daughter, Françoise Bettencourt-Meyers, who have ended their feud, said in a joint statement that "they aimed to reinforce family management of their 31% stake, valued at 15.7 billion euros ($21 billion), in L'Oréal, the Wall Street Journal reported.

A spokeswoman for Bettencourt said would cancel plans for her friend François-Marie Banier to inherit 1.25 billion euros in the form of life insurance polices and artwork, the Journal article said.

To bolster family control over the cosmetics company, Ms. Bettencourt and her daughter have agreed to appoint Françoise Bettencourt-Meyers's two sons to the board of Tethys, their holding company. Patrice de Maistre will step down as Tethys chief executive by year-end, Ms. Bettencourt's spokeswoman said.

(Source: Wall Street Journal, Dec. 7, 2010.)

Posted Tuesday, December 07, 2010 • Permalink

Bettencourt and her daughter end their feud

L'Oréal cosmetics heiress Liliane Bettencourt and her daughter Françoise Bettencourt Meyers have resolved their legal dispute, according to an Associated Press report.

Bettencourt Meyers' lawyer, Olivier Metzner, told the AP that his client and her mother, who had long been estranged, recently met. "We are bringing an end to all procedures given this familial reunion," he said.

Bettencourt Meyers had accused her mother's friend, François-Marie Banier, of bilking Bettencourt out of 1 billion euros in cash, artworks and gifts. The AP report said it was unclear whether a trial involving Banier will still be held.

The feud became a political scandal when leaks by former employees of Bettencourt alleged that the treasurer of French President Nicolas Sarkozy's party received funds from the heiress to illegally finance Sarkozy's election campaign. The AP report noted:

As the mother-daughter dispute escalated, Bettencourt raised questions about the future of the company when her daughter inherits L'Oréal, the world's biggest cosmetics company.

(Source: Associated Press, Dec. 6, 2010.)

Posted Monday, December 06, 2010 • Permalink

Hermes family forms holding company

Descendants of the founder of Hermès International will create a separate holding company to counter a potential takeover by Bernard Arnault, head of LVMH Moët Hennessy Louis Vuitton, the New York Times reported. In October, Arnault announced that LVMH had acquired a 17.1% stake in Hermès.

The Puech, Guerrand and Dumas families, which together own about 73 percent of the company, said ... that they would create a separate holding company combining shares representing more than 50 percent of Hermès's capital.... The creation of the structure would mean that family members wanting to sell shares would be able to trade between themselves without giving Mr. Arnault a chance to increase his stake.

France's market regulator must approve the new structure before it can be enacted, the Times article said. (Source: New York Times, Dec. 6, 2010.)

Posted Monday, December 06, 2010 • Permalink

Family business leaders to speak at ‘Transitions 2011’ conference

"Transitions 2011: Family Governance, Legacy, Wealth and Generational Change," the second annual conference presented by Family Business Magazine and Stetson University's Family Enterprise Center, will be held April 7-8 at the Grand Bohemian Hotel in Orlando, Fla.

The conference -- created by family companies for family companies -- will feature three half-day sessions:

Family Legacy as a Strategic Advantage
Governance, Growth and the Next Generation
Preserving Family Values and Growing Family Wealth

Speakers from family businesses will discuss their real-life problems and solutions. Featured family speakers include Thomas M. Bloch, former CEO, H&R Block; Ross Born, co-CEO, Just Born Inc.; Phillip A. Clemens, chairman and CEO, The Clemens Family Corporation; Lansing Crane, former chairman and CEO, Crane & Co.; Timothy B. Hussey, president and CEO, Hussey Seating Company; Richard C. Kessler, chairman and CEO, The Kessler Collection (owner of the Grand Bohemian Hotel); Charlotte Lamp, Ph.D., a third-generation shareholder of Port Blakely Companies; Scott Livingston, president & CEO, Horst Engineering; Mark Peters, president, Butterball Farms; and Harold L. Yoh III, chairman and CEO, Day & Zimmermann Inc.

Members of YPO's Family Business Network will enjoy special programming and preferred registration fees.

The event's Gold sponsor is PricewaterhouseCoopers.

To view the complete conference agenda and speaker list and to register, visit www.familybusinessmagazine.com/transitions

Posted Friday, December 03, 2010 • Permalink

Hermes family shareholders meet to map strategy

Hermès family shareholders planned to meet Dec. 3 to discuss how they might counter LVMH's increased stake in the 173-year-old company, the Financial Times reported. Bernard Arnault, the head of LVMH, now owns 17.1% of Hermès International.

The family "is meeting to discuss whether it can prevent Mr. Arnault from increasing his stake, while retaining the family's ability to sell shares," the FT article said.

One of the proposals being discussed in creating a non-listed family holding company to maintain 51% of the shares owned by the founder's descendants, according to the report.

The Hermès family has for many years discussed the creation of a family holding company and some members are annoyed that this was not put in place earlier. However, these structures would oblige the family to make an offer for the whole company unless given an exemption from the AMF, the French stock market regulator.

(Source: Financial Times, Dec. 3, 2010.)

Posted Friday, December 03, 2010 • Permalink

Chairman’s son promoted at Samsung

Lee Jae-yong, the 42-year-old son of Samsung Group chairman Lee Kun-hee, has been promoted from executive vice president to president of the flagship electronics business, Samsung Electronics Co., the Associated Press reported.

Lee Jae-yong, also known as Jay Y. Lee, joined Samsung in 1991 and has also served as chief customer officer and vice president for strategic planning, the AP article said.

His younger sister, Lee Boo-jin, was also promoted, to president and CEO of the Hotel Shilla and president of Samsung Everland Inc., a theme park and resort operator. Samsung Everland "plays a key role in the conglomerate's complicated financial structure based on cross shareholdings by group companies" and "is widely seen as the de facto holding company for the conglomerate," the AP report said.

Le Kun-hee was convicted of tax evasion in 2008 and received a suspended prison sentence; South Korea's president granted him a special pardon in 2009, the report noted.

Samsung Electronics had 17 executives with the title of president before [Lee Jae-yong's promotion], according to the group, though it could not immediately provide an updated figure. Lee Jae-yong's rise, however, has been closely watched given that he is a member of the conglomerate's founding family and widely expected to eventually succeed his father.

(Source: Associated Press, Dec. 3, 2010.)

Posted Friday, December 03, 2010 • Permalink