Corporate Dealmaker tag:www.thedeal.com,2007-08-28:/corporatedealmaker//30 2009-07-10T20:12:57Z Movable Type Pro 4.23-en Virgin America investor plans unlikely to end criticism tag:www.thedeal.com,2009:/corporatedealmaker//30.28355 2009-07-10T20:00:39Z 2009-07-10T20:12:57Z Virgin America Inc., the discount airline that has received both high praise for its product and criticism for its ownership structure, is reportedly seeking approval from U.S. regulators to revamp the latter.The Burlingame, Calif.-based airline, 24% owned by Richard Branson's Virgin Group Ltd., has been the target of complaints by... Lou Whiteman http://www.thedeal.com/dealscape Virgin America Inc., the discount airline that has received both high praise for its product and criticism for its ownership structure, is reportedly seeking approval from U.S. regulators to revamp the latter.

The Burlingame, Calif.-based airline, 24% owned by Richard Branson's Virgin Group Ltd., has been the target of complaints by rivals over whether it is truly a U.S.-controlled entity, as required by law. The airline won initial approval to fly from the Department of Transportation after a prolonged fight by selling more than 75% of its equity to U.S. investors.

In recent months, Alaska Airlines Inc. (NYSE:ALK) and others have asked the DOT to reconsider whether Virgin America fits the criteria to be considered U.S. owned after reports that the company's initial U.S. investors planned to exercise their option to sell their initial $150 million investment.

According to a Financial Times report Friday, the airline is seeking DOT approval for a plan to receive new capital from a group of investors that includes Cyrus Capital Partners, one of its original shareholders. That investment could be for less than the original $150 million, the FT said, though details of the plan were uncertain.

Also uncertain is whether the plan will satisfy any lingering concerns about who controls Virgin America. With Cyrus able to cash in its initial investment for a profit and jump back in, critics are sure to argue that the U.S. funding is more of a loan than an equity stake, casting fresh doubt over Virgin America's citizenship.

Brett Snyder, writing for BNET on the travel industry, thinks that DOT will look at the transactions and "they might have to think twice about whether it should really just be considered debt instead."

"It will be interesting to see where this goes, and if the DOT decides to keep pushing or not," Snyder writes. Indeed.  - Lou Whiteman

Lou Whiteman is a senior writer covering the automotive, transportation and industrial sectors. Follow him on Twitter @louwhiteman

]]> http://www.thedeal.com/corporatedealmaker/2009/07/virgin_america_investor_plans.php McDonald's waits on Ford, Nissan EVs tag:www.thedeal.com,2009:/corporatedealmaker//30.28361 2009-07-10T19:50:56Z 2009-07-10T20:07:14Z While much of the green auto market is focused on gas-electric hybrid vehicles, it's interesting to note the production of all-electric vehicles and the vertical infrastructure they require to become a profitable venture for car companies and the companies that are in support of them. For example, on a... Basdeo Hiralal While much of the green auto market is focused on gas-electric hybrid vehicles, it's interesting to note the production of all-electric vehicles and the vertical infrastructure they require to become a profitable venture for car companies and the companies that are in support of them.

For example, on a small scale, a Raleigh, N.C.-area McDonald's will be the first in the nation to feature electric-car-charging stations, according to an AP report. It opens Tuesday. McDonald's Corp. (NYSE:MCD) is using it as a model to see if it's worth doing elsewhere. And as vehicles come to production, more businesses will likely take a stab at the model, and the makers of those charging stations, such as Coulomb Technologies, will have to scale up if consumers start buying.

Of course, Mickey D's will have to do some waiting. There are very few electric cars around but they can count on large companies such as Ford Motor Co. (NYSE:F) and Nissan Motor Co. Ltd. (NASDAQ:NSANY), which is debuting its first electric car in August. Nissan CEO Carlos Ghosn recently said he isn't worried about making sales and plans to make about 100,000 of them a year at a $500 million plant in Tennessee. Of course, that's just the U.S. Nissan plans on going global and teaming with government's as well as companies to offer post-sale service for the e-cars.

Ford, however, is waiting until 2011 for an all-electric vehicle to see how the market reacts to its competitors. That could end up being a smart move if consumers don't spend or hinder it by not joining the first-to-mass-market crew. The company is on the hybrid bandwagon, though. Coming in 2010 for Ford are the Fusion Hybrid and Mercury Milan Hybrid. Ford said it's in its fifth year producing the world's most fuel-efficient SUV -- the Escape Hybrid. We'll just have to wait and see how this plays out. - Baz Hiralal

Go to the McDonald's story
Ford, Nissan, GM EV strategy

]]> http://www.thedeal.com/corporatedealmaker/2009/07/mcdonalds_waits_on_ford_nissan.php Staples taps former Wal-Mart exec to lead strategy tag:www.thedeal.com,2009:/corporatedealmaker//30.28364 2009-07-10T19:36:21Z 2009-07-10T20:11:45Z Suzanne Stevens Staples Inc. (NASDAQ:SPLS) has hired Amee Chande as senior vice president of strategy. Chandee, who will report to CFO John Mahoney, will take a lead role in developing and executing Staples' global growth strategy. 

The office products retailer is banking heavily on its international operations to help offset sluggish demand at home. That was made clear with its aggressive pursuit of Dutch office products supplier Corporate Express NV, which Staples acquired for $4.8 billion last summer.   

Chandee previously was VP of new business development for Wal-Mart Stores Inc. (NYSE:WMT), which has taken a patient approach to expanding into developing markets such as China and India. Staples already operates in 22 countries, and Chandee's experience at Wal-Mart should help as it expands its global footprint even further.  - Suzanne Stevens
]]> http://www.thedeal.com/corporatedealmaker/2009/07/staples_taps_former_wal-mart_e.php Continental wins antitrust immunity to join Star Alliance tag:www.thedeal.com,2009:/corporatedealmaker//30.28349 2009-07-10T18:28:54Z 2009-07-10T20:08:44Z Siding with the airlines over objections from the Department of Justice, the Transportation Department on Friday granted Continental Airlines Inc. antitrust immunity to coordinate trans-Atlantic service with its Star Alliance partners.Continental last year had requested approval to coordinate its operations with Star airlines, a group that includes UAL Corp.'s (NADAQ:UAUA)... Lou Whiteman http://www.thedeal.com/dealscape Siding with the airlines over objections from the Department of Justice, the Transportation Department on Friday granted Continental Airlines Inc. antitrust immunity to coordinate trans-Atlantic service with its Star Alliance partners.

Continental last year had requested approval to coordinate its operations with Star airlines, a group that includes UAL Corp.'s (NADAQ:UAUA) United Airlines Inc., Air Canada Inc. and Deutsche Lufthansa AG. Transportation granted preliminary approval in April, but held up final approval at the request of the DOJ.

Justice objected to the broad scope of Continental's immunity request. The DOT in a statement announcing the final decision said in response to DOJ and other comments, it has placed carveouts on certain trans-Atlantic markets as well as markets between the U.S. and Canada and the U.S. and China that will not be covered by the grant of immunity.

Though Justice's concerns did not fully carry the day with the DOT, the agency did succeed in sending a clear message about how it views airline consolidation. With some predicting that United and Continental could renew dormant merger talks if the economy does not pick up by year's end, DOJ antitrust officials might soon have another chance to weigh in on the issue.

Continental and United had argued they need the approval to compete more effectively with an alliance between Delta Air Lines Inc. (NYSE:DAL) and Air France/KLM that enjoys antitrust immunity. A third application by AMR Corp.'s (NYSE:AMR) American Airlines Inc., British Airways plc and Iberia SA is still pending. - Lou Whiteman

Lou Whiteman is a senior writer covering the automotive, transportation and industrial sectors. Follow him on Twitter @louwhiteman
]]> http://www.thedeal.com/corporatedealmaker/2009/07/continental_wins_antitrust_imm.php Chrome OS compromises Schmidt's Apple role tag:www.thedeal.com,2009:/corporatedealmaker//30.28346 2009-07-10T17:25:00Z 2009-07-10T17:40:25Z Google's Chrome OS puts it in direct competition with Apple, making Google CEO Eric Schmidt's directorship of Apple -- already under FTC scrutiny -- even more questionable. Mary Kathleen Flynn http://techconfidential.com/behind-the-money When Google Inc. (NASDAQ:GOOG) announced its new Chrome operating system earlier this week, the move put the search company in direct competition not only with Microsoft Corp. (NASDAQ:MSFT) but also with Apple Inc. (NASDAQ:AAPL), further complicating -- one might even say compromising -- Google CEO Eric Schmidt's position on Apple's board.

"I'll talk to the Apple people. At the moment, there's no issue," Schmidt told reporters at the Allen & Co. conference in Sun Valley, Idaho, on Thursday.

Many observers think differently, with tech bloggers calling for Schmidt to step down from Apple's board.

More importantly, the U.S. Federal Trade Commission is investigating whether the Apple directorships held by Schmidt and former Genentech Inc. CEO Arthur Levinson violate antitrust laws, which say that a person can't be on two boards if it decreases competition between the two companies.

Schmidt says he already recuses himself from discussions about the iPhone and other areas where Google and Apple compete.

Soon, Schmidt may be spending quite a bit of time in the hall rather than in Apple's boardroom. - Mary Kathleen Flynn]]> http://www.thedeal.com/corporatedealmaker/2009/07/chrome_os_complicates_schmidt.php New tech key for new GM tag:www.thedeal.com,2009:/corporatedealmaker//30.28340 2009-07-10T13:47:17Z 2009-07-10T17:51:58Z News of General Motors Corp. exiting bankruptcy at a breakneck pace, creating a leaner greener company majority-owned by the U.S. government, flooded financial news outlets Friday morning. What got less press was a giant state-of-the-art research facility opening in Michigan.How will GM compete with rivals in the hybrid and electric... Basdeo Hiralal News of General Motors Corp. exiting bankruptcy at a breakneck pace, creating a leaner greener company majority-owned by the U.S. government, flooded financial news outlets Friday morning. What got less press was a giant state-of-the-art research facility opening in Michigan.

How will GM compete with rivals in the hybrid and electric car market? At a press conference on Friday in Detroit, chief executive Fritz Henderson stressed that fuel efficiency and the technology around it will be a major pillar in GM's new strategy. Henderson also said in a press release announcing GM's exit from bankruptcy, "Success on the revenue side means building the stylish, high-quality, fuel-efficient vehicles that customers want -- and getting them to market fast."

The Detroit company will launch the Chevrolet Volt extended range electric vehicle (pictured) in 2010, expects to have 14 hybrid models in production by 2012 and will have 65% of vehicles alternative-fuel capable by 2014. In order to support those goals, a Global Battery Systems Lab opened this week in Warren, Mich. Automobilemag.com notes the lab spans 33,000 square feet -- four times larger than GM's previous tech center battery lab -- and will be used by GM's growing team of more than 1,000 engineers working on advanced batteries and electrically driven vehicles worldwide.

Powering the new vehicles will be lithium-ion batteries, a sector exploding with joint ventures and the creation of manufacturing plants. As we noted in this sector roundup, GM chose LG Chem Ltd., the South Korean chemicals giant, to supply it with lithium-ion batteries for its Chevy Volt. And LG Chem says its investing W1 trillion ($799 million) to build a battery plant near Seoul.

The Deal's Lou Whiteman, who will be writing more on GM later Friday, wrote a story (subscription required) Thursday analyzing what the New GM would be like. He noted that GM today has a cost structure that is competitive with the foreign rivals that have battered it for nearly three decades but may not have enough new vehicles in its immediate pipeline to woo back customers. - Baz Hiralal

GM's announcement on bankruptcy exit


]]> http://www.thedeal.com/corporatedealmaker/2009/07/new_tech_key_for_new_gm.php Karl Rove: Whitacre an 'astute pick' for GM tag:www.thedeal.com,2009:/corporatedealmaker//30.28342 2009-07-10T12:59:43Z 2009-07-10T14:05:10Z At 9 a.m. EST Friday General Motors Corp. CEO Fritz Henderson held a press conference on GM's exit from bankruptcy. As we detail on The Deal Pipeline (subscription required), incoming chairman Ed Whitacre was on hand as well. Whitacre's presence is important -- for political as well as business reasons.... Kenneth Klee At 9 a.m. EST Friday General Motors Corp. CEO Fritz Henderson held a press conference on GM's exit from bankruptcy. As we detail on The Deal Pipeline (subscription required), incoming chairman Ed Whitacre was on hand as well.

Whitacre's presence is important -- for political as well as business reasons.

When the retired AT&T Inc. (NYSE:T) chairman was announced as GM's new chairman in June, we counted among his qualifications the fact that, judging from his political contributions, he looked like a good Texas Republican. In the GM turnaround, with its potential to be undermined not just by government micromanaging but also by perceptions of partisanship, this strikes us as important. A few weeks ago, there was even talk among some on the right about boycotting GM.

Friday's Wall Street Journal hits this theme with a quote from former Bush adviser Karl Rove, who (we now learn) is a longtime associate of Whitacre. No fan of President Obama, Rove nevertheless has encouraging words about the job Whitacre can do at GM. "He's very tough, which is called for in this situation," he told the WSJ. "He's not going to let things remain as they are ... this was a very astute pick."

Who said bipartisanship is dead? - Kenneth Klee


]]> http://www.thedeal.com/corporatedealmaker/2009/07/karl_rove_whitacre_an_astute_p.php Best Buy, TiVo align in crowded digital space tag:www.thedeal.com,2009:/corporatedealmaker//30.28327 2009-07-09T19:36:31Z 2009-07-09T20:31:44Z Best Buy Co. (NYSE:BBY) and TiVo Inc. (NASDAQ:TIVO) have created a technology alliance that will allow both companies to cross-promote products and services. A few highlights of the far-reaching partnership include:Prominent placement of TiVo DVRs in Best Buy storesPossible development of a user interface for TiVo DVRs that will allow... Suzanne Stevens Best Buy Co. (NYSE:BBY) and TiVo Inc. (NASDAQ:TIVO) have created a technology alliance that will allow both companies to cross-promote products and services. A few highlights of the far-reaching partnership include:

  • Prominent placement of TiVo DVRs in Best Buy stores
  • Possible development of a user interface for TiVo DVRs that will allow Best Buy to deliver marketing material and advice on how to maximize the at-home digital experience directly to consumers
  • Possible integration of TiVo user interface, search and other technologies into Best Buy-branded electronics
The partnership is the latest in Best Buy's push to build its digital muscle. The big-box retailer in May bankrolled a new venture capital fund to invest in digital media and communications startups, with a focus on those developing games, mobile apps, music sharing and online video.

TiVo has been active on the deal front as well, announcing partnerships recently with Blockbuster Inc. (NYSE:BBI)  and Netflix Inc. (NASDAQ:NFLX) to deliver the movie retailers' titles directly to TiVo boxes. And in a sign of just how competitive the digital entertainment space is, TiVo is locked in a bitter five-year legal dispute with EchoStar, which was charged with infringing on TiVo's DVR technology. EchoStar, owned by Dish Network Corp. (NASDAQ:DISH), has appealed. - Suzanne Stevens

]]> http://www.thedeal.com/corporatedealmaker/2009/07/best_buy_tivo_align_in_crowded.php Delta and Virgin teaming on trans-Pacific flights tag:www.thedeal.com,2009:/corporatedealmaker//30.28323 2009-07-09T19:29:49Z 2009-07-09T19:35:19Z Delta Air Lines Inc. (NYSE:DAL) and the Virgin Blue Airlines Group are seeking approval for a joint venture that will lower their costs to operate U.S. to Australia routes. The companies hope to pool revenue, collaborate to plan routes and introduce new products, and even to use one another's planes.... Suzanne Stevens Delta Air Lines Inc. (NYSE:DAL) and the Virgin Blue Airlines Group are seeking approval for a joint venture that will lower their costs to operate U.S. to Australia routes. The companies hope to pool revenue, collaborate to plan routes and introduce new products, and even to use one another's planes. Both Virgin and Delta have only recently begun flying U.S. to Australia routes -- Delta began just last week -- and the JV is designed to help them better compete with incumbents Qantas Airways Ltd. and United Airlines. 

As a first step, according to The Australian, the carriers have filed applications for antitrust immunity with the U.S. Department of Transportation and the Australian Competition & Consumer Commission. And in advance of the JV, they're also planning to implement code sharing, frequent flyer program reciprocity and lounge exchange privileges.

The news comes as airlines around the world are battling the strong headwinds of the recession. In March, Delta announced plans for more job cuts and a 10% reduction of its international capacity. And since April, Qantas has slashed more than 1,000 jobs and canceled or delayed delivery of new planes. - Suzanne Stevens 

 



]]> http://www.thedeal.com/corporatedealmaker/2009/07/delta_and_virgin_teaming_on_tr.php Congress v. bankruptcy law in bid to protect dealers tag:www.thedeal.com,2009:/corporatedealmaker//30.28314 2009-07-09T17:27:42Z 2009-07-10T13:21:46Z Government assistance has helped first Chrysler Group LLC and soon General Motors Corp. through quick-rinse bankruptcies. But these companies that have received so much aid from the White House now face a threat from another branch of government, with legislation working its way through Congress that would force the automakers... Lou Whiteman http://www.thedeal.com/dealscape
An amendment to a spending bill that would restore the 789 dealers cut by Chrysler and 1,300 by GM passed the House Appropriations Committee on Tuesday, amid a growing tide of outrage among lawmakers over what is being perceived as an unfair attack on small business. Republican lawmaker Steven LaTourette, who sponsored the amendment, said GM and Chrysler "have never made the case" as to why the dealers have to be kicked out onto the curb.

It is unclear how such a law would be enforced if passed. Washington sources say the amendment appears unlikely to survive a barrage of expected challenges in Congress, and the White House is not expected to support the proposal even if it does. The most likely outcome is that Congress will find some other method to compensate defunct dealerships, allowing lawmakers to declare victory to their constituents without derailing any restructuring efforts.

Of course, the dealers do have a point. They aren't the ones who brought GM and Chrysler down. But the automakers have one too. The plethora of dealerships in large markets leads individual showrooms to devote precious marketing resources to one-upping rival dealers. While GM dealers tend to use the airwaves to tout their sales compared to other GM dealers, Toyota Motor Corp. dealers are more likely to run ads encouraging consumers to buy Toyotas over Chevys.

So while there is a consensus that the Detroit automakers would benefit from having fewer dealerships, there's no clear proof that a quick reduction of dealers is necessary for them to be viable. Absent bankruptcy, which gives GM and Chrysler broad leeway to terminate franchise agreements, the automakers would most likely have allowed most of these dealers to continue rather than battling state franchises laws, letting the weakest slowly die a more natural death.

But the fact is that the bankruptcy tools are available and are being used as they were intended be when they were created -- to give GM and Chrysler, now taxpayer owned, the best chance to flourish post-filing. It's true that the executive branch may have bent these tools a bit when the Auto Task Force leapfrogged some creditors past others earlier in the process, but there's precedent for a DIP lender to apply a strong hand. For Congress to pass a law that would junk the tools altogether (even if it could) would be extremely foolish. - Lou Whiteman

Lou Whiteman is a senior writer covering the automotive, transportation and industrial sectors. Follow him on Twitter @louwhiteman

]]> http://www.thedeal.com/corporatedealmaker/2009/07/congress_risks_upsetting_bankr.php Quallion uses gov stimulus in li-ion battle tag:www.thedeal.com,2009:/corporatedealmaker//30.28305 2009-07-09T14:51:00Z 2009-07-09T15:33:11Z As automakers such as General Motors Corp. revamp business models to profit from "green" cars, suppliers of technology -- such as lithium-ion batteries -- to run them are rushing to churn out more product. And they're using some government funds to do it. As part of President Obama's larger... Basdeo Hiralal As automakers such as General Motors Corp. revamp business models to profit from "green" cars, suppliers of technology -- such as lithium-ion batteries -- to run them are rushing to churn out more product. And they're using some government funds to do it. As part of President Obama's larger energy plan, he's pushing for more domestic production.

One such supplier taking advantage is lithium-ion battery maker Quallion LLC, which was founded in 1998 and has more than 60 chemistry, cell and battery patents and 90 pending patents. The company picked Palmdale, Calif., as its site to construct a $220 million plant that is expected to be completed in 2012.

Quallion president Paul Beach said in a statement:

Our latest efforts have led to securing about $20 million from the City of Palmdale and the California Energy Commission to make this new facility a reality. We have game changing technology at hand and this plant can create as many as 400 jobs in California immediately, with even more jobs possible in the near future.

Beach also said more than 2,350 long-term skilled manufacturing and installation jobs will be created in California and across the country. He feels the new plant will significantly increase America's influence in the Asian-dominated lithium-ion battery industry.

Quallion is just using a small slice of the Department of Energy's $2 billion package for the construction of such plants. The market will balloon, and plants are slated for construction all over the U.S. We last did a roundup of who the major players are in the lithium-ion sector in late May. It showed that manufacturing plants are coming in New York and Michigan, among other places. And some companies to keep an eye on include Electric Motors Corp. (NASDAQ:EMCO), General Electric Co. (NYSE:GE), Johnson Controls Inc. (NYSE:JCI), Exide Technologies (NASDAQ:XIDE) and A123Systems Inc.

Quallion notes its proposed lithium-ion battery facility will directly support Obama's goal to have 1 million plug-in hybrid cars on the road by 2015.

But while the president is pushing for more American dominance in the sector, folks abroad are hard at work to keep their footing. Take LG Chem Ltd., for instance. It's the South Korean chemicals giant that General Motors chose to supply it with lithium-ion batteries for its Chevrolet Volt plug-in. LG Chem says its investing W1 trillion ($799 million) to build a battery plant near Seoul. Also, the Nikkei business daily said Japan's Hitachi Ltd. plans to boost production capacity for lithium-ion batteries for hybrid cars at an estimated cost of ¥20 billion to ¥30 billion ($216 million to $324 million), targeting a 70-fold increase by 2015.

It's also worth noting that while the U.S. produces about 3% of the world's lithium, South America is pretty much the Saudi Arabia of lithium, with Bolivia holding about 50% of the world's reserves. - Baz Hiralal

See the Quallion announcement

]]> http://www.thedeal.com/corporatedealmaker/2009/07/quallion_uses_gov_stimulus_mon.php Intel doubles down on WiMax tag:www.thedeal.com,2009:/corporatedealmaker//30.28308 2009-07-09T14:20:32Z 2009-07-09T14:24:12Z Suzanne Stevens Intel Corp. (NASDAQ:INTC) is betting big that WiMax will be the winning mobile Internet technology of the future, pouring nearly $2 billion into 18 WiMax companies in recent years.   

Olaf de Serenport Domis has the story in the latest issue of The Deal magazine. As he reports, Intel's venture arm Intel Capital last month invested $43 million in UQ Communications Inc., a Tokyo-based WiMax service provider gunning for 90% of the Japanese market by 2012. It's an important test for WiMax. Widespread adoption in Japan could give the technology an edge as competitive technologies -- namely long-term evolution, or LGE, backed by AT&T Inc. (NYSE:T) and Verizon Wireless -- mature. 

It's an expensive race with top-tier technology, telecom and wireless companies invested. And no wonder, the rewards are potentially huge, and no company wants to be left behind. - Suzanne Stevens

]]> http://www.thedeal.com/corporatedealmaker/2009/07/intel_doubles_down_on_wimax.php BP's convenience-store story tag:www.thedeal.com,2009:/corporatedealmaker//30.28307 2009-07-09T13:40:35Z 2009-07-09T14:16:36Z Should oil giants run convenience stores? Some say no. Exxon Mobil Corp. (NYSE:XOM) and ConocoPhillips Co. (NYSE:COP) have sold their thousands of shops and exited the business. And a few say yes. A year ago, when last we looked at the topic, Chevron Corp.'s (NYSE:CVX) ExtraMile Convenience Stores were ranked... Kenneth Klee Should oil giants run convenience stores? Some say no. Exxon Mobil Corp. (NYSE:XOM) and ConocoPhillips Co. (NYSE:COP) have sold their thousands of shops and exited the business. And a few say yes. A year ago, when last we looked at the topic, Chevron Corp.'s (NYSE:CVX) ExtraMile Convenience Stores were ranked No. 1 in the field by trade pub CSP.

But as you can tell from the experience of another company that has stayed in, BP plc (NYSE:BP), it takes a real commitment, and plenty of management attention, to be successful.

BP got a network of 1,800 or so stores when it bought Arco in 2000. In an article in Knowledge@Wharton, Fiona MacLeod, president of BP Convenience Retail USA & Latin America, tells about a transformation that began in 2007 and involved a rebranding (they're now called ampm stores) and the conversion of 800 company-owned stores to franchises. This was a major project, part of a broader revamp at BP, and the company surely must have weighed it against a sale. But MacLeod sounds happy with the results, saying the effort freed up $1.2 billion in capital and focused the stores on their real mission, which is monetizing the gasoline made in BP's refineries.

So is a pure franchise model the only way to make this work? Not necessarily. According to CSP, Chevron uses a mix of company-owned and franchise stores. - Kenneth Klee
]]> http://www.thedeal.com/corporatedealmaker/2009/07/bps_convenience-store_story.php OncoMed hires biotech vet to lead dealmaking tag:www.thedeal.com,2009:/corporatedealmaker//30.28301 2009-07-09T12:50:32Z 2009-07-09T13:21:45Z OncoMed Pharmaceuticals Inc. has appointed Sunil Patel to the new position of senior vice president of corporate development. OncoMed is a clinical-stage company that develops therapeutics targeting cancer stem cells. Patel joins from BiPar Sciences, which was acquired by Sanofi-Aventis (NYSE:SNY) in April. As BiPar's VP of corporate development, Patel... Suzanne Stevens OncoMed Pharmaceuticals Inc. has appointed Sunil Patel to the new position of senior vice president of corporate development. OncoMed is a clinical-stage company that develops therapeutics targeting cancer stem cells.

Patel joins from BiPar Sciences, which was acquired by Sanofi-Aventis (NYSE:SNY) in April. As BiPar's VP of corporate development, Patel played a lead role in negotiating and executing the sale. He's also held senior corp dev and strategy roles at Allos Therapeutics (NASDAQ:ALTH), Connetics Corp., Abgenix and Gilead Sciences Inc. (NADAQ:GILD).

OncoMed hasn't been busy on the deal front. It landed a key R&D partnership with GlaxoSmithKline plc (NYSE:GSK) in December 2007, with the potential to reportedly deliver OncoMed up to $1.4 billion in milestone payments and double-digit royalties in the future. Since then, OncoMed has focused on further filling its wallet, raising $93 million in venture capital in  November and another $15 million a month later. Its venture backers include Nomura Phase4 Ventures, US Venture Partners, Delphi Ventures and De Novo Ventures.

Considering OncoMed has no marketable products and a handful of drugs in development, pursuing additional alliances with strategic partners like GSK may be high on Patel's agenda. In that regard, Patel's deep network of industry contacts, was surely a big part of the attraction. - Suzanne Stevens
]]> http://www.thedeal.com/corporatedealmaker/2009/07/oncomed_hires_biotech_veteran.php Eaton forms Middle East JV tag:www.thedeal.com,2009:/corporatedealmaker//30.28292 2009-07-08T20:11:02Z 2009-07-08T20:23:08Z Suzanne Stevens Eaton Corp. (NYSE:ETN) has expanded its Middle East presence with a power generation joint venture in the United Arab Emirates. The diversified industrial manufacturer, which already provides power distribution systems and truck components in the region, created the JV through an investment in SEG Middle East Power Solutions & Switchboard Manufacture LLC, which makes low-voltage switchboards and control solutions. Terms were not disclosed.

The JV is the first significant expansion news for Eaton since November 2008, when the Cleveland Co. announced it had purchased a building in Shanghai to house its new Asia-Pacific headquarters. The trickle of deal activity is a change for the normally acquisitive Eaton. The company spent $4.25 billion on acquisitions between 2007 and the first half of 2008.

Since then, with demand for its products slowing, Eaton has focused on cash generation, with some success. While sales were off 20% in the first quarter of 2009, it reported $107 million in operating cash flow and free cash flow of $59 million. Its set to report second-quarter 2009 earnings on July 20. - Suzanne Stevens 






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