| Raid corporate pirates' arsenal
The specter of private equity - and the prospect of being snapped up, stripped down, and sold at a colossal profit, all in the name of maximizing value - has shaken traditional managers to the core. But the best strategy for warding off the buyout pirates, who have been gobbling up and restructuring ever larger companies in recent years, may be to think, act, and manage just like them. So says Robert C. Pozen, chairman of the Boston money management firm MFS Investment Management. In a provocative essay in this month's edition of Harvard Business Review, he contends that the private equity industry - those buyout and hedge funds that have been playing a growing role in the economy - can offer lessons in "value enhancement" to managers and directors of public corporations.
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Eds: UPDATES with comment from analyst, company spokesman, closing price. Moving on general news and financial services. KANSAS CITY, Mo. (AP) -- Mark Ernst has resigned as chairman, president and chief executive of H e tax preparation and accounting services company said Tuesday. Ernst is being replaced as chairman by former chairman of the Securities and Exchange Commission, Richard Breeden, who led a dissident shareholder group that won three seats on the H ormer Aetna Inc. executive Alan Bennett was named interim CEO while H r a permanent replacement. Breeden has criticized the company's diversification into mortgage lending, investment advising and banking, saying it had robbed momentum from the company's core tax preparation and accounting services business. Ernst's departure follows the resignation of Chief Financial William Trubeck earlier this month.
Superintendent Finalist Talks Tough
Just tough or tough to work with? That's what Rochester parents and school staff wanted to learn about one of the candidates for school superintendent. When the school board named Carlinda Purcell a candidate for the Rochester superintendent's job, she became the most controversial finalist. Purcell left her last job amid conflicts with the school board. Wednesday, Purcell stood by her record. "I enjoy and really find my passion working in a district where children have a real need," Purcell said. Purcell says achieving success in a high needs district like Rochester takes strong leadership. "When boards of education come together and say this is our covenant, these are our goals and this is our mission, great things can happen," she added.
RBC takes $160M subprime charge
Two of Canada's biggest banks took big charges Tuesday reflecting troubles in the U.S. mortgage business and corporate credit markets, but also booked gains from their stake in the restructuring Visa credit card company. Royal Bank of Canada (TSX: RY) said it will record a $360-million charge related to losses in the U.S. subprime mortgage market, but will also post a $325-million gain for Visa credit card restructuring. Canada's largest bank said Tuesday it "expects its fourth-quarter earnings to be only modestly affected by these items due to largely offsetting impacts." Meanwhile, Scotiabank disclosed it will book writedowns totalling $190 million on non-bank asset-backed commercial paper and structured credit instruments. The writedowns amount to about $135 million after tax.
Capital One moves facility out of parish
Capital One will not be building a check processing plant in Hammond, and the Hammond Area Economic and Industrial Development District is seeking compensation for services provided.The nationwide credit card and banking company instead has chosen to move its check processing facilities to an already existing structure in Denham Springs.HAEIDD is seeking $148,484 for legal fees, site costs and economical impact analysis services provided during the planning stages of the facility. The two entities had an agreement that Capital One would reimburse HAEIDD for expenses if the deal defaulted.The new structure would have been located in the Hammond Business Park located at the Airport Road exit of Interstate 12. The check processing facility would have created 80 permanent jobs for the North Shore area in a $5.2 million facility.
Pope & Talbot Announces Voluntary Chapter 11 Filing
Pope & Talbot, Inc. (PTBT.PK) announced today that, in order to address its financial challenges and to support efforts to be a more efficient organization, the company has filed voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code. Pope & Talbot's Board of Directors, in a unanimous decision, directed the company to take this action as the best alternative for the long term interests of the company, its employees, customers, creditors, business partners and other stakeholders. .
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