Weekly Recap ; of Business News
CANADIAN TAKEOVER GOOD DEAL FOR PUTNAM
Another New England institution is headed to the Great White North. Montreal’s Power Financial Corp. inked a deal to buy Putnam Investments from Marsh & McLennan Cos. for $3.9 billion. The deal is a good one for Putnam’s employees and management because Power plans to keep Putnam’s current executive team, led by CEO Charles “Ed” Haldeman. The sale is also expected to protect the Boston mutual fund firm’s nearly 3,000-person work force.
TURNER APOLOGIZES FOR STUNT THAT UPSET HUB
If Turner Broadcasting System was hoping for some extra publicity with this marketing campaign for its Cartoon Network subsidiary, the company got more than it bargained for with its blinking electronic signs to promote a late-night cartoon. Public safety officials initially treated the objects as a bomb threat, briefly shutting down roads and MBTA service in parts of Boston, Cambridge and Somerville. Turner CEO Phil Kent issued an apology in full-page newspaper ads, but the cities will be looking for money, too, to compensate them for the response costs.
MOST FORECLOSURES BY OUT-OF-STATERS
The latest snapshot of the state’s foreclosures wasn’t a pretty one: The Warren Group reported that foreclosure filings rose by 70 percent in 2006, and the number of foreclosure auctions that were advertised in the state rose by 46 percent. Many homeowners found themselves squeezed between rising short-term interest rates and falling property values. Out-of-state lenders were responsible for the bulk of the foreclosures.
REEBOK SHIFTS TARGET AWAY FROM HIGH-FLIERS
Reebok is stepping up its efforts to market itself to weekend warriors and leaving corporate parent Adidas to go after high- performance athletes. The Canton-based sporting goods company unveiled plans for two marketing campaigns this year, including one with a “Run Easy” slogan that starts this spring. Reebok is trying to refine its brand image after it was bought by Adidas about a year ago.
CREDITORS PUT KIBOSH ON AIRLINE MERGER
US Airways’ $10 billion takeover bid for bankrupt Delta Air Lines has been grounded. Tempe, Ariz.-based US Airways failed to win the support of Delta’s main creditors for the deal, which would have led to some major changes at Logan Airport, where the two companies are among the busiest airlines.
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