WWD : Dov Charney Plans Counterpunch

Dov Charney Plans Counterpunch

When Dov Charney arrived at American Apparel Inc.'s annual meeting Wednesday, he was given a choice: resign as chairman, president and chief executive officer in return for a cushy consulting gig or be disnissed, according to a source familiar with the situation.


He chose the latter.

Now, Charney is planning to swing back — possibly with legal action that could come Monday in Los Angeles.

"They pushed him out the door with their right hand and dragged [or attempted to drag] him back in with the left hand," the source said. "Dov Charney is not going quietly into the night. There's going to be a lot more happening on Monday."

RELATED STORY: Assessing the Post-Dov Charney American Apparel >>

Charney declined to comment when reached by WWD.

His departure led to something of a tabloid spectacle over the weekend, complete with nude photos of Charney and a full retelling of the company's woes. That amounts to a no-doubt expected headache for the board, which is now led by cochairmen Allan Mayer, a pr executive and expert in crisis communications, and David Danziger, an accountant. Given the coverage of Charney's impending dismissal, Mayer is going to need all his crisis management skills since the coverage has been a brand's worst nightmare.

American Apparel is known as much for its racy advertising as its brightly colored basics. The salacious marketing approach — featuring young, female employees in provocative poses — reflects the personality of Charney, who is vocal about his easy-loving lifestyle and has been sued repeatedly for sexual harassment by employees.

After the 10-hour closed-door meeting in New York on Wednesday, the board said it replaced Charney as chairman and planned to terminate him as president and ceo for cause in 30 days, citing “an ongoing investigation into alleged misconduct.”

Last week, a person close to the company described the ouster as “a culmination of many events” and said Charney had dispatched certain litigation without the board’s knowledge, providing the “straw that broke the camel’s back.”

The source familiar with Charney's take said, "It's all old news, the acts which they're complaining about, the salacious stuff, is stuff they knew about when they reupped him as ceo."

The board is also said to have accused Charney of other misdeeds, such as booking airline flights for his parents using company money. But the source noted that the former ceo's mother worked with the company, flew coach and stayed at Charney's house.

And there are reports that the former ceo had a hand in releasing naked photographs of former employee who was suing him.

Charney's departure leaves the company in a precarious position.

American Apparel said the management change might have triggered a default under its credit agreements and that it could go bankrupt without a waiver from its lender.

It is also has to navigate these waters while looking for a new ceo. Executive vice president and chief financial officer John Luttrell was given the reins as interim ceo.

Last week, the source close the company said: “The goal is to get a new management team in and run this business. The goal isn’t to sell the company, but obviously in these types of situations you have to examine all of your options.”

That examination might well open the door for acquirers have shown interest in American Apparel in the past, but have been reluctant to work with the very colorful Charney.

Would-be buyers are believed to be taking a second look at the company with financial players seen as mostly likely candidates for a takeover.

A buyout from a private equity or financial player could radically change the complexion of American Apparel, which produces its looks at a factory in LA.

"Our core business—designing, manufacturing, and selling American-made branded apparel—is strong and continues to demonstrate great potential for growth, both in the U.S. and abroad," said Luttrell when he became interim ceo.

He underscored that American Apparel would remain committed to its sweatshop-free, Made in USA manufacturing philosophy.

What's no known is if a new buyer would stick to that philosophy as they look to boost profits.
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FT : Asos hopes for quick return after blaze

Asos hopes to resume trading as early as Monday as it counts the cost of a fire at its main distribution centre in South Yorkshire.
The online retailer was forced to shut its website after the blaze in Barnsley on Friday night.

South Yorkshire Police said they were treating the fire as deliberate and have launched a criminal inquiry.
Asos, which issued a severe profit warning three weeks ago, is expected to make a statement to the stock exchange on Monday.
People close to the situation refused to put a figure on the impact. However, they indicated that it was “not hugely material”.
There was no structural damage to the warehouse, they said, and the amount of stock damaged in the blaze was still being quantified.
When Asos’s then only warehouse was damaged by the explosion and fire at the Buncefield oil depot in Hertfordshire in 2005, the company made a £5.5m insurance claim. The site remained shut for a month then, with Asos’s shares suspended for several weeks.
The Asos website remained closed on Sunday after the Barnsley blaze, although it advised visitors that it hoped to be trading again “in the next day or so”.
The company was co-operating with the police investigation into the cause of the fire, people close to the situation said.
The blaze started at about 10pm on Friday night. At its height, the fire was tackled by crews from 10 fire engines and took more than 60 firefighters to bring under control. About 500 workers were evacuated.
The incident comes at a delicate time for Asos. Earlier this month, it said that pre-tax profit this year would be about 30 per cent lower than expected, after it suffered a “triple whammy of the perfect storm on profit”. It blamed the warning on a strong pound and heavy discounting.
But some rivals and analysts suggest there are fundamental changes in the online market, with bricks and mortar retailers becoming more assertive in their web operations, whereas previously Asos had a free rein.
In March, shares in Asos fell 20 per cent after the company reported slowing UK sales growth, lower than expected margins and increased losses from a push into China.
Nick Bubb, the independent retail analyst, said: “You would think it can’t possibly be as bad as the Buncefield disaster, and late-June isn’t the busiest time of the year.
“But back in 2005, Asos was quite small and the online industry was then in its infancy. Asos now has many more competitors and customer expectations on order delivery are much higher.”
Mr Bubb added: “The best-case scenario is that the business is quickly back in action, via temporary facilities nearby, and that the insurance companies settle up to cover the direct costs of the disruption.
“The worst-case scenario is that customer confidence is affected for a longer period of time and that the suspicion of arson delays the insurance companies’ response.”

FT : Shire bolsters defences against AbbVie

Shire bolsters defences against AbbVie

Shire will on Monday step up its defence against a £27bn takeover approach by AbbVie amid a growing sense of siege surrounding Britain’s healthcare sector.
The UK-listed drugmaker is the third FTSE 100 healthcare company to be targeted by a US rival so far this year after AstraZeneca fought off Pfizer and Smith & Nephew attracted tentative interest from Stryker.

All three are now rushing to bolster defences against further potential bids, as cash-rich American companies hunt for overseas assets to help them escape high US corporate tax obligations.
Of the four pharmaceutical and medical device manufacturers among Britain’s 100 biggest listed companies, GlaxoSmithKline is the only one whose independence has not so far been called into question.
While Shire is much smaller and less important to the UK economy than AstraZeneca or GSK, its takeover would nonetheless highlight concern over Britain’s failure to translate its strong science base into a deeper stock of globally competitive medical companies.
If sold to AbbVie or another predator, Shire would follow promising UK biotech companies such as Celltech, Powderject and Amersham that have been bought by bigger foreign groups in the past 15 years.
However, while Shire was founded in Basingstoke, southern England, in 1986 and has been listed in London since 1996, it will not be able to call on UK political support of the kind that helped AstraZeneca head off Pfizer.
The company shifted its headquarters to Dublin in 2008 to take advantage of Ireland’s low corporate tax rate and has moved its research and development to the US, leaving less than 500 mostly administrative employees in the UK.
Instead of nationalistic arguments, Shire will make a hard financial case for independence when Flemming Ornskov, chief executive, holds a conference call with investors on Monday to explain the company’s stance.
He will highlight Shire’s status as one of the fastest-growing companies in the pharmaceuticals sector to argue that AbbVie’s £46.11 per share cash and stock proposal falls well short of what would be required to bring the board to the negotiating table.
The offer represented a 23 per cent premium over Shire’s share price the day before news of AbbeVie’s interest became public on Friday, although the stock is up 60 per cent since takeover speculation intensified in April.
AbbVie plans to spell out its rationale for a takeover to its shareholders this week, while many analysts expect the US company to return with a higher bid. The company is attracted not only by the potential to move its tax domicile out of the US but also by its need to reduce dependence on its Humira rheumatoid arthritis drug.
Shire has increased sales at an average compound rate of 11.6 per cent since 2008 and earnings by 14.7 per cent and the pace has picked up since Danish-born Mr Ornskov took over a year ago.
Telling investors there is more growth ahead, he will flesh out his forecast made on Friday to more than double revenues to $10bn by 2020.
Shire’s expansion has been driven by surging US demand for its Vyvanse treatment for attention deficit hyperactivity disorder, which generated a quarter of last year’s $4.8bn in sales.
Meanwhile, Mr Ornskov has stepped up diversification into treatments for rare diseases – a fast-growing part of the pharmaceuticals sector that involves small patient numbers but high prices.
Several other US drugmakers have been touted as potential rival bidders for Shire ranging from Pfizer to Allergan, the Botox maker resisting a $53bn takeover by Valeant.

>>> ECB's Draghi: ECB setting liquidity measures through 2016 is an indication o

ECB's Draghi: ECB setting liquidity measures through 2016 is an indication of how low rates will stay low
- Would need to observe deterioration in inflation expectations over the medium term before ECB would turn to QE. Quantitative Easing could include buying govt bonds and private sector loans. 
- Reiterates not seeing any signs of deflation in the euro zone 
- Higher oil prices will impact inflation, as long as there is no further appreciation of the euro.

(BFW) Wyndham Worldwide Made Offer for InterContinental: Sky

BFW 06/21 11:27 Wyndham Worldwide Made Offer for InterContinental Hotels: Sky
MORE: Wyndham Worldwide Made Offer for InterContinental: Sky
2014-06-21 19:09:07.56 GMT


By Keith Naughton
     June 21 (Bloomberg) -- “We cannot comment on
speculation,” Michael Valentino, a Wyndham spokesman, said in
an e-mail.
  * NOTE: May 27, InterContinental Jumps After Report Company
    Rejected Offer NSN N68RRU6K50Y3<GO>


Story Link:NSN N7INTO6K50XS<GO>

For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>

To contact the reporter on this story:
Dan Hart in Washington at +1-202-624-1870 or
dahart@bloomberg.net
To contact the editors responsible for this story:
Joe Sabo at +1-609-279-3119 or
jsabo@bloomberg.net
Dan Hart

(Reuters) Iran rejects U.S. action in Iraq as militants push east

(Reuters) - Iran's supreme leader condemned U.S. intervention in Iraq on Sunday, accusing Washington of seeking control as Sunni insurgents drove toward Baghdad from the Syrian border and consolidated positions in the north and west.

The statement by Ayatollah Ali Khamenei was the clearest statement of opposition to a U.S. plan to dispatch of up to 300 military advisers in response to pleas from the Iraqi government and runs counter to speculation that old enemies Washington and Tehran might cooperate to defend their mutual ally in Baghdad.

"We are strongly opposed to U.S. and other intervention in Iraq," IRNA news agency quoted Khamenei as saying. "We don’t approve of it as we believe the Iraqi government, nation and religious authorities are capable of ending the sedition."

The Iranian and the U.S. governments had seemed open to collaboration against al Qaeda offshoot the Islamic State in Iraq and the Levant (ISIL), which is fighting both the U.S.-backed, Shi'ite-led government of Iraq and the Iranian-backed president of Syria, whom Washington wants to see overthrown.

"American authorities are trying to portray this as a sectarian war, but what is happening in Iraq is not a war between Shi'ites and Sunnis," said Khamenei, who has the last word in the Islamic Republic's Shi'ite clerical administration.

Accusing Washington of using Sunni Islamists and followers of ousted Iraqi leader Saddam Hussein, he added: "The U.S. is seeking an Iraq under its hegemony and ruled by its stooges."

Tehran and Washington have been shocked by the lightning quick offensive, spearheaded by ISIL, that has seen large swathes of northern and western Iraq fall to the hardline extremist group and other Sunni fighters since June 10, including the north's biggest city Mosul.

The Sunnis are united in opposition to what they see as Shi'ite Prime Minister Nuri al-Maliki's divisive sectarian rule.

WESTERN OFFENSIVE

ISIL thrust east from a newly captured Iraqi-Syrian border post on Sunday, taking three towns in Iraq's western Anbar province after seizing the frontier crossing near the town of Qaim on Saturday, witnesses and security sources said.

The gains have helped ISIL secure supply lines to Syria, where it has exploited the chaos of the uprising against President Bashar al-Assad to seize territory. The group aims to create an Islamic caliphate straddling the desert border and has held Falluja, just west of Baghdad, since the start of the year.

The fall of Qaim represented another step towards the realisation of ISIL's military goals, erasing a frontier drawn by British and French colonial map-makers a century ago.

ISIL's gains on Sunday included the towns of Rawa and Ana along the Euphrates river east of Qaim, as well as the town of Rutba further south on the main highway from Jordan to Baghdad.

A military intelligence official said Iraqi troops had withdrawn from Rawa and Ana after ISIL militants attacked the settlements late on Saturday: "Troops withdrew from Rawa, Ana and Rutba this morning and ISIL moved quickly to completely control these towns," the official said.

"They took Ana and Rawa this morning without a fight."

IRAQ SPLINTERS

Military spokesman Major-General Qassim al-Moussawi said the withdrawal from the towns was intended to ensure "command and control" and to allow troops to regroup and retake the areas.

"The withdrawal of the units was for the purpose of reopening the areas," he told reporters in Baghdad.

The towns are on a strategic supply route between ISIL's positions in Iraq and in eastern Syria, where the group has taken a string of towns and strategic positions from rival Sunni forces fighting Assad over the past few days.

The last major Syrian town not in ISIL's hands in the region, the border town of Albukamal, is controlled by the Nusra Front, al Qaeda's branch in Syria which has clashed with ISIL but also agreed to local truces at times.

ISIL, which began as the Islamic State of Iraq and was disowned by al Qaeda's central organisation in February after pursuing its own goals in Syria and clashing with the Nusra Front, has pushed south down the Tigris valley since capturing Mosul with barely a fight two weeks ago, seizing towns and taking large amounts of weaponry from the fleeing Iraqi army.

Overnight, ISIL fighters attacked the town of al-Alam, north of Tikrit, according to witnesses and police in the town. The attackers were repelled by security forces and tribal fighters, they said, adding that two ISIL fighters had been killed.

State television reported that "anti-terrorism forces" in coordination with the air force had killed 40 ISIL members and destroyed five vehicles in fighting in Tikrit, home town of Saddam Hussein, the Sunni leader ousted by U.S. forces in 2003.

There was a lull in fighting at Iraq's largest refinery, Baiji, near Tikrit, on Sunday morning. The site had been transformed into a battlefield since Wednesday as Sunni fighters launched an assault on the plant. Militants entered the large compound but were held off by Iraqi military units.

A black column of smoke rose from the site. Refinery officials said it was caused by a controlled burning of waste.

The ISIL advance has been joined by Sunni tribal militias and former members of Saddam's Baath Party, united in their hatred of Maliki and Shi'ite politicians brought to power in U.S.-backed elections.

SUNNI CLASHES

Relations between the diverse Sunni groups have not been entirely smooth. On Sunday morning, clashes raged for a third day between ISIL and Sunni tribes backed by the Naqshbandi Army, a group led by former army officers and Baathists, around Hawija, local security sources and tribal leaders said.

More than 10 people were killed in the clashes in the area, southwest of the northern oil hub of Kirkuk, the sources said.

On Friday evening, ISIL and Naqshbandi fighters began fighting each other in Hawija, where a crackdown on a Sunni protest over a year ago triggered unrest leading to the current insurgency. Iraqi and Western officials believe that as ISIL and other Sunni factions start to consolidate their control of newly won territories, they may start turning on each other.

U.S. President Barack Obama has offered up to 300 U.S. special forces advisers to help the Iraqi government recapture territory but has held off granting a request for air strikes.

The fighting has threatened to tear the country apart for good, reducing Iraq to separate Sunni, Shi'ite and ethnic Kurdish regions. It has highlighted divisions among regional powers, especially Iran, which has said it would not hesitate to protect Shi'ite shrines in Iraq if asked, and Sunni Saudi Arabia, which has warned Iran to stay out of Iraq.

Iraq's Kurds have meanwhile expanded their territory in the northeast, including the long-prized oil city of Kirkuk.

The government has mobilised Shi'ite militias and regular citizens to fight on the frontlines and defend the capital - thousands of fighters in military fatigues marched in a Shi'ite slum of the capital Baghdad on Saturday.

>>> Barron's summary: positive on APA, PIR

Barron's summary: positive on APA, PIR

Cover story: Barrons Top 50 Annuities special report looks at deferred-income annuities, which are seeing huge growth because of their simplicity, part of a broader trend in the industry; advisors caution that most investors should never put all, or even a majority, of assets in income annuities, since they are highly illiquid and if an investor dies after payments have begun, the remainder of the investment stays with the insurance company. 

Features: Positive on AMGN, ETN, GE, IP, JPM, NOV: Six dividend-paying stocks should experience growth in both profits and payouts, and prove rewarding as high-yield bonds hit record lows; Positive on APA: Shares could see a 20% boost as energy exploration and production company shifts focus to North America, cuts back Egypt operation, and begins to control costs; Positive on PIR: Retailers modest price/earnings ratio ignores the companys many attractions, which include its accelerating transformation into a multichannel retailer with a solid balance sheet, ample cash flow, and a dividend. 

Tech Trader: Tiernan Ray reports on how tech giants that were once disrupters are themselves being disrupted; Cautious on ORCL: Despite the small percentage of its overall business taken up by its cloud-computing division, company is on its way to being the second-largest in the sector after CRM, but some analysts still question whether that progress is enough to prevent further disruption; Cautious on RHT: Company is in the midst of a messy transformation and billings remain uneven, but it could have another hit with its OpenStack cloud software; Cautious on BBRY: Company will never be as significant as it once was, but to keep going the stock must return to financial health. 

Trader: With market complacency seemingly so high, investors and the Fed should pay more attention to inflation, says SCHW chief investment strategist Liz Ann Sonders; Positive on ESRX: Company is a solid business that should recover if the bull market continues and should also prove defensive should a bear market unexpectedly appear; Positive on PETM: Online rivals such as AMZNs Wag.com may offer better prices, but cant compete with chains in-store services, while shares are trading at a discount and dividend is rising steadily. 

Mutual Funds: Interview with David Lee, Portfolio Manager, T. Rowe Price Real Estate Fund (top ten holdings: SPG, AVB, PSA, PLD, EQR, VNO, MAC, GGP, FRT, SLG); Interview with David Kelly, Chief Global Strategist, JPMorgan Funds, who says both Europe and emerging markets will beat the five-year return of U.S. equities. 

European Trader: Mounting violence in Iraq has proved the worth of oil stocks as a hedge against geopolitical risks (Positive on Royal Dutch Shell, TOT).

Asian Trader: Like China, Australia is still in the process of finding its footing, and investors should be selective (Positive on Perpetual, AMP, Origin Energy, Santos, Oil Search, OZ Minerals, Newcrest Mining). 

Emerging Markets: Prudent investors should seek out defensive stocks in Brazil, focusing on those that offer secular thematic growth, such as countrys for-profit post-secondary education sector (Positive on Kroton Educational). 

Commodities: A surge in demand for U.S. orange juice in South Korea has helped awaken the market. 

Follow-Up: Positive on MGA: Shares of Americas largest auto-parts manufacturer are up on higher vehicle sales, and the outlook continues to look bright. 

Streetwise: Ned Davis of Ned Davis Research says inflation isnt yet high enough to cause much damage to the stock market

Ferragamo CEO Confirms Single-Digit Rev. Growth Outlook for 2014

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Ferragamo CEO Confirms Single-Digit Rev. Growth Outlook for 2014 2014-06-22 12:11:46.392 GMT

By Andrew Roberts June 22 (Bloomberg) -- Outlook for the second part of the year is better than the first, CEO Michele Norsa says at fashion show in Milan. Norsa also says: * “Speed of the industry is not the speed of past years” * “It’s still a positive year” despite market volatility * Revenue, profit still growing in key areas of world * Fewer Russians, Ukrainians shopping in Europe because of crisis * “We may consider some small increases” in price if strong euro persists; price increase to be less than 8% * Travel retail is “driver” of growth * For men, “shoes become a little more an addiction”

For Related News and Information: First Word scrolling panel: FIRST<GO> First Word newswire: NH BFW<GO>

To contact the reporter on this story: Andrew Roberts in Paris at +33-1-5365-5015 or aroberts36@bloomberg.net To contact the editors responsible for this story: Celeste Perri at +31-20-589-8505 or cperri@bloomberg.net Tuhin Kar, Matthew Brown

Kaeser Says Siemens Still Open for Negotiation With Alstom: Bild

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Kaeser Says Siemens Still Open for Negotiation With Alstom: Bild 2014-06-22 13:08:06.213 GMT

By Jeff Black June 22 (Bloomberg) -- Siemens CEO Joe Kaeser says in interview with Bild Zeitung that door still open to Alstom and French govt Bild also cites Kaeser as saying:. * “It’s not over yet. The work for GE, Alstom and the French government is only just starting. The complicated contracts will take months. Then the competition authorities have to check everything” * “We remain open to discussion” * NOTE: GE Poised to Win Alstom Bid as France Said to Near Accord NSN N7KFEN6VDKI4<GO>

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To contact the reporter on this story: Jeff Black in Frankfurt at +49-69-92041-205 or jblack25@bloomberg.net To contact the editor responsible for this story: Craig Stirling at +44-20-7673-2841 or cstirling1@bloomberg.net

Alstom Targets Sealing Alliance With GE by Early 2015, JDD Says

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Alstom Targets Sealing Alliance With GE by Early 2015, JDD Says 2014-06-22 09:52:25.820 GMT

By Mathieu Rosemain June 22 (Bloomberg) -- Alstom will first need to consult unions, GE will need to obtain approval from French authorities before transaction is submitted to Alstom shareholders, CEO Patrick Kron said in interview with French weekly newspaper Journal du Dimanche.

For Related News and Information: GE Poised to Win Alstom Bid as France Said to Near Stake Accord NSN N7JI0I6VDKI3 <GO> First Word scrolling panel: FIRST<GO> First Word newswire: NH BFW<GO>

To contact the reporter on this story: Mathieu Rosemain in Paris at +33-1-5530-6298 or mrosemain@bloomberg.net To contact the editors responsible for this story: Chad Thomas at +49-30-70010-6232 or cthomas16@bloomberg.net Tuhin Kar, Marthe Fourcade