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Ousted Sierra leaders tie suspension to Clorox criticism
At the very least, the timing raises questions: The biggest environmental group in the U.S. expelled 27 leaders of its Florida chapter shortly after the state committee accused the Sierra Club’s national directors of betraying their principles to endorse a “green” cleaning line by the Clorox Company.
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Willett noted another state chapter, Massachusetts, had also criticized the Sierra Club’s decision to endorse the new biodegradable cleaning line, “and no action has been taken against them, and there won’t be. That’s not how the Sierra Club works.”
First announced in January, the unprecedented partnership between the Sierra Club and Clorox has been hailed by supporters as a way to promote a green marketplace, and denounced by critics as a sell-out to a company most closely associated with Clorox Bleach. Under the deal, the Sierra Club gets an undisclosed percentage of profits from the sale of the new line, marketed under the name Green Works, in exchange for the use of its logo.
At least some ousted activists don’t buy the assertion that their suspension is unrelated to their criticism. Joy Towles Ezell, former chairwoman of the Florida chapter, told the Guardian that the same weekend in January that the chapter passed a measure condemning the deal, they were told of their impending removal.
She said that the new Clorox products should be named “Money Works” or “Toxic Works.”
“Clorox is the bad guy to me,” Ezell said. “. . .You sell your soul when you get involved with something like that.”
Sierra Club Executive Director Carl Pope admits he was skeptical when first approached by Clorox. But after reviewing the ingredients of the cleaners, most of which are plant products, and contemplating Clorox’s market reach, he decided to take the gamble.
“One of the reasons green home cleaning products haven’t achieved much market penetration is if they came from an environmental brand, people had the sense they won’t work … And if it came from someone with a cleaning reputation the reaction was: They can’t be green.”
Green Works may be an even bigger gamble for Clorox’s new CEO Donald Knauss, who came from Cola Cola in 2006, and who has pushed the company to launch its first new product line in 20 years. Knauss has identified sustainability as one of three core consumer trends with which he wanted to align Clorox products, and hired “green” consultants, who led him to the Sierra Club.
Green consultant Joel Makower, who worked on the project, calls the launch a watershed:
It’s an intriguing moment. Green Works enters the marketplace with a near perfect storm of market conditions: growing mainstream consumer demand for green products that don’t require compromise or sacrifice; significant interest from Wal-Mart and other big retailers in pushing greener products to the masses; a product that seems competitive with the leading green brands; and endorsement from Big Green.
Naysayers, however, predict the endorsement will undermine the credibility of the environmental group, noting that a month before the deal was signed, Clorox was fined $95,000 by the Environmental Protection Agency for donating a mislabeled Chinese version of Clorox bleach to a Los Angeles charity.
“The Sierra Club has become little more than another corporate front group,”
said Tim Hermach of Native Forest Council in Eugene, Oregon in a piece in Corporate Crime Reporter.Hermach had special animus for the group’s executive director: “Carl Pope has sold out the Sierra Club’s mission of saving nature and now seems proud of his role as an obsequious and professional Uriah Heep. As a result, Sierra Club is getting lots of corporate appreciation, cash and favors.”
Related posts on Muckety- Environmental alliance has big hitters and big bucks – October 14, 2007
- Mattel’s experts in consumer trust – August 16, 2007
- A change of direction for Chiquita – CQB – October 11, 2007
- Al Gore takes job at Kleiner Perkins – November 12, 2007
- Sale of Blixseths’ Yellowstone Club falls through – March 31, 2008
- Big bonuses before the crash – August 12, 2007
- Meet TXU-ex John Wilder, super tycoon – October 15, 2007
- Spitzer follows path of Martha Stewart, Nancy Grace – March 26, 2008
- Meyerson leaves Accredited – August 31, 2007
- Bear’s Cayne holds cards close to vest – November 1, 2007
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Cayne, Macklowe keep their condos at The Plaza
Another way the rich are different: They don’t have to pay mortgages.
A case in point: Days before Bear Stearns chairman James Cayne suffered a dizzying $900-million loss in wealth as a result of the fire sale of Bear Stearns, he purchased two apartments in the storied Plaza for a cool $28 million.
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The 1907 landmark, famous as the home of children’s book heroine Eloise, recently reopened as a mix of luxury condos and hotel units. The development boasts a Who’s Who of corporate chieftains, including New England Patriots boss Robert K. Kraft, Staples Chief Executive Ronald Sargent, Italian racing mogul Flavio Briatore and Dave Barger, chief executive of JetBlue.
Like Cayne, several have been socked by recent gyrations in the real estate and financial markets. Real-estate mogul Harry Macklowe, who spent $60 million last year to buy up a string of adjacent apartments, is facing a mountain of debt himself as a result of a $7 billion, seven-building buy last year. To stave off cash-hungry creditors, he has been trying to unload the iconic General Motors building, and the office tower at 1301 Avenue of the Americas. So far, though, he’s shown no sign of giving up his dream of a palace on the park.
Italian businessman Luigi Zunino, meanwhile, is trying to flip the third-floor apartment which he is in contract to buy, according to the Wall Street Journal. Zunino is the CEO of a Milan-based real estate company that lost three-quarters of its value in the last year. While most condos in The Plaza have been selling for between $4,000 and $6,000 per square foot, Zunino is valuing his apartment at $10,000 per square foot.
If he gets his $100-million asking price, it would set a record for residential real estate in Manhattan. If not, maybe he can start a support group for onetime Masters of the Universe in the Oak Room.
Related posts on Muckety- Mortgage mess sinks Wall Street exec – August 6, 2007
- Cayne reported leaving CEO job at Bear Stearns – January 8, 2008
- Bear’s Cayne holds cards close to vest – November 1, 2007
- NY Fed bails out Bear Stearns – March 15, 2008
- Bear Stearns bid would mean $100M to Joe Lewis – March 24, 2008
- Bearish on Mr. Brooks – June 28, 2007
- Another mogul mulls Newsday bid – April 2, 2008
- Will the Tribune Company sell Newsday? – March 20, 2008
- Wellpoint’s Braly tops Journal list – November 20, 2007
- Divorce offers window into McCartney financial empire – March 27, 2008
This post is tagged with: Business, Dave Barger, Flavio Briatore, James Cayne, Robert Kraft, Ronald Sargent, The Plaza, WealthRead related stories: Business · Wealth
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Sweet Home Deal for Qwest Ceo Ed Mueller
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Food World Says Goodbye to Egg Mcmuffin Creator
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Another mogul mulls Newsday bid
A fourth suitor may join the bidding war over Newsday, the suburban tabloid put on the auction block by the financially-beleaguered Tribune Company.
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Among New York media moguls, the 27-year-old may be considered an upstart, but he has deep pockets. In July, 2006, he spent $10 million to buy the money-losing Observer while still getting his MBA at New York University, telling the New York Times that the opportunity to buy a newspaper doesn’t come along very often.
Kushner joins a field of giants who are eyeing the still-profitable tabloid, including billionaire magnate Rupert Murdoch, publisher of the New York Post, real-estate developer Mortimer Zuckerman, owner of the New York Daily News and James Dolan, whose family owns Cablevision.
The magic number sought for Newsday is upwards of $500 million, as Tribune Chairman Sam Zell struggles to stay afloat after his highly leveraged purchase of the company last year. Besides Newsday, Tribune owns the Los Angeles Times, the Chicago Tribune and the Baltimore Sun, among other newspapers, as well as local television stations and the Chicago Cubs baseball team.
Kushner, a grandson of Holocaust survivors, is the scion of a real-estate, banking and insurance empire valued at more than $1 billion built by his father Charles. But the elder Kushner suffered a spectacular fall from grace several years ago. He spent nearly a year in jail after pleading guilty to 18 counts of tax evasion, admitting, among other things, to hiring a prostitute to seduce his brother-in-law and sending a videotape of the encounter to his sister to retaliate for her cooperation with federal investigators.
Jared Kushner is the only one of his parents’ four children to work at the family company, where he is a principal.
Related posts on the Muckety Maps in the news blog- Will the Tribune Company sell Newsday? – March 20, 2008
- Zell takes over Tribune – December 21, 2007
- Newspaper lobbyists may lose a moneymaker – October 20, 2007
- Bill Gates enjoyed biggest payday of 2007 – March 7, 2008
- Bruce Sherman and Hearst-Argyle – August 27, 2007
- Sulzberger dodges bullet – for now – March 18, 2008
- Murdoch’s media machine – June 25, 2007
- Burkle still chasing a newspaper dream – July 9, 2007
- Yucaipa may pay Bill Clinton $20M – January 24, 2008
- Mays family awaits Clear Channel buyout – February 12, 2008
Read related stories: Business · Media
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#1. Obama 08 04.03.2008
If Kushner was so smart, why did he buy a newspaper when he could have started one from scratch? Why stick yourself with a teetering brand, when now is the time to invent one’s brand anew in this brave new world of new media, particularly if you have a billion bucks to cover early mistakes?
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Sam Nunn should share Chevron’s hot seat
Congress grilled oil company executives Tuesday about runaway energy costs and record profits. For Chevron, there was some irony. Former U.S. Senator Sam Nunn, a Georgia Democrat, is a member of Chevron’s board of directors.
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Secretary of State Condoleeza Rice is a former Chevron board member.
Testifying in Washington were executives Stephen Simon of Exxon Mobil, John Hofmeister of Shell Oil, Peter Robertson of Chevron, John Lowe of ConocoPhillips, and Robert Malone of BP America.
Nunn, a U.S. senator from 1972 to 1996, joined Chevron’s board in 1997. While in the Senate, he chaired the Armed Services Committee and the Permanent Subcommittee on Investigations.
In 2007, Chevron awarded Nunn nearly $345,000 in total compensation, according to an SEC filing Tuesday.
Robertson, vice chairman, had total compensation of about $14.2 million last year, according to Chevron’s annual proxy statement.
None of the other companies appearing in Washington Tuesday has such a direct connection to U.S. lawmakers, but ConocoPhillips does have diplomatic ties. Former Deputy Secretary of State Richard Armitage and former ambassador and Assistant Secretary of State J. Stapleton Roy are Conoco directors.
Related posts on the Muckety Maps in the news blog- Blackstone’s Peterson starts doling out a fortune – February 15, 2008
This post is tagged with: BP America, Chevron, Congress grills big oil, ConocoPhillips, Edward Markey, Exxon Mobil, J. Stapleton Roy, John Hofmeister, John Lowe, Peter Robertson, Richard Armitage, Robert Malone, Sam Nunn, Shell Oil, Stephen SimonRead related stories: Business · Politics
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Sale of Blixseths’ Yellowstone Club falls through
Recent weeks have brought financial upheaval to Tim Blixseth.
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MAP HINTS: Click expands a name. Control+Click centers map on a name. Solid lines are current relations. Dotted lines are former relations. For advanced tools choose Tools > Options from the menu at top. More help. Not seeing the maps? Please go here to check for the latest version of Java.Robert Frank of the Wall Street Journal reports today the collapse of a deal to Yellowstone Club, the exclusive resort developed by Blixseth and his wife. CrossHarbor Capital Partners of Boston sent a letter March 26 saying it was pulling out of an agreement to buy the club for $450 million.
Blixseth informed club members on Saturday that the club is no longer on the market.
The Associated Press reported yesterday that Blixseth had sold a 160-parcel at the club, where he once planned to build the world’s most expensive home.
And Bloomberg reported earlier this month that Blixseth missed a $20 million payment to champion cyclist Greg LeMond and three other Yellowstone investors. Blixseth said then that he couldn’t pay the sum, which settled a lawsuit over Yellowstone holdings, until he sold the club.
In addition to the expensive lawsuit, Blixseth is in the midst of a divorce from his wife, Edra. The split started as a friendly one, so friendly that Frank wrote about it. “Their peaceable parting marks a triumph of hope over history, and reason over money,” he wrote. “Most wealthy spouses follow the greed principle: The more stuff you have, the more there is to fight over.”
Over time, hope and reason apparently fell victim to history and money. The Blixseths wound up in court and the club they had built together went on the market.
Members of the private golf and ski area include Bill Gates and former vice president Dan Quayle.
(Note: This item was first posted on Sunday, March 30, and updated Monday, March 31, 2008.)
Related posts on the Muckety Maps in the news blog- Rubbing elbows at the Yellowstone Club – July 13, 2007
- Yucaipa may pay Bill Clinton $20M – January 24, 2008
- Darwin Deason at loggerheads with ACS directors – November 6, 2007
- Facebook’s Mark Zuckerberg unbound – December 3, 2007
- Send all lawyer jokes to Marc Andreessen – September 23, 2007
- SEC chairman defends record – June 27, 2007
- Bill Gates enjoyed biggest payday of 2007 – March 7, 2008
- Countrywide’s self-made men – July 27, 2007
- Ben Stein, renaissance man – December 6, 2007
- Bear’s Cayne holds cards close to vest – November 1, 2007
This post is tagged with: Business, Edra Blixseth, Greg LeMond, Real Estate, Robert Frank, Tim Blixseth, Yellowstone ClubRead related stories: Business
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#1. Anne Hall 03.30.2008
Is this all you have time to do in your life? Have you asked those individuals and their families if they want their names on your diagram? Your information is incorrect. I would encourage you to spend your time and money productively instead of writing damaging gossip columns. Perhaps you could go out and make a fortune, and then others can write about you.
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Bear Stearns bid would mean $100M to Joe Lewis
Things are looking up, but only slightly, for Bahama billionaire Joe Lewis.
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Yet even at the higher price, Lewis will lose mightily. Over the past year, he has bought up Bear Stearns shares at an average price of $104. At $10 per share, his losses would exceed $1 billion.
Like many stockholders, Lewis was outraged by the initial deal. In documents filed last week with the Securities and Exchange Commission, he promised that his companies would “take whatever action that they deem necessary and appropriate to protect the value of their investment.”
The Bear Stearns bailout and the resulting shareholder outcry have combined to bring unwanted attention to Lewis and his financial empire. As his daughter Vivienne once explained, “He doesn’t like to talk to people. It aggravates him.”
Lewis started building his fortune as a teenager, when he left school to work for his father’s London catering firm. He made millions when he sold the business in 1979, then moved to the Bahamas, where he made millions more in currency trading. He oversees a complex of companies centered around a holding company, the Tavistock Group.
His interests include land development, life sciences, energy, restaurants such as the Napa Valley Grille and the Alcatraz Brewing Company, and sports, including the Tottenham Hotspur soccer team. His company organizes the annual Tavistock Cup golf tournament, scheduled to be played today and tomorrow, with his friend Tiger Woods among the competitors.
Lewis hasn’t yet publicly responded to JPMorgan’s revised offer, and the SEC listed no new filings from him by the close of the business day. Maybe he chose to spend the day concentrating on golf.
Related Stories on Muckety- Cayne reported leaving CEO job at Bear Stearns – January 8, 2008
- NY Fed bails out Bear Stearns – March 15, 2008
- The charity work of Bear Stearns’ Alan Schwartz – January 9, 2008
- Mortgage mess sinks Wall Street exec – August 6, 2007
- Bear’s Cayne holds cards close to vest – November 1, 2007
- SEC chairman defends record – June 27, 2007
- Bearish on Mr. Brooks – June 28, 2007
- ‘Free’ tutoring is big business for Sylvan – November 2, 2007
- Meyerson leaves Accredited – August 31, 2007
- Yucaipa may pay Bill Clinton $20M – January 24, 2008
This post is tagged with: Bear Stearns, Business, Joe Lewis, JPMorgan Chase, Tavistock Cup, Tavistock Group, Tiger Woods, Tottenham Hotspur soccer team
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Will the Tribune Company sell Newsday?
Tribune Company owner Sam Zell may be entertaining bids for Newsday, the company’s Long Island paper, amid mounting financial pressures.
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MAP HINTS: Click expands a name. Control+Click centers map on a name. Solid lines are current relations. Dotted lines are former relations. For advanced tools choose Tools > Options from the menu at top. More help. Not seeing the maps? Please go here to check for the latest version of Java.Citing an unnamed newspaper industry insider, Crain’s New York Business reported today that News Corp. owner Rupert Murdoch “is believed to have set his sights on Newsday.” Murdoch was reportedly interested in a joint operating agreement between Newsday and his New York Post last year. But the idea went nowhere when Sam Zell took Tribune private in a deal worth $8.2 billion.
Others expressing interest in buying the tabloid are said to include Mortimer B. Zuckerman, the real-estate developer and publisher who owns the New York Daily News, and James Dolan, whose family controls Cablevision, the cable television operator, the New York Times reported.
Talk of the possible sale of Newsday surfaced today as Tribune reported a fourth-quarter loss of $79 million. The company acknowledged it may have to sell assets as it struggles past a highly-leveraged December deal that took the company private.
The dismal results come three months after chairman and CEO Zell, a real estate mogul with no experience in the newspaper business, led a buyout of the struggling company, which owns the Los Angeles Times, the Chicago Tribune and the Baltimore Sun, among other newspapers, local television stations and the Chicago Cubs baseball team.
At the time, Zell said he planned to sell the Cubs and related assets, but wanted to keep most of the rest of the company intact. He also said that additional downsizing was not the answer to historic changes in the newspaper industry. But in the three months since, he has cut jobs, citing falling advertising revenue and a tanking economy.
Tribune said today it has “begun a strategic review of certain Tribune assets to determine whether capital can be more effectively redeployed into our core operations or toward reducing our outstanding leverage.”
Related Stories on Muckety- Zell takes over Tribune – December 21, 2007
- Newspaper lobbyists may lose a moneymaker – October 20, 2007
- Murdoch’s media machine – June 25, 2007
- Forget news, is McClatchy a real estate play? – January 5, 2008
- Bruce Sherman and Hearst-Argyle – August 27, 2007
- Mays family awaits Clear Channel buyout – February 12, 2008
- Candidates and baseball owners cover political bases – October 10, 2007
- Patriots’ Kraft wants English club – October 30, 2007
- Surprise! Gore supports Murdoch – July 18, 2007
- Murdoch gets taste of his own medicine – September 8, 2007
This post is tagged with: Baltimore Sun, Business, Chicago Cubs, Chicago Tribune, K. Rupert Murdoch, Los Angeles Times, Media, News Corp., Newsday, Newspapers, Sam Zell, Tribune Company
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