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Strategic Thought Transformation - The IIPM Think Tank

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E X E C U T I V E S U M M E R Y<br />

2001, will continue to hold the office of Executive Chairman, working on strategically repositioning the company that his great-grandfather<br />

Henry Ford had established. His family still holds about 40% of total shares in Ford Motor.<br />

Thames’ Water up for sale...<br />

A group led by Qatar’s state-owned investment fund has emerged as the likely victor to buy Britain’s Thames Water for about $13.14 billion.<br />

<strong>The</strong> bid submitted by the Qatari fund supersedes the offer put forth by private equity group, Terra Firma. <strong>The</strong> course of events can<br />

turn in any direction as final offers are allowed to pour in till October 9, 2006. It is also known that British insurance company Prudential<br />

Plc. is trying to rope in Australia’s Macquarie Bank to jointly bid for Thames Water, UK’s largest supplier of public water, which is owned<br />

by the German utility, RWE AG.<br />

Losing faith of shareholders<br />

BAE, the European defence giant, is walking out of trapped plane-maker Airbus, as it has decided to sell-off its 20% stake in Airbus to the<br />

parent company European Aeronautic Defence and Space Company (EADS) for $3.49 billion. BAE is looking forward to net proceeds of $2.25<br />

billion and intends to return about $938.35 million to its shareholders by means of share buyback. If approved by BAE the shareholders,<br />

EADS – which currently owns 80% of total shares of Airbus – will be the sole owner.<br />

Heart drug lends a heart-attack to CEO<br />

Plavix, the biggest drug of Bristol-Myers Squibb, used to guard against heart related troubles, has dealt a stroke to Peter Dolan, the company’s<br />

CEO. Dolan, who has been charged of manhandling a patent settlement case related to the drug, has been fired. To add to Bristol’s woes,<br />

a Canadian drug-maker, Apotex, is known to have launched a generic version of Plavix – eating into 80% of Plavix’s market share.<br />

Time is changing for Time Warner...<br />

In order to trim its range of low-profit generating titles, Time Warner Inc.’s Time magazine arm, which is based in New York, is planning to<br />

put up its Time4Media and Parenting Group titles for sale in the market. <strong>The</strong> 18 print titles that are to be sold-off include Popular Science,<br />

Field & Stream, Outdoor Life, Skiing, Parenting and Babytalk. Most of the titles in question were acquired by the company in the year<br />

2000, when Time had acquired Times Mirror Magazines from Tribune Co. for a price of $475 million. <strong>The</strong> sale should help the company<br />

garner a sum of around $300 million. <strong>The</strong> list of potential buyers includes names like Wind Point Partners, Providence Equity Partners<br />

Inc., Spectrum Equity Investors and Warburg Pincus.<br />

Virgin goes green route<br />

<strong>The</strong> flamboyant mogul, Sir Richard Branson, of Virgin Group has agreed to initiate the usage of green fuels. For the same, it has set aside<br />

an investment fund worth $400 million. <strong>The</strong> company’s deal backs California-based Cilion that is engaged in producing bio-ethanol from<br />

corn. <strong>The</strong> plans include constructing seven plants by the year 2009, which are expected to have an annual capacity of 1.7 billion litres.<br />

<strong>The</strong> green plan will gradually spread out to Britain, Europe and other parts of the globe.<br />

China to scale new heights<br />

<strong>The</strong> dragon country will soon house the second highest airport in the world at China’s South-Western province of<br />

Sichuan. It will stand at 4,280 metres above sea level, preceded only by Qamdo airport in Tibet. Chinese engineers<br />

have already initiated work on the airport, which is scheduled to be completed by the year 2008. <strong>The</strong> project covers<br />

a cost of $120.8 million with a passenger handling capacity of 330,000 annually. <strong>The</strong> idea of this project, which<br />

actually first originated about 13 years ago, received the final nod in May this year.<br />

106 STRATEGIC INNOVATORS<br />

An <strong>IIPM</strong> Intelligence Unit Publication

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