The 46 per cent first-day pop in Dunkin’ Donuts shares in its initial public offering in New York made the company look like an internet wonder. It has also brought back memories of the disastrous Krispy Kreme IPO in 2000.
Krispy Kreme, for those who do not recall, was a high-flying stock in the early 2000s before accounting difficulties and mismanagement brought the shares crashing down again. At the time, it was hailed as a solid alternative to internet stocks.
This, for example, was Andy Serwer’s conclusion in Fortune in 2003:
Unless the fat police run riot across this land, Krispy Kreme is here to stay. It isn’t some fly-by-night dot-com. There’s 66 years of history here. It’s a product that people not only love but understand. (Quick, what does InfoSpace do?) The world is always filled with unknowns, never more so than right now. With all that’s wrong out there, sometimes it’s easy to lose focus on the big picture. So take a second and ask yourself: Is the American dream still alive? Is Krispy Kreme for real? Don’t bet against it.
Back to Irene Rosenfeld, who despite her degree in psychology, appears to have upset an awful lot of people with Kraft’s £11.6bn takeover of Cadbury.
Having made herself unpopular in the UK by acquiring the maker of Cadbury’s Dairy Milk and the Curly Wurly, she has alienated Warren Buffett, her biggest shareholder, who regards it as “a bad deal”. Read more
One can hardly fault Irene Rosenfeld of Kraft for her nerve and tactical sense in what looks like a successful effort to take over Cadbury.
Ms Rosenfeld has yet to demonstrate, however, that she knows how to meld disparate corporate cultures and soothe the bitterness caused by a hostile takeover battle. Read more
My column in the FT this week is on the Cadbury takeover battle: Read more
My column in the FT on Thursday is about luxury and premium good in the downturn: Read more
The dollar is falling and the stock market is rising as investors become more convinced that the financial crisis is easing and that some sort of recovery is underway.
That exuberance is also spreading to imbibers of wine, it seems. Having fallen last year, prices for vintage wine are again rising, according to Hart Davis Hart, a US wine dealer. It was pleased with the results of one auction held in Chicago last weekend: Read more
Starbucks is still struggling to remake itself amid a global economic downturn that has dented people’s willingness to pay a lot for a frothy cup of coffee.
It does not seem to have made up its mind whether to become more of a value brand or stick with being a premium retailer. In fact, it is sending out signals that it wants to do both simultaneously.
So here is my suggestion: why doesn’t it become a retail bank as well as a coffee chain?
I realise that this sounds like a ridiculous idea (and may in fact be a ridiculous idea) but hear me out. Read more
It seems that Chrysler could eventually end up under the majority ownership of the UAW, its main union, with Fiat holding a minority stake. It sounds awfully like the revisiting of a past era.
In the 1980s, there was a rash of employee-owned companies emerging out of troubled private ownership. In 1994, United Airlines became majority owned by its employees after all else had failed. Read more