“Why would anyone in their right mind want to stay in a city and state that could easily be described as hell on earth?”
— a Hartford Courant reader, commenting on whether Aetna might relocate its headquarters after the insurer completes its purchase of Humana.
A news summary focused on big employers; updated 3:53 p.m.
HUMANA: Aetna’s CEO did little today to allay concerns the insurance giant might leave its historic Hartford home after its workforce doubles to 110,000 with the pending Humana merger. Mark Bertolini told the annual stockholders meeting that Aetna was required to establish a Kentucky presence when it sought to buy Humana. “Having said that,” he told shareholders, “the rest of all of our real estate is under review.” He expects the $37 billion deal to close in the second half of the year. (Hartford Courant). Humana’s stock closed at $169.60 a share, up less than 1%, but enough to make it the best-performing stock this week among Boulevard’s portfolio of big local employers.
GANNETT: Tribune Publishing is reportedly turning the tables on Gannett by planning a hostile offer to buy the owner of The Courier-Journal, USA Today and more than 100 other dailies. “I am going to bid on Gannett,” CEO Michael Ferro told five dozen Los Angeles Times staffers, according to a confidential source. “I have lawyers working on it.” That would counter Gannett’s sweetened all-cash offer this week, to $15 a share, or about $475 million, excluding $385 million of outstanding debt (Politico Media).
UPS CEO David Abney doubts package delivery by drone will be as ubiquitous as some forecast. Speaking to a Boston business conference, he said: “I don’t believe there are going to be 10,000 to 20,000 of these flying over metro Boston delivering dog food and toothbrushes. I just don’t believe the economics of those work out” (Boston Business First).
AMAZON, which is developing Prime Air to transport packages to customers within 30 minutes via drone, could learn something from DHL’s drone delivery program (Business Insider).
PAPA JOHN’S: Baseball-related pizza promotions are now so pervasive, they extend to the local level, thanks to Papa John’s status as the “official pizza” of 22 big league clubs (538).
BROWN-FORMAN is now offering pregnant employees 12 weeks’ paid leave, about twice as much as the most generous maternity leave plans of the area’s 10 biggest employers (Insider Louisville).
CHURCHILL DOWNS: Which horses stand the best chances at tomorrow’s 141st Preakness Stakes (New York Times).
In other news, presumptive GOP White House nominee Donald Trump addresses the 70,000-member NRA annual meeting today at the Kentucky Exposition Center (NBC).
This just in:
A news summary focused on big employers; updated 11:28 a.m.
BROWN-FORMAN is reportedly considering a sale of Finlandia vodka amid a broader effort to focus on its whiskey business; the company spent $200 million to assemble the vodka business from 2000 to 2004. Brown-Forman declined to comment on the report (Bloomberg). Last month, the company said it would spend $413 million to buy Scottish single-malt distiller BenRiach Distillery Co.
FORD said 6,506 people applied worldwide to buy the new EcoBoost-powered, carbon-fiber GT supercar; hundreds included videos to bolster their chances to buy the first 500. The $400,000 car will be available the end of the year (press release). Also, total vehicle sales in Ford’s 20 traditional European markets last month were the best since April 2009, with passenger car sales at their highest level since 2010 (press release).
KFC: A barrel of Montana oil fell so low this winter, it was cheaper than a big bucket of KFC: $22.16 for the oil vs. $24.99 for a 16-piece meal (Billings Gazette).
HUMANA: Aetna has spent at least $119 million for lawyers, investment advisors and other services in connection with its planned $37-billion purchase of Humana (Modern Healthcare).
GE: Negotiators for GE Appliances and a local union are trying to improve warehouse efficiency to prevent 217 jobs from being outsourced (Insider Louisville).
In other news, Al J. Schneider heirs have settled a feud that would allow for the sale of the Galt House and the late real estate moguls other holdings (Courier-Journal). The Bernard A. Dahlem family has donated $500,000 to the Catholic Education Foundation so more students can attend Archdiocese of Louisville schools (Courier-Journal). The new owners plan to demolish a Highlands house possibly dating to the 1830s to make way for a new, custom-built home; they paid $605,000 for the property last fall (Courier-Journal).
Brown-Forman’s $413 million deal last month to buy single malt distiller BenRiach Distillery Co. of Edinburgh is the latest in a series of takeovers roiling the Scottish industry, according to The Scotsman newspaper; here are four more.
$16 billion: In the biggest deal, Japan’s Suntory bought Jim Beam in 2014; Suntory owns Morrison Bowmore Distillers of Glasgow.
$621 million: Emperador of the Philippines for Whyte & Mackay, also of Glasgow in 2014.
$144 million: William Grant & Sons for whiskey liqueur maker Drambuie of Edinburgh in 2014; deal value is estimated because details weren’t disclosed.
$84 million: France’s Rémy Cointreau for Islay whisky maker Bruichladdich.
A news summary, with a special focus on big Louisville employers; updated 11:34 a.m.
PIZZA HUT set a new Guinness World Record for highest-altitude pizza delivery when it successfully carried a pie to the top of Mount Kilimanjaro on Sunday, a stunt marking the company’s expansion today into its 100th country: Tanazania. Over four days, the Yum division used an airplane, a motor vehicle, professional hikers and a backpack to deliver the pepperoni with extra cheese to the summit of Africa’s highest mountain (CNN).
CHURCHILL DOWNS says there’s no connection between the company and an entity with a similar-sounding name among more than 320,000 offshore accounts and trusts unveiled in a “Panama Papers” database Monday (WFPL). What happens when you bet $24 at the Derby without checking the odds again (The Billfold).
TACO BELL: Police in Santa Ana, Calif., bought a 31-year-old employee with cerebral palsy a new $500 adult-size tricycle to get to work after thieves stole his previous one last week; watch the video (KABC). In Ohio, video of a Taco Bell employee’s act of kindness — using sign language to help a customer — is rolling across the Web (WEWS).
KFC remains optimistic about India, despite slower sales (Business Standard). Chick-fil-A’s average sales per restaurant in 2014 were $3.1 million. Rival KFC sold $960,000 per restaurant that year (Business Insider); full rankings (QSR Magazine).
FORD thinks the driverless cars of tomorrow could come with their own drones (Detroit News).
In other news, Staples and Office Depot have called off their merger over anti-trust concerns; Staples has five stores in Louisville, and Office Depot has two (MarketWatch). An atheists group wants to spend $10,000 on billboards protesting a northern Kentucky Noah’s Ark theme park set to open in July, but can’t find anyone to take its business (Courier-Journal).
Vietnamese street food restaurant Pho Ba Luu is headed for Market Street in NuLu (Broken Sidewalk). Food Network star Guy Fieri is planning a new restaurant chain, Guy Fieri’s Smokehouse, with the first to open Sept. 9 at Fourth Street Live (Courier-Journal). Kroger needs to fill 14,000 open jobs nationwide (WDRB).
Latest news, with a special focus on big Louisville employers; updated at 3:19 p.m.
YUM just announced the promotion of David Gibbs, 53, to president and CFO, effective May 2. Gibbs, who’s been with the company 27 years, previously served as CEO of the Pizza Hut Division. He replaces interim CFO Dave Russell, who’ll return to Yum’s vice president, finance and corporate controller. (Press release.) A leadership shakeup at Yum has been in the cards for some time now (Business First). He arrives at a crucial time for the company (Nation’s Restaurant News). Former CFO Pat Grismer announced his resignation in December (Insider Louisville). Yum’s stock traded recently for $81.44, down less than 1%.
PAPA JOHN’S: In Georgia, a DeKalb County jury awarded $11 million to a woman claiming permanent brain damage from a crash with a pizza delivery vehicle on a rain-slicked road. The company’s lead attorney said the verdict would likely be appealed (Daily Report).
BROWN-FORMAN is getting back into the Scotch business after an 11-year absence with the $415.42 million purchase of the BenRiach Distillery in the north Scotland city of Newbridge. BenRiach’s brands include the Heart of Speyside. Today’s deal follows Brown-Forman’s sale of the Southern Comfort and Tuaca brands to Sazerac for $543.5 million three months ago (Reuters). Brown-Forman’s press release about the deal. Also, the company has named Eric Helms as new marketing director for its Global Travel Retail division (Travel Retail Business).
FORD: A threat to the Kentucky Truck Plant? Ford says it needs additional capacity for production of its next-generation Super Duty pickup (Courier-Journal).
TEXAS ROADHOUSE opened its newest location Monday, in Blackman Township, Mich (M Live).
In other news, Woodford Reserve followed an annual Kentucky Derby tradition and unveiled this year’s $1,000 Mint Julep yesterday (WLKY). The Al J. Schneider family drama over downtown’s Galt House grinds on in court (Insider Louisville). And on Wall Street, stocks were poised to tumble after Apple whiffed on earnings yesterday (MarketWatch).
Boulevard 