Chicago is My Home

29
Apr

Fuel Surcharge of $1 Goes Into Effect on Monday For All Chicago Cab Rides

Author: Adam Fendelman, Category: Transportation

CHICAGO – Taxi passengers found their cab fares more expensive beginning on Monday as a city-mandated fuel surcharge of $1 went into effect across Chicago.

Approved by the Chicago City Council on April 9, 2008, the ordinance is intended to provide relief to city cab drivers as fuel prices continue to climb. According to AAA’s fuel gauge report, the average price for a gallon of gas in Chicago was $3.67 for the month of March 2008. Those numbers have only increased in April.

According to Chicago’s Department of Consumer Services, $1 will be added to taxi fares regardless of the distance of the ride when the average price of gasoline in Chicago is above $3.20 for seven consecutive days.

The surcharge is lifted if gas falls below $2.70 a gallon for seven consecutive days. Notices are to be posted in all cabs notifying customers of the extra charge.

By Megan O’Neil

29
Apr

United Airlines Parent UAL Corp. Turns to US Airways For Possible Merger

Author: Adam Fendelman, Category: Travel

CHICAGO – Spurned at the altar by Continental Airlines on Sunday, UAL Corp. – which is the Chicago-based parent company of United Airlines – is now said to be looking to US Airways to negotiate a possible merger.

A vocal advocate for consolidation in the airline industry, UAL CEO Glenn Tilton told employees in a message on Monday that the company will pursue other options.

“We continue to evaluate our options and will do what is right for United,” Tilton said. “We also continue to believe that new business models are required to respond to the challenging market environment. For a shift of that magnitude, management teams must fully embrace the inevitability of change and have a meeting of the minds for any prospective partnership to be successful.”

US Airways, which is based in Phoenix, Ariz., has long been on UAL’s radar as a potential partner.

Overlapping routes, however, make US Airways a weak candidate for a United merger in the eyes of many experts. Thus far, spokespeople for both airlines have declined to comment on a potential merger. Insiders say it may be weeks before any possible deal could be made public.

By Megan O’Neil

28
Apr

Mars, Inc. to Buy Chicago-Based Wm. Wrigley Jr. Company For $23 Billion

Author: Adam Fendelman, Category: Business

CHICAGO – The Chicago confectionary giant Wm. Wrigley Jr. Company announced on Monday it will be bought by Mars, Inc. for $23 billion.

Also in on the deal is Warren Buffet’s Berkshire Hathaway, which will provide $4.4 billion of the total purchase price and assume a minority stake in Wrigley.

The combined company will brag a product portfolio that includes some of the world’s most famous candies including Orbit, Extra, Doublemint, M&M’s, Snickers and Mars as well as many other food and beverage brands.

Wrigley Co. will be added to the growing list of major Chicago companies that have been bought out in the last decade including Ameritech Corp., First Chicago Corp. and Amoco Corp. It is a trend that has worried some Chicago business experts.

By Megan O’Neil

28
Apr

Quieting Industry Speculation, Continental Declines United Airlines Merger

Author: Adam Fendelman, Category: Travel

CHICAGO – Houston-based Continental Airlines said on Sunday it won’t pursue a merger with another airline at this time. The news quieted weeks of industry speculation that the carrier would join operations with United Airlines.

The announcement is a blow to United parent company UAL Corp., which has been looking for a partner for some time and had hoped to finish negotiations at the end of this week. Chicago-based UAL may now try to court US Airways, according to insiders.

Delta Air Lines and Northwest Airlines announced on April 15, 2008 that it would merge and thus create the world’s largest airline. Rising operating costs have meant massive losses for airlines in the last quarter and other similar mergers were expected to follow.

By Megan O’Neil

28
Apr

Chicago Multimedia Arm Emmis Interactive Becomes Free-Standing Company

Author: Adam Fendelman, Category: Business

CHICAGO – Emmis Interactive, which is the Chicago-based multimedia arm of Indianapolis-based Emmis Communications Corp., announced on Monday it will now become its own company and function as a wholly owned subsidiary of Emmis Operating Company.

Emmis Interactive is a pacesetter within the radio industry for its interactive, revenue-generating content. The company grabbed headlines in June 2006 when it struck a deal with iTunes to incorporate the popular music source into its client’s radio station Web sites. The move made it easy for listeners to download songs and artists within their favorite genres.

Emmis CEO Jeff Smulyan called the company a “true pioneer and innovator” in interactive media. He added in a Monday statement: “There is a real hunger for the kind of answers Emmis Interactive has found,” Smulyan said. “Their expertise could not be more vital to the entire media industry as we all seek to transition our businesses and pursue new revenue streams.”

By Megan O’Neil

22
Apr

Though Scaled Back, Development Still on at Ex-Fannie May Site in Chicago

Author: Adam Fendelman, Category: Business

CHICAGO – Developers will continue to pursue plans to build two residential buildings and a commercial complex at 1137 W. Jackson Blvd. in Chicago, which is the site of the former Fannie May factory.

While the original design included details for 30-story structures, investors have now submitted a request to city officials for zoning authority to erect two, 21-story buildings. The plans also include a nine-story commercial complex that would include a movie theater.

Once crowded with manufacturers, the near west side of Chicago is an increasingly attractive neighborhood to commercial and real estate developers. Luxury condominium complexes and trendy restaurants are springing up next to former meat-packing plants.

The site is owned by a partnership that includes the Chicago-based IBT Group, BlackRock and Marc Realty. The zoning application must make its way through city council approval, which is a process that’s expected to take several months.

By Megan O’Neil

22
Apr

United Airlines Parent UAL Corp. Posts Huge Losses, Plans to Cut 1,100 Jobs

Author: Adam Fendelman, Category: Travel

CHICAGO – UAL Corp., which is the parent company of United Airlines, reported a $537 million first-quarter loss on Tuesday and said the carrier will be forced to trim domestic flights and cut as many as 1,100 employees.

While airlines have found themselves in the red nearly across the board, UAL’s losses have significantly surpassed those of rivals including American Airlines parent AMR Corp., Continental Airlines and JetBlue Airways.

The loss tripled the $152 million loss posted by the carrier one year ago. Describing the state of the industry as “extraordinarily difficult,” UAL CEO Glenn Tilton said in a Tuesday message to employees that changes at United need to match the pace of changes in the industry.

By Megan O’Neil

22
Apr

Reports: Chicago-Based Tribune Co. Has Deal in Principle to Sell Newsday

Author: Adam Fendelman, Category: Business

CHICAGO – The Tribune Company in Chicago has reached an agreement in principle to sell its Long Island, N.Y.-based daily newspaper Newsday to Rupert Murdoch’s News Corp., according to sources in published reports on Monday.

News Corp. would pay roughly $580 million for a majority stake in the publication, according to the Chicago Tribune. While still on the table, the deal was negotiated in person by Murdoch and Tribune Co. Chairman Sam Zell and was structured to minimize the Tribune’s taxable capital gains.

After brokering a $8.2 billion buyout in 2007, billionaire Zell assumed responsibility not only for the Tribune Co. but also for the company’s hundreds of millions of dollars in debt. Faltering subscription numbers and rising operating costs have plagued Tribune publications.

Newsday has been part of Tribune Co. since the media company acquired the Los Angeles-based Times Mirror Co. in 2000. Newsday has a paid circulation average of about 387,000 during the week and 454,000 on Sundays.

By Megan O’Neil

21
Apr

Navigant Consulting in Chicago to Acquire Chicago Partners For $73 Million

Author: Adam Fendelman, Category: Business

CHICAGO – In a $73 million deal announced on Monday, the Chicago-based international firm Navigant Consulting said it will acquire Chicago Partners, which one of Chicago’s top economic and financial analysis consulting companies.
The $73 million deal is comprised of $50 million in cash and $23 million in stock.

Chicago Partners will be become Navigant’s fourth operating segment. Chicago Partners will join Navigant’s already-existing North American dispute and investigative services, its North American business consulting services and its international consulting operations. The new economics segment will be lead by Chicago Partners President John Garvey.

“We are excited about the long-term growth opportunities created through our combination with Navigant Consulting,” Garvey said in a Monday statement. “Navigant provides our professionals with expanded geographic reach and access to complementary professional teams and expertise.”

By Megan O’Neil

17
Apr

PepsiCo Pulls Plug on Gatorade, Tropicana From Chicago-Based Element 79

Author: Adam Fendelman, Category: Business

CHICAGO – Ending a six-year relationship and threatening the agency’s viability, PepsiCo on Tuesday announced it has pulled creative control of its Gatorade and Tropicana brands from Chicago advertising agency Element 79.

“Gatorade and Tropicana have chosen to end their relationship with Element 79 Partners,” PepsiCo said in its Tuesday statement.

PepsiCo added: “As we look at the businesses today, we believe Gatorade and Tropicana could benefit from a partnership change. In essence, both world-class brands demand new, creative thinking to fuel their growth. We appreciate Element 79 Partners’ stewardship and creative work over the last six years, which have contributed to the success of our brands.”

Gatorade creative duties will now be managed by TBWA\Chiat\Day in Los Angeles while Tropicana creative duties will be managed by Arnell in New York.

As convenience-store shelves become crowded with competitors such as Coke-owned Powerade, Gatorade has struggled to maintain market dominance. The brand saw its share shrink by 2.7 percent to 76.3 percent in 2007 while Powerade’s share increased by 2.6 points to 22.7 percent.

By Megan O’Neil