Chicago is My Home

07
Jul

Former LaSalle Executive Norman Bobins Named to PrivateBancorp Board

Author: Adam Fendelman, Category: Business

CHICAGO – PrivateBancorp announced on Monday it has named former LaSalle Bank CEO Norman Bobins to its board of directors as well as chairman of its PrivateBank-Chicago subsidiary.

Bobins retired from LaSalle Bank on Jan. 1, 2008 as was planned following a $21 billion buyout of the bank by Bank of America last fall. Bobins must honor his contract with Bank of America, which prohibits him from recruiting LaSalle customers or employees until Jan. 1, 2009.

PrivateBancorp CEO Larry Richman describes Bobins as a trusted advisor and friend. Richman and Bobins worked closely with each another at LaSalle Bank and Richman briefly replaced Bobins as CEO of LaSalle Bank just before the Bank of America buyout.

“I am honored that he has accepted my invitation to become chairman of PrivateBank-Chicago in addition to his seat on the holding company,” Richman said in a Monday statement. “Our clients, communities, company and our stockholders will benefit from his knowledge, insight and experience.”

Bobins sits on numerous boards including WTTW Communications, The Field Museum in Chicago, the Art Institute of Chicago, the Chicago Board of Education, the Newberry Library and Spertus College.

By Megan O’Neil

02
Jul

Nokia Secures Final Approval to Acquire Chicago Digital Map Maker NAVTEQ

Author: Adam Fendelman, Category: Technology

CHICAGO – After navigating bureaucratic and regulatory roadblocks for months, Nokia on Wednesday received the final necessary approval from the European Commission to buy Chicago-based digital map company NAVTEQ Corp.

“The commission concluded that the transaction would not significantly impede effective competition in the European economic area or any substantial part of it,” an executive with the European Union said in a Wednesday statement.

The $8.1 billion deal, which is expected to close by next week, will give the mobile phone maker its first big break into the world of Internet-based business. It will also make Nokia a leading force in the fast-growing digital navigation business.

By Megan O’Neil

02
Jul

Enesco to Buy Soft-Toy Maker Gund, Adds New Brand to Increasing Portfolio

Author: Adam Fendelman, Category: Business

ITASCA, Ill. – Enesco, which is an Itasca, Ill.-based distributor of some of the world’s most recognizable brands (including the Walt Disney Classics Collection), said on Tuesday it has acquired stuffed-animal maker Gund. Terms of the deal were not disclosed.

Founded in 1898 by German immigrant Adoplh Gund, the Edison, N.J.-based company made a name for itself as a leading soft-toy manufacturer in the U.S. Gund introduced the understuffed technique that gave its products an extra squeezable feel.

Gund CEO Bruce Raiffe said in a Tuesday statement that it was a difficult decision to sell the family run business but he is confident the company will continue to build upon its strong heritage. Gund will be added to Enesco’s already extensive portfolio. Enesco sells a wide range of giftware and décor.

“We continue to focus on building Enesco’s portfolio of strong, consumer-driven brands and look forward to the addition of more great artists and brands to the Enesco family in the future,” Enesco executive chairman Matthew Bousquette said in a Tuesday statement.

By Megan O’Neil

01
Jul

Chicago Sales Tax Spikes; 10.25 Percent Tax Highest in Any Major U.S. City

Author: Adam Fendelman, Category: Business

CHICAGO – Previously at 0.75 percent for Chicagoans, the Cook County sales tax will jump to 1.75 percent on Tuesday as an increase voted by the county board takes effect.

Combined with the state sales tax and the city sales tax, consumers in Chicago will pay 10.25 percent tax on some items. This is the highest for any metropolitan area in the country. The tax increase will apply to purchases of clothes, furniture, alcohol and restaurant food. It does not apply to cars, boats, groceries or medicine.

Sales taxes vary from county to county. Shoppers in Schaumburg, Ill. and Skokie, Ill. pay 10 percent while shoppers in Orland Park, Ill. pay 9.75 percent. The Cook County board voted to increase the sales tax after its president (Todd Stroger) called for increased funding to cover a $3 billion deficit in the county budget.

By Megan O’Neil

01
Jul

Executive Ranks at Motorola in Schaumburg, Ill. Seeing Global Renovation

Author: Adam Fendelman, Category: Business

SCHAUMBURG, Ill. – Motorola has named new regional executives for its cell phone businesses in China, India, Europe and North America as the company tries to regain its footing in the wake of plunging international sales.

According to a Monday report by Crain’s Chicago Business, Motorola senior vice president Bruce Brda (who heads Motorola’s cell phone unit) circulated an internal memo last week announcing the changes.

The newly appointed executives will carry the heavy load of reversing Motorola’s dramatic losses in the cell phone market over the last 18 months. The Schaumburg, Ill.-based company has seen its global market share shrink to just 9.7 percent.

Its cell phone unit has been losing money since early 2007. Analysts say its United States market share could dip to 20 percent in 2008.

By Megan O’Neil

01
Jul

First Chicago Bancorp to Merge With Indianapolis-Based White River Capital

Author: Adam Fendelman, Category: Business

CHICAGO – Commercial banking and mortgage company First Chicago Bancorp announced on Monday it will merge with automobile finance company White River Capital. Terms of the deal were not disclosed.

In a joint statement, the institutions said First Chicago shareholders will receive one share of White River common stock for each two shares of First Chicago common stock. First Chicago shareholders will assume control of 61.2 percent of White River.

The combined company’s board of directors will include the nine current First Chicago board members as well as the addition of White River executives Thomas Heagy and Denial Porter. One board member (John Rose) currently sits on the board of both companies and will continue on the board following the merger.

“This unique transaction that combines our companies will provide First Chicago with an opportunity to diversify its portfolio by adding a higher-yield asset class managed by an exceptionally experienced and proven team,” said First Chicago CEO William Ruh in a Monday statement.

Privately held First Chicago has seven branches and $1.2 billion in assets. White River’s last stock trade was at $15.30.

By Megan O’Neil

01
Jul

Chicago’s CME Group Extends Rights For Futures, Options Based on NASDAQ

Author: Adam Fendelman, Category: Business

CHICAGO – The CME Group in Chicago said on Monday it has reached an agreement with NASDAQ OMX Group, Inc. to extend its exclusive rights to offer futures and options on future contracts based on the NASDAQ indices through 2019.

The Chicago derivatives exchange also said it will single list CME shares on the NASDAQ and delist itself from the New York Stock Exchange (NYSE) starting on July 11, 2008. CME had listed on the NYSE since it went public in late 2002 and had dual listed with NASDAQ since May 2005.

The seven-year extension of CME’s license rights strengthens the exchange’s growth potential in the equity derivatives market, according to CME CEO Craig Donohue.

“Our decision to single list on NASDAQ recognizes the extraordinary success NASDAQ has achieved in becoming the leading market center for trading in CME Group shares since CME Group first dual listed on both NASDAQ and the New York Stock Exchange on May 2, 2005,” Donohue said in a Monday statement.

As NASDAQ and rival NYSE compete for listings, this makes Monday’s announcement a victory for the newer electronic-based trading platform.

By Megan O’Neil

19
Jun

Authorities Begin to Make Arrests Related to Mortgage Fraud, Identity Theft

Author: Adam Fendelman, Category: Business

CHICAGO – Federal authorities on Thursday began making arrests and pressing charges in the Chicago area against defendants suspected of mortgage fraud and identity theft, according to a Chicago Tribune report.

The arrests, which could reach as many as 70, are part of a nationwide mop up following the mortgage crisis that has rocked the United States economy and particularly the real estate industry. In perhaps the most high profile of the cases, two former Bear Stearns managers (Ralph Cioffi and Matthew Tannin) were arrested in New York on Thursday on charges of securities fraud.

According to the Chicago Tribune report, mortgage fraud has become increasingly sophisticated as criminals and street gangs use real estate to launder drug money. In a case earlier in 2008 involving the Black Disciples and Black P Stone gangs, investigators found as many as 100 Chicago-area properties tied up in a mortgage fraud scheme.

The arrests are expected to include real estate agents, brokers and appraisers.

By Megan O’Neil

18
Jun

RCN Launches New Fiber-Optic Network in Chicago as Customer Alternative

Author: Adam Fendelman, Category: Technology

CHICAGO – RCN Metro Optical Networks, which is a division of RCN Corp., announced on Monday the launch of a new Chicago network. RCN Metro Optical Networks, which is a provider of fiber-based network solutions, just completed constructing a fiber ring that encompasses more than 10 miles in downtown Chicago. This adds to RCN’s existing 538-mile fiber network in the Chicago area.

“Customers are seeking alternative carriers [that] can provide the high levels of service, reliability and [quality-of-service] parameters that are required to support today’s applications. RCN Metro is delighted to announce this latest market expansion and be able to support Chicago-based businesses,” RCN Metro President Felipe Alvarez said in a Monday statement.

RCN Metro’s complete set of products available in the Chicago area ranges from metro Ethernet to SONET and wavelength services, IP transit, colocation and network management services. The expansion will add an extra 100 gigabits of overall network capacity in a core growth market.

By Jenna Zizzo

18
Jun

OfficeMax to Lay Off 2,700 Managers, Assistant Managers Across 900 Stores

Author: Adam Fendelman, Category: Business

NAPERVILLE, Ill. – Office supply retailer OfficeMax in Naperville, Ill. said on Tuesday it will shed 2,700 manager-level employees at its 900 stores nationwide in order to reduce costs.

The company will lay off half of all assistant store managers and two-thirds of all store supervisors, a company spokesperson said on Tuesday. The void will be filled with lower-paid, on-floor associates who will focus on specific retail products. The layoffs are expected to be completed by the end of June 2008.

OfficeMax stores, which sell everything from desk chairs to paper clips, have struggled in a weakened economy. The retailer also faces stiff competition from office supply giant Staples. Credit Suisse on Monday dropped OfficeMax’s stock rating from “outperform” to “neutral” and lowered its target price to $20 from $25.

By Megan O’Neil