DETROIT BUSINESS MAIN 01-29-07 A 9 CDB 1/26/2007 11:56 AM Page 1 January 29, 2007 CRAIN’S DETROIT BUSINESS Page 9 MARY KRAMER: Tough times can force us to cooperate If Southeast Michigan were a “This is not puffery,” A second example: labor department official and ex- neering innovations, including kindergarten class, I think we his- Toffolo said. “The coop- Southeast Michigan re- plained One D and other regional helping to create systematic mod- torically would get demerits for eration has been excel- cently was passed over initiatives. The result: The cham- els for clinical trials and a couple “plays well with others.” lent so far. We have by the U.S. Department ber received a $5 million grant. of landmark drugs — the epilepsy Funny how a lousy economy can everyone there, Au- of Labor when it was Money is a big carrot. These co- drug Dilantin in 1938 and the first help us learn new ways to play to- tomation Alley, Ann handing out money to operative efforts will show that it antihistamine, Benadryl, in 1946. gether. Arbor Spark, NextEn- help boost economic ex- pays off. It was acquired by Warner-Lam- Two examples: ergy, the counties. We pansion, entrepreneur- bert in 1970 and consolidated with First, area economic-develop- had a presentation on ship and workforce de- Pfizer and Detroit that company’s Ann Arbor divi- ment agencies — and there are a how much we receive velopment. Two grants sion, which had developed Lipitor bunch of those — have agreed to in federal grants” in were given to other re- When Pfizer Inc. shuts down in in 1985. Pfizer bought Warner- work together to lobby federal and Southeast Michigan. gions in Michigan. Ann Arbor, it takes a bit of Detroit Lambert in 2000. foundation funding sources for “It’s terrible. It’s low.” Why not Southeast pharmaceutical history with it. Mary Kramer is publisher of specific purposes. Added Ken Rogers, Michigan? The word Pfizer grew through mergers Crain's Detroit Business. Her weekly “There’s an opportunity in Con- who runs Automation Alley: “We from Washington was: You don’t and acquisitions. One of the com- take on the latest business news airs gress because of the swing in pow- don’t ‘incubate’ companies at the Al- have your act together. panies it absorbed, Parke-Davis, at 6:40 a.m. Mondays on the Paul W. er,” said Dennis Toffolo, deputy ley, but with new funds from Wash- So the Detroit Regional Cham- was founded in Detroit in 1886. The Smith show on WJR AM 760. E-mail county executive in Oakland ington, we could entertain that.” ber and other partners met with a company was known for many pio- her at [email protected]. County, who credited Detroit Re- naissance Inc. CEO Doug Rothwell for pulling the regional alliance to- gether. 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(313) 446-0405 or Pages 21, 22, 24. write bsnavely@ crain.com ■ Extranets help law firms manage big deals 2006 deals. Page 26. Brent Snavely The question of private equity How do automakers and tier-one suppliers really feel about private- Deal – or no deal? equity funds and hedge funds buying automotive suppliers? Three top executives offered frank STILL PENDING M&As rose in 2006, but wait continues thoughts during a question-and- answer session Jan. 17 at the for some that were expected Automotive News World Congress in Dearborn. Panelists included Tony Brown, BY BRENT SNAVELY could be the final chapter for some companies and senior vice president of global CRAIN’S DETROIT BUSINESS a new beginning for others. 2006 began with the purchasing at Ford Motor Co.; Mark Troy-based Delphi now has a pending $3.4 bil- expectation of several big cquisitions were up in 2006, but many of the Hogan, president of Aurora, Ontario- lion buyout offer from a group of private-equity deals, but many of them most anticipated deals are still either under- based Magna International Inc.; and funds, but the deal depends on Delphi’s ability to ended the year with no A way or just didn’t happen. reach new labor agreements and deals with GM. Tim Myers, senior manager, Honda of signature on the bottom line. Last year both began and Southfield-based Collins & America Manufacturing Inc. They included: ended with speculation about Aikman has decided to sell it- The following are some of the Delphi who would eventually own Del- DEALS OR DOLLARS? self off in pieces rather than comments made that day: Bankrupt supplier received a phi Corp., Collins & Aikman Corp., reorganize and says it has a and the former Visteon plants 2006 produced more deals ... Is the flood of private equity in the $3.4 billion buyout offer from lead buyer for its carpet and that comprise Automotive Com- auto industry a good thing or a bad a group of private-equity acoustics division, which rep- ponents Holdings L.L.C., and Vis- resents about a third of the thing? “Necessary,” Brown said. “All funds late in the year, but teon Corp. 101 deals 123 deals company’s revenue. things being equal, from a Ford Motor the deal still depends on Delphi’s ability to reach new The year also began with The picture at Visteon is Co. perspective, we want to see 2005 2006 labor agreements and drama build- more complicated. New York strategic players. But we can’t kid contracts with GM. ing about the ... but 2005 produced more dollars City-based hedge fund Pardus ourselves. To restructure, this industry biggest po- Capital Management L.P. accu- needs capital. Financial players have Collins & Aikman tential deal mulated a 17 percent stake in capital. Another bankrupt supplier, of them all: Visteon last year and has accu- Collins & Aikman had a plan Kirk Kerko- mulated at least a 5 percent “… Those people who come in, to emerge from bankruptcy, rian’s then stake in French supplier Valeo they ought to get a return on their then decided to sell itself off 7.8 percent SA.