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DETROIT BUSINESS MAIN 12-03-07 A 1 CDB 11/30/2007 6:38 PM Page 1 ® http://www.crainsdetroit.com Vol. 23, No. 49 DECEMBER 3 – 9, 2007 $2 a copy; $59 a year ©Entire contents copyright 2007 by Crain Communications Inc. All rights reserved THIS JUST IN Group shoots for $5.5M House energy hearings near for NCAA tournament The local organizing for the coalition and partner in committee for the 2009 Bills plan new rules for rates, renewable energy Lansing public-relations firm Mar- NCAA Final Four men’s bas- tin Waymire Advocacy Communica- ketball games at Ford Field BY AMY LANE plants and other electricity gener- tomer Choice Coalition, a group of tions Inc. plans to raise $5.5 million CAPITOL CORRESPONDENT ation, and narrow the Michigan consumer interests, business However, other forces are push- by February to pay for the law that lets customers choose al- groups and alternative-electricity ing for action. on-site organizing and sup- LANSING — A battle over ternative-electricity suppliers. suppliers. DTE Energy Co. and CMS Energy port functions for the bas- Michigan’s energy future may be Accavitti’s hope: To have an en- The group supports continua- Corp. say they still need repeal or re- ketball games. about to heat up in the Capitol. ergy package through the House tion of Michigan’s electric-choice form of Michigan’s partially com- The money will be used House Energy & Technology and to the Senate by the time the law, as envisioned under a compet- petitive, partially regulated system to pay for volunteer ex- Committee Chair Frank Accavitti, Legislature breaks for the holi- ing Senate package of energy bills. that allows utility customers to penses, transportation, D-Eastpointe, plans to start hear- days. “We think this is an issue that move to alternate suppliers. housing and coordinating ings, possibly this week, on a pack- “Is that possible? I think so,” he deserves lengthy, serious consid- Jeff Holyfield, CMS director of ancillary events, such as age of bills that would set new said. eration by the Legislature. We news and information, said an NCAA coaches’ conven- standards for renewable sources of But the prospect of fast action on can’t see any reason why there preparatory work on CMS’ new tion and a fan event at energy and energy efficiency, alter a complex set of bills, legislatively should be any hurry to make these 800-megawatt coal-fired plant had Cobo Center. utility-rate structures, establish a linked so that all must pass for kind of changes in a hasty way,” to start for the more than $2 billion “Those are some of the new approval process for power each to take effect, alarms the Cus- said Dave Waymire, spokesman See Energy, Page 29 things that the (host) city is required to provide during the Final Four,” said Dave Beachnau, executive direc- tor of the Detroit Metro Sports Commission, which is part of the organizing com- Tigers lottery? mittee. Packages are expected to Vindication at range from $50,000 to MLB eases up, a See This Just In, Page 2 Valassis? bit, on gambling NEW CRAIN’S AWARDS BY BILL SHEA RECOGNIZE WORK M&A Advo purchase, first panned, now panning out CRAIN’S DETROIT BUSINESS Involved in a merger or Feeling like a little game of chance at acquisition in 2007? Comerica Park? You may be eligible for the first BY BILL SHEA or stock buyback Two kiosks at the stadium this past sea- Crain’s M&A Awards contest. CRAIN’S DETROIT BUSINESS loomed as Valassis saw son sold $5 scratch-off Michigan Lottery tick- Crain’s Detroit Business is its 2006 revenue drop 7.7 ets emblazoned with the working with the Detroit chapter Wall Street wanted Alan percent to $1 billion. Detroit Tigers logo. Prizes of the Association for Schultz’s head. What investors did- varied up to $100,000, and Corporate Growth to honor What it got, at least for n’t expect was the included team merchan- companies and individuals in one quarter, was evidence the following categories: Advo deal. dise and even season Schultz used that head to Reaction was nega- tickets. Best Deal of the Year – Three improve his company awards: Up to $25 million in tive and swift, even Legalized gambling, and outwit his critics. value; $25 million-$100 million; Schultz more so after Valassis once unthinkable in Schultz — chairman, and $100 million or more. discovered issues with relation to Major president and CEO of Livo- Dealmaker of the Year – M&A PROFILE Advo’s financials and sued League Baseball, has nia-based newspaper THE DEAL experts, lenders, CPAs, to halt the acquisition. The gradually gained lim- Name: Alan coupon maker Valassis Com- consultants and attorneys, How Valassis companies eventually ited acceptance in Schultz munications Inc. since 1998 — acquired Advo, among others, are eligible. agreed to trim $125 million the game as a source Age: 48 surprised investors and ana- Page 28. Lifetime Achievement – Senior- off the sale price and the of revenue. The Family: Wife, Eva; lysts with his decision in level executive who has been deal was finalized in March. A lottery ticket same Major League two grown sons. July 2006 to acquire Advo involved in significant A second quarter that saw Valas- with Detroit Tigers logo. Baseball that once transactions and made a Hometown: River Inc., a Connecticut-based direct-mail sis’ net income drop 50 percent fur- banned Willie Mays and Mickey Mantle for significant impact on the Rouge. giant, for what ended up being $1.2 bil- ther eviscerated its stock. In 2005, being associated with casinos has cautious- community. Education: lion. shares traded at more than $40, but ly embraced advertising and sponsorships Best Minority Enterprise Deal Bachelor’s Wall Street had expected Schultz by Aug. 6, the price reached a 52- from various legalized gambling outlets — Applications for the M&A awards degree in to do something since Valassis’ stock week low of $7.67. provided the casinos or lotteries don’t per- can be found at business and profits were sliding due to a administration in All the time, Schultz was preach- mit betting on games. www.crainsdetroit.com/ price war with its primary competi- finance and ing — perhaps pleading — patience. Betting at games and betting on games is nominate beginning Wednesday. tor, News America Marketing, a New The deadline for entering is Jan. accounting from Give it time, he said. Adding Advo’s the crucial difference. York City-based subsidiary of Ru- 10. Winners will be announced the University of direct-mail business — those ubiqui- But those who keep tabs on the business pert Murdoch’s News Corp. at a March 6 strolling dinner at Michigan. tous “Have You Seen Me?” mailers side of the game agree that baseball is more the Troy Marriott. Analysts thought a restructuring See Valassis, Page 28 See Lottery, Page 28 BUSINESS LIVES CRAIN’S LIST Splitting assets after a split, Largest hospital companies, NEWSPAPER Page 17 Page 14 DETROIT BUSINESS MAIN 12-03-07 A 2 CDB 11/30/2007 6:39 PM Page 1 Page 2 CRAIN’S DETROIT BUSINESS December 3, 2007 quarters to Sunnyvale, Calif., building at 1441 E. Maple Road will be one of the talking points WHO ARE THE TOP CFOS? THIS JUST IN last year after receiving a ven- for $2.4 million, moving from a of an India visit in January by lo- ture-capital round of $10 million 7,200-square-foot building in cal business and civic leaders, co- CFOs are often the unsung ■ From Page 1 in 2005 from two Silicon Valley Madison Heights. The company sponsored by the Detroit Regional heroes of an organization’s senior VCs, Foundation Capital and Menlo will use more space than at its Chamber and the Detroit Regional management team. These leaders are grappling with budget $750,000. Bill Ryan, hired as execu- Ventures, but he and the design last building, but will be leasing Economic Partnership. tive director of the organizing staff of eight remained in Detroit. 17,000 square feet. pressure and increased red tape, Oakland County Executive L. and are contributing to strategic committee in August, said Gener- McCorquodale said he has al- Royal Oak-based CORE Partners Brooks Patterson will join Cham- planning in new ways. al Motors Corp. has committed to a ready made offers to some elec- represented both the buyer and ber President Richard Blouse Jr. Crain’s Detroit Business is $750,000 package, and he expects the seller, an investment group trical engineers and hopes to add and some of their staff visiting IT seeking nominations for its Ford Motor Co. and Chrysler L.L.C. with Southfield-based Ari-El Enter- five in Detroit in the next six businesses. second-annual to make commitments soon. months and as many as 15 over prises as managing partner. CFO awards to GM CEO Rick Wagoner, a for- the next two years. — Daniel Duggan Crain’s hires Web manager give mer Duke University basketball — Tom Henderson recognition to player, is chairman of the orga- Alan Baker has joined Crain’s these financial nizing committee’s executive Doner names executive Detroit Business as Web general leaders. committee. Ryan, whose Grand Fairlane Club sale closes Brett Groom has been promoted manager. Winners and Rapids-based The Ryan Marketing to the newly created position of Baker, 39, was executive pro- finalists will Fairlane Club Holdings L.L.C. re- be recognized Group has been a technical con- chief digital officer at Southfield- ducer and Web manager for cently closed on its purchase of at a June event.