I was on that HPD Field Sales conference call on August 22, 2003.... They actually had a new HR VP (lady) on board weeks, host the call (that story is still wrapped up)...and in explaining one of the reasons for the spin. She referenced HPD as a "senior" division...a classic faux paux, a premier freudian slip, your tonque reveals a thought you try to grab back as the words travel. You been there? I sat down at my desk put my face in my hands...cause I knew I was hosed, with 15 years. So i want to share with you PPD'ers the playbook: 1. Forget all the conference calls...they evolve like making stove top butterscotch pudding. 2. Ignore the written stuff about benefits. (see the little disclaimer, its there for a reason.) 3. Newco won't be bought out soon. Hospira was profitable, has good cash flow, but the lack of investing in the business has the chickens coming home to roost, 7 years later. 4. The Newco stock will run up, on specualtion, your executives will cash out, saying they have to diversfy. 5. Prepare for a downgrade of healthcare, profit sharing, and raises for you worker bee's. Companies rarely have a chance to take these away. 6. Have a good relationship with your boss, even if superficial. 7. Thousands of you will be pinked slipped. That announcement will run up the stock. Good luck to those who are affected. 8. Your new CEO has experience in this....more polished than Begley. His experience is not widely known...sorta an undertone. He likes those $2,000 suits. Maybe $3000, now. 9. Hospira business is steady, good product, not patent driven, your model is different. 10. This is a private equity move done by a public company. Understand what PE does. Good Luck!
How many people got laid off , and were the layoffs before the deal was finalized? Before the split occurred or after reps were already moved over to new Hospira company?
excellent question, after spin, 1,500 people (10% RIF), Boston Consulting came in 3 years before and made recommendations, the important part here: RIF announced when stock had dropped to $23 from spin-off price of $26.50. Then....................... Stock moved from $23 to $60 in 18 months. All exec's sold out in next 6-9 months. I didn't go to Harvard Business School but new that trick from my days as junior in business school 12 years ago. CEO and COO, the big winners, retired several months later. Hospira stock at $29 and many downgrades now. Greased the shaft from Grade levels 17 and above with options to make palitable.
No gamble because it's a sure bet. You KNOW what you'll be getting if you retire/resign before the split, but if you wait it's a roll of the dice. Will they honor the Abbott accrued pension? Will Newco screw you like they did Hospira? Will they decide not to pay any pensions until the age of 65? 62? 67? Will Newco offer medical benefits to retirees? Have you found it unusual that they can tell you that the 401k program will transfer over to Newco, but they can't tell you what pension benefits they'll offer? Why is that? You gotta know when to hold 'em, know when to fold 'em, know when to walk away, and know when to run. You better count your money, while you're sitting at the table, don't plan on counting it, when the dealin's done.
Classic was when they said on conf call that it might not be legal to tell us???? WTF? What a smokescreen.
Note..."might not be legal" also means that it might be legal. Mis-direction and smokin' mirrors. Think about it... Was it legal for Bayer to sell off Knoll to Abbott years back? If GE had not decided that they didn't want ADD, would it have been legal to sell it to GE? We didn't hear that kind of bullsh*t then, because it wasn't part of the spin to calm people down. Think people, think...
Knoll came from BASF, and 'If GE had not decided that they didn't want ADD, would it have been legal to sell to GE' makes no sense. So whats your point?
OK, this is in the spirit of camaraderie that I tell you this so you don't look like a buffoon some day when you write "smokin' mirrors" again. The phrase is "smoke and mirrors" and it refers to something that distorts or blurs facts, figures, etc., like a magic trick or artful deception. I am guessing that you thought it meant a smoldering mirror? Why was the mirror "smokin' "? Was it on fire? Or was it "smokin' " a cigarette? How did you think that made your point? And to all the posts that are going to respond about spelling and grammar police, you should be thankful that this forum allows you to learn anonymously what you apparently missed during your school years. Think about all the gaffes you must be making with your customers and the mistakes you might make on a cover letter if you have to look for another job. In those instances, you don't know that the person is judging you and laughing at you behind your back.
On the same subject, I recently went to a PNT committee meeting and for all intensive purposes is was a waist of both my time and theres.
