Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Yogen Fruz IT'S ALIVE, IT'S ALIVE -- Ignore unavailable to you. Want to Upgrade?

To: yogi bare who wrote (1051)	1/27/1999 12:25:00 PM
From: Link Lady	Read Replies (4) \| Respond to of 2453

Hi Yogi Found this today. What do you or anyone think of article. Is it good or bad news for YF.A? canoe.com FP Home Money News Technology News Columnists Markets Snapshot Globe Trotter Mutual Fund News Look up ticker symbol For Wednesday, January 27, 1999 Analysts' report irks Yogen Fruz officials Serruyas deny infighting By KIM HANSON The Financial Post A research report by First Marathon Securities Ltd. that implies a shift in the management control of Yogen Fruz World-Wide Inc. has angered top officials at the Markham-based company. The First Marathon report says Michael Serruya and his brothers appear to be losing management control to Richard Smith, the former head of Integrated Brands Inc. Integrated Brands, which is based in Ronkonkoma, N.Y., was acquired by Yogen Fruz in March 1998 and the deal marked Yogen Fruz's first foray into the consumer products industry. Mr. Smith became co-president of Yogen Fruz, and Integrated Brands gained about 16% of Yogen Fruz when the acquisition was completed. "Recently we have observed a marked change in apparent management control away from the Serruya family to the minority shareholders from Integrated Brands," said the report, dated Jan. 12, and written by Perry Caicco, an analyst with First Marathon in Toronto. In a telephone interview yesterday, Mr. Caicco said "certainly the company has not said as much, but in observing the actions of management over the last couple of months it's hard not to reach that conclusion," he said. The report further suggests that "the management transition at Yogen Fruz has also driven a radical change in objectives," and that the company is more interested in building up its frozen dessert brands to "force a multinational consumer products company to make a bid for it." Part of the report's reasoning alludes to a history of similar business transactions led by Mr. Smith during the 1980s and early 1990s. The 56-year-old entrepreneur from Long Island built up Frusen Gladje, a super premium ice cream product, which was then sold through Mr. Smith's private company to Kraft General Foods. At the time, Frusen Gladje, which means "frozen happiness" in Swedish, was the only competitor to Haagen-Dazs. In 1992, Mr. Smith carried out similar business deals, but this time with the sale of his T&W ice cream products line to Dreyers. In both cases, the report suggests that Mr. Smith's strategy was to aggressively take market share from larger competitors until they found it necessary to buy him out. Mr. Smith said "What Perry alludes to in that report is absolutely incorrect." Mr. Serruya said speculation about in-fighting going on at the company is "completely ridiculous."