Page 25 - ARUBA TODAY

BUSINESS Tuesday 9 May 2017
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Buffett faults United, but sticks with airlines investments

NEW YORK (AP) — Warren crowding in exchange for largest shareholder with a Buffett said the bloody re- Oscar had actually seen
Buffett said Monday that cheaper fares. more than 9 percent stake. moval of a 69-year-old pas- that (video) when he made
United Airlines bungled Buffett, whose Berkshire Berkshire is also the top senger from a United Ex- the response,” Buffett said.
the case of the passenger Hathaway Inc. is a major shareholder at Delta, No. 2 press plane in Chicago was “If so, it was a bigger mis-
dragged off a plane last shareholder of United and at Southwest and No. 3 at obviously “a terrible mis- take by far.”
month, and he is criticizing other big U.S. airlines, said American. take.” He criticized United Buffett said a CEO’s natural
the CEO’s handling of the the recent spotlight on The UAL stake is worth near- Continental Holdings Inc. tendency is to first defend
incident. poor customer service in ly $2.2 billion at the midday CEO Oscar Munoz, who first his employees, but that
Buffett also said airplanes the airline industry doesn’t share price of $75.55. gave a vague response, should not have been the
“may become like cattle change his investment The billionaire financier then defended his employ- case if Munoz had seen the
cars,” but that’s because strategy. made the comments in an ees and blamed the pas- video. United declined to
a significant number of According to FactSet, Berk- interview Monday morning senger. say when Munoz first saw
passengers will put up with shire Hathaway is UAL’s with CNBC. “I kind of wonder whether the video.q
In the bag: Coach buying Kate Spade for $2.4 billion

By ANNE D’INNOCENZIO the overall luxury business is brand organization,” Luis hired Joshua Schulman, as a step toward a new
MICHELLE CHAPMAN being challenged by afflu- said in a statement. “The who had been president company structure with a
AP Business Writers ent shoppers who have lots combination enhances our of Neiman Marcus’s Berg- number of distinct brands
NEW YORK (AP) — Coach under one umbrella, with
will spend $2.4 billion for each brand chief reporting
Kate Spade, tying togeth- to Luis. Schulman officially
er two premier brands in begins his job on June 5.
the luxury goods sector Coach executives said
that have fought to snare the company will not be
younger shoppers. looking at any other major
Noting that crucial de- acquisitions for now and
mographic, Coach Inc. will limit any purchases to
CEO Victor Luis said in a smaller ones.
statement Monday that Kate Spade executives
Kate Spade has a “strong said they see big opportu-
awareness among con- nities to tap into the Coach
sumers, especially millen- brand’s expert supply net-
nials.” Coach executives work in leather goods as
say that 60 percent of Kate well as Stuart Weitzman’s
Spade customers are in established supply network
that group. in footwear to cut back on
Coach has made an ag- costs.
gressive push to polish the Coach also plans to ex-
image of its namesake pand Kate Spade’s distri-
brand, scaling back on its bution in Asia and Europe,
distribution in department taking advantage of its
stores and relying less on Shoppers wait in line outside a Coach factory outlet store at the Cincinnati Premium Outlets, in strong overseas network.
the discounts it had used Monroe, Ohio. Coach is buying rival luxury handbag, clothing and accessories company Kate Coach said it will be bor-
to get shoppers to buy the Spade in a deal valued at $2.4 billion as it looks grab more millennial shoppers, announced Mon- rowing some of the strat-
brand. But to power future day, May 8, 2017. egies it used for its own
growth, it’s begun to build (AP Photo/John Minchillo) brand and will be scal-
an empire of luxury brands. ing back on Kate Spade’s
The company bought shoe of online options to buy sta- positon in the attractive dorf Goodman division and wholesale accounts and its
maker Stuart Weitzman in tus goods. global premium handbag the former CEO of Jimmy flash sales business that hurt
2015 in a deal valued up to “The acquisition of Kate and accessories, footwear Choo, and put him in the the image of the brand.
$574 million, but the Kate Spade is an important step and outerwear catego- new position of president But Coach executives say
Spade brand is its biggest in Coach’s evolution as a ries.” and CEO of the Coach the Kate Spade brand is still
acquisition yet. It comes as customer-focused, multi- Last month, the company brand. Analysts saw that healthy.q
Comcast, Charter to work together to rival wireless carriers

By JOSEPH PISANI behind-the-scenes matters on any transaction that For the most part, Com- To reduce costs, Comcast
AP Business Writer like customer billing and would give another com- cast and Charter aren’t and Charter will need to
NEW YORK (AP) — Com- device-ordering systems. pany a majority ownership direct competitors, as their try to encourage custom-
cast and Charter have They said the agreement or voting power in either service territories don’t ers to use Wi-Fi hotspots
agreed to cooperate will save money and help Comcast or Charter. overlap. \To compete, rather than cellular when-
on upcoming cellphone them compete with the na- The deal comes amid Philadelphia-based Com- ever possible. By working
services as both cable tional providers. As part of speculation of impending cast expects to launch its together, the two compa-
nies can explore way to let
companies face growing the deal, announced Mon- consolidation in the wireless own wireless plan , Xfinity customers use each other’s
threats from national wire- day, Comcast and Charter industry and has the effect Mobile, in the next several hotspots when they travel.
less carriers such as AT&T agreed that they wouldn’t of letting both companies weeks. Charter, based in Analysts at MoffettNathan-
and Verizon. The cable buy other wireless compa- develop wireless services to Stamford, Connecticut, son said in a research note
companies said that while nies for one year, or make compete with existing wire- expects to introduce its un- that the Verizon lease lets
they’ll offer wireless services related deals without con- less carriers without having named service next year. each company market
separately to customers, sulting each other first. to worry about also com- Both wireless services will wireless service only in its
they will work together on It also includes restrictions peting with each other. lease Verizon’s network. cable service territory. q