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Pets won’t count as a carry on for American Airlines flyers traveling with furry friends

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American Airlines is relaxing part of its pet policy to let owners bring their companion and a full-size carry-on bag into the cabin.

Until this week, people who carried a pet into the cabin — which involves paying a $150 fee — could only have one other small item that fit under the seat.

Anything bigger, like a carry-on bag with wheels, needed to be checked — for a $35 fee. Or they could put the pet in the cargo hold.

Now American is letting passengers bring a pet in the cabin and also bring a regular carry-on bag or a personal item — just not both bags.

The old policy struck some pet owners as unfair, since they were already paying a pet fee.

Gary Leff, a travel blogger who first wrote about the change, recalled traveling years ago with a Yorkshire terrier.

“It was always frustrating that the dog counted as the carry-on even though I was paying the extra (pet) fee that was sometimes more than the ticket for me,” he said Friday.

Leff said he thinks American’s change will reduce the urge for travelers to falsely claim that their pet is a service animal that flies for free.

An American spokeswoman confirmed that the rules change took effect Thursday.

“We made the change to provide a more convenient and comfortable experience to customers whose pets fly American,” she said.

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Activist Trian has a few levers to pull to build shareholder value at Solventum

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People walk past the New York Stock Exchange Wednesday, April 3, 2024 in New York.

Peter Morgan | AP

Company: Solventum (SOLV)

Business: Solventum, formerly known as 3M Health Care, is a global health-care company that was spun out from 3M on April 1. It has four main segments. First, there is Medical Surgical, a provider of solutions including advanced wound care, sterilization assurance, temperature management, surgical supplies, stethoscopes and medical electrodes. There is the Dental Solutions segment, which provides dental and orthodontic products and bonding agents that span the life of the tooth. The Health Information Systems segment provides health-care systems with software solutions, including computer-assisted physician documentation, direct-to-bill and coding automation, speech recognition and data visualization platforms. Finally, the Purification and Filtration segment offers filters, purifiers, cartridges and membranes.

Stock Market Value: $9.95B ($57.63 per share)

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SOLV’s performance in 2024

Activist: Trian Fund Management

Percentage Ownership:  n/a

Average Cost: n/a

Activist Commentary: Trian runs a concentrated portfolio of eight to 10 mid- to mega-cap, publicly traded companies where it actively engages with company management with the goal of enhancing long-term shareholder value. Trian, managed by Nelson Peltz, takes very few positions, but is very active in its positions. Peltz calls his formula “operational activism.” He defines it as working with the management of high-potential but underachieving companies to raise earnings by paring overhead, shedding ancillary businesses and burnishing famous brands.

What’s Happening

Bloomberg News reported on July 22 that Trian has taken a position in Solventum.

Behind the Scenes

Solventum is a global health-care company that was spun out from 3M on April 1, with 80.1% of shares distributed to 3M shareholders and the remaining 19.9% retained by 3M to be monetized within five years following the transaction. Solventum has a leading market position in numerous categories, strong performance-driven products and high brand loyalty. The company operates across four segments which accounted for $8.2 billion of revenue in 2023: Medical Surgical (56.5%), Dental Solutions (16.2%), Health Information Systems (15.7%), and Purification & Filtration (11.6%). The health-care business was consistently one of the strongest segments of 3M when it was part of the conglomerate structure, boasting the highest growth rate of any division and margins that exceeded the company average. For more than two decades, the business grew organically every year. Adding to that, the company has had 25%+ adjusted operating income margins and over $1.4 billion of free cash flow generation for each of the past three years. Despite this, the stock has not performed well since the spinoff, tumbling over 20% since the close of its first day of trading until news of Trian’s position.

As a standalone company, Solventum has been under-covered and misunderstood by the market. Despite being a spinoff from a conglomerate, Solventum itself is a mini conglomerate with four different businesses. While all of them are medical adjacent, none really share the same technology, customers, supply or distribution chain. Accordingly, it is a difficult company for investors and the sell side to analyze, and it has not seen a lot of traction in the investment community. But, as a newly independent company, there are potential tailwinds inherent in most spinoffs such as better management focus and agility and the ability to better align management compensation with the value of the business.

There are also numerous levers for value creation at Solventum, specifically re-accelerating organic growth, restoring margins while investing to drive growth, and simplifying the company’s portfolio of businesses. Beginning with organic growth, Solventum had proved an ability to grow in the low-to-mid single digits within 3M for years while being constrained by the conglomerate structure. As a pure play, it should be more agile in implementing growth initiatives and just getting growth back to 4% would create value against a backdrop of a sell side consensus of no growth. On margins, the company has a 25% earnings before interest, taxes, depreciation and amortization margin, which is a strong profit margin but could be better. That margin includes 800 basis points of corporate costs allocated to these businesses as part of 3M. As a standalone entity, it will need to remake some of these functions, but can also shed a lot of the heavy costs through management discipline. Lastly is simplification of the portfolio. Again, as a mini conglomerate, Solventum has a core business and three non-core and non-synergistic businesses with different products, sales forces, customers, manufacturing and distribution. Its segments likely have the scale to be standalone companies and trade at higher pure-play valuation multiples or could be sold to a private equity firm or a strategic acquirer. A sale of any of these businesses will allow the company to de-lever its balance sheet, currently trading at 4-times net leverage, and initiate a dividend. There is no reason why this company should trade at a price-earnings ratio that’s less than its peers. Certainly, it should not trade cheaper than 3M, as it previously was one of 3Ms best businesses.

Trian is known for being a skilled income statement activist and has helped many companies improve margins and growth. Look no further than the coffee cups in the firm’s office, which read “Sales Up, Expenses Down.” There is also no shortage of examples of Trian being a valuable corporate governance-oriented investor and creating tremendous shareholder value from the board level. But what some may not realize, is that the firm also has extensive experience with spinoffs, such as: (i) Pentair, which spun off nVent Electric plc in 2018; (ii) Kraft Foods’ move to split into two companies in 2012 and rename itself Mondelez; (iii) Dupont’s spinoff of Dow in 2019; (iv) Cadbury’s spinoff of Dr. Pepper; and (v) Ingersoll Rand’s spinoff of Allegion in 2013, to name a few. However, the most relevant spinoff is GE’s health-care division. Trian has been an active shareholder at General Electric since 2015 and called for both operational and strategic improvements. On Jan. 4, 2023, GE spun off its GE HealthCare division, as part of its plan to break into three separate companies. Since then, GE HealthCare Technologies has returned 34.45% versus a return of 26.92% for the Russell 2000 over the same period.

While Trian has a history of being an active shareholder, the firm has also created tremendous shareholder value as an engaged director. We think in this situation, the latter is appropriate. There is no activist with more experience than Trian in operational engagement in a newly spun-off company and addressing the issues and opportunities inherent in spinoffs. Moreover, if there is an opportunity to divest one or more businesses, shareholders would have comfort with a financially astute shareholder representative on the board to evaluate competing offers to assure the maximization of shareholder value. The board consists of 12 members with four directors in each class and will begin the process of phasing out the staggered board in 2025, to be fully de-staggered by 2028. Given the obvious fit, we would be surprised if this does not settle amicably with a Trian representative on the Board, but the director nomination window opens on Dec. 2, and Trian has never been one to shy away from a proxy fight if the firm feels it is necessary. It should be noted that 3M retained 19.9% of Solventum’s common stock, but has agreed to mirror voting, which will compel it to vote these shares in proportion to the votes cast by the company’s other shareholders.

Ken Squire is the founder and president of 13D Monitor, an institutional research service on shareholder activism, and the founder and portfolio manager of the 13D Activist Fund, a mutual fund that invests in a portfolio of activist 13D investments.



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India’s central bank fines Visa for unauthorised payment method By Reuters

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BENGALURU (Reuters) – The Reserve Bank of India imposed a penalty of 24.1 million rupees (nearly $288,000) on Visa (NYSE:) in relation to its usage of an unauthorised payment transfer method, the central bank said on Friday.

“It was observed that the entity (Visa) had implemented a payment authentication solution without regulatory clearance from RBI,” the central bank said in a statement, without providing details on the transgression.

In February, the RBI had ordered the credit card company to stop using an unauthorised route to make some commercial payments, per a Reuters report.

© Reuters. FILE PHOTO: Credit card is seen in front of displayed Visa logo in this illustration taken, July 15, 2021. REUTERS/Dado Ruvic/Illustration/File Photo

The central bank has aimed to tighten scrutiny of the processes followed by financial technology, or fintech, companies.

($1 = 83.6990 Indian rupees)





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Paris Olympics lift off with extravagant opening ceremony

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The Paris Olympics kicked off with an extravagant opening ceremony on Friday night when an armada of boats carried 10,500 athletes along the Seine — the first outdoor version of the spectacle that was expected to be watched by a billion people.

Earlier, a shadow was cast over the event by an act of criminal sabotage that hit France’s high-speed rail network in the early hours of the morning causing nationwide transport chaos. Heavy rain then began to fall about 30 minutes into the three-hour show, a nightmare scenario for the planners of the theatrical performance that featured a massive cast of dancers, two orchestras and a clutch of pop stars, including Lady Gaga doing a cabaret-tinged song.

Before the ceremony, interior minister Gérald Darmanin said: “We are ready for this magnificent event,” adding that no specific threats had been detected. The railway sabotage would “not have direct consequence on the Olympics or the ceremony”. 

Lady Gaga performs the opening number on the riverbank © Sina Schuldt/dpa

By mid-afternoon long queues had formed for ticket holders to get into the highly secured perimeter along the Seine river where 320,000 spectators were expected along the medieval-era cobblestone quays. The format of the event required heavy security: 45,000 police were deployed on the ground and in the air, using helicopters, drones and snipers positioned on roofs. 

The weather also tested the dozens of experienced ship captains powering the parade, who navigated at precisely the right speed to keep the show on line. Some spectators fled the quays for cover as rain poured down.

President Emmanuel Macron hosted more than 100 heads of state at Trocadero plaza across the river from the Eiffel tower where the athletes disembarked for a final parade and a performance by francophone favourite Céline Dion. Jill Biden, wife of the US president, and other leaders attended a reception at the Elysée palace beforehand. 

Map showing the route of the boat parade along the Seine river for the opening ceremony of the Paris Olympics

The idea for such an ambitious opening was the brainchild of one man, Thierry Reboul, an event specialist known for punchy marketing stunts, but pulling it off it needed more than 15,000 performers, technicians and firework specialists.

The performance featured ballet dancers on the roof of the Louvre, while hundreds of modern dancers and breakdancers performed along the quays and on some of the boats. Performers were clad in handmade outfits stitched by French couturiers, and LVMH’s Louis Vuitton trunk suitcases were prominently displayed in a lengthy segment. Bernard Arnault’s LVMH was an Olympics sponsor.

Organisers had to scale back some elements, such as BMX riders set to do tricks on a ramp because rain made it too slippery.

Floriane Issert, wearing the Flag of the International Olympic Committee (IOC), is seen on a Metal Horse on the River Seine during the opening ceremony © Getty Images

When Reboul pitched the idea for the river ceremony to Tony Estanguet, head of the Paris organising committee, the two-time gold medal winner reacted with stupor that quickly became enthusiasm. “It will be ambitious, audacious and totally crazy,” said Estanguet, recalling the moment. 

Reboul said the idea came to him on a walk along the Seine, the snaking river whose banks were chosen by a Gallic tribe called the Parisii to found a settlement about two thousands years ago. He told himself: “It should be here, of course it should be here, and nowhere else.”

The organisers hired Thomas Jolly, a 42-year-old theatre director known for a musical called Starmania, who started imagining how to convey the spirit of France from literature and culture to history. “I’m used to designing performances on a stage, and this time the entire city was my canvas,” he told reporters earlier this week. 

Zinedine Zidane, former French football player and manager, hands the Olympic Torch to Spanish tennis player Rafael Nadal © Getty Images

Jolly hired a team he has long worked with — a musical director, choreographer and a costume designer, all renowned in their fields — and also included author Leila Slimani, scriptwriter Fanny Herrero, who created the show Call My Agent!, and others to help him write the 12 tableaux that make up the ceremony.

Before they started writing, they took long walks along the Seine for inspiration and researched the history of its bridges, such as the oldest, Pont Neuf, finished under King Henry IV in 1607, and the Pont d’Austerlitz, commissioned by Napoleon Bonaparte, from which the parade will begin.

“We drew on the past of each site and monuments: almost each stone tells something about our history of France, of the history of Paris, a history which is connected to the world,” he said. 

But Jolly and Estanguet did not want the theatrics to overshadow the athletes, instead putting them at the centre of it by giving them the best spots to view the show — the decks of the boats on the river. 

“The athletes are the heroes of the show,” said Estanguet.

Although officials remained vague about the price, French media reported that the ceremony cost about €120mn, roughly four times that of the opener of the London 2012 Games. The overall cost for the Paris Games, which was pitched as a greener edition because little new infrastructure was built, is expected to reach €9-10bn, according to the national auditor. About one-third of that will be paid for by sponsors.

Jolly’s show was filled with memorable, kitschy moments: a hooded figure leaping across the zinc roofs of Paris, drag queens dancing to electro, beheaded royals of the French revolution set against heavy metal music, and a silver horse with an armour-clad rider gliding down the Seine.

Céline Dion closes the show with Edith Piaf’s ‘Hymne à l’amour’ © POOL/Olympic Broadcasting Services/AFP via Getty Images

Cheers rose when France’s beloved footballer Zinedine Zidane passed the torch to tennis champion Rafel Nadal.

The spectacle climaxed with an elaborate light show beaming out from the Tour Eiffel before a final flame relay to the Louvre led to a hot air balloon ascending into the night sky bearing a fiery Olympic cauldron.

Framed by the Eiffel tower, Canadian singer Céline Dion, in her first performance in years because of illness and wearing a white, beaded dress featuring 500m of fringe custom made by Dior, belted out Edith Piaf’s Hymne à l’amour.

“I declare the Paris games open,” said Macron.

Additional reporting by Adrienne Klasa



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