Mercedes was set to sell version of Nissan Titan, now Infiniti might instead [UPDATE]

Mercedes-Benz Titan. Mercedes-Benz Frontier. Mercedes-Benz pickup truck. None of these things roll off the tongue particularly well. We'd like to think that's the reason Daimler opted to kill the idea of rebadged Titan and Frontier pickups from corporate ally Nissan. In reality, the execution before the Frankfurt Motor Show was due to more complicated issues.

Yes, Mercedes, byword for German luxury, style and quality, would have slapped a three-pointed star on a pair of Japanese pickup trucks that have failed to resonate with consumers in the world's largest truck market. That slapping of badges isn't much of an exaggeration, at least on the outside. According to the report from Road & Track, the truck's front clip would have been tweaked, but beyond that, the sheetmetal would have been unchanged. The interior would have received a more thorough going-over by the team at Mercedes, while the suspension and noise, vibration and harshness tuning would have also received significant attention.

The trucks would have ended up being sold through the light-commercial branch of Mercedes-Benz - the same folks that will happily sell you a Sprinter van - had the deal gone through. Issues arose, though, first with the engines. Mercedes wanted a wider range of powertrains to allow it to tune models for specific markets, while Nissan said it couldn't engineer the wide variety of engines that MB wanted to drop under the hood. For the smaller truck, meanwhile, MB was interested in a hybrid or plug-in variant, according to R&T, although this was also shot down by Nissan.

Interestingly, the report claims the decision by Mercedes has essentially given the green light to Infiniti, Nissan's premium brand, to engineer a higher-end pickup. No word on if the Infiniti-badged Titan will arrive before or after the next-generation truck debuts, but we'd have to assume the latter.

Mercedes, meanwhile, may not have totally abandoned its truck plans. An unnamed source within Infiniti told the buff book, "We know about their pickup, but as long as they price it more enthusiastically than ours, we don't think it will impact our plans."

Update: Infiniti has issued an official denial of any plans for a pickup truck, with spokesman Kyle Bazemore writing, "Reports that Infiniti might offer a full-size truck based on the next-generation Nissan Titan are wrong. Infiniti has no such plans."

View the original article here

UPDATE 1-Antibiotic-resistant bacteria found in ground turkey-report

* FDA says "major public health threat"

* Dangerous bacteria found on 90 percent of turkey tested (Adds FDA comments, paragraphs 11-13)

By Carey Gillam

KANSAS CITY, April 30 (Reuters) - Dangerous antibiotic-resistant bacteria has been found in ground turkey on U.S. grocery shelves across a variety of brands and stores located in 21 states, according to a report by a consumer watchdog organization.

Of the 257 samples of ground turkey tested, more than half were found to be positive for fecal bacteria and overall, 90 percent were contaminated with one or more types of disease-causing organisms, many of which proved resistant to one or more common antibiotics, Consumer Reports found.

The non-profit, independent product-testing organization said in the June issue of its magazine that the sampling marked the first time it had conducted a laboratory analysis of ground turkey, a popular consumer alternative to hamburger. It was alarmed by the results.

"Some bacteria that end up on ground turkey, including E. coli and staph aureus, can cause not only food poisoning but also urinary, bloodstream, and other infections," said a Consumer Reports statement on its findings.

The group said it samples ground turkey from 27 different brands including major and store brands.

Turkeys, like other livestock in the United States, are commonly given repeated low doses of antibiotics in an effort to keep the animals healthy and help promote growth. But there has been growing concern that widespread use of antibiotics in animals that are not sick is speeding the development of antibiotic resistance.

The National Turkey Federation said the findings were sensationalized on a sampling that was "extremely small," and said that blaming use of antibiotics in animals was "misleading."

"There is more than one way they (harmful bacteria) can wind up on food animals," said National Turkey Federation vice president Lisa Picard. "In fact, it's so common in the environment, studies have shown that generic E.coli and MRSA (Methicillin-resistant Staphylococcus aureus) can even be found on about 20 percent of computer keyboards."

The U.S. Food and Drug Administration also found widespread contamination, discovering antibiotic resistant E coli, salmonella and other harmful bacteria in turkey, ground beef, pork chops and chicken in sampling done in 2011.

The food safety regulator says resistance of bacteria to antibiotics is "a major public health threat," and last year issued voluntary guidelines for animal health and animal agriculture industries aimed at limiting the antibiotic use in livestock.

The agency has rebuffed efforts to mandate reduced usage but says the voluntary route is faster.

"FDA believes these drugs should be used only in situations where they are necessary for ensuring animal health, and done so under the oversight of a veterinarian," FDA said in a statement.

It added the Consumer Reports findings were misleading and said antimicrobial resistance is a "complex issue with many causes."

U.S. Rep. Louise Slaughter, a New York Democrat, last month reintroduced legislation that would ban non-therapeutic uses of eight types of antibiotics in food animal production.

The Centers for Disease Control and Prevention also has issued a warning about antibiotic resistance infections, saying they are becoming increasingly difficult to treat and more infected people are likely to die.

"Humans don't consume antibiotics every day to prevent disease and neither should healthy animals," said Dr. Urvashi Rangan, Director of the Food Safety and Sustainability Group at Consumer Reports. "Prudent use of antibiotics should be required to stem the public health crisis generated from the reduced effectiveness of antibiotics." (Reporting By Carey Gillam; Editing by Leslie Gevirtz)

View the original article here

UPDATE 2-Cerberus raises $2.61 billion private equity fund -sources

* Cerberus has raised over $11 bln over the last two years

* First completed PE fundraising since plans for Freedom sale

* Cerberus partners may bid for gunmaker Freedom

By Greg Roumeliotis

NEW YORK, May 1 (Reuters) - Cerberus Capital Management LP has completed fundraising for its latest flagship private equity fund, raising $2.61 billion to invest in distressed assets, two sources said, bringing the capital Cerberus has raised from investors in the last two years to over $11 billion.

Cerberus Institutional Partners V (CIP V) is also the first Cerberus private equity fund to complete fundraising after the firm said in December it would sell Freedom Group Inc, the maker of the Bushmaster rifle that was used in the shootings at Sandy Hook Elementary School in Newtown, Connecticut.

Cerberus started marketing CIP V in 2011 with a $3.75 billion fundraising target, and later moderated its expectations to between $3 billion and $3.5 billion.

There is no evidence that the Freedom Group controversy weighed on the CIP V fundraising, one of the people familiar with the matter said. Both people spoke on condition of anonymity because the details of the fundraising are confidential. A Cerberus spokesman declined to comment.

Following the Newtown massacre, Cerberus came under public pressure to sell Freedom Group and moved quickly to announce it would divest it. The firm's chief executive and co-founder Stephen Feinberg, along with other Cerberus partners, may make a bid for the gun maker to ensure the sale does not occur at an unfairly low price for its investors, sources told Reuters last month.

The capital of over $11 billion Cerberus has raised from investors in the last two years includes fund offerings in structured products, non-performing loans, mortgage-backed-securities and distressed corporate debt.

CIP V invests in private equity assets that include operational turnarounds and distressed situations and securities that include distressed corporate debt and mortgage investments.

CIP V's predecessor, the $7.5 billion CIP IV that was raised in 2006, was valued at 1.33 times its investors' money and had a net internal rate of return of 7.3 percent as of the end of June 2012, according to the University of California, a Cerberus investor.

This was a stronger performance than most of the private equity funds of a 2006 vintage that the University of California had in its portfolio. The University's total private equity portfolio, across all vintages, was valued at 1.6 times the cost its original investments.

In the first quarter of 2013, 129 private equity funds reached a final fundraising close, raising a total of $67 billion, compared to the 203 funds that raised a total $79 billion in the first quarter of 2012, according to market research firm Preqin.

Founded in 1992 and named after the mythical many-headed dog that guards the gates of the underworld, Cerberus has specialized over the years in investing in distressed companies and debt. It now has over $20 billion of assets under management.

Cerberus, which is best known for its one-time investment in Chrysler, has investments in a range of sectors including banking, retail and real estate. Most recently, it acquired a chain of stores from supermarket operator Supervalu Inc. It also has a number of investments in Europe and Japan.

Dow Jones reported on the completion of the CIP V fundraising earlier on Wednesday.

View the original article here

UPDATE 2-U.S. sets duties on hardwood plywood from China

(Adds comments from opponents of duties)

WASHINGTON, April 30 (Reuters) - The U.S. Commerce Department set preliminary anti-dumping duties on Tuesday ranging up to 63.96 percent on hundreds of millions of dollars of plywood from China it said were being sold at unfairly low prices.

The move angered a group of importers who said the duties would increase the cost of kitchen and bath cabinetry and other products such as furniture, flooring and boats made in the United States with the Chinese plywood.

The United States imported about $748 million of the hardwood and decorative plywood from China in 2012.

The Commerce Department said it set a preliminary duty of 22.14 percent on plywood made or exported by 101 Chinese companies and a preliminary rate of 63.96 percent on all other Chinese producers and exporters except for two companies, Linyi San Fortune Wood Co Ltd and Jiangyang Group.

Those two firms were undercutting U.S. prices by less than 2 percent, which was not enough to warrant duties, it said.

The Coalition for Fair Trade of Hardwood Plywood, which represents producers in North Carolina, New York and Oregon, had accused their Chinese competitors of selling in the United States at prices 298 percent to 322 percent below fair value.

U.S. importers and manufacturers opposed to the duties said the Chinese plywood fills a niche in the U.S. market that domestic producers are unable to supply.

"The irony is that the unfair tariffs instigated from this protectionist campaign will harm the U.S. market, and the only free trade we will see is the export of U.S. jobs to China," Greg Wilkinson, co-chair of the American Alliance of Hardwood Plywood, said in a statement.

The department has already announced separate preliminary countervailing duties of up 27 percent on the plywood to offset alleged Chinese government subsidies. A final decision on both type of duties is expected in July.

Washington has also imposed duties on wooden bedroom furniture and hardwood flooring from China in recent years. (Reporting by Doug Palmer; Editing by Sandra Maler and Philip Barbara)

View the original article here

UPDATE 3-Loblaw promises more actions after Bangladesh tragedy

* First-quarter same-store sales rise 2.8 pct

* Raises quarterly dividend by 9 pct

* Expects to complete IPO of REIT in early to mid-July

* Shares touch five-and-half year high

By Bhaswati Mukhopadhyay

May 1 (Reuters) - Loblaw Cos Ltd, Canada's largest food retailer, said it would soon announce more actions in the wake of the collapse of a building in Bangladesh where some of its "Joe Fresh" garments were manufactured.

More than 400 people died in the collapse of the illegally constructed building in Dhaka, which housed a number of apparel factories.

"I am deeply shaken by the event. Our hearts and prayers continue to go out to those who were injured, to all the families who have lost loved ones," Executive Chairman Galen Weston said on a conference call after the company reported strong quarterly results.

"We have taken action to address the situation including the announcement of a fund to provide relief to the victims of this tragedy. There is more we will do and we will make that public over the next few days."

He did not specify what further measures Loblaw would take.

The company said it had not seen any impact on sales of its "Joe Fresh" affordable casual clothing line after the building collapse. The brand, launched in 2006, is a key part of Loblaw's growth strategy.

Loblaw is majority-owned by George Weston Ltd, which is controlled by the Weston family.

The supermarket operator reported better-than-expected quarterly revenue on Wednesday despite growing competition and raised its dividend for the second time in six months, sending its shares to a five-and-half year high.

Loblaw, which also sells clothing, footwear and drugs, reiterated its outlook for 2013 despite the rapid Canadian expansion of U.S. discount retailer Target Corp.

Target opened its first three Canadian stores in March and plans to have more than 100 by the end of this year.

Canadian supermarket operators such as Loblaw, Metro Inc and Empire Co's Sobeys have also come under pressure as Wal-Mart Stores Inc expands its grocery business in Canada.

However, analysts said Target's entry has not really been able to stifle Loblaw's growth so far.

"Target's entry does not seem to be having an impact over the near term although, in our view, it is a little too early to tell, given that it only started opening stores in March," analyst Ken Perkins of Morningstar said.

Metro, Canada's No. 3 grocer, last week reported a quarterly profit that more than tripled, but warned of a challenging competitive environment.

Loblaw reported a 4 percent rise in revenue of C$7.20 billion ($7.14 billion), topping analysts' average expectation of C$7.00 billion, according to Thomson Reuters I/B/E/S.

"Probably the biggest takeaway was the surprise on the topline. It is probably the best topline we have seen close to five years," said Bobby Hagedorn, an equity analyst with Edward Jones. "I don't think anyone saw this coming."

Hagedorn said Target is a great competitor on the general merchandise side of the business, but from "what we see so far, their grocery offering appears to be pretty limited."

He said Target does not have a lot of fresh groceries and fresh produce.

Loblaw said on Wednesday it plans to complete the initial public offering of its real estate investment trust (REIT) in early to mid-July. It expects to file a preliminary prospectus for the REIT in late May.

Loblaw said in December it planned to contribute about 35 million square feet of property worth about C$7 billion to its proposed REIT, which will allow it to reinvest in its core business and boost shareholder value.

The company also raised its quarterly dividend by 9 percent to 24 Canadian cents per share, a move that surprised analysts.

Loblaw shares closed up 5 percent at C$44.75 on the Toronto Stock Exchange. They touched a high of C$45.06 earlier.

First-quarter profit rose 40 percent to C$171 million, or 60 Canadian cents per share. The latest results included a gain of 13 Canadian cents per share related to defined benefit plan amendments.

Sales at established locations, a key measure for retailers, rose 2.8 percent, driven by its core food and drug business. Retail sales grew 3.4 percent.

View the original article here

UPDATE 1-Canada retailers plan new Bangladesh trade guidelines

April 30 (Reuters) - The Retail Council of Canada said on Tuesday it will develop a new set of trade guidelines in response to last week's deadly collapse of a Bangladesh garment factory complex that manufactured apparel for western retailers including Loblaw Cos Ltd.

The statement follows a private emergency meeting of retailers on Monday, including Loblaw, Sears Canada Inc and Wal-Mart Canada, to discuss how they would deal with the tragedy, which has killed at least 390 people.

Rescue officials in Bangladesh said on Tuesday that they had given up hope of finding more survivors at the complex, known as Rana Plaza.

The incident is the latest to raise questions about worker safety and low wages in the poor South Asian country, which relies on garments for 80 percent of its exports.

Representatives of some 45 companies, including Gap Inc , H&M, J.C. Penney, Nike Inc, Wal-Mart and Primark, met officials from the Bangladesh Garment Manufacturers and Exporters Association on Monday to discuss safety.

The Retail Council of Canada, which represents the operators of more than 43,000 stores in Canada, said it will work with international organizations, the Bangladeshi government and others to find ways to address safety in the Bangladesh garment industry.

Loblaw, which is Canada's biggest grocer, has said only a small percentage of its popular Joe Fresh clothing line was manufactured at Rana Plaza. The line, launched in 2006, represents a key part of Loblaw's growth strategy.

"We will be providing compensation for the families of the victims who worked for our supplier," said Loblaw spokeswoman Julija Hunter in an email on Monday that did not specify any amounts.

The eight-story plaza in Bangladesh had been built on swampy ground without the correct permits, officials said.

View the original article here

UPDATE 3-Loblaw promises more actions after Bangladesh tragedy

* First-quarter same-store sales rise 2.8 pct

* Raises quarterly dividend by 9 pct

* Expects to complete IPO of REIT in early to mid-July

* Shares touch five-and-half year high

By Bhaswati Mukhopadhyay

May 1 (Reuters) - Loblaw Cos Ltd, Canada's largest food retailer, said it would soon announce more actions in the wake of the collapse of a building in Bangladesh where some of its "Joe Fresh" garments were manufactured.

More than 400 people died in the collapse of the illegally constructed building in Dhaka, which housed a number of apparel factories.

"I am deeply shaken by the event. Our hearts and prayers continue to go out to those who were injured, to all the families who have lost loved ones," Executive Chairman Galen Weston said on a conference call after the company reported strong quarterly results.

"We have taken action to address the situation including the announcement of a fund to provide relief to the victims of this tragedy. There is more we will do and we will make that public over the next few days."

He did not specify what further measures Loblaw would take.

The company said it had not seen any impact on sales of its "Joe Fresh" affordable casual clothing line after the building collapse. The brand, launched in 2006, is a key part of Loblaw's growth strategy.

Loblaw is majority-owned by George Weston Ltd, which is controlled by the Weston family.

The supermarket operator reported better-than-expected quarterly revenue on Wednesday despite growing competition and raised its dividend for the second time in six months, sending its shares to a five-and-half year high.

Loblaw, which also sells clothing, footwear and drugs, reiterated its outlook for 2013 despite the rapid Canadian expansion of U.S. discount retailer Target Corp.

Target opened its first three Canadian stores in March and plans to have more than 100 by the end of this year.

Canadian supermarket operators such as Loblaw, Metro Inc and Empire Co's Sobeys have also come under pressure as Wal-Mart Stores Inc expands its grocery business in Canada.

However, analysts said Target's entry has not really been able to stifle Loblaw's growth so far.

"Target's entry does not seem to be having an impact over the near term although, in our view, it is a little too early to tell, given that it only started opening stores in March," analyst Ken Perkins of Morningstar said.

Metro, Canada's No. 3 grocer, last week reported a quarterly profit that more than tripled, but warned of a challenging competitive environment.

Loblaw reported a 4 percent rise in revenue of C$7.20 billion ($7.14 billion), topping analysts' average expectation of C$7.00 billion, according to Thomson Reuters I/B/E/S.

"Probably the biggest takeaway was the surprise on the topline. It is probably the best topline we have seen close to five years," said Bobby Hagedorn, an equity analyst with Edward Jones. "I don't think anyone saw this coming."

Hagedorn said Target is a great competitor on the general merchandise side of the business, but from "what we see so far, their grocery offering appears to be pretty limited."

He said Target does not have a lot of fresh groceries and fresh produce.

Loblaw said on Wednesday it plans to complete the initial public offering of its real estate investment trust (REIT) in early to mid-July. It expects to file a preliminary prospectus for the REIT in late May.

Loblaw said in December it planned to contribute about 35 million square feet of property worth about C$7 billion to its proposed REIT, which will allow it to reinvest in its core business and boost shareholder value.

The company also raised its quarterly dividend by 9 percent to 24 Canadian cents per share, a move that surprised analysts.

Loblaw shares closed up 5 percent at C$44.75 on the Toronto Stock Exchange. They touched a high of C$45.06 earlier.

First-quarter profit rose 40 percent to C$171 million, or 60 Canadian cents per share. The latest results included a gain of 13 Canadian cents per share related to defined benefit plan amendments.

Sales at established locations, a key measure for retailers, rose 2.8 percent, driven by its core food and drug business. Retail sales grew 3.4 percent.

View the original article here

UPDATE 1-Canada retailers plan new Bangladesh trade guidelines

April 30 (Reuters) - The Retail Council of Canada said on Tuesday it will develop a new set of trade guidelines in response to last week's deadly collapse of a Bangladesh garment factory complex that manufactured apparel for western retailers including Loblaw Cos Ltd.

The statement follows a private emergency meeting of retailers on Monday, including Loblaw, Sears Canada Inc and Wal-Mart Canada, to discuss how they would deal with the tragedy, which has killed at least 390 people.

Rescue officials in Bangladesh said on Tuesday that they had given up hope of finding more survivors at the complex, known as Rana Plaza.

The incident is the latest to raise questions about worker safety and low wages in the poor South Asian country, which relies on garments for 80 percent of its exports.

Representatives of some 45 companies, including Gap Inc , H&M, J.C. Penney, Nike Inc, Wal-Mart and Primark, met officials from the Bangladesh Garment Manufacturers and Exporters Association on Monday to discuss safety.

The Retail Council of Canada, which represents the operators of more than 43,000 stores in Canada, said it will work with international organizations, the Bangladeshi government and others to find ways to address safety in the Bangladesh garment industry.

Loblaw, which is Canada's biggest grocer, has said only a small percentage of its popular Joe Fresh clothing line was manufactured at Rana Plaza. The line, launched in 2006, represents a key part of Loblaw's growth strategy.

"We will be providing compensation for the families of the victims who worked for our supplier," said Loblaw spokeswoman Julija Hunter in an email on Monday that did not specify any amounts.

The eight-story plaza in Bangladesh had been built on swampy ground without the correct permits, officials said.

View the original article here

UPDATE 3-ADM advances GrainCorp bid; quarterly earnings drop

* ADM completes due diligence on Australia's GrainCorp

* Agribusiness company can "easily finance" deal -CEO

* Quarterly earnings miss Wall Street expectations

* Historic U.S. drought puts pressure on profits

By Tom Polansek

CHICAGO, May 1 (Reuters) - Archer Daniels Midland Co defended its plan to buy Australia's GrainCorp Ltd for A$3.0 billion ($3.1 billion), promising the grain handler was a good fit to help feed growing markets in Asia and the Middle East.

ADM, one of the world's top grain traders, said on Wednesday it has completed a due diligence review of GrainCorp's books and intends to move forward with a cash offer to acquire the Australian firm.

The Decatur, Illinois-based company also reported lower-than-expected earnings for the first quarter ended March 31, the latest agribusiness giant to cite lingering pain from a historic U.S. drought.

ADM is one of the four so-called "ABCD" companies that dominate the flow of agricultural goods around the world, along with Bunge Ltd, Cargill Inc and Louis Dreyfus Corp.

"We can easily finance this transaction," Chief Executive Patricia Woertz told analysts on a call.

GrainCorp last week agreed to back a sweetened A$3.0 billion ($3.1 billion) takeover bid from ADM, ceding control of Australia's largest independent grains handler after a six-month courtship.

The takeover, which still needs regulatory approval, is the latest move in the consolidation of the global grains sector amid competition to feed fast-developing countries like China.

It would boost ADM's international presence and give it an important foothold in Asian markets.

Moody's Investors Service on Tuesday placed ADM under review for a ratings downgrade because of the proposed deal. High crop prices and capital spending mean ADM's "ability to generate free cash flow is less certain," the agency said.

Morgan Stanley analyst Vincent Andrews, on ADM's call on Wednesday, questioned Woertz about her confidence in GrainCorp's future earnings. He cited "scuttlebutt" that 2012 was an above-average year for the Australian company.

ADM modeled earnings results for GrainCorp over a number of years and under varying crop conditions, Woertz said. The company expects synergies of A$50 million to A$70 million by the end of the second year.

"I think it's more about what we can do together once we have closed on the deal," she said.

PAINFUL DROUGHT

ADM has been hurt by the worst U.S. drought in more than half a century, which devastated the corn harvest in the United States, the world's top grain producer.

Global grain and soybean supplies remain tight, limiting the volume of crops available for ADM and its rivals to buy, store, process, transport and sell. Buyers hope U.S. farmers bring in a large autumn harvest to replenish inventories.

"Until we have a new crop, we will struggle with the lack of volume," Chief Operating Officer Juan Luciano said, noting the second quarter will likely be "difficult."

ADM reported net earnings of $269 million, or 41 cents a share, for the first quarter ended March 31, down from $399 million, or 60 cents a share, a year ago.

Adjusted earnings per share were 48 cents, down from 78 cents a year ago, and below earnings of 51 cents expected by analysts surveyed by Thomson Reuters.

Profits in the agricultural services sector dropped 42 percent to $151 million.

Revenue totaled $21.72 billion, beating Wall Street's expectations of $21.33 billion.

Rival Bunge last week reported earnings of $170 million for the first quarter ended March 31, up from $84 million a year earlier, but warned that crop supplies were low. Results in Bunge's agribusiness sector were down from a year earlier.

Cargill last month said lingering pressure from the drought hurt its meat and grain operations, knocking earnings for the fiscal third quarter ended Feb. 28 by 42 percent.

ADM shares are up almost 23 percent so far this year, compared to a 2 percent decline in Bunge shares.

ETHANOL RECOVERY

Ethanol was a bright spot for ADM, the largest U.S. producer of the corn-based biofuel.

The company brought its plants back to full capacity during the quarter ended March 31 due to improving margins and expects margins to "remain positive but volatile" for the rest of the year, Luciano said.

ADM's corn processing operating profit was $153 million, up $20 million from the same period one year earlier.

View the original article here

UPDATE 2-U.S. sets duties on hardwood plywood from China

(Adds comments from opponents of duties)

WASHINGTON, April 30 (Reuters) - The U.S. Commerce Department set preliminary anti-dumping duties on Tuesday ranging up to 63.96 percent on hundreds of millions of dollars of plywood from China it said were being sold at unfairly low prices.

The move angered a group of importers who said the duties would increase the cost of kitchen and bath cabinetry and other products such as furniture, flooring and boats made in the United States with the Chinese plywood.

The United States imported about $748 million of the hardwood and decorative plywood from China in 2012.

The Commerce Department said it set a preliminary duty of 22.14 percent on plywood made or exported by 101 Chinese companies and a preliminary rate of 63.96 percent on all other Chinese producers and exporters except for two companies, Linyi San Fortune Wood Co Ltd and Jiangyang Group.

Those two firms were undercutting U.S. prices by less than 2 percent, which was not enough to warrant duties, it said.

The Coalition for Fair Trade of Hardwood Plywood, which represents producers in North Carolina, New York and Oregon, had accused their Chinese competitors of selling in the United States at prices 298 percent to 322 percent below fair value.

U.S. importers and manufacturers opposed to the duties said the Chinese plywood fills a niche in the U.S. market that domestic producers are unable to supply.

"The irony is that the unfair tariffs instigated from this protectionist campaign will harm the U.S. market, and the only free trade we will see is the export of U.S. jobs to China," Greg Wilkinson, co-chair of the American Alliance of Hardwood Plywood, said in a statement.

The department has already announced separate preliminary countervailing duties of up 27 percent on the plywood to offset alleged Chinese government subsidies. A final decision on both type of duties is expected in July.

Washington has also imposed duties on wooden bedroom furniture and hardwood flooring from China in recent years. (Reporting by Doug Palmer; Editing by Sandra Maler and Philip Barbara)

View the original article here

UPDATE 2-Cerberus raises $2.61 billion private equity fund -sources

* Cerberus has raised over $11 bln over the last two years

* First completed PE fundraising since plans for Freedom sale

* Cerberus partners may bid for gunmaker Freedom

By Greg Roumeliotis

NEW YORK, May 1 (Reuters) - Cerberus Capital Management LP has completed fundraising for its latest flagship private equity fund, raising $2.61 billion to invest in distressed assets, two sources said, bringing the capital Cerberus has raised from investors in the last two years to over $11 billion.

Cerberus Institutional Partners V (CIP V) is also the first Cerberus private equity fund to complete fundraising after the firm said in December it would sell Freedom Group Inc, the maker of the Bushmaster rifle that was used in the shootings at Sandy Hook Elementary School in Newtown, Connecticut.

Cerberus started marketing CIP V in 2011 with a $3.75 billion fundraising target, and later moderated its expectations to between $3 billion and $3.5 billion.

There is no evidence that the Freedom Group controversy weighed on the CIP V fundraising, one of the people familiar with the matter said. Both people spoke on condition of anonymity because the details of the fundraising are confidential. A Cerberus spokesman declined to comment.

Following the Newtown massacre, Cerberus came under public pressure to sell Freedom Group and moved quickly to announce it would divest it. The firm's chief executive and co-founder Stephen Feinberg, along with other Cerberus partners, may make a bid for the gun maker to ensure the sale does not occur at an unfairly low price for its investors, sources told Reuters last month.

The capital of over $11 billion Cerberus has raised from investors in the last two years includes fund offerings in structured products, non-performing loans, mortgage-backed-securities and distressed corporate debt.

CIP V invests in private equity assets that include operational turnarounds and distressed situations and securities that include distressed corporate debt and mortgage investments.

CIP V's predecessor, the $7.5 billion CIP IV that was raised in 2006, was valued at 1.33 times its investors' money and had a net internal rate of return of 7.3 percent as of the end of June 2012, according to the University of California, a Cerberus investor.

This was a stronger performance than most of the private equity funds of a 2006 vintage that the University of California had in its portfolio. The University's total private equity portfolio, across all vintages, was valued at 1.6 times the cost its original investments.

In the first quarter of 2013, 129 private equity funds reached a final fundraising close, raising a total of $67 billion, compared to the 203 funds that raised a total $79 billion in the first quarter of 2012, according to market research firm Preqin.

Founded in 1992 and named after the mythical many-headed dog that guards the gates of the underworld, Cerberus has specialized over the years in investing in distressed companies and debt. It now has over $20 billion of assets under management.

Cerberus, which is best known for its one-time investment in Chrysler, has investments in a range of sectors including banking, retail and real estate. Most recently, it acquired a chain of stores from supermarket operator Supervalu Inc. It also has a number of investments in Europe and Japan.

Dow Jones reported on the completion of the CIP V fundraising earlier on Wednesday.

View the original article here

UPDATE 2-ICE May sugar delivery largest in at least 24 years-traders

* May delivery highest since at least 1989 - ICE data

* Cargill, Wilmar, Bunge receivers of huge delivery -traders

* Delivery said to be worth more than $558.5 million (Adds background, market reaction)

NEW YORK, April 30 (Reuters) - More than 1.43 million tonnes of raw sugar will be delivered against the ICE Futures U.S. May contract, much more than expected, sugar traders said, making it the largest delivery against a New York sugar contract since at least 1989 as a global surplus of the sweetner spills into the market.

Three trading firms will receive the sugar as the historically large delivery reinforced expectations that the growing surplus will continue to weigh on prices.

Cargill, Wilmar International and Bunge are the receivers, dealers said, and the sugar's origins include Brazil and Costa Rica.

The actual amount of sugar delivered, as well as the deliverers and receivers, will be reported by the exchange on Wednesday.

Delivery of 28,222 lots would be the largest since at least 1989, according to data supplied by ICE, and worth more than $558.5 million based on May's settlement of 17.67 cents a lb.

Cargill was said to be the largest receiver at almost 15,000 lots, Wilmar will take almost 8,000 lots and Bunge more than 5,000.

"We are getting a huge delivery right before the main player producer is starting their crop and expecting a huge cane crop. I have a tendency to believe that a large delivery like that is bearish," said one trader, referring to top producer Brazil.

Brazil's main center-south sugar cane crop is expected to see record output this season.

The large delivery shocked traders, who had expected about 500,000 tonnes. They anticipated origins to be Brazil, Central America and even Mexico in a market awash with global supplies.

A large delivery in a weak cash market is often perceived as bearish, though some cautioned that to see major firms taking delivery could be indicative they anticipate a price correction.

The sugar was likely headed for Asian markets, though it remains unclear whether there was immediate demand for it, traders said.

The size of the delivery was also surprising given May's 0.07 cent premium to the July contract, with the most-active July contract settling at 17.60 cents a lb on Tuesday, traders said.

Spread activity has been volatile in recent weeks.

With the market in backwardation, carrying sugar into forward months can be an expensive venture, which prompted some speculation that the sugar may soon find its way to homes, and the huge delivery may not be as bearish as it initially seemed.

"Taking delivery of a spread that's backwardated: Why would you want it unless you really need it to fulfill contracts?" said Nick Gentile, senior partner of commodity trading consultancy Atlantic Capital Partners.

This was the second time in recent delivery periods that Wilmar and Bunge have been receivers of ICE sugar and joined the likes of giants like Cargill and Louis Dreyfus.

In March, Singapore-based Wilmar received ICE sugar for the first time, receiving 3,007 lots, or roughly 152,762 tonnes, against the spot contract in a move seen as more common for large firms. The firm expanded into sugar in 2010.

Bunge received the bulk of October sugar deliveries at slightly more than 550,000 tonnes from a total of 594,895 tonnes, amid concern of supply disruptions in Brazil.

Cargill, Wilmar and Bunge could not immediately be reached for comment. (Reporting by Chris Prentice and Marcy Nicholson; Editing by Gerald E. McCormick, Marguerita Choy and Bob Burgdorfer)

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UPDATE 1-Antibiotic-resistant bacteria found in ground turkey-report

* FDA says "major public health threat"

* Dangerous bacteria found on 90 percent of turkey tested (Adds FDA comments, paragraphs 11-13)

By Carey Gillam

KANSAS CITY, April 30 (Reuters) - Dangerous antibiotic-resistant bacteria has been found in ground turkey on U.S. grocery shelves across a variety of brands and stores located in 21 states, according to a report by a consumer watchdog organization.

Of the 257 samples of ground turkey tested, more than half were found to be positive for fecal bacteria and overall, 90 percent were contaminated with one or more types of disease-causing organisms, many of which proved resistant to one or more common antibiotics, Consumer Reports found.

The non-profit, independent product-testing organization said in the June issue of its magazine that the sampling marked the first time it had conducted a laboratory analysis of ground turkey, a popular consumer alternative to hamburger. It was alarmed by the results.

"Some bacteria that end up on ground turkey, including E. coli and staph aureus, can cause not only food poisoning but also urinary, bloodstream, and other infections," said a Consumer Reports statement on its findings.

The group said it samples ground turkey from 27 different brands including major and store brands.

Turkeys, like other livestock in the United States, are commonly given repeated low doses of antibiotics in an effort to keep the animals healthy and help promote growth. But there has been growing concern that widespread use of antibiotics in animals that are not sick is speeding the development of antibiotic resistance.

The National Turkey Federation said the findings were sensationalized on a sampling that was "extremely small," and said that blaming use of antibiotics in animals was "misleading."

"There is more than one way they (harmful bacteria) can wind up on food animals," said National Turkey Federation vice president Lisa Picard. "In fact, it's so common in the environment, studies have shown that generic E.coli and MRSA (Methicillin-resistant Staphylococcus aureus) can even be found on about 20 percent of computer keyboards."

The U.S. Food and Drug Administration also found widespread contamination, discovering antibiotic resistant E coli, salmonella and other harmful bacteria in turkey, ground beef, pork chops and chicken in sampling done in 2011.

The food safety regulator says resistance of bacteria to antibiotics is "a major public health threat," and last year issued voluntary guidelines for animal health and animal agriculture industries aimed at limiting the antibiotic use in livestock.

The agency has rebuffed efforts to mandate reduced usage but says the voluntary route is faster.

"FDA believes these drugs should be used only in situations where they are necessary for ensuring animal health, and done so under the oversight of a veterinarian," FDA said in a statement.

It added the Consumer Reports findings were misleading and said antimicrobial resistance is a "complex issue with many causes."

U.S. Rep. Louise Slaughter, a New York Democrat, last month reintroduced legislation that would ban non-therapeutic uses of eight types of antibiotics in food animal production.

The Centers for Disease Control and Prevention also has issued a warning about antibiotic resistance infections, saying they are becoming increasingly difficult to treat and more infected people are likely to die.

"Humans don't consume antibiotics every day to prevent disease and neither should healthy animals," said Dr. Urvashi Rangan, Director of the Food Safety and Sustainability Group at Consumer Reports. "Prudent use of antibiotics should be required to stem the public health crisis generated from the reduced effectiveness of antibiotics." (Reporting By Carey Gillam; Editing by Leslie Gevirtz)

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UPDATE 2-US hedge fund faces challenge in Tim Hortons shakeup bid

* Activist shareholder pushes for debt-funded share buyback

* Fund wants Tim Hortons to create REIT for property assets

* Fund has raised its stake in the company to around 4 pct

* Shares close 4 percent higher on NYSE and TSX (Adds background, company comment, analyst comment)

By Euan Rocha and Jessica Toonkel

TORONTO/NEW YORK, May 1 (Reuters) - Highfields Capital, a U.S. hedge fund agitating for change at Tim Hortons Inc , may have a hard time convincing institutional investors that the chain that says it sells eight out of every 10 cups of coffee in Canada needs a wake-up call.

The Boston-based activist investor, with an about 4 percent stake in the company, wants Tim Hortons to boost shareholder returns by taking on new debt to buy back its stock.

It is also pushing Tim Hortons to scale back its U.S. expansion and focus more closely on its thriving Canadian business. The fund, which also outlined a second tier list of demands, wants Tims to spin off or sell its distribution business, create a real estate investment trust to house its property assets and bring in new directors with more financial experience.

On Wednesday, Highfields confirmed an earlier exclusive Reuters report about the proposals, and said it currently owns 6.1 million shares of Tim Hortons. The fund said the company is studying its proposals and it looks forward to continuing a dialogue with Tim Hortons.

But the proposals may not be so easy to sell to long-term investors, according to some money managers and investors.

"This business ain't broke and needs no fixin'," said Barry Schwartz, a portfolio manager at Baskin Financial, which owns roughly 130,000 shares in Tim Hortons, according to Thomson Reuters data.

"The company is shareholder-friendly and has rewarded long-term investors with rising dividends and share buybacks, plus the stock performance since the IPO has been terrific," he said.

The shares have more than doubled in value since an IPO in March 2006, when Wendy's Co spun off Tim Hortons.

The proposals from Highfields represent the latest attempt by a U.S. hedge fund to shake up a Canadian company.

Last year, Bill Ackman's Pershing Square won big change at Canadian Pacific Railway after a bitter public battle. Earlier this year, fertilizer company Agrium Inc fended off an attempt by its biggest shareholder, U.S. hedge fund Jana Partners LLC, to break up the company and defeated Jana's slate in a hard fought proxy battle.

SIMILAR DEMANDS

Highfields has made demands that are similar to those put forth by Jana in its fight at Agrium. The fund wanted Agrium to spin off or sell its retail arm and add people with more experience in retail to its board.

But David Baskin, the head of Baskin Financial, sees big differences between the situation facing Highfields and Ackman's successful proxy fight at CP Rail, which resulted in a sweep for his slate.

"Canadian Pacific had a tired board with weak management, chronic underperformance and restive shareholders," he said. "None of that applies to Tim Hortons, which I think is still widely liked by institutional holders."

Tim Hortons' stock has rose about 60 percent over the last five years, while the Toronto Stock Exchange's S&P/TSX composite index has fallen roughly 13 percent over the period.

That said, shares of some of Tim Hortons' U.S.-based rivals have outpaced the Canadian chain.

McDonald's Corp shares have climbed about 70 percent over the same period, while Starbucks Corp has nearly quadrupled in value.

"Tims' performance has been somewhere between good and very good, given economic conditions in a hyper-competitive sector. So I would guess it will be hard for these guys to get traction but maybe the stock will respond anyway," Baskin said.

The shares closed up 4 percent at $56.32 on the New York Stock Exchange on Wednesday, while Tims' Toronto-listed shares rose by a similar margin to C$56.77.

TOUGH LANDSCAPE

Despite its growth and strong performance, analysts concede that the Canadian coffee chain faces strong headwinds.

Analysts have questioned whether the brand - which arguably trails only hockey and the maple leaf as a symbol of Canada - can continue to grow at home.

Tim Hortons - with some 3,400 company-owned and franchised stores in Canada - has virtually saturated the market. At the same time, U.S. rivals such as McDonald's and Starbucks have also stepped up their presence north of the border, limiting Tim's organic growth potential.

"We don't view either player as an immediate threat to Tim Hortons' scale and strong brand perception," said R.J. Hottovy an analyst at Morningstar. "But we believe competition will become increasingly fierce in the decade to come, leading to more aggressive price wars."

Highfields may have some success in building a case for spinning off Tim Hortons' real estate assets into a new publicly traded REIT - a path that other players have taken. Canada's top food retailer, Loblaw Cos, said earlier on Wednesday that it plans to complete the initial public offering of its REIT in early July.

"Canada is a more conducive market than the U.S. right now, when it comes to REIT conversions," said Hottovy, noting that a company spinning off the assets can still maintain a controlling interest in a REIT in Canada.

Tim Hortons in the past has panned the REIT idea, as it owns only 20 percent of its retail real estate assets. The company declined to comment beyond saying it remains focused on creating shareholder value.

"(We) always welcome constructive dialogue with our shareholders. We don't comment on specific conversations," said Tim Hortons spokesman Scott Bonikowsky.

BUYBACK PLAN

Highfields also faces a tough task convincing long-term investors that a debt-funded share buyback is a sound plan.

John Goldsmith, deputy head of equities at Montrusco Bolton, a firm that owns nearly 260,000 Tim Hortons shares, questions whether the strategy makes sense over the long term, even though low interest rates have made it more attractive for activists to push companies to take on cheap debt to fund buybacks.

"This might temporarily add value per share mathematically, the question is does this create sustainable value add or simply a one-time pop?" he said.

RBC Capital Markets analyst Irene Nattel said layering on $3.4 billion in debt to fund a buyback might add to earnings. But it puts Tim's investment-grade rating at risk, potentially raising borrowing costs and moderating any earnings per share gains for the company.

Tim Hortons is being advised by Citigroup Inc and RBC Capital Markets - both banks declined to comment. (Additional reporting by Solarina Ho and Allison Martell; Editing by Frank McGurty, Bernard Orr)

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UPDATE 2-US hedge fund faces challenge in Tim Hortons shakeup bid

* Activist shareholder pushes for debt-funded share buyback

* Fund wants Tim Hortons to create REIT for property assets

* Fund has raised its stake in the company to around 4 pct

* Shares close 4 percent higher on NYSE and TSX (Adds background, company comment, analyst comment)

By Euan Rocha and Jessica Toonkel

TORONTO/NEW YORK, May 1 (Reuters) - Highfields Capital, a U.S. hedge fund agitating for change at Tim Hortons Inc , may have a hard time convincing institutional investors that the chain that says it sells eight out of every 10 cups of coffee in Canada needs a wake-up call.

The Boston-based activist investor, with an about 4 percent stake in the company, wants Tim Hortons to boost shareholder returns by taking on new debt to buy back its stock.

It is also pushing Tim Hortons to scale back its U.S. expansion and focus more closely on its thriving Canadian business. The fund, which also outlined a second tier list of demands, wants Tims to spin off or sell its distribution business, create a real estate investment trust to house its property assets and bring in new directors with more financial experience.

On Wednesday, Highfields confirmed an earlier exclusive Reuters report about the proposals, and said it currently owns 6.1 million shares of Tim Hortons. The fund said the company is studying its proposals and it looks forward to continuing a dialogue with Tim Hortons.

But the proposals may not be so easy to sell to long-term investors, according to some money managers and investors.

"This business ain't broke and needs no fixin'," said Barry Schwartz, a portfolio manager at Baskin Financial, which owns roughly 130,000 shares in Tim Hortons, according to Thomson Reuters data.

"The company is shareholder-friendly and has rewarded long-term investors with rising dividends and share buybacks, plus the stock performance since the IPO has been terrific," he said.

The shares have more than doubled in value since an IPO in March 2006, when Wendy's Co spun off Tim Hortons.

The proposals from Highfields represent the latest attempt by a U.S. hedge fund to shake up a Canadian company.

Last year, Bill Ackman's Pershing Square won big change at Canadian Pacific Railway after a bitter public battle. Earlier this year, fertilizer company Agrium Inc fended off an attempt by its biggest shareholder, U.S. hedge fund Jana Partners LLC, to break up the company and defeated Jana's slate in a hard fought proxy battle.

SIMILAR DEMANDS

Highfields has made demands that are similar to those put forth by Jana in its fight at Agrium. The fund wanted Agrium to spin off or sell its retail arm and add people with more experience in retail to its board.

But David Baskin, the head of Baskin Financial, sees big differences between the situation facing Highfields and Ackman's successful proxy fight at CP Rail, which resulted in a sweep for his slate.

"Canadian Pacific had a tired board with weak management, chronic underperformance and restive shareholders," he said. "None of that applies to Tim Hortons, which I think is still widely liked by institutional holders."

Tim Hortons' stock has rose about 60 percent over the last five years, while the Toronto Stock Exchange's S&P/TSX composite index has fallen roughly 13 percent over the period.

That said, shares of some of Tim Hortons' U.S.-based rivals have outpaced the Canadian chain.

McDonald's Corp shares have climbed about 70 percent over the same period, while Starbucks Corp has nearly quadrupled in value.

"Tims' performance has been somewhere between good and very good, given economic conditions in a hyper-competitive sector. So I would guess it will be hard for these guys to get traction but maybe the stock will respond anyway," Baskin said.

The shares closed up 4 percent at $56.32 on the New York Stock Exchange on Wednesday, while Tims' Toronto-listed shares rose by a similar margin to C$56.77.

TOUGH LANDSCAPE

Despite its growth and strong performance, analysts concede that the Canadian coffee chain faces strong headwinds.

Analysts have questioned whether the brand - which arguably trails only hockey and the maple leaf as a symbol of Canada - can continue to grow at home.

Tim Hortons - with some 3,400 company-owned and franchised stores in Canada - has virtually saturated the market. At the same time, U.S. rivals such as McDonald's and Starbucks have also stepped up their presence north of the border, limiting Tim's organic growth potential.

"We don't view either player as an immediate threat to Tim Hortons' scale and strong brand perception," said R.J. Hottovy an analyst at Morningstar. "But we believe competition will become increasingly fierce in the decade to come, leading to more aggressive price wars."

Highfields may have some success in building a case for spinning off Tim Hortons' real estate assets into a new publicly traded REIT - a path that other players have taken. Canada's top food retailer, Loblaw Cos, said earlier on Wednesday that it plans to complete the initial public offering of its REIT in early July.

"Canada is a more conducive market than the U.S. right now, when it comes to REIT conversions," said Hottovy, noting that a company spinning off the assets can still maintain a controlling interest in a REIT in Canada.

Tim Hortons in the past has panned the REIT idea, as it owns only 20 percent of its retail real estate assets. The company declined to comment beyond saying it remains focused on creating shareholder value.

"(We) always welcome constructive dialogue with our shareholders. We don't comment on specific conversations," said Tim Hortons spokesman Scott Bonikowsky.

BUYBACK PLAN

Highfields also faces a tough task convincing long-term investors that a debt-funded share buyback is a sound plan.

John Goldsmith, deputy head of equities at Montrusco Bolton, a firm that owns nearly 260,000 Tim Hortons shares, questions whether the strategy makes sense over the long term, even though low interest rates have made it more attractive for activists to push companies to take on cheap debt to fund buybacks.

"This might temporarily add value per share mathematically, the question is does this create sustainable value add or simply a one-time pop?" he said.

RBC Capital Markets analyst Irene Nattel said layering on $3.4 billion in debt to fund a buyback might add to earnings. But it puts Tim's investment-grade rating at risk, potentially raising borrowing costs and moderating any earnings per share gains for the company.

Tim Hortons is being advised by Citigroup Inc and RBC Capital Markets - both banks declined to comment. (Additional reporting by Solarina Ho and Allison Martell; Editing by Frank McGurty, Bernard Orr)

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