McCain’s Opposition Research – Part 35

Via or from BuzzFeed comes an opposition research file compiled by the McCain campaign in 2008.  The document is 194 pages long.  This post begins  at the top of pg 143 and ends at the top of pg 151.

This is the longest post yet on thissubject at over 5,000 words.

I have bolded the first word in each entry for ease of reading.


Romney Touts Business Experience While Campaigning In Iowa, Says Jobs Are Leaving State In February 2007 Des Moines Event, Romney “Touted His Experience In The Business World.”

“Former Massachusetts Gov. Mitt Romney formally announced his run for president Tuesday in Iowa, promoting his status as a Washington outsider … ‘If ever a time for innovation and transformation were needed in American government, it’s now,’ Romney said. … At the Des Moines event, Romney touted his experience in the business world …”

(Lisa Rossi, “Romney Touts Values As He Unveils ‘08 Bid,” Des Moines Register, 2/14/07)

Romney TV Ad That Was Scheduled To Run In Iowa Called Him A “Business Legend.”

(Romney ForPresident, “Romney for President Launches First Television Ads,” Press Release, 2/21/07)

Romney, In Dubuque Last August: “These Are Challenging Times For Iowa … Jobs Are Leaving Iowa.”

“Nussle made his comments Thursday night in Dubuque at a fundraiser that yielded about $50,000 for the Nussle campaign. The keynote speaker was Massachusetts Governor Mitt Romney, a Republican who painted the same dim picture of Iowa’s economy that Nussle sketched. ‘These are challenging times for Iowa. You’ve figured that out. Jobs are leaving Iowa,’ Romney said.”

(O. Kay Henderson, “Nussle: Iowa At Number Three On Act Not Good Enough,”Radio, 8/16/06)

In 2005, Chinese Appliance Maker Haier Group, Working In Tandem With Bain Capital, Attempted – And Ultimately Failed – To Take Over Newton, IA-Based Maytag Corp.Haier Embarked On $1.3 Billion Takeover Bid For Iowa-Based Appliance Manufacturer Maytag.

“For years, American workers have worried about losing their jobs to low-cost workers in China. Now a new trend is emerging that could be nearly as big: Wealthy Chinese companies are coming to the U.S. looking to swallow American companies whole. Maytag Corp., the maker of such quintessentially American products as Maytag refrigerators, Amana microwaves and Hoover vacuum cleaners, disclosed Monday night a $1.28 billion takeover bid from a group led by Haier America Trading, a unit of China’s Haier Group.”

(David Greising, “Chinese Firm Wants Maytag,” Chicago Tribune, 6/22/05)

Haier’s Effort Described As “One Of The Most High-Profile Attempts By A Chinese Company To Enter The U.S. Market.”

(John E. Morris and Shu-Ching Jean Chen, “Haier Retreats,” The Deal, 7/25/05)

In Attempted 2005 Buyout Of Maytag, Haier Teamed Up With Bain Capital.

“Bain Capital, the venture capital firm that Romney started and made him a multimillionaire, teamed up with the Haier Group, a Chinese appliance maker that has a factory in Iran, in an unsuccessful 2005 buyout effort. The target of their $1.28 billion bid – the Maytag Corp., based in the lead presidential caucus state of Iowa.”

(Glen Johnson, “Company’s Links To Iran Undercut Romney’s Call For Divestment,” The Associated Press, 2/23/07)

Haier Is A Mammoth, State-Controlled Company With Opaque Financial Structures, Undisclosed Ownership Interests, Ties To Communist Party Elites And Manufacturing Facilities In Iran Observers Struggle To Discern Shareholding Structure Of Company – No Information About Haier’s Ownership Is Public.

“Notwithstanding that deference by Haier’s press office to Qingdao officials, it’s not clear if Haier is government owned. Zhang, its CEO and top manager since 1984, has told foreign journalists innumerous interviews that it’s difficult to explain the shareholding structure of the company, and exactly who owns it. … Technically, Haier is a ‘collective factory,’ a hybrid between state-owned enterprises and privately held corporations, according to a company spokesman in China. According to its Web site, it was founded by ‘streetside’ governments, a layer of government one step beneath a city. But no information about its ownership is public.”

(John E. Morris and Shu-Ching Jean Chen, “Haier Retreats,” The Deal, 7/25/05)

“Haier’s Ownership Structure And Finances Are Opaque…”

(David Barboza, “From China, A New Bid For Maytag And Status,” The New York Times, 6/22/05)

“Haier … Is Privately-Managed But Still Controlled By The State …”

(Francesco Guerrera And Richard McGregor ,“Price Concerns A Factor In Haier Withdrawal,” Financial Times, 7/21/05)

Haier “Government-Owned And Based In Qingdao.”

“Haier America is the U.S.-based division of Haier Group, which is government-owned and based in Qingdao.”

(“AMC,  Loews Cineplex To Merge,” The Kansas City Star,6/21/05)

“Haier Is A State-Owned Company That Controls Shanghai-Listed Qingdao Haier Refrigerator And Hong Kong-Listed Haier Electronics.”

(David Teather, “Hoover Is Next On China’s Wish List,” The Guardian(London,England), 6/22/05)

Haier Also Has A Manufacturing Presence In Iran.

“Haier, which is based in the eastern Chinese city of Qingdao, was one of the first Chinese companies to expand internationally, setting up factories in Algeria, Mexico, Iran and Southeast Asia before it started up its first U.S. factory, in Camden, South Carolina, in 2000.”

(Elaine Kurtenbach, “China Cos.  Show Appetite For Brand Names,” The Associated Press, 6/22/05)

Haier “Largely Government-Owned” And A “Favorite” Of The Chinese Ruling Party.

“Haier is also a consumer goods goliath. The company is still largely government-owned, but has a publicly listed division. … The company, which has about 50,000 employees, is also a favorite of the Beijing government.”

(David Barboza, “From China, A New Bid For Maytag And Status,” The New York Times, 6/22/05)

Haier’s Longtime CEO Was First Businessman Named To Communist Party’s Elite Central Committee.

“[Haier’s] longtime chief executive, Zhang Ruimin, has even fashioned himself as a Chinese version of John F.Welch Jr., the hard-driving former chief of G.E. Mr. Zhang is the first businessman named to the Communist Party’s elite ruling committee, the Central Committee.”

(David Barboza, “From China, A New Bid For Maytag And Status,” The New York Times, 6/22/05)

“[Haier] CEO Zhang, For Example, Doubles As The Company’s Internal Communist Party Secretary General…”

(John E. Morris and Shu-Ching Jean Chen, “Haier Retreats,” The Deal, 7/25/05)

Haier’s U.S. Spokesman Instructed By Chinese Superiors To Say The Company Does Not Comment On Anything.

“[I]t was hard to get any information from or on Haier – unusual given that it was bidding for a public company. A woman at Haier’s U.S. headquarters says there is no press officer and that she is instructed to say that the company does not comment on anything. The information flow is only marginally better at the home office in Qingdao, in Shangdong province, where foreign journalists need clearance from the foreign affairs department of the local Qingdao government before the company will consider replying to written or e-mailed questions.”

(JohnE. Morris and Shu-Ching Jean Chen, “Haier Retreats,” The Deal, 7/25/05)

Haier Wanted To Leverage Maytag’s Brand Identity While Shipping Manufacturing Jobs From Iowa To China“If The Chinese Acquire Maytag With Bain Cash, They Would Be Expected To Cut Thousands Of U.S. Jobs And Move The Manufacturing To Cheaper Locations Back Home.”

(Brett Arends, “American Workers’ Bane,” Boston Herald, 6/22/05

Haier Expected To Have Moved Most Maytag Production From Iowa To China.“Haier would be expected to move production of most of Maytag’s branded products to China. Company officials have indicated an interest primarily in Maytag’s strong distribution and product-repair networks and not necessarily its brands.”(David Greising,“Chinese Firm Wants Maytag,” Chicago Tribune, 6/22/05)

Washington Post: “Analysts saw Haier’s interests in Maytag as … a deal that would have used the venerable U.S. brand name to sell machines that could be made in the Chinese company’s existing factories.”(Peter Goodman and Ben White, “Haier Withdraws Maytag Bid,” The Washington Post, 7/20/05)

Haier’s Business Plan “Envisaged … Moving Manufacturing To Low-Cost China.”“Haier was also worried about the problems in implementing its business plan – which envisaged keeping Maytag’s sales and distribution teams in the US while moving manufacturing to low-cost China – in the face of opposition from a highly unionised workforce.”(Francesco Guerrera And Richard McGregor , “Price Concerns A Factor In Haier Withdrawal,” Financial Times, 7/21/05)

“Haier’s Initial Plan For Maytag Envisages Cutting Costs By Moving Its Manufacturing From Its US Base, While Investing In Maintaining The Brand And Sales Channels In America.”(Richard McGregor and James Politi,

“Haier Might Consider Joint Bid,” Financial Times, 6/15/05)

“Haier Could Leverage The Deal By Shipping Its Own Branded Appliances Through Maytag’s Distribution Channel.”(David Greising, “Chinese Firm Wants Maytag,” Chicago Tribune, 6/22/05)

Newton  [IA] Daily News Editor Peter Hussman Expressed Concern:“We’ve got this thing hanging over us… A lot of people feel that if Haier acquires Maytag there would be no chance of future production locally…”(Jeremy Grant And James Politi, “Haier Offer Casts A Chill Over Maytag Home Town,” Financial Times, 6/22/05)

Haier Interested In Shifting Production “Back To Its Far Cheaper Home Base” In China And Elsewhere. “Haier’s interest in Maytag would be far more in acquiring distribution and brand than more production facilities in the U.S.  One advantage of a Chinese purchaser for the troubled U.S. maker is the ease with which it could shift production back to its far cheaper home base. ‘Paying workers $40 an hour, you can’t compete with workers offshore who are paid $4 a day. This fits the trend,’ says one banker.”(Dennis Berman and Henny Sender, “Private Equity Heavyweights To Join Haier Bid For Maytag,” The Globe And Mail[Canada], 6/21/05)

“Haier Would Be Able To Significantly Reduce Maytag’s Costs By Shifting Production To Its Asian Factories.”(David Teather, “Hoover Is Next On China’s Wish List,” The Guardian (London, England), 6/22/05)

Deal Had “Added Significance” Of Chinese Company Not Only Buying Legendary American Brand, But Also Moving Jobs Abroad.“Any move by Haier would be a politically fraught one.  Manufacturing jobs such as the ones in Maytag’s Newton, Iowa, headquarters, have for years been moving abroad to Mexico and Asia. But there would be an added significance of a Chinese-based company arriving in the American Heartland only to move many or most of those jobs abroad.”(Dennis Berman and Henny Sender, “Private Equity Heavyweights To Join Haier Bid For Maytag,” The Globe And Mail[Canada], 6/21/05)

History Of Maytag Is Part Of The Fabric Of Newton, Iowa New York Times, On Newton: “Nearly Everyone … Here Has A Maytag Memory.”“Nearly everyone along the streets here has a Maytag memory: the Maytag Queen being crowned in the Maytag Bowl amphitheater at Maytag Park; the arrival of the stackable washer and dryer; the way the company’s ‘suits’ from headquarters once prided themselves on knowing the names of all of their workers at the plant on the other side of town.”(Monica Davey, “With Loss of Maytag, Town Faces the Loss of Its Identity ,” The New York Times, 6/7/06)

Former And Current Maytag Workers React To News Of Impending Closing Of Maytag Plant In 2006 40-Year Maytag Worker Leland Smith: “Everything That Has Happened Here Has Depended On Maytag.” “In the cool, echoey halls of the history museum in this company town, the display cases are full of washing machines. … In many ways, said Leland Smith, who guided a visitor through the exhibit halls, the story of theMaytag Company is the story of Newton. … ‘Directly or indirectly, everything that has happened here has depended on Maytag,’ said Mr. Smith, 75, who, long before he began showing people around the museum,worked for some 40 years as an industrial engineer — at Maytag, of course.”(Monica Davey, “With Loss of Maytag, TownFaces the Loss of Its Identity ,” The New York Times, 6/7/06)

Former Maytag Worker Craig Miller Sr.: “Like Everything Else, I Guess, They Went Corporate And You Were No More Than A Number, Period.”“‘That’s when it was more of a family business,’ said Craig Miller Sr.,who retired as an electrician from the Maytag plant, whose wife still works there in sheet metal and whose father worked there briefly in 1946. ‘But as things progressed, like everything else, I guess, they went corporate and you were no more than just a number, period. That’s when it started going downhill.’ Mr. Miller said people in Newton had quietly fretted about what might become of Maytag as times got hard and competition was stiff. Suddenly, the company that had driven the town’s stability and spared it from forces, like the farm crisis, that every town nearby wrestled with seemed to have trouble of its own.”(Monica Davey, “With Loss of Maytag, Town Faces the Loss of Its Identity ,” The New York Times, 6/7/06)

Laid-Off Maytag Worker Denny Hosting: “I Guess I’ll Go Back To Trimming Trees.”“Denny Hosting sat at another table, looking numb. Hosting isn’t retired. In fact, he’d gone to work at 7 a.m. to do what he always does, assemble front-loading Neptune washers. There’d been a big layoff two weeks ago. Then a bunch more got the word Friday. The only people left, he said, were the ones with the most seniority. Now they were left hanging, too. ‘The company had been laying people off around every three months,’ Hosting said. ‘Fifteen hundred over the last 18 months. I figured they’d do what the meat packing plants have done for years. Shut it down, break the union,then start it back up. The only thing that shocks me is the permanent closing. I guess I’ll go back to trimming trees.’”(Marc Hansen, “Long-Expected Punch Still Subdues Newton,” Des Moines Register, 5/11/06)

18-Year Maytag Worker Tim Hartgers: “Where Else Am I Going To Find A Job That Pays That Well?” “Casualties include Tim Hartgers, 42, who has worked at the plant for 18 years. He is a sheet-metal worker, making between $18 and $19 an hour. Hartgers said he knew there was a chance the plant would close after Whirlpool bought it March 31. ‘There’s not a thing you can do about it,’ he said. ‘But where else am I going to find a job that pays that well?’”(William Ryberg, “Whirlpool To Newton: You Never Had A Chance,” Des Moines Register, 5/11/06)

Second-Generation Maytag Worker Rick Holmes: “At Least We Know Now.”“‘At least we know now,’ said Rick Holmes, who worked at Maytag, as did his grandfather. Mr. Holmes said he and his family were likely to move away, perhaps to somewhere in the South, depending on where he found work. Plenty of houses in town now have for-sale signs on them, and as Mr. [Craig] Miller, the Maytag retiree, lamented, ‘Who is going to buy any of them?’”(Monica Davey, “With Loss of Maytag, Town Faces the Loss of Its Identity ,” The New York Times, 6/7/06)

Former Military Wife – And Current Maytag Wife – Manuela Holmes: “Maytag Always Took Care Of Their People, Or So We Heard. … We’ve Moved So Many Times.”“All day, Manuela Holmes waited by the telephone, anxious for news about her family’s future. A military wife since age 19, Holmes has had to relocate every two or three years or so throughout her adult life. Then, seven years ago, her husband, Rick, retired from the military and took a job at Maytag’s headquarters in Newton. Holmes figured it would be a more stable life for the couple and their two children, now ages 13 and 18. ‘Maytag always took care of their people, or so we heard, ’she said. … The thought of leaving Newton made her cradle her face in her hands.  ‘We’ve moved so many times, ’she said. ‘This was our first place for seven years straight.’”(Jennifer Jacobs, “Uncertain Days Fill Their Futures,” Des Moines Register, 5/11/06)

38-Year Maytag Worker Curt Jackson:  “What Will 1,000 People Do In This Town?”“Curt Jackson, who spent 38 years with Maytag, said it’s a little strange seeing the name ‘Whirlpool’ on his pension checks. He still cashed them, but it wasn’t the same. … ‘They made all their money in Newton,’ Jackson said, ‘and now they tell us Newton is the problem. What will 1,000 people do in this town? They can’t all work at the racetrack.’”(Marc Hansen,“Long-Expected Punch Still Subdues Newton,” Des Moines Register, 5/11/06)

Former Maytag Worker Mary Cass: “This Has Been Really Stressful.”“Mary Cass was laid off a few months ago. Her husband was a supervisor. He took a buyout and went to Ohio for a job. Mary stayed back and tried to sell the house. In the meantime, her marriage fell apart. She was already starting over when the news came Wednesday. She’s taking classes at DMACC, studying to be an accountant and still trying to sell her house,which has been on the market for a year. The plant closing isn’t going to help. ‘There are so many homes for sale,’ she said. ‘I just lowered the price this week. This has been really stressful.’”(Marc Hansen, “Long-Expected Punch Still Subdues Newton,” Des Moines Register, 5/11/06)

Former Maytag Worker Joe Keeler: “There Are Going To Be A Lot More Houses On The Market.”“Joe Keeler’s former house in Colfax sits empty, as it has for months, with a for-sale sign out front and a price tag that’s been slashed three times. The most recent drop came last week, when Keeler – who left his mechanical engineering job at Maytag last November – heard that the factory and headquarters would shut down. ‘The first thought was: There are going to be a lot more houses on the market,’ said Keeler, who now lives near Milwaukee with his wife and young daughter.”(Bonnie Harris, “For Sale Very Soon: A Lot More Houses,”  Des Moines Register, 5/14/06)

Third-Generation Maytag Worker Bill Hull: “Everyone At Work Was Kind Of Numb.”“Bill Hull was shocked but not crestfallen by Wednesday’s announcement that his job of 12 years would be gone by October 2007.  ‘We’ve known for some time that this could happen, and I guess that’s the way we have lived our lives since the strike back in 2002,’ said Hull, who represents the third generation of his family to work at Maytag. His father, Don Hull, 57, of Knoxville, retired from Maytag a little more than nine years ago, after 30 years of service. Don Hull’s father, the late Beryl Hull, worked at Maytag at least 20 years before leaving the company in the mid-1970s.  ‘Maytag has been a provider for many, many Hull and Walters families for years,’ Bill Hull said. … [Hull] said the first thing he did after learning the plant would close was call his wife, Dawn, who stays home with their four children. ‘Everyone at work was kind of numb,’ he said.”(Juli Probasco-Sowers, “‘We Aren’t In Limbo Anymore,’” Des Moines Register, 5/11/06)

Local Officials Reacted To News Of Maytag Plant Closure With Sadness And Disappointment Newton Mayor Chaz Allen: Sense Of Disappointment At News Of Plant Closing.“‘When it comes down to it, this possibility has been on people’s minds ever since I’ve been here,’ said Chaz Allen, the mayor of Newton, who moved here six years ago. Still, that did not diminish the sense of disappointment and worry that Mr. Allen felt when he received a call from company officials on May 9 at 10:23 p.m. – a time that he says is etched in his memory.”(Monica Davey, “With Loss of Maytag, Town Faces the Loss of Its Identity ,” The New York Times, 6/7/06)

Newton Daily News  Editor Peter Hussman: Residents Are “Sorting Through The Rubble And Wondering What The Aftershocks May Be.”“For now, Newton is ‘sorting through the rubble and wondering what the aftershocks may be,’ said Peter Hussmann, the editor of The Newton Daily News. The signs are mixed in recent days: a new bank said it would come to town, Mr. Hussmann said, but a local printer, which had long done business with Maytag, announced that it would close. And if new companies do come, in a diversified economy, will any of them mean what Maytag meant? ‘I think that’s what Newton is trying to find out – what its identity will be,’ Mr. Hussmann said. ‘I don’t think our identity is formed yet. I think we’re looking for one.’”(Monica Davey, “With Loss of Maytag, Town Faces the Loss of Its Identity ,” The New York Times, 6/7/06)

UAW Official Dennis Williams: “It’s Sad For The Community.”“A leader of the union representing Whirlpool’s Newton union on Thursday praised Gov. Tom Vilsack’s efforts to save former Maytag jobs in Newton. United Auto Workers Regional Director Dennis Williams doubts Iowa leaders had a serious chance to influence Whirlpool’s decision. … He expressed bitterness about former Maytag Chairman Ralph Hake’s role in Maytag’s sale, which he felt many UAW members share … ‘It’s sad for the community,’ Williams said. ‘Newton is a great community to live in. I have family there.’”(Dave Dewitte, “Leader Of Newton Union Praises Vilsack,” The [Cedar Rapids, IA] Gazette, 5/12/06)


Stream International Provided Outsourced Customer Support Services To Corporations Stream Called “One Of The Bigger Players” In The Outsourced Call Center Industry.“Canton’s Stream International offers its call centers to corporations on an outsourced basis, and is one of the bigger players in the industry. The company employs 7,500 call center agents in nine countries, and last fall it bought a system that will allow its agents to interact with clients using VOIP technology.”(C.A. Soule, “Telco’s New Center Of Growth,” Mass High Tech,4/30/01)

Bain Capital Invested In Stream International’s Predecessors As Early As 1993 And Held Majority Stake In Company From November 1999 Through October 2001Bain Bought Corporate Software Inc. In 1993, Merged It With R.R. Donnelley & Sons Unit (With Bain Holding Minority Stake) In 1995 To Create Stream International; Bain Purchased Majority Stake In Stream In November 1999.“Bain’s Stream investment is an offshoot of the firm’s purchase of Corporate Software Inc., a supplier of software services, for $94 million in late 1993. In 1995 Bain merged Corporate Software with R.R.Donnelley & Sons Co.’s global software services unit to create Stream International Holdings Inc. At that point,Donnelley owned 87% of Stream and Bain just 4%, according to a U.S. Securities and Exchange Commission filing. In early 1998 Stream spun off its Modus Media International unit, a supplier of supply-chain management services. Bain, which owns about 39% of Modus, bought out Donnelley’s holding in Stream for $96 million in November 1999.”(David Carey and Sarah Cohen, “Solectron To Buy Bain Capital Unit,” Daily Deal, 9/25/01)

Bain CapitalBecame “Primary Equity Holder” In Stream After Borrowing Over $82 Million To Finance LBO.“Lehman Brothers, acting as the sole lead arranger, administrative agent and syndication agent, launched into the market at a bank meeting in New York on Oct. 13 an $82.5 million credit facility for Stream International Inc. … Proceeds from the deal will be used to fund the company’s leveraged buyout by private equity investment firm Bain Capital Inc. Stream’s primary equity owner is R.R. Donnelley & Sons Co., which owns 87% of the company. Once the transaction is completed, Bain Capital will become the primary equity holder in the company.”

(“Bain Taps Lehman For Stream LBO,” Bank Loan Report, 10/25/99)

Bain Reportedly Paid $96 Million To Acquire Majority Interest In Stream.

“Stream International split off from its larger parent, now Modus Media International and Corporate Software, prior to the Bain VI investment in 1999. (However, Bain IV was already an investor in Modus Media since 1993, and still holds a 39% stake.) Bain purchased R.R. Donnelley & Sons Co.’s stake in Stream International for $96 million.”

(Christa Fanelli, “Bain Capital Sends Company Upstream,” Buy Outs, 10/8/01)

Bain’s Total Capital Outlay In Stream Was Not Publicly Determined.

“Bain’s capital outlay in Stream isn’t quantified in financial statements. The firm has received at least one capital distribution, of $12.3 million, following its initial investment.”

(David Carey and Sarah Cohen, “Solectron To Buy Bain Capital Unit,” Daily Deal, 9/25/01)

In October 2001, Bain Sold Its Majority Interest In Stream For What Was Assumed To Have Been A“Substantial Gain” For Bain Investors Bain Capital Sold Its 60% Equity In Stream To Solectron Corporation For An Undisclosed Sum.

“Boston-based Bain Capital last month agreed to sign off its investment in Stream International Inc., a customer care and technology support company for online and technology companies, to Solectron Corp. Terms of the deal, which is expected to close by the end of October, were undisclosed. Bain will be selling its full ownership stake of approximately 60% of the company.”

(Christa Fanelli, “Bain Capital Sends Company Upstream,” Buy Outs, 10/8/01)

Bain “Probably” Turned Substantial Profit From Its Investment In Stream.

“Although the magnitude of Bain’s profit from the sale isn’t clear, the firm will probably register a substantial gain considering Stream’s recent performance. Kathleen Nordgren, a Stream press official, said that revenues climbed 36% from 1999 to 2000 and are on track to grow more than 20% this year. Stream’s Ebitda, she said, is in the black. ‘If the company weren’t healthy, I doubt Solectron would have been interested in us,’ she said.”

(David Carey and Sarah Cohen, “Solectron To Buy Bain Capital Unit,” Daily Deal, 9/25/01)

Stream Experienced “Significant Growth” Under Bain’s Management.

“Under Bain’s ownership, Stream International has seen significant growth, mainly through acquiring new clients and building up the accounts of existing clients. Last year the company, based in Canton, Mass., had $323 million in sales. Kathleen Nordgren, a spokesperson for Stream International, said the company grew ‘well over 30% last year’ and is seeing growth again this year, though to a lesser extent.”

(Christa Fanelli, “Bain Capital Sends Company Upstream,” BuyOuts, 10/8/01)

Solectron Itself Sold Stream To Portfolio Firm Of Private Equity Concern H.I.G. Capital In April 2004.

“Originally a unit of Garland-based Software Spectrum, a software reseller, the business that is now called Stream was purchased for an undisclosed amount in June 2003 by a Miami private equity concern, HIG Capital. At the time, the business operated under the name ECE, an acronym for ‘Exceptional Customer Experience.’ In April, HIG purchased Stream International from California-based Solectron Corp., merged the 8,000-employee Stream with the 2,000 employee ECE and gave them the Stream name. Terms of that purchase weren’t disclosed.”

(Jeff Bounds and Christine Perez, “Stream Picks Richardson For Consolidated Offices,” Dallas Business Journal, 7/16/04)

Solectron’s Divestment Was Complete By April 2004.

“Solectron Corporation, a leading provider of electronics manufacturing and integrated supply chain services, said today it completed the sale of its Stream International call center business to the parent company of ECE Holdings, Inc., a leading global provider of outsourced technical support and customer service and funded by H.I.G. Capital. Stream and ECE provide technical support and customer service to high-technology companies and their customers.”

(Solectron Corporation, Press Release, 4/14/04)

Stream International Filed IPO In 1997, Withdrew Offering Four Years Later Stream Filed For IPO In April 1997 But Withdrew Filing On September 17, 2001.

“In the wake of the Sept. 11terrorist attacks, the psychological impact on how the attacks will affect the economy of the United States is still a large question mark. When the stock markets tumbled last week, many companies planning their initial public offerings decided to hold out until markets stabilized, while some pulled out altogether. … Stream International Holdings Inc., a technical support outsourcing company, filed a $51.6 million IPO in April 1997 with DeutscheBanc Alex. Brown serving as lead underwriter, but withdrew its offering Sept. 17. The company simply stated it does not intend to conduct the offering of shares of common stock contemplated, according to its Form-RW.”

(Frank Musero, “IPOs On Hold As Market Remains Uncertain,” IPO Reporter, 9/24/01)

In Letter To SEC Dated Sept. 14, 2001, Stream Offered No Explanation For Withdrawing Its IPO Registration.

“In accordance with Rule 477 promulgated under the Securities Act of 1933, Stream International Inc. (the ‘Company’) hereby withdraws its Registration Statement on Form S-1 (Registration No. 333-26185),which was originally filed with the Securities and Exchange Commission on April 30, 1997. The Company is withdrawing the Registration Statement because it does not intend to conduct the offering of shares of Common Stock contemplated in the Registration Statement at this time.  No shares of Common Stock of the Company have been issued or sold under the Registration Statement.”

(Stream International Inc., Letter To The Securities And Exchange Commission, 9/14/01)

At Time Of Stream’s IPO Filing In 1997, Two Bain Capital Employees Sat On Company’s Board Of Directors Bain Capital Principal Jonathan Lavine Served As Director Of Stream International.

“Mr. [Jonathan] Lavine serves as a Director of the Company. He has been a Principal at Bain Capital, Inc. since 1995 and was an Associate at Bain Capital, Inc. from 1993 to 1995. … Previously, Mr. Lavine worked in the mergers and acquisitions department of Drexel Burnham Lambert, Incorporated. Mr. Lavine is also a Director of Clarity Telecom, Inc. and American Pad & Paper Company.”

(Stream International Inc., SEC Form S-1/A, Registration No. 333-26185,Filed 12/23/97)

Bain Capital Managing Director Mark Nunnelly Served As Director Of Stream International.

“Mr. [Mark]Nunnelly serves as a Director of the Company. He has served as a Director of the Parent Company since 1995. Mr. Nunnelly has been a Managing Director of Bain Capital, Inc. since 1992, and a General Partner of Bain Venture Capital since 1990. Prior to joining Bain Venture Capital, Mr. Nunnelly was a Partner at Bain & Company, where he managed several relationships in the manufacturing sector…”

(Stream International Inc., SEC Form S-1/A,Registration No. 333-26185, Filed 12/23/97)

Both Lavine And Nunnelly Were Members Of Stream’s Audit Committee And Compensation Committee.

(Stream International Inc., SEC Form S-1/A, Registration No. 333-26185, Filed 12/23/97)

Bain Capital Financed Position In Stream International Thru Bain Capital Fund VI In 1999Bain VI Closed In 1998 – While Romney Ran Daily Operations – With $200 Million Committed By Firm’s Partners And $1.1 Billion In Total Capital Commitments.

“Bain Capital’s Fund VI closed in 1998 with $1.1billion in committed capital and the Coinvestment Fund of Fund VI raised $400 million. Bain’s general partners committed $200 million to the final closing.”

(Christa Fanelli, “New Funds: Bain Capital Fund VII Aims For $2B,” BuyOuts, 5/29/00)

Stream International Was Among Investments In Bain VI Portfolio.

“Bain Capital will continue its tradition of  investing in high-cap companies in various industries. The firm’s recent investments include Interpath, an e-commerce unit of Carolina Power & Light, Mattress Discounters, ChipPac Inc., a semiconductor assembly and test provider, and Stream International Inc., a technical support provider.”

(Christa Fanelli, “New Funds: Bain Capital Fund VII Aims For $2B,” BuyOuts, 5/29/00)

Bain Capital Took 30% “Carry,” Or Share Of Profits, From Bain VI.

“With tight lips, Bain Capital this month began marketing its seventh buyout fund. Bain Capital Fund VII LP, like Fund VI, will be raised simultaneously with a Coinvestment Fund. … Reports have indicated that Bain Capital will again charge a 30% carry for Fund VII, as it did for Fund VI.”

(Christa Fanelli, “New Funds: Bain Capital Fund VII Aims For $2B,” BuyOuts, 5/29/00)

Months After Bain’s Acquisition Of Stream, Bain Capital “Point Person” Scott Murray Was Hired As Stream’s President And Chief Operating Officer February 2000: Three Months After Being Acquired By Bain Capital, Stream Appointed Longtime Bain Capital Business Associate Scott Murray As President And COO.

“Stream International announced today the appointment of R. Scott Murray as President and Chief Operating Officer reporting to Steve Moore, Chairman and Chief Executive Officer. As President and Chief Operating Officer, Murray will be responsible for Stream’s North American operations, which account for the majority of Stream’s revenues and employees and will be part of the overall corporate executive team.”

(Stream International, Press Release, 2/9/00)

The Deal  Called Murray “A Point Person” For Bain Capital “As It Deals With Its Portfolio Companies.”

“Knowing that private equity firms like to operate privately, Scott Murray, CEO of Modus Media International Inc., doesn’t want to say too much about Bain Capital LLC. But over the past several years he has emerged as a point person for the Boston-based private equity firm as it deals with its portfolio companies.”

(Dennis Fitzgerald and Heidi Moore, “Movers & Shakers,” The Deal, 4/5/04)

Before Being Tapped To Run Stream, Murray Served As CFO At Bain Capital Portfolio Company “The Learning Company.”

“Before joining Stream, Murray was the Executive Vice President and Chief Financial Officer of The Learning Company. TLC was the largest consumer software company in the world developing and marketing educational, productivity and entertainment software for the retail, OEM, direct response, International, school and e-commerce channels.”

(Stream International, Press Release, 2/9/00)

Murray Held Senior Positions For At Least Three Bain Capital Portfolio Companies By The Age Of Forty –Including His Stint At Stream.

“Before Murray, 40, joined Modus two years ago, he was president and COO of Stream International Holdings Inc., a call center company and Bain investment that in the mid-’90s included Modus. … Prior to Stream, Murray was chief financial officer of Learning Co., an educational software company and an investment of Thomas H. Lee Co., Bain and Centre Partners Management LLC.”

(Dennis Fitzgerald and Heidi Moore, “Movers & Shakers,” The Deal, 4/5/04)

Murray Said Bain Capital Had “Asked Me To Work With Them.”

“Murray says his continued affiliation with Bain is largely serendipitous. ‘I have been available, and they have asked me to work with them,’ he says.”

(Dennis Fitzgerald and Heidi Moore, “Movers & Shakers,” The Deal, 4/5/04)

As Of October 1, 1997 – Before Bain Capital Assumed Majority Stake – Stream Employed Over Seven Times As Many Full-Time Workers In The U.S. As It Did Overseas

* Source: Stream International Inc., SEC Form S-1/A, Registration No. 333-26185, Filed 12/23/97

Under Bain Capital’s Guidance – And As Result Of “Booming” Outsourcing Business – Stream Announced Ambitious Expansion Plans In Summer Of 2000June 2000: Under Bain Management, Stream Announced Plans To Nearly Double Number Of Employees From 7,000 To 13,000, Including Over 200 New Jobs In Hometown Of Canton, Massachusetts.

“Stream International Inc. of Canton will build up to a dozen new call centers worldwide as part of a $60 million expansion it plans to announce today. Closely held Stream provides technical support for customers of companies including Microsoft Corp. and Excite@Home. It now has about 7,000 employees at 14 centers, including about 1,000 workers in Canton. An expansion over the next year will add another 6,000 employees, including about 255 in Canton, executives said.”

(Ross Kerber, “Canton, Mass.-Based Tech Support Company To Announce Major Expansion,” The Boston Globe, 6/27/00)


Included In Stream’s Expansion Plans: 600 New Jobs In Mumbai, India.

“New sites will include buildings in Montana, New Mexico, Canada, and northern Spain, among other places.  Stream also said it will hire 600workers in Bombay, to provide support via e-mail. In Canton, Stream plans to upgrade its infrastructure and add about 55 corporate staff employees, 100 software support workers, and 100 employees for hardware  support.”

(Ross Kerber, “Canton, Mass.-Based Tech Support Company To Announce Major Expansion,”  The Boston Globe, 6/27/00)

Stream’s “Outsourcing” Business Was Described As “Booming.”

“Stream’s call-center business is booming as hardware and software companies hire outsiders to answer questions about their products. The business is known as ‘outsourcing,’ and it spares companies from having to talk to live customers.”

(Ross Kerber, “Canton, Mass.-Based Tech Support Company To Announce Major Expansion,” The Boston Globe, 6/27/00)

Explore posts in the same categories: Politics

Leave a Reply

Please log in using one of these methods to post your comment: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: