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Entries in Proctor & Gamble (3)

Friday
May252012

Proctor & Gamble Alters Tide Pods After Numerous Poison Calls

Proctor & Gamble(CINCINNATI) -- In response to a large number of poison control calls, Proctor & Gamble announced on Friday that they plan to make their detergent packs safer.

The laundry detergent single packs, Tide Pods, have been receiving a lot of attention since they were introduced in February. As advertised, they are a no mess, no spill alternative to heavy detergent buckets, but to many children, these small colorful packets look like candy.

Poison control centers noticed the surge in calls early this month, and were able to link it to these laundry packets. They have been receiving as many as 10 calls a day about the laundry packets making children violently ill.

In a press release, Proctor & Gamble said they are taking these reports very seriously.  They announced that they will be adding a safe guard to stop this from happening in the future. “We’re introducing a double-latch closure lid on tubs of Tide Pods, which will be available on store shelves starting July 2012.”

The press release also urged consumers to follow the directions and warnings on the label of all their products to reduce the risk of illness. “Tide Pods are safe when they’re used and stored according to the package directions.”

Copyright 2012 ABC News Radio

Saturday
Nov192011

Procter & Gamble CEO John Smale Dies at 84

Aga Luczakowska/Bloomberg via Getty Images(CINCINNATI) -- Procter & Gamble's former CEO John Smale died at the age of 84 on Saturday.

Smale is attributed with expanding the consumer products giant with products like Pantene shampoo and Olay skin cream. He led the company from 1981 to 1990, and was also a chairman of GM from 1992 to 1995.

It remains unclear where or how Smale died.

Copyright 2011 ABC News Radio

Wednesday
Oct262011

Inside the Rajat Gupta Insider Trading Charges

Spencer Platt/Getty Images(NEW YORK) -- Wall Street power player Rajat Gupta arrived at the White House State Dinner in 2009 at the pinnacle of American business: on the board of directors at Goldman Sachs and Proctor & Gamble, and widely respected in the financial community.

But Wednesday, federal investigators accused Gupta of being a symbol of Wall Street greed -- an inside trader.

Authorities say he used his sensitive positions to provide billionaire hedge fund manager Raj Rajaratnam with tips that allowed him to pocket $23 million playing the stock market.

While small investors saw their portfolios crater in 2008-2009, Rajaratnam, the founder of Galleon Management, profited no matter what happened on Wall Street.

The government released wiretaps of telephone conversations between the two men to show how they operated. This conversation took place in July 2008, just after Gupta attended a Goldman Sachs board meeting. The Galleon fund manager quizzed him about what acquisitions Goldman Sachs might be interested in.

RAJARATNAM: There’s a rumor that Goldman might look to buy a commercial bank....Have you heard anything along that line?

GUPTA: Yeah. This was a big discussion at the board meeting...on whether we...

RAJARATNAM: Buy a commercial bank?

GUPTA: Buy a commercial bank.

No stock transactions came from that particular call, but many other calls between the two did result in insider trading, according the indictment. In fact, that wiretapped conversation was part of the evidence last spring when Rajaratnam was convicted in the biggest insider trading case ever brought by the U.S. government.

This discussion was also entered into evidence to establish Rajaratnam was pumping Gupta for critical investment information.

RAJARATNAM: All right, anything else? Anything interesting?...Keep your eyes and ears open if you hear anything.

The government claims something “interesting” did come up as 2008′s financial meltdown became evident. At a 3:15 p.m. board meeting on Sept. 22, 2008, Gupta learned that Warren Buffet and Berkshire-Hathaway were going to invest $5 billion dollars in Goldman Sachs.

Gupta allegedly called Rajaratnam at 3:53 p.m. and tipped him off. The hedge fund manager then bought more than 217,000 shares of Goldman minutes before the market closed at 4 p.m. The next day, Goldman stock soared on the news of the Berkshire-Hathaway investment. Rajaratnam then sold the Goldman stock just before the market closed, turning a $800,000 profit in just 24 hours, thanks to the tip from Gupta.

In another example cited in the indictment, Gupta was on the phone with Rajaratnam a mere 23 seconds after a Goldman Sachs board meeting. This time, Gupta allegedly told Rajaratnam that Goldman was about to announce big losses. The stock price would surely take a beating when the news surfaced publicly. Rajaratnam quickly dumped his Goldman stock and avoided losses of more than $3.6 million.

The government also charges that Gupta abused his position at Proctor & Gamble by tipping Rajaratnam off to P&G’s financial results for the quarter ending December 2008.

Gupta called Rajaratnam to tell him that P&G would soon release information that its sales would not meet expectations. Galleon funds then sold short approximately 180,000 P&G shares, making, according to the indictment, “an illicit profit of more than $570,000.”

U.S. Attorney Preet Bharara said, “Rajat Gupta was entrusted by some of the premier institutions of American business to sit in their boardrooms…so that he could give advice and counsel for the benefit of their shareholders. As alleged, he broke that trust and instead became the illegal eyes and ears in the boardroom for his friend and business associate, Raj Rajaratnam, who reaped enormous profits from Mr. Gupta’s breach of duty.”

Gupta’s attorney responded, “The government’s allegations are totally baseless. The facts in this case demonstrate that Mr. Gupta is innocent of any of these charges and that he has always acted with honesty and integrity. He did not trade in any securities, did not tip Mr. Rajaratnam so he could trade, and did not share in any profits as part of any quid pro quo.”

In fact, his attorney said, Gupta lost his entire investment in the Galleon Fund at the time of the events in question, removing any motive he may have had for helping Rajaratnam.

Copyright 2011 ABC News Radio







ABC News Radio