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WIDairyman

(3 posts)
23. Fed's unintended consequencies
Sun Jan 6, 2013, 06:08 PM
Jan 2013

In March, 2011, Dean Foods was ordered to sell its milk processing plant in Waukesha, which settles a federal antitrust lawsuit that fought the company’s 2009 purchase of the plant from Foremost Farms USA because it controlled nearly 60 percent of milk sales.
The Federal DOJ lawsuit challenging the purchase was based on Federal antitrust laws that claimed the purchase prevented retailers and school districts from benefiting from competition between the two companies, according to the release. Illinois, Michigan and Wisconsin DOJ's joined the lawsuit to protect their consumers' interest. The Federal government should have known that Open Gate Capital has a history of buying a company only to close it within a year. They bought it in September, 2011 from a Federal Court appointed trustee. The uncertainty of the Federal Farm bill "broke the camel's back".

The equity firm must have decided the needed some quick cash. liberal N proud Jan 2013 #1
Nailed it. The Romney Gecko business model. freshwest Jan 2013 #13
Precisely. You nailed it (Gecko ref) n/t Drum Jan 2013 #14
I am living it with the company I currently work for. liberal N proud Jan 2013 #21
Of course, Open Gate Cap left the employees' retirement fund intact -- right? SDjack Jan 2013 #2
Weird, our local dairy that suplied milk to the schools closed suddenly last week. Arctic Dave Jan 2013 #3
Goddss almighty - i have been screaming about this for several years truedelphi Jan 2013 #4
Started out as a farmer-owned cooperative. postulater Jan 2013 #8
Thanks for the history lesson. I used to live in WI truedelphi Jan 2013 #28
Very sorry to hear that dragonlady Jan 2013 #5
After some browsing dragonlady Jan 2013 #12
Hello? Remember the stories the past week that milk prices might suddenly double? hedda_foil Jan 2013 #6
Wisconsin Attorney General (Walker's guy) made Dean sell. postulater Jan 2013 #10
Should have known Van Hollen would have his hand in this. AllyCat Jan 2013 #20
Golden is still listed as part of Open Gate on their site, benld74 Jan 2013 #7
Oh Mitt & friends? nc4bo Jan 2013 #9
K&R DeSwiss Jan 2013 #11
Fuck private equity. Gutting and shutting local business is a really shitty thing to do! n/t Ed Suspicious Jan 2013 #15
Exactly. SoapBox Jan 2013 #16
Investment banks The Wizard Jan 2013 #17
Wow,great little Co-op,really sad this has happened Wellstone ruled Jan 2013 #18
Vulture capitalism at work... AllyCat Jan 2013 #19
Open Gate Capital=another Bain-like/parasitic mega cluster f**ker!! hue Jan 2013 #22
Fed's unintended consequencies WIDairyman Jan 2013 #23
I'll take anti-trust lawsuits anyday over a corporate strangle-hold on any market. sybylla Jan 2013 #25
then why is there a monopoly of Wall Street?? Angry Dragon Jan 2013 #27
These companies contract to sell milk to schools and to buy milk from farmers. sybylla Jan 2013 #24
The Mu chapter of Beta Beta Beta at Carroll always had a pic with the giant fiberglass cow there HereSince1628 Jan 2013 #26
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