BritishAmerican Business Network Magazine 2013 Volume III

2013, VOL. III

NETWORK NEW YORK LONDON

Going for Growth: Transatlantic Free Trade

With Insights from BT, UPS, and Pfizer

CONTENTS

2013, VOL. III

NETWORK

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WELCOME Welcome from Wendy Mendenhall, Managing Director, BritishAmerican Business

NEW YORK LONDON

Going for Growth: Transatlantic Free Trade

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INDUSTRY INSIGHTS 12

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With Insights from BT, UPS, and Pfizer

BRITISHAMERICAN BUSINESS New York 52 Vanderbilt Avenue, 20th Floor New York, NY 10017 Tel: +1 212 661 4060 Fax: +1 212 661 4074 E-mail: nyinfo@babinc.org @BABNewYork

Policy Update

Why Business Needs International Exchange Dr. Paul Beresford-Hill MBE, Mountbatten Institute

MEET THE NEW MEMBERS

A Review of Risks Related to Foreign Acquisition Louis Osmont, WeiserMazars

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New Member Listings

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New Board of Directors and International Advisory Board Members

GOING FOR GROWTH: TRANSATLANTIC FREE TRADE 6

London 75 Brook Street London W1K 4AD Tel: +44 (0)20 7290 9888 Fax: +44 (0)20 7491 9172 E-mail: ukinfo@babinc.org @BABLondon

Spread the Word: TTIP is Exciting! An exclusive interview with Larry Stone, President, Group Public & Government Affairs, BT

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TTIP and the Pharmaceutical Industry Sally Susman, Executive Vice President, Policy, External Affairs, and Communications, Pfizer

Website: www.babinc.org

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Facilitating Transatlantic Trade An exclusive interview with Laura Lane, President, Global Public Affairs, UPS

EDITOR Andrew Boyd aboyd@babinc.org

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Risk Intelligence: A Strategic Core Competence Leo M. Tilman, Tilman & Company The Future of Business Travel Jim Mueller, United Airlines

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The UK Bribery Act: New Developments in Enforcement Harvey Kelly, Alix Partners TTIP, Antitrust, and Merger Costs Thomas A. McGrath, Linklaters

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AUTHOR SPOTLIGHT PROGRAM HIGHLIGHTS

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Transatlantic Business Awards Dinner

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New York Programs

22 London Programs

BAB NEWS BRITISHAMERICAN BUSINESS: THE COMPANY TO KEEP

Superstorm Sandy… One Year Later Dan Riordan, Zurich Successful Transformation Starts at the Core Michael Carpenter, Ally

TRANSATLANTIC COUNCIL MEMBER LISTING 3

GREAT Tech Awards

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24 Upcoming Events

Member Services

BritishAmerican Business has grown to become the leading transatlantic business organization, dedicated to helping companies connect and build their business on both sides of the Atlantic.

Our membership includes the world’s leading multinational and middle-market companies, including most of the major American and European players in banking, pharmaceuticals, energy, aerospace/defense, insurance, accountancy, law, real estate, telecoms, management/business consultancies, airlines and the media.

We provide them with access to practical, measurable business expansion opportunities by delivering high-calibre networking and targeted marketing platforms, as well as top quality business intelligence and regulatory advice and influence.

We incorporate the American Chamber of Commerce (UK) and the British American Chamber of Commerce of New York and London which we merged in 2000 to create a s i n g l e, p re eminent business organization to serve its members on both sides of the Atlantic.

BritishAmerican Business NETWORK 2013, VOL. III

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WELCOME

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'm delighted to present the next edition of Network, focusing on the Transatlantic Trade and Investment Partnership (TTIP) negotiations between the United States and Europe. As you may be aware, TTIP – if passed – would be the largest free-trade agreement in history with far-reaching implications for all transatlantic companies.

In this issue, BAB member companies BT, UPS, and Pfizer outline how TTIP could radically reduce costs, encourage growth, improve intellectual property protections, and help align complex regulations between the US and EU. If your business or industry will be affected by TTIP, we’d love to hear from you: contact Andrew Boyd (Editor) to share your story on our website.

This edition also includes thought leadership from member companies on a broad range of topics such as the ongoing recovery from Superstorm Sandy, trends in

Wendy Mendenhall Managing Director BritishAmerican Business wmendenhall@babinc.org

business travel, and risk intelligence. We also review our recent programs and welcome several new members.

I want to thank all of you who supported our Transatlantic Business Awards Dinner on November 7th, and who joined us for our Annual Christmas Luncheon on December 20th.

We are planning interesting new programs in 2014, including briefings on topics as diverse as big data, innovation, energy, talent management, rule of law, and more. As always, our programs will offer you the best business development and networking opportunities with other transatlantic companies in New York.

I look forward to seeing you at our upcoming programs.

Stay up to date on all BAB programs and member benefits, such as exclusive perks, by following us on Twitter at @BABNewYork or by visiting our website.

As always, please feel free to reach out to us with ideas, questions and updates. Happy reading . . . n

Tra n s a t l a n t i c Co u n c i l M e m b e rs Transatlantic Council Membership is reserved for a select group of BritishAmerican Business’s leading companies, and offers them a customized program of exclusive networking, promotional, and business opportunities, in addition to the regular benefits associated with memebership in BritishAmerican Business.

A.T. Kearney Inc.

BP America

Exxon Mobil

International

NFL

State Street Corporation

Aberdeen Asset Management

British Airways

Financial Times

JWT

NYSE

Sullivan & Cromwell

Brunswick Group

Florin Pensions

Kingstree Group U.S., The

Oliver Wyman

Tata Consultancy Services

Bryan Cave

Fragomen Del Rey Bernsen & Loewy

Korn/Ferry International

PA Consulting Group

Thomson Reuters

KPMG

Pfizer Inc

Tilman & Company

Latham & Watkins

Tishman Speyer

Legg Mason

Polytechnic Institute of NYU

LexisNexis

PR Newswire Association

Turner & Townsend

Linklaters

Promontory Growth & Innovation

UBS

Ace Group Active International AIG AlixPartners Allen & Overy Ally Financial

Burson-Marsteller CB Richard Ellis Chadbourne & Parke Chubb & Son

FTI Consulting G3 Galileo Global Advisors GE General Atlantic

Alston & Bird

CIT

American Airlines

Citi

Aon Risk Solutions

Coller Capital

Aquiline Capital Partners

Colliers International

Arup

Hakluyt & Company (North America)

Corsair Capital

Aspen Insurance

Hearst Corporation

CRESAPartners

Marsh

RLM Finsbury

AT&T

Heidrick & Struggles

Cushman & Wakefield

MasterCard Worldwide

Baker & McKenzie

Hill+Knowlton Strategies

Debevoise & Plimpton

McGraw Hill Financial

Royal Bank of Scotland, The

HSBC Bank USA

McKinney Rogers

IBM Corporation

McKinsey & Company

INSEAD

Mercer

Interactive Data Corporation

Merck & Co.

Bank of America Merrill Lynch Barclays BBC Worldwide N. America Beazley Group BGD Holdings Blake Cassels & Graydon BLJ Worldwide Bloomberg BNY Mellon Boots Retail USA

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BT

Deloitte.

Delta Air Lines Dentons Deutsche Bank Diageo DLA Piper Economist Group, The EHS Partners Ernst & Young Experian Marketing Services

Gibney Anthony & Flaherty Goldman Sachs

InterContinental New York Barclay

Lloyd’s America Inc. Lloyds Bank LSG (US) Marsh & McLennan Companies Inc

Merrill Corporation Mintz Group; The

Prosek Partners PwC Receivables Exchange; The Risona Inc.

Russell Reynolds Associates Inc. Santander Schindler Elevator Corporation Schroders Investment Management North America Inc.

Tradeweb

UK Trade & Investment United Airlines Verizon Virgin Atlantic Airways VisitBritain Vodafone Global Enterprise WeiserMazars Wells Fargo & Company Williams Capital Group Willis Group Holdings Winchester Capital Withers Bergman Witt/Kieffer

Invest Northern Ireland

Moelis & Company

Jaguar Land Rover

Morgan Lewis & Bockius

Sheppard Mullin Richter & Hampton

JetBlue Airways

Mountbatten Institute

Siemens Financial Services

Xerox Corporation

JPMorgan Chase

National Grid

Standard Chartered Bank

Young & Rubicam Group

Just Marketing

News Corporation

Starr Companies

Zurich Insurance Company

WL Ross & Co. WPP

BritishAmerican Business NETWORK 2013, Vol. III

P O L I C Y AND F O R U M S

POLICY UPDATE Representing the interests of our membership to the highest level of government in the US, the UK and the EU has maintained a priority for BAB over the past few months. the audience through a Q&A session.

The All-Party Parliamentary Group on EU-US Trade & Investment, for which BAB provides the secretariat, has become an important arena for discussions on TTIP. Its aim is to foster greater public debate and understanding of TTIP, and to strengthen Parliamentary and public scrutiny of the UK Government's action to help secure a successful investment and trade agreement.

Aviation Along with more than 100 other business leaders, BAB CEO Richard Fursland joined a major campaign launched in London in November to secure the UK’s aviation future by supporting a cross-party solution on air capacity. The ‘Let Britain Fly’ campaign was launched to secure England’s global aviation hub status by modernizing its LTR: Larry Stone, President, Group Public & Government Affairs, BT and joint BAB airport infrastructures.

EU/US Trade and Investment Forum Head; Ignacio Garcia-Bercero; Beatrice Flammini, Director for European Government Affairs; Richard Currie, Director of Public Affairs, The campaign highlights the need for UPS, joint BAB EU/US Trade and Investment Forum Head increased air capacity in order to grow our economy, and urges politicians to protect, maintain and enhance Britain’s Transatlantic Trade and Investment Partnership global aviation status and to be ‘guided’ by the outcome of the We held small off-the-record roundtables with Deputy US Trade Representative Miriam Sapiro and with Ignacio Garcia Bercero, Airports Commission.

BAB’s Aviation Forum has been at the forefront of our policy Director, Directorate General for Trade, European Commission and Chief EU Negotiator for TTIP. At the culmination of a crucial activity over the last couple of years, work has included contributions month of negotiations of TTIP, speakers provided an insightful to the ongoing debate around South East airport expansion and update as to how negotiations are progressing, and what business helping to highlight the damage excessive “air taxes” (most can be doing to support the negotiations and looking ahead to notably APD) can do to UK business.

BAB will continue to work with its members and affiliated the key focuses in 2014.

We responded to the House of Lords call for evidence on TTIP, organizations as we have with our previous aviation initiatives. n stressing the continued need for political leadership to ensure a successful conclusion to the negotiations. We emphasized a strong prioritization for measures that could help SMEs, such as the simplification of customs and trade facilitation procedures (for example, with regard to visa issuance commitments), and also the simplification and alignment of regulatory processes.

Jeffries Briginshaw, BAB’s Managing Director in London, and Elisabeth Roderburg, our TTIP Advisor, gave Oral Evidence to The House of Commons Foreign Affairs Committee on foreign policy towards the United States. They stressed the importance of the UK playing an active part in the negotiations through its membership of the European Union.

We have also kept up the momentum on our road show series around the country with recent events in in Edinburgh, Manchester, Reading and Newcastle. Our expert panel of speakers includes senior executives from leading companies and SMEs, MPs and Above: Roundtable Luncheon with US Deputy Trade UKTI International Trade Advisors who cover the impact on Representative Ambassador Miriam Saprio businesses of a proposed deal before opening the floor out to

BritishAmerican Business NETWORK 2013, Vol. III

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Meet the New MeMBers

tra n s a t l a n t i c co u n c i l M e m b e rs leGG MAsoN

MerrIll corporAtIoN

the receIvABles eXchANGe

www.leggmason.com

www.merrillcorp.com

www.receivablesxchange.com

Headquartered in St. Paul, Minn., Merrill Corporation is a global technology-enabled service provider trusted by clients to manage complex, confidential and regulated information. Merrill's services include Merrill Brink Translation Services, Merrill Data Site, and Transaction and Compliance Solutions, Legal Solutions and Marketing and Communication Solutions. Merrill employs more than 5000 people in 67 global locations.

The Receivables Exchange is the leading online exchange for the sale and purchase of accounts receivable. TRE enables large private and publically traded companies to leverage access to cost competitive capital by connecting them to diversified sources of liquidity, including community/regional/ international banks, hedge funds, pension funds, and other institutional buyers.

Since its founding in 1899, Legg Mason has evolved into one of the largest asset management firms in the world, serving individual and institutional investors on six continents. Today's Legg Mason is a globally diversified family of independent investment managers each recognized for their specialized expertise, commitment to long term performance and outstanding client service. Colliers International as the second-most recognized commercial real estate firm in the world.

co r p o ra te M e m b e rs

contact

Ag Conexus Inc.

Karen Millen

Axel Springer Group

MJ Boyd Consulting

Cassidy Turley Commercial Real Estate Services Inc.

Paul Stuart

Harrods Corporate Service

RGP

To access the online directory of member companies and contacts, please contact the Membership team for your unique Member Key and Password on: 212 661 4060 or at nyinfo@babinc.org

Sills Cummis & Gross P.C.

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BritishAmerican Business NETWORK 2013, VOL. III

N ew I A B a n d Bo a rd M e m b e rs BAB is governed by a transatlantic Board of Directors, led by our Chairman, Irene Dorner, Group Managing Director HSBC Holdings plc, and President and CEO of HSBC USA, and our Deputy Chairman/President, Kevin Sneader, Director & Managing Partner for the UK and Ireland at McKinsey & Company. The Board’s active support and commitment to BAB and its objectives are important to ensuring our continued success as an organization. We also enjoy strong support from our International Advisory Board, consisting of chairmen and CEOs from more than 110 major, multinational companies. We are delighted to announce that the following new members have recently join our Board of Directors and International Advisory Board. new Board Members Lisa Ashe Managing Director AlixPartners

Sean Doyle General Manager and EVP, Americas British Airways

Tracy Faulkner Vice President, Global Communications, Downstream Royal Dutch Shell

Larry Stone President, Group Public & Government Affairs BT

Steve Dwyre Managing Director of Industrials & TMT Lloyds Bank

Ros Stephenson Chairman, Global Investment Banking Barclays

Ian stuart Managing Director Head of UK and Ireland Client Coverage Barclays

Ian King CEO BAE Systems Plc

Joseph A. Sullivan President & CEO Legg Mason

Mark Weinberger Global Chairman and CEO E&Y

Dominic Casserley CEO Willis Holdings Group

Bob Pittman Chairman and CEO Clear Channel

Jeff Weiner CEO LinkedIn

Jeffrey W. Greenberg Chairman Aquiline Capital Partners LLC

Sharon T. Rowlands CEO Altegrity

Seth Waugh Chairman, Americas Advisory Board Deutsche Bank

Lee Bowman Chief Executive Kingstree Group

International Advisory Board Members Johan Aurik Managing Partner and Chairman AT Kearney

“BritishAmerican Business has established itself as the pre-eminent transatlantic business organization, and does a great job of helping companies build their business on both sides of the Atlantic.”

– Sir Martin Sorrell, Group Chief Executive, WPP and Chairman, BritishAmerican Business International Advisory Board

“Major multinationals and middle market companies, if they are smart about it, can use BritishAmerican Business to great effect to build their brand and their business in major business centers throughout the US and UK.” – Irene Dorner, Group Managing Director and President and CEO, HSBC USA, and Chairman, BritishAmerican Business

BritishAmerican Business NETWORK 2013, VOL. IIi

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E U/ U S T R A D E & I N V E S T M E N T

larry Stone, President, Group Public & Government Affairs at BT, shares his thoughts on the Transatlantic Trade & investment Partnership (TTiP)

SPREAD THE WORD: TTIP IS EXCITING!

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ow is BT doing in the US market? What are your prospects?

We focus on major enterprise business customers serving their regional and global ICT needs. Our US headquarters is in Irving Texas, we employ about 2600 professionals and have offices in 25 cities and a broad network reach. Our US turnover is around $1.4bn annually.

Our performance has been OK but we see great scope to grow in the US. It is an attractive market. The EU-US TTIP agreement is a key part of getting better transatlantic business conditions and economic integration, and we hope to see a level playing field on regulatory conditions in our and other sectors.

Where does BT see its business growth coming from in the future?

Telecoms is often a regulated business and real term price reductions have been de rigeur over many years, unlike other businesses. So innovation and market expansion is key to growth. BT’s strategy is to drive our fibre broadband network across the UK as fast as possible and to make that open to all service providers to supply as rich a mix of services as possible, including our own TV services such as BT Sport.

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Globally, we focus on major enterprise customers and see strong growth geographically in Asia, Latin America, Turkey and the Middle East and via a focus on applications for specific business sectors e.g. finance and banking, pharmaceuticals, logistics.

You have long supported transatlantic market integration.

What tangible beneďŹ ts do you see?

There are a few levels to this building on what the TEC (Transatlantic Economic Council) and HLRCF (High-Level Regulatory Cooperation Forum) were able to achieve so far e.g. on some accounting practices.

It is vital that TTIP remains ambitious.

First, greater trade flows naturally lead to greater ICT business opportunities; studies have long shown a correlation.

Second, an EU-US accord (along with the Trans-Pacific Partnership and EU-Japan deals) would, I think, act as a catalyst to encourage others to think more about free trade and less about protectionism, and might also help set global standards in some areas. We very much hope for success in the plurilateral Trade in Services Agreements talks, as well as progress on EU-ASEAN and EU-India dialogues and on the EU-China investment agreement.

Thirdly, a common market in public procurement on a transatlantic

BritishAmerican Business NETWORK 2013, Vol. iii

basis would open up more business to more companies. The EU-Canada Comprehensive Economic & Trade Agreement (CETA) shows what can be done admittedly with fewer states involved.

Fourth, there is huge scope to drive cost efficiencies for businesses and not just via zero tariffs. But TTIP is a unique construct as its main target will be the more complex but very valuable world of regulatory convergence, mutual recognition, ‘passporting’, technical and process standards etc.

What are the high-tech areas, and how might the process work?

The TTIP agreement needs a framework to set forward-looking high technology area regulatory convergence through principles, norms and/or standards for the EU-US. This would aid growth, and also aid competitiveness with third markets. Examples could include: nanotechnologies; cloud computing; e-health records; e-mobility, etc.

The suggestion by EU Trade Commissioner Karel de Gucht at a speech in Prague on 10 October 2013 of some form of standing Transatlantic Regulatory Coordination Commission to look at the complex ongoing issues post a framework agreement by 2015 looks interesting. How to get the various independent regulatory agencies in the USA and Europe talking to each other positively within the overall TTIP construct will be critically important to success.

Is data currently a contentious issue?

Yes. Recent security revelations have led to a conflation of those matters with the broadly separate issue of personal data protection and data privacy. I think it is important that none of this slows the trade dialogue as we all need the benefits it can bring.

Transatlantic discussions on security matters and on data privacy principles can proceed in parallel. The European Commission has recognised this but is seeking some commitments from the US by mid-2014 on trans-border data flows and on safe harbour provisions and practice.

Can a deal be done? And if so, is the short timetable proposed realistic?

Yes. But political will and leadership, and reasonable flexibility, will be needed. There are always reasons not to do things: the complexi-

BritishAmerican Business NETWORK 2013, Vol. iiI

ties around agriculture; ‘cultural exceptions’; labyrinthine elements in regulatory convergence; elections in the EU and the USA; so-called ‘realistic expectations’; the question of whether financial services should be covered, etc etc.

On the other hand, the time has never been better given the WTO Doha Round failure and the concord from politicians and many stakeholders across the Atlantic about the economic boost that can be provided.

Recently, I met someone from a small US start-up whose job title was ‘Chief Optimist’. I think we need lots of those in TTIP, and a ‘can do’ attitude!

What advice would you give to the negotiators?

They are professional and know their business of course. I think stamina, energy and enthusiasm will be critical. I also worry about resources.

Will both sides have the physical capability to negotiate TTIP as well as other major deals in parallel over the next couple of years? I hope so.

But it may also be important enough to devote more experts if we can.

On both sides of the Atlantic, it will be critically important for the negotiators to conduct effective civil society and other stakeholder engagement and consultation. There are already accusations that TTIP is quintessentially about business and that standards may be compromised, despite strenuous efforts by the US and EU authorities to reach out creatively.

Finally, what challenges do you see for the UK in the next few years?

Naturally, jobs, growth and competitiveness, as well as education including ICT skills. Recent UK GDP figures are encouraging but the trend is nascent still. Government policies, at UK and EU levels, need forensically to focus on policies – individual and cumulative – which meet a pro-competitiveness test.

We also have the ‘Scotland in UK’ referendum in September next year and the prospects in the future of a ‘UK in EU’ referendum. BT supports the CBI position: we very much want a reinvigorated UK to stay within a reforming EU. The EU Single Market and trade deals such as TTIP are very important to business. n

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F E AT U R E T T I P

TTIP and the Pharmaceutical Industry

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fizer strongly welcomes the start of talks on the Trans-Atlantic Trade & Investment Partnership (TTIP). In particular we want to commend the UK Government for its leadership in launching TTIP at the G8 talks in June. Continued political leadership on all sides will be vital to its success, as are opportunities, like this, to share perspectives from the private sector on the key issues that need to be addressed as part of the negotiations.

Pfizer is one of the world’s leading innovative biopharmaceutical comSally Susman panies, with over 90,000 employees EVP, Policy, located around the world. In 2012 External Affairs and alone, we spent nearly $8 billion on Communications research and development on some sally.susman@pfizer.com of the most feared diseases of our www.pfizer.com time, like breast and lung cancers and rheumatoid arthritis. The vast majority of this work, and our business, is in the United States (US) and European Union (EU) – in fact, across our sector, over 75% of R&D investment is in the Trans-Atlantic space.

We expect TTIP to further expand the world’s largest trading relationship, giving impetus to what is still the main motor of the global economy. Given the challenging economic times we face, this is a key step to reviving economic dynamism and job creation on both sides of the Atlantic. Beyond this, TTIP can provide an important opportunity for the two sides to demonstrate international economic leadership and a steadfast commitment to free trade; it can also set the standards that the United States and the EU should seek in all future bilateral, plurilateral, and multilateral trade agreements.

Our view is that the negotiations between the US and the EU within TTIP must be comprehensive and ambitious, addressing not only regulatory measures, but also intellectual property (IP) and market access, as well as customs, tariffs and public procurement. The US and the EU already provide the greatest global support for pharmaceutical R&D, and Pfizer believes that further reduction of non-tariff barriers in both markets can spur critical innovation and investment. In addition to enhancing the partnership between the EU and the US, efforts should be made to strengthen alignment in engagement with other trading partners, ultimately allowing for high standards in pharmaceutical policy and better access to innovative medicines throughout the world.

A critical question is what should form the basis of a strong and comprehensive agreement with respect to the pharmaceutical sector? Pfizer believes that the pharmaceutical market access commitments included in the Korea-U.S. Free Trade Agreement (KORUS) and the EU-Korea Free Trade Agreement would be a strong model to form the basis for

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those in TTIP. Predictable, transparent and consultative processes for pricing and reimbursement are critical to our ability to operate; in the context of crisis measures underway in Europe, meaningful measures to safeguard these are all the more important. In addition, although both the United States and the EU offer strong IP protections within their respective systems, improved alignment of both protection and enforcement of IP rights would be greatly beneficial.

One of the strongest deliverables of TTIP would be inclusion of regulatory compatibility and harmonization initiatives between the US Food and Drug Administration (FDA) and the European Medicines Agency (EMA). This should include, mutual recognition of manufacturing site inspections, parallel scientific advice from both sides for the development of medicines and balanced data disclosure policies that advance clear public health purposes while preserving the regulatory and IP protections that serve as incentives to multinational companies to invest in high risk biomedical research. The pharmaceutical industry has taken voluntary steps to enhance data disclosure in a responsible way, and the US and EU governments should adopt policies that support and complement these measures to avoid creating unintended barriers to biomedical research. By promoting greater regulatory cooperation and shared commitment to responsible reporting by these agencies and our sector, Pfizer believes that the US Government and the European Commission will help spur further pharmaceutical innovation, which will lead to healthier patients and more dynamic economies.

As we enter the next round of talks, Pfizer is looking forward to continuing its engagement in support of a comprehensive and ambitious TTIP agreement. Given the close transatlantic ties that already exist in the pharmaceutical sector, such an agreement will benefit both our economies and, most importantly, lead to a wider and more accessible range of life-saving medicines for over 800 million people on two continents. n

"Our view is that the negotiations between the US and the EU within TTIP must be comprehensive and ambitious"

BritishAmerican Business NETWORK 2013, Vol. iii

TTIP: Facilitating Transatlantic Trade

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hat is the likely impact of a successfully concluded TTIP on UPS’s business?

At UPS, we have estimated that a comprehensive TTIP which moves beyond tariff barriers to encompass a broad range of non-tariff, regulatory and supply chain barriers to trade could boost our trading volume by 13 million packages and support 2,400 jobs annually.

TTIP opportunities go far beyond the removal of tariff barriers; as a global logistics, freight and supply chain services provider, UPS transports everything from small documents to pharmaceuticals and aircraft engines, so regulatory cooperation and convergence which allows our customers to thrive will bring growth opportunities.

In addition, a TTIP which results in trade facilitation and customs modernization will enable us to meet our customers’ time-sensitive and competitive demands.

SMEs are viewed as engines of growth, yet they suffer disproportionately from trade promotion obstacles.

Do you see TTIP making progress in areas that will directly simplify processes for hard working SMEs? We do. The e-commerce boom in particular has enabled SMEs to access new markets around the world. That said, we witness the obstacle course of inconsistent and burdensome customs procedures which our SME customers face when seeking to “go transatlantic”.

Although larger companies may have the resources to manage some of these burdens, smaller companies are more likely to opt-out of exporting as a result. TTIP can make major progress in this area by modernizing and harmonizing customs procedures, and implementing trade facilitative measures to allow SMEs to benefit.

If so, what are you doing to bring these opportunities to the attention of the negotiators?

In the US, UPS is a member of the President’s Export Council (PEC), which works to provide President Obama with constructive input based on business experience vis-à-vis trade policy. In the PEC we emphasize the growing needs of our SME customers, and the customs and trade facilitation changes needed.

An example of this is our belief that the U.S. and EU should increase their de minimis to $800, exempting low-value shipments from customs duties and taxes. This would remove a significant administrative burden and delay. Provisions for the immediate release of goods for which relevant documentation has already been submitted is another way in which trade facilitation can allow SMEs to avoid delays.

How much of the recently completed WTO Trade

Facilitation Agreement do you expect to see in TTIP and, conversely, do you see the TTIP agreement providing a context for future agreements to facilitate global trade?

Trade facilitation and customs modernization commitments can achieve significant results both in the bilateral context of the TTIP, and in the broader multilateral arena. The recently completed WTO Trade Facilitation Agreement is a major milestone for global trade, and will play a critical role in improving transparency, technology and procedures for customs processes across the globe. The TTIP should go above and beyond these commitments, building on the existing foundation of customs cooperation between the EU and US, liberating transatlantic consumers and businesses of all sizes from unnecessary supplychain bottlenecks, and raising the bar for modernized customs processes in future bilateral, multilateral and even plurilateral agreements.

Laura Lane President, Global Public Affairs, UPS lauralane@ups.com www.ups.com

TTIP also expresses an ambition by the EU and the US to offer leadership in providing a global level playing field for business. Would this be meaningful for UPS in terms of accessing markets from which you are currently excluded by, for example, certain state governments?

Absolutely. TTIP presents a valuable opportunity for the U.S. and EU to cooperate in their efforts to combat anti-competitive practices in third countries. In the competitive delivery services sector, government policies which favor state-owned postal services and inadequate safeguards against anti-competitive practices create competitive distortions. Establishing a shared policy would constitute a crucial step forward.

Are there any other TTIP related opportunities that would directly or indirectly affect UPS? Air cargo security processes have undergone many transformations in recent years. A common approach will not only improve operational coherence for carriers such as UPS, but will also enable the U.S. and EU to pioneer the global standard for air cargo security.

In addition, it is important that EU and U.S. leaders recognize the emergence of innovative services, particularly supply chain management for the healthcare industry.

TTIP should address the role of third-party logistics in providing warehousing, distribution and supply chain management services for pharmaceutical companies.

By tackling newer issues as well as improving customs, TTIP will deliver transatlantic growth that will stand the test of time. n

BritishAmerican Business NETWORK 2013, Vol. iii

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Member Services

Fo l l ow @ BA B N ew Yo r k

B

ritishAmerican Business is on Twitter! Follow us for the latest program information, members news, policy updates, and exclusive pictures of BAB events. We also encourage you to use our Twitter account to:

• Highlight your company’s new products, services, or CSR initiatives • Share opinions and expertise on transatlantic business policy • Draw attention to a BAB event that you are sponsoring

For information on partnering with BAB in social media, please contact Andrew Boyd at 212 983 3727 or aboyd@babinc.org. ■

J-1 Visa Program: Facilitating Global Talent

B

ritishAmerican Business’s J-1 visa program provides member companies the opportunity to bring qualified employees of any nationality and from anywhere in the world into the United States.

Alongside BAB’s established Trainee- exchange visitor designation, we also began offering an Intern exchange visitor program in 2012. BAB's Intern designation helps firms to employ both eligible students and recent graduates for up to twelve months.

Whether your company is in the early stages of becoming more international in scope, or has been facilitating foreign employees for years, we encourage you to find our more about our J-1 visa program and where we may bring value to your exchange efforts.

Why use the J-1 Visa? » Provide US work experience/training to employees. » Overcome cross-cultural differences and improve communication between US and overseas offices. » Enhance employee recruitment/retention by offering US placements.

Advantages of using BAB’s J-1 Visa Program » Quick: can process completed applications within 5 business days. » Reliable: authorized by the US Department of State since 1986. » User-Friendly: all administration/logistics handled by Program Administrator at BAB.

J-1 Visa Conditions » Open to all nationalities, and to employees based anywhere in the world. » Period of up to 18 months for trainees and 12 months for interns. » Company must have business relationship with UK. » Business Sectors: Management, Business, Commerce, Finance, Law, Industry, Sciences, Engineering, Architecture, Information Media & Communications.

Thinking of hosting a foreign employee? Please contact Danny Girton Jr. at dgirton@babinc.org or 212 661 4057 for more information.

>> “BritishAmerican Business’s J-1 visa program enables us to bring foreign colleagues to the US for training allowing us to fulfill our global talent objectives. With a dedicated program manager to guide you through the application process, BAB’s program is a cost-effective reliable service which is why they have processed our J-1 visas for the last 12 years.” << Alastair Sturgis, International Rewards Advisor, British Airways

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BritishAmerican Business NETWORK 2013, VOL. III

News

BAB Supports New York and London Tech Start-Ups

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ristishAmerican Business was a proud supporter and sponsor of UK Trade & Investment’s first-ever GREAT Tech Awards, held in New York on October 2nd. The GREAT Tech Awards were founded to celebrate the growing relationship between New York and London as centers of technological innovation. These awards were intended to highlight start-ups in both markets, and give them access to resources, networks, and advisors.

Five New York-based awards were given to technology companies in Hardware, Education, Lifestyle, Finance, and Media. A sixth award, The Advisor’s Choice, was presented to successful British firm that had established a growing presence here in New York.

The Prize package includes one-year complimentary membership in BristishAmerican Business either in New York and London. Look out for these exciting companies and new fellow-members at our upcoming events: Hardware- Floored builds software that turns data (like photographs and floor-plans) into an 3D interactive virtual experience.

Education- Teachboost, a Brooklyn, NY - based company that has created one simple online interface to manage classroom observations and teacher evaluations.

Lifestyle- CharityBuzz, a Manhattan-based company that helps nonprofits raise funds via online auctions with the world’s biggest celebrities and luxury brands.

“Blippar is excited to join BritishAmerican Business and we look forward to growing our local and transatlantic business through their programs.”

Lisa Hu, Vice President Business Development USA, Blippar Finance- Gust, a state-of-the-art financial services platform that supports the development, growth and funding of innovative start-ups around the world.

Media- ADstruc, a leading buying platform for the outdoor advertising industry, including both traditional and digital outof-home media.

Advisor’s Choice- Blippar, the first image-recognition phone app aimed at bringing to life real-world newspapers, magazines, products and posters.

Award winners and new members at the conclusion of the ceremonies.

BritishAmerican Business NETWORK 2013, VOL. IIi

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I N D U S T RY I N S I G H T S

Superstorm Sandy…One Year Later

S Dan Riordan CEO, Zurich Global Corporate in North America info.source@zurichna.com

uperstorm Sandy was the third most costly US natural catastrophe. Thankfully, the Zurich Claims team has honed its skills through many natural disasters in recent years. After Hurricane Katrina, we started the Zurich Catastrophic Action Team (ZCAT) to reach customers and distributors prior to storms and check on their needs. And since the devastating impact caused by Sandy a year ago, we have gained additional insight to help our customers prepare for, withstand and recover from catastrophic disasters.

Well before Sandy made landfall, we provided storm preparation advice to brokers and customers in the projected path of the storm. We had risk engineers, customer care representatives and loss adjusters on standby. Our teams were on the ground two days after the storm passed. Within five business days of notice of loss, ZCAT made initial contact with all customers. Overall, Zurich team members made more than 2,000 site visits within 14 days of Sandy. Zurich Insurance Group publicly reported estimated claims from the storm at about $700 million in December 2012.

Committed to sustainable, resilient communities, Zurich believes that the faster a business can bounce

back after a disaster, the faster its impacted community can return to normal.

Zurich’s involvement with the rebuilding of Nikon at Jones Beach Theater following Superstorm Sandy demonstrates how insurance plays a role in helping communities recover. As we announced through a September 9 news release at the end of their successful season, Zurich’s quick claims payout enabled the rebuild of the music venue to be completed in time for the theater to open its summer concert series in May. Long Island music lovers’ summer concerts at the venue were salvaged, which was a key piece of the community’s restoration..

According to the World Economic Forum, by the year 2050, 70 % of the world’s population will live in urban areas. This shift, along with environmental changes, can contribute to a growing threat of destructive weather and an increase in natural catastrophes, like Sandy or worse.

And as we approach Sandy’s one year anniversary, it’s more important than ever that we use lessons learned and continue to aggressively look for new adaptive risk management strategies so that our customers are prepared for the risks they face. n

Successful Transformation Starts at the Core

W

hen companies embark on a transformation initiative, often times the driving force is to fix or improve specific business deficiencies or metrics — improve profitability, gain more efficiencies, or increase market competitiveness, to name a few.

Many times leaders approach the solution by evaluating the specific problem and then defining a course to address that problem. This is certainly a good place to start, but it is only the beginning. Lasting change requires much more.

Since the financial crisis, the banking industry has had to undergo fundamental change - - revamping its practices, altering business models, adopting new and evolving regulations, and determining how to drive shareholder value amid the new rules. Because of its past practices, the reputation of the banking industry has suffered. In a recent poll by Gallup measuring public perception of the banking industry, it demonstrates that despite some improvement in 2013, the banking industry continues to be rated more negatively than positively by Americans.

In order to change this perception and change the fundamental reasons that led to these issues for the industry, deeper and more comprehensive changes are needed and that starts with transforming the culture.

When done successfully, a strong culture can be more

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powerful than any process manual or organizational structure. A well-defined and supported culture can drive better processes, stronger collaboration and leading customer service. It is what will drive people to do the right thing, find the right solution and create a better business.

Transforming an organization from the heart and soul out is no small task, but it can pay significant dividends. First, it must start with clearly defined core values that serve as the guiderails. Decisionmaking and strategy must take these values into account for the culture to truly take hold.

Another key aspect of successful culture transformation is adoption and at all levels of an organization.

Management must walk the walk in order for the broader company to make it a priority.

Thirdly, performance and measurement must be tied to the core values. Employees at all levels must feel there is a reward for adopting the principles and a consequence for derailing behaviors.

A lasting and meaningful transformation of the business can only be truly achieved when the whole company is marching toward the same set values, and there is widespread adoption of those values such that it becomes a unifying force aimed at achieving the company’s highest goals. n

Michael A. Carpenter CEO Ally Financial Inc michael.carpenter@ally.com

BritishAmerican Business NETWORK 2013, Vol. iii

Why Business Needs International Exchange

O Dr. Paul BeresfordHill, MBE Director General Mountbatten Institute pberesfordhill@ mountbatten.org

ne of the key observations in Thomas Friedman’s classic, ‘The World is Flat’, is his idea that, although global intercommunication and growing interdependencies are increasing at breakneck speed, there is still a critical role for ‘people to people’ exchange. Fiber optics and video conferencing can bring communities together in ways unheard of even a few decades ago, yet their efficacy is only going to be as powerful as the cultural sensitivity of those pulling the switches and looking into the cameras.

There is always a danger that business can loose some of its international momentum when staff are either unfamiliar with the cultures of their clients or suppliers, or when decision makers fail to take into account the unique features of their markets. In what has now become a Harvard Case Book classic, the failure of Disney management in not discerning the tastes (for wine in particular!!) of its anticipated clientele at Euro Disney was costly, both in financial and in public relations terms.

The widely perceived ‘cultural isolationism’ of America is a worrying trend, particularly when, for instance, increasing numbers of businesses rely on backroom support and research provided by centers in India or Sri Lanka or Latin America, yet are short on employees

sensitive to ‘the world outside’ and who have problems communicating across borders.

Following WWII Senator William Fulbright saw international student and professional exchange as a critical way of advancing America’s presence in educational and cultural contexts. He was the guiding force behind what are now the JI Exchange Visitor Programs which have become a major vehicle by which American companies can gain important insights from foreign professionals while educating them in US business practice. Additionally those businesses can benefit from the cultural exchange of trainees who share their cultural perspectives alongside their American counterparts. And many of these Fulbright inspired programs are also reciprocal, as foreign countries encourage opportunities at home for Americans abroad.

People to people exchange, combined with practical training in business, is a perfect way for American businesses to make friends and influence the next generation of global managers. n

A Review of Risks Related to Foreign Acquisition

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hen acquiring a business abroad, it is important for investors to take into account all the risks involved. We have listed hereafter all the legal, financial, management and operational risks related to foreign acquisitions: Legal Risks: 1. The investor intentionally or unintentionally violates local laws or regulations.

2. The investor is sued by a third party for violations committed by the company being acquired before or after acquisition.

3. The purchase agreement includes clauses which are detrimental to the seller and the consequences or potential ramifications of these clauses were not clearly understood and anticipated at the time of acquisition.

Financial and tax Risks: 1. The financial information used to determine the price of acquisition is not a fair representation of the acquired company’s real financial position.

2. The acquisition is not properly structured resulting in unfavorable and unnecessary tax cost to the acquirer.

3. The acquisition is so material to the overall financial statements of the acquirer that it could jeopardize the ability of the entire Consolidated Company to continue as a going concern in the event of

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unexpected poor performance by the acquired Company.

4. The acquirer is unable to repatriate profits of the acquired entity due to local laws or regulations.

5. The acquired entity doesn’t generate future profits as expected at time of acquisition.

Management and Control Risks: 1. T he acquirer fails to properly monitor, supervise and control the acquired entity.

2. The acquirer fails to appoint a competent management team for the acquired entity.

3. Key employees leave the Company subsequent to acquisition.

4. The culture of the acquired Company is so different from the acquirer that the two are not compatible resulting in tension, non-cooperation and inability to develop synergies.

Commercial and Operational Risks: 1. The Company acquired is at its peak at time of acquisition in terms of profitability.

2. Key clients leave as a result of change in ownership.

3. Significant and unexpected investment or capital expenditure are required to keep up with market and or competitors.

4. The business model of the Company acquired is about to become obsolete. n

Louis Osmont Partner Weiser Mazars louis.osmont@ weisermazars.com

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I N D U S T RY I N S I G H T S

Risk Intelligence: A Strategic Core Competency

R Leo M. Tilman President Tilman & Company lmt@lmtilman.com

isk intelligence - the organizational ability to think holistically about risk and uncertainty – has emerged as a core competency used by boards and executives to build high-performance organizations that create lasting value. Along with competitive and data intelligence, risk intelligence enables companies and investors to shape strategy, alleviate threats, and capture opportunities.

The need for risk intelligence stems from an important realization: every sufficiently complex company is in the business of managing a portfolio of financial, operational, strategic, and reputational risks. In this regard, business and performance objectives must be aligned with risk appetite and risk-bearing capacity. This portfolio of risks needs to be dynamically managed across economic and operating environments in order to mitigate cyclicality and volatility. Meanwhile, leadership, communication, and organizational development need to be aligned with the role of risk-taking in the business model.

Being in the “business of risk” necessitates the transformation of boardrooms into state-of-the-art cockpits equipped with essential knowledge, information and tools. “Have we identified key trends that will shape the future?” “Is our value proposition keeping pace with the changing environment?” “Have we

equipped the management team and the board with useful dashboards and radar screens?” “Are we using the full arsenal of levers to deliver superior performance?”

Risk intelligence is uniquely positioned to help answer these questions by creating a common language and tools to shape solutions.

Risk intelligence is a strategic reincarnation of enterprise risk management. Beyond reporting, regulatory compliance, or survival, it creates a forward-looking ability to drive growth, increase profitability, and enhance valuation and brand equity.

In addressing the most pressing objectives of boards and executives today, risk intelligence plays a key role in: • Building high-performance organizations – by providing a holistic framework, operationalizing strategic vision, and enabling dynamic management of the portfolio of risks inherent in the business model.

• Making high performance sustainable – by equipping boards and executives with requisite early warning systems, risk radar screens, and crisis management capabilities.

• Aligning behaviors and expectations internally and externally – by ensuring that both the culture and the brand embody the firm’s strategic vision and value proposition for all stakeholders. n

The Future of Business Travel

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f anything is constant when it comes to airlines, it’s change. The last ten years have seen continual upheaval in the industry, and there’s no doubt some of it has come at the expense of the paying passenger. However, I believe the next ten years will be a golden opportunity for the industry to prove customers matter above all else.

Airlines are re-focusing on customer service and are developing technology – in the form of mobile apps and sophisticated baggage tracking software, for example – that will enable us to elevate service standards and expectations. The goal is to create additional customer empowerment by putting the power of transparency and flexibility in the hands of the passenger. With access to inflight Wi-Fi connectivity growing exponentially, productivity doesn’t have to stop when the aircraft door closes. Customers may now conduct business in real-time no matter when and where they’re traveling.

Airlines have turned their attention to providing a degree of personalization and recognition unthinkable just ten years ago. One of the biggest trends of the last decade that we will continue to see evolve is the prevalence of options. Carriers are offering more products that allow the customer to pay only for the things that they value most. From extra legroom to

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flat bed premium cabin seats to a range of onboard connectivity and entertainment options, the customer can tailor their travel experience like never before.

Airlines recognize that no two customers are alike, so why offer a one-size-fits-all product?

Delivering options to customers is also driving the evolution of airline route networks, with the United Kingdom being a perfect example. Whereas London’s Heathrow has traditionally been the primary gateway, U.S. airlines are increasingly offering non-stop service to cities throughout the British Isles. The availability of these flights comes as a direct result of customer feedback being incorporated into the business plan.

I believe the next ten years will revolutionize the airline industry and the dynamic relationship it has with customers. Will there be change? Absolutely.

Without it, we can’t move forward. But in the next ten years, the change will be customer focused, and that will make all the difference. n

Jim Mueller Vice President of Atlantic and Pacific Sales United media.relations@united.com

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The UK Bribery Act: New Developments in Enforcement

U Harvey Kelly Managing Director AlixPartners hkelly@alixpartners.com

nder the auspices of its new director, David Green, the Serious Fraud Office (SFO) has indicated a tougher stance toward the enforcement of the U.K. Bribery Act and has recently revised its guidance to reflect this, particularly in the areas of self-reporting and facilitation payments. Under the revised guidance, the SFO has emphasized that prosecution decisions will be based solely on facts and that “there will be no presumption in favor of civil settlements in any circumstances,” including instances where companies have self-reported.

This represents a significant change from the previous guidance and sends a clear signal that self-reporting may not protect companies from prosecution. Emphasizing this, the new policy states that: “If on the evidence there is a realistic prospect of conviction, the agency will prosecute if it is in the public interest to do so.” It continues by stating that “self-reporting is no guarantee that a prosecution will not follow.” At the same time, the SFO has revised its policy regarding facilitation payments and business expenditure. The revised policy on facilitation payments – minor payments for routine tasks sometimes referred to as “grease payments” – emphasizes that such payments are illegal bribes.

Reference to consideration of the company’s policies

regarding such payments and the scale of the payments has been removed. Similarly, the revised policy on business expenditure removes the requirement for the SFO to take account of whether the company has corporate hospitality policies in place and whether the expenditure is proportionate in reaching prosecution decisions.

The SFO has also provided guidance as to what the agency deems to be corruption indicators, or “red flags” in corruption. While not exhaustive, the list helps to clarify those business practices that the SFO deems to be questionable. These “red flags” include abnormal cash payments, pressure exerted for urgent or ahead-of-schedule payments, agreeing to contracts not favorable to the organization, unexplained preference for certain contractors, lavish gifts, private meetings with public contractors, and payments being made through a third-party country.

As a result of these new enforcement policies, it’s important that any company doing business in the United Kingdom be mindful of those activities that the SFO has identified as potential areas for concern. n

TTIP, Antitrust, and Merger Costs

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he cost of merger review is not on the agenda for the Transatlantic Trade and Investment Partnership talks but perhaps it should be.

US and European representatives hope to reduce regulatory barriers to trade and investment across the Atlantic, but don’t plan to address the burden presented by extended antitrust reviews. Companies interested in strategic partnerships or acquisitions face a daunting and often lengthy evaluation by antitrust agencies around the world. It can be so expensive and time consuming that commentators wonder whether aggressive antitrust enforcement deters M&A activity. Probably not, but our clients are devoting more time to managing the risks of merger review up front.

Much of the focus recently has been on China’s relatively new antitrust agency, MOFCOM. Its investigations can be extensive, sometimes up to a year or more.

The US Department of Justice and Federal Trade Commission and the European Commission can also extend their investigations for months. The average US review for a merger that raises antitrust concerns is seven months, but many run almost a year. There are legal, institutional and political reasons why merger review takes so long, increasing transaction costs and cutting into anticipated synergies. Moreover,

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the global antitrust agencies, especially the DOJ, FTC and European Commission, are increasingly coordinating their investigations. While this can result in consistent outcomes, it rarely leads to efficiency, particularly when clearance from six or ten agencies is required in order to close the transaction.

How to tackle this challenge? In most cases, identify the jurisdiction with the most serious antitrust issues and the longest timetable, which then becomes the critical path into which work elsewhere must feed.

Coordinate the arguments and economics so that all the regulators hear the same themes. Engage early and proactively, and educate the investigating staff.

If necessary, plan the exit strategy up front – what divestitures or undertakings are acceptable – and build your story so that it matches your preferred solution. Have a plan and execute it well, but be ready to respond when one of the regulators comes up with a new theory late in the game. n

Thomas A. McGrath Partner Linklaters thomas.mcgrath@linklaters.com

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AUTHOR SPOTLIGHT EVERYBOdY’S BUSINESS The standing of big business in public opinion has been on a relentless downward slide over the recent decades – it’s often portrayed as a world of evil, faceless mega-corps, unaccountable and out of control. Everybody’s Business turns this simplistic good-versus-evil narrative on its head to ask whether we should harnessing the power of business, rather than fighting against it.

Jon Miller and Lucy Parker take a journey through the world of business to see how companies can add value to the world by doing what they do best: doing business. They lift the lid on some of the most powerful companies in the world including GSK, IBM, BHP Billiton, PepsiCo, Rolls Royce, SABMiller and Mahindra as well as Nike, Unilever, and Coca-Cola. The result is a compelling argument that big businesses can mobilize their resources, expertise and power to be part of the solution to the Jon Miller Lucy Parker world’s big challenges. n Partner Partner Brunswick

Brunswick

THE TALENT MANdATE In this groundbreaking look at business today, marketing strategist Andrew Benett explains why only truly “talent centric” organizations are destined to thrive in our fast-changing economy.

Drawing on original research and nearly 100 in-depth interviews with leaders of talent-driven organizations such as Zappos, DreamWorks, Nestlé, and AnswerLab, he shows that having the right mix of employees in an environment in which they will flourish is now the single most important factor for success.

Talent is so crucial, Benett argues, that it no longer can be left in the hands of human resource managers but must be a priority of the most senior executives within each company— starting with the CEO. n

Andrew Benett Global President Havas Worldwide

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THE EVERYTHING STORE: JEFF BEZOS ANd THE AGE OF AMAZON Amazon.com started off delivering books through the mail. But its visionary founder, Jeff Bezos, wasn’t content with being a bookseller. He wanted Amazon to become the everything store, offering limitless selection and seductive convenience at disruptively low prices. To do so, he developed a corporate culture of relentless ambition and secrecy that’s never been cracked. Until now. Brad Stone enjoyed unprecedented access to current and former Amazon employees and Bezos family members, giving readers the first in-depth, fly-on-the-wall account of life at Amazon. Compared to tech’s other elite innovators—Jobs, Gates, Zuckerberg--Bezos is a private man. But he stands out for his restless pursuit of new markets, leading Amazon into risky new ventures like the Kindle and cloud computing, and transforming retail in the same way Henry Ford revolutionized manufacturing.

The Everything Store will be the revealing, definitive biography of the company Brad Stone that placed one of the first and largest bets Senior Writer on the Internet and forever changed the Bloomberg Business way we shop and read. n Week

MAKING THE CASE FOR LEAdERSHIp The role of chief advancement officer is relatively new and undefined on college and university campuses, and yet it is becoming increasingly vital as institutions face resource and budget shortfalls, funding cuts, and stiff competition for fundraising dollars. In Making the Case for Leadership, Jon Derek Croteau and Zachary A. Smith profile ten respected CAOs, exploring the paths they took to build their careers and the common threads that now make them successful. Croteau, a senior partner for the executive search and leadership solutions firm Witt/Kieffer, and Smith, assistant vice chancellor of development for the University of California, Riverside, also introduce a unique Advancement Leadership Competency Model derived from extensive interviews and data analysis. The model provides a template for the evaluation and development of the next generation of advancement leaders.

The book itself is essential reading for those John Derek Croteau striving to address the daunting financial challenges that face all higher education Senior Partner institutions today. n Witt/Kiefer

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T R A N S AT L A N T I C B U S I N E S S AWA R D S D I N N E R

BAB Presents Annual Awards We were delighted to again welcome over 600 senior executives to the 2013 Transatlantic Business Awards Dinner at the Pierre Hotel on November 7th, 2013. Sir Peter Westmacott KCMG, LVO, British Ambassador to the United States, presented the US and UK Transatlantic Business Awards to Peter T. Grauer, Chairman, Bloomberg LP and Douglas J. Flint, Group Chairman,

HSBC Holdings plc.

BAB also presented two special awards, one to Nicholas B. Paumgarten, Chairman, Corsair Capital LLC honoring his entrepreneurial success, and to Steve McGill, Group President, Aon plc, for his achievements in innovation.

20 1 3 Awa rd s D i n n e r S u p p o r te rs Benefactors >> A on plc >> Bloomberg >> C orsair Capital LLC >> H SBC USA >> P romontory Financial Group, LLC

>> G eller and Company, LLC

>> W illkie Farr & Gallagher LLP

>> S impson Thacher & Bartlett LLP

>> I PSA International, Inc.

Vice-Chairs

>> T albot Underwriting Services

>> M arsh & McLennan Companies, Inc. >> M asterCard >> M ayer Brown LLP >> N ewStar Financial, Inc. >> N orton Rose Fulbright LLP

Co-Chairs >> A CE Overseas General >> AIG Property Casualty

>> T radeWeb Markets

>> K PMG LLP

>> N YSE >> P hillips Lytle LLP >> P ricewaterhouseCoopers International

>> A rup

>> U nited Airlines

>> HSBC USA

>> W inchester Capital

>> M cKinsey & Company

>> Z urich

>> M organ Stanley >> Northern Trust

Contributors

>> P ricewaterhouseCoopers

>> A berdeen Asset Management

>> RBS

>> Burberry

>> W ilmer Cutler Pickering Hale

>> D DC USA

and Dorr LLP

>> F inancial Times

>> A mWINS Group, Inc.

>> Ryan Specialty Group

>> B arclays

>> S tandard Chartered Bank

>> B oies, Schiller & Flexnar LLP

>> S tarr Companies

>> B ooz Allen Hamilton

>> S ullivan & Cromwell LLP

>> T he Boston Consulting Group

>> S wiss Re America Holding Corp

>> Davis Polk & Wardell LLP

>> T homson Reuters

>> C redit Suisse

>> R idgeway Partners

>> D eloitte

>> U nited Community Banks, Inc.

>> D elta Air Lineso

>> T he Williams Capital Group, L.P.

BritishAmerican Business NETWORK 2013, Vol. iii

Patrons >> A quiline Holdings LLC >> Cadwalader, Wickersham & Taft >> C hubb Group of Insurance Companies

>> J ust Marketing International >> T he Kingstree Group, U.S. >> L loydâ&#x20AC;&#x2122;s America Inc. >> M ountbatten Institute >> P fizer Inc

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P R O G R A M H I G H L I G H T S : N E W YO R K

Peter Grauer, Chairman, Bloomberg LP accepts his award

Eugene Ludwig, CEO of Promontory Financial, with Nicholas Paumgarten, Chairman, Corsair Capital

Irene Dorner, BAB Chairman, with Steve McGill, Group President, Aon plc

L-R Sir Martin Sorrell, Chair of BAB’s International Advisory Board, Irene Dorner, BAB Chairman, Douglas Flint, Group Chairman, HSBC Holdings plc, and Sir Peter Westmacott KCMG, LVO

“It’s a particular pleasure for me to accept BritishAmerican Business’ inaugural Innovation Award for 2013 since BritishAmerican Business has itself, ever since its establishment in 2001, established an exceptional track record of customer-focused innovation in the development and delivery of its services to its members.”

—Steve McGill, Group President, Aon plc A full house of senior executives

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BritishAmerican Business NETWORK 2013, Vol. IIi

Reception with the Deputy Prime Minister BritishAmerican Business partnered with the British Consul-General to co-host a Reception for the Rt Hon Nick Clegg MP, Deputy Prime Minister of the United Kingdom to meet with business leaders in New York. He discussed the ongoing Transatlantic Trade and Investment Partnership negotiations and reminded the audience that the UK is open for business.

Pictured, Clegg addresses business leaders and BAB members.

Annual Member Meeting On October 22nd, Members of BristhAmerican Business gathered at HSBC’s offices at Bryant Park in New York for their Annual Meeting, Member Reception, and a Board of Director’s Meeting. Irene Dorner, BAB’s Chairman and President & CEO of HSBC USA, reported that BAB had continued to expand its programing, advocacy work, business services and membership among large multinational companies in its FY’13, and completed its 12th successive year in the black. Following the Annual Meeting, BAB’s Board of Directors re-elected Irene to a further year’s term of office as BAB’s Chairman, and re-elected Kevin Sneader, Managing Partner for UK and Ireland at McKinsey & Company, to a further term of office as its Deputy Chairman and President.

BAB Chairman Irene Dorner chats with Board Members Derek Watson and Ian Bailey

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P R O G R A M H I G H L I G H T S : N E W YO R K Re ce n t Bu s i n e ss Le a d e rs a t o u r N ew Yo r k P ro g ra m s

CEO Roundtable with Douglas Flint, Group Chairman, HSBC Holdings plc: “Finance Fit for the Future”

CEO Roundtable with Alan Rusbridger, Editor, The Gaurdian: “The Future of Journalism in the Digital Age”

CEO Roundtable with Duncan Niederauer, CEO, NYSE: “Innovation as a Competitive Edge”

Exclusive Roundtable: “The Era of YouA Discussion on Global Branding” with Sarah Diamond, General Manager, IBM Consulting Services

Business Briefing: Making Sense of China’s Economy, Markets and Future A panel of experts from HSBC, Sullivan & Cromwell, and Reuters led members in a discussion on the current state of China’s markets, evolving political trends, and the future for foreign investors. Participants also commented on the sustainability of China’s growth given their demographic challenges. The briefing was hosted by HSBC at their Bryant Park offices in Midtown.

Members Enjoy Private Tour of the NYSE Trading Floor Following one of our CEO Roundtable programs hosted by the NYSE, CEO Duncan Neiderauer gave program participants a tour of their venerable trading floor. BritishAmerican Business continues to step-up it’s offering of intimate, high-level programs.

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L-R Dr. Frederic Neumann and Apratim Chakravarty, HSBC; Chun Wei, Sullivan & Cromwell; Martin Howell, Reuters; Wendy Mendenhall and Jeffries Briginshaw, BritishAmerican Business

BritishAmerican Business NETWORK 2013, Vol. IIi

Business Briefing: Diversity & Inclusion - Essential Business Imperatives Sponsored by Manchester Business School and hosted at Thomson Reuters Times Square office, a discussion led by an expert panel examined the business imperative for diversity and inclusive workplace practices. The thoughtful discussion focused on transforming diversity from merely an ethical imperative into a workplace function that builds business and improves customer service.

Panelists included diversity leaders from Mercer, Master Card, and HSBC.

L-R Rolando Masferrer, Manchester Business School; Tyronne Stoudemire, Marsh: Mark Savoye, MasterCard, Suzanne Brienza, HSBC; Jennifer Merritt, BBC; Patsy Doerr, Thomson Reuters; Wendy Mendenhall, BritishAmerican Business

Ad d i t i o n a l N ew Yo r k P ro g ra m s » Summer Sunset Networking Cruise on World Yacht » Women’s Forum Networking Reception at Links of London » European-American Chamber of Commerce Luncheon with EU Commissioner Joaquin Almunia: “A Dialogue on The Future of Competition Policy, in Europe and Globally” » Annual UK/US Tax Forum sponsored by EY » European-American Chamber of Commerce Fall Networking Cruise on board World Yacht’s Princess » European-American Chamber of Commerce Economic Forum: The Economic outlook in 2014 & Beyond » Networking Reception at Burberry

S p e c i a l Th a n ks to O u r Re ce n t P ro g ra m S p o n s o rs a n d H o s t s Hosts

Sponsors

>> Burberry

>> links of london

>> Debevoise and Plimpton llP

>> NYSE

>> Diageo

>> Thomson Reuters

>> HSBC

>> World Yacht

BritishAmerican Business NETWORK 2013, Vol. III

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PROGRAM HIGHLIGHTS: LONDON

Gala Dinner with remarks from The Rt Hon Mr William Hague MP & H.E. Matthew Barzun, American Ambassador to the Court of St James

Above: The Rt. Hon. William Hague MP gives the keynote address

LTR: Jeffries Briginshaw, BAB Managing Director; H.E. Matthew Barzun; The Rt. Hon. William Hague MP; Kevin Sneader, BAB President and Director & Managing Partner for the UK and Ireland McKinsey & Company

Above: H.E. Matthew Barzun addresses guests

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n 16th September 2013, BritishAmerican Business congratulated H.E. Matthew Barzun on his appointment as US Ambassador to the Court of St. James’s at a Gala dinner at Lancaster House. Guests heard a keynote speech from The Rt. Hon. William Hague MP, British Foreign & Commonwealth Secretary.

The Foreign Secretary said: “As we look to the future our task is clear: to make what is an incredibly close relationship even closer; and to ensure that ours is a partnership that remains vibrant and relevant in the 21st century, one that has a positive impact on the lives of our people, and is about embracing the future as well as treasuring the past. The economic ties between our countries have always been at the heart of our relationship and a source of vibrancy, dynamism and shared success.”

The Ambassador commented on the huge investment ties between

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Above: Guests networking

the US and the UK, and talked of the shared values between the two countries. He said that: “Few other countries match the U.S. and the UK on tax rates, light regulation, and a spirit of enterprise based upon a whole-hearted belief in free trade and market-based principles and first-class education systems that stimulate creativity and societies which are open, tolerant and welcoming to diverse ideas and individuals.”

BAB President, and Kevin Sneader, added, “We are delighted to have the opportunity of this Gala Dinner to welcome the Ambassador to the UK. BritishAmerican Business remains committed to helping the US and UK governments strengthen still further our remarkable commercial relationship. We look forward to working closely with the Ambassador to support shared goals and priorities, such as a successful conclusion of negotiations for a Transatlantic Trade & Investment Partnership.”

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B A B AU T U M N C O N F E R E N C E

BAB Autumn Conference 2013: The New Transatlantic Market: Gamechangers, Opportunities & Risks On Tuesday 12th November, BAB welcomed a sell-out audience to its Autumn Conference on The New Transatlantic Market: Gamechangers, Opportunities and Risks. The 4 ‘gamechangers’ explored were: big data; energy innovation and sustainability; diversity and the race for talent; and the ongoing TTIP negotiations. Speakers included Joao Vale de Almeida (EU Ambassador the US), Sir Michael Rake (President, CBI, and Chairman, BT), Elizabeth Dibble (Deputy Chief of Mission, US Embassy), Sir Nigel Sheinwald (former British

Ambassador to the US), and Shawn Donnan, (World Trade Editor, Financial Times), as well as senior representatives from US and European institutions and companies such as 3M, BP, EY, Ford, Google, HSBC, HP, McKinsey and Thomson Reuters. The conference was moderated by Paul Adamson, Senior European Policy Advisor at Covington & Burling. For more information about the event and the full list of speakers, please visit conference.babinc.org.

Above, LTR: Jeffries Briginshaw, Managing Director, BAB London; Joao Vale de Almeida; Elizabeth Dibble; Kevin Sneader, BAB President and Director & Managing Partner for the UK and Ireland McKinsey & Company; Sir Nigel Sheinwald; Richard Fursland CBE, CEO of BAB; James Emmett, Group General Manager and Global Head, Trade and Receivables Finance, HSBC; and Paul Adamson.

Above: Sir Michael Rake gives a key note address on TTIP

Above: Discussion on Diversity and the Race for Talent with senior executives from EY, Mercer; Mentore and Thomson Reuters Legal

"BritishAmerican Business’s Conferences are always outstanding, and its Conference today on trends and gamechangers in the transatlantic marketplace was really exceptional – strong, speakers, great insights, high-quality audience and flawless organization."

—Ian Stopps, Chairman of Raytheon UK A SPECIAL THANK YOU TO OUR CONFERENCE SPONSORS:

BritishAmerican Business NETWORK 2013, VOL. III

"I always make the time to attend BritishAmerican Business’s Conferences if I possibly can.

They always provide great business intelligence and insights, as well as a great group of other senior business executive to connect and network with – and today’s Conferenceon risks and opportunities in the transatlantic marketplace was the best yet!"

—Gary von Lehmden, Managing Director of Citigroup

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E V E N T S C A L E N DA R

New York Global Managing Director, McKinsey & Company

Chairman and CEO, Ernst & Young Sponsored by ACCA

December 12th Holiday Networking Reception at Reiss

February

December 20th Annual Christmas Luncheon “Christmas Royale: Baubles, Bells, and Bond”

December

January

December 5th SME Forum: Risky Business: Managing Threats and Creating Value Sponsored by HSBC Business Banking Hosted by WTAS

January 23rd Ambassadorial Briefing with Sir Mark Lyall Grant UK Permanent Representative to the UN Sponsored and Hosted by KPMG

December 9th CEO Roundtable with Dominic Barton

January 29th CEO Roundtable with Mark Weinberger,

London

Friday 31st January CEO Roundtable with Peter Sands, Group Chief Executive, Standard Chartered Bank Sponsored by Hays

February

January Tuesday 21st January Nine Elms to City Fringe – Vision for London 2020 and the Opportunities for Business Hosted by Orrick Wednesday 22nd January Taxation Forum Presents: Multinationals in the UK - the Corporate Tax Debate with The Rt Hon Ken Clarke MP, Minister-without-Portfolio, HM Government Wednesday 29th January Financial Services & Insurance Forum Presents: Economic Outlook for US and EU in 2014 Hosted by EY

Wednesday 12th February C EO Roundtable with Peter Sutherland, Chairman of Goldman Sachs International 12.30pm – 14.30pm Sponsored by Hays Hosted By Reed Smith Tuesday 25th February Y oung Professionals Series Presents Speed Networking Hosted by Club Ten at The Grange St Paul’s Sponsored by United Airlines Wednesday 26th February BritishAmerican Business Road Show Series, Cardiff: The US-EU Trade

Negotiations and the Coalition for Transatlantic Business

February 20th Ambassadorial Briefing with João Vale de Almeida EU Ambassador to the US February 26th CEO Roundtable with Sir Michael Rake, Chairman, BT Group Sponsored by KPMG Hosted by Hearst Magazines

March March 18th CEO Roundtable with Mark Thompson, President and CEO, The New York Times Company

March Tuesday 25th March CEO Roundtable with Gerry Baker, Managing Editor, The Wall Street Journal Sponsored by Hays

May Wednesday 14th May B ritishAmerican Business Spring Conference 2014: Innovation & Disruptive Technology: Transforming our Business and Social Worlds Sponsored by BT and HSBC

June Thursday 12th June BritishAmerican Business Annual Corporate Citizenship Award Dinner in honour of Peter Hancock of AIG and Peter Sands of Standard Chartered

July Thursday 10th July BritishAmerican Business Summer Networking Reception

at Shakespeare’s Globe

BritishAmerican Business provides more than 100 occasions annually to connect with your fellow members and build your international business.

For further details, please visit our online events calendar at www.babinc.org/events.

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BritishAmerican Business NETWORK 2013, Vol. iII

BritishAmerican Business Spring Conference 2014 Wednesday 14 May at the BT Centre

Innovation & Disruptive Technology: Transforming our Business and Social Worlds

We’re quite literally raising the bar on what flying should be.

We’re taking comfort and convenience to new heights— our new 777s feature a walk-up bar in Business Class on international flights. We’re putting the wonder back into air travel, one innovation at a time.

The new American is arriving. aa.com/flybetter

AmericanAirlines, aa.com and the Flight Symbol logo are marks of American Airlines, Inc. oneworld is a mark of the oneworld Alliance, LLC. © 2013 American Airlines, Inc. All rights reserved.

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