Hiv-Aids - Immunity, Eradication and Its Disappearing Victims

Century 21 New Braunfels Tx - Hiv-Aids - Immunity, Eradication and Its Disappearing Victims

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Human immunodeficiency virus (Hiv), the retrovirus responsible for acquired immune deficiency syndrome (Aids) has been around since between 1884 and 1924 (while lentiviruses, the genus to which Hiv belongs, have existed for over 14 million years) when it entered the human citizen from a chimpanzee in southeastern Cameroon during a duration of rapid urbanization. At the time, no one noticed nor knew that it would ensue in one of the deadliest pandemics. Nor was anyone aware that some would possess a natural immunity, a cure would remain elusive a decade into the 21st century, and a vital whole of deceased victims would be purged from mortality statistics distorting the pandemic's severity.

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Century 21 New Braunfels Tx

As the whole of cases spread from Cameroon to neighboring countries, namely the Democratic Republic of Congo (Drc), Gabon, Equatorial Guinea, and the Central African Republic, they drew limited attention even as victims died in scattered numbers from a series of complications (e.g. Pneumocystis pneumonia (Pcp), Kaposi's sarcoma, etc.) later attributed to Aids. This was likely because of Africa's limited interaction with the developed world until the total use of air travel, the isolated, low incidence of cases, Hiv's long incubation duration (up to 10 years) before the onset of Aids, and the absence of technology, trustworthy testing methods and knowledge surrounding the virus. The earliest confirmed case based on Zr59, a blood sample taken from a inpatient in Kinshasha, Drc dates back to 1959.

The outbreak of Aids ultimately gained attention on June 5, 1981 after the U.S. Centers for Disease operate (Cdc) detected a lump of deaths from Pcp in Los Angeles and New York City. By August 1982, as the incidence of cases spread, the Cdc referred to the outbreak as Aids. The responsible retrovirus, Hiv, was isolated nearly a year later (May 1983) by researchers from the Pasteur develop in France and given its legal name in May 1986 by the International Committee on Taxonomy of Viruses. during this period, Hiv-related mortality rates rose steadily in the United States peaking in 1994-1995.

Hiv:

Hiv is round in shape and approximately 120 nanometers (nm) in diameter (or 60 times smaller than a red blood cell). It is composed of two copies of single-stranded convoluted Rna surrounded by a conical capsid and lipid membrane that prevents antibodies from binding to it. Hiv also consists of glycoprotein (gp120 and gp41) spikes and is a extremely mutating virus. Its genome changes by as much as 1% each year, significantly faster than "killer" cytotoxic T-Cells (Cd8+) can adapt. It is transmitted straight through corporal fluids.

Per Cd4 Cell Tests (Fact Sheet whole 124, Aids InfoNet, 21 March 2009), when "Hiv infects humans" it infects "helper" T-4 (Cd4) cells that are vital in resisting infections. Hiv does so by merging its genetic code with that of T-4 (Cd4) cells. Hiv's spikes stick to the outside of T-4 (Cd4) cells enabling its viral envelope to fuse with their membrane. Once fused, Hiv pastes its contents into the Dna of T-4 (Cd4) cells with the enzyme, integrase, so that each time T-4 (Cd4) cells replicate, they furnish added "copies of Hiv," reducing the count of wholesome T-4 (Cd4) cells. Then as wholesome T-4 (Cd4) cells, which come in millions of families geared towards definite pathogens are eliminated, the body is rendered defenseless against the pathogens "they were designed" to fight until ultimately, the immune principles is overwhelmed.

When the T-4 (Cd4) cell count drops below 200 cells per cubic mm of blood (or a ration of? 14% of total lymphocytes; general counts range from 500-1600 or 30%-60% of lymphocytes), indicative of serious immune principles damage, the victim is deemed to have Aids ("the end point of an infection that is continuous, progressive and pathogenic per Richard Hunt, Md (Human Immunodeficiency Virus And Aids Statistics, Virology - chapter 7, Microbiology and Immunology On-line (University of South Carolina School of Medicine, 23 February 2010)) and is vulnerable to a multitude of opportunistic infections. Examples are Pcp, a fungal infection that is a major killer of Hiv-positive persons, Kaposi's sarcoma, a rare form of cancer, toxoplasmosis, a parasitic infection that attacks the brain and other parts of the body and cryptococcosis, a fungal infection that attacks the brain and spinal cord (both commonly occur when the T-4 (Cd4) cell count drops below 100), and mycobacterium avium complicated (Mac), a bacterial infection that can be localized to a definite organ (usually the bone marrow, intestines, liver, or lungs) or widespread, in which case it is referred to as disseminated mycobacterium avium complicated (Dmac) (which often occurs when the T-4 (Cd4) cell count drops below 50).

Natural Immunity:

Since the onset of the Hiv/Aids pandemic in 1981 cases of citizen with a natural immunity to Hiv have been documented. Although these persons, called long-term non-progressors (Ltnps) are infected with Hiv, they never develop Aids. When Ltnps are infected, some suffer an first drop in their T-4 (Cd4) cell count. However, when their T-4 (Cd4) cell count reaches around 500 it stabilizes and never drops again preventing the onset of Aids. Furthermore, while Cd8+ T-Cells (even in large numbers) are ineffective against Hiv-infected T-4 (Cd4) cells in progressors (persons without a natural immunity to Hiv), the National Institutes of condition (Nih) reported in a December 4, 2008 press issue that "Cd8+ T-Cells taken from Ltnps [can efficiently] kill Hiv-infected cells in less than [an] hour" in which "a protein, perforin (produced only in negligible amounts in progressors), manufactured by their Cd8+ T-Cells punches holes in the infected cells" enabling a second protein, "granzyme B" to lanch and kill them.

Per Genetic Hiv Resistance Deciphered (Med-Tech, 7 January 2005) the roots of this immunity dates back a thousand years due to "a pair of mutated genes - one in each chromosome - that prevent their immune cells from developing [Chemokine (C-C motif) receptor 5 (Ccr5) receptors] that let [Hiv penetrate]." This mutation likely evolved to supply added protection against smallpox agreeing to Alison Galvani, professor of epidemiology at Yale University. Based on the most recent scientific evidence, the mutated Ccr5 gene (also called delta 32 because of the absence or deletion of 32 amino acids from its cytokine receptor) placed in Th2 cells, developed in Scandinavia and progressed southward to central Asia as the Vikings extensive their influence. Consequently up to 1% of Northern Europeans (with Swedes being in the majority) followed by a similar ration of Central Asians have this mutation, which if inherited from both parents provides them total immunity while another 10-15% of Northern Europeans and Central Asians having inherited the mutation from one parent exhibit greater resistance in lieu of perfect immunity to Hiv.

At the same time, even though the Ccr5 mutation is absent in Africans, a small also exhibit ration natural immunity (possibly developed straight through exposure) to Hiv/Aids - Cd8+ T-Cell generation that effectively kills Hiv-infected cells and mutated human leukocyte group A (Hla) antigens that coat the outside of their T-4 (Cd4) cells to prevent Hiv from penetrating based on an laberious study of 25 Nairobi prostitutes who per The marvelous Cases of citizen with Natural Immunity against Hiv (Softpedia, 27 June 2007) have "had sex with hundreds, maybe thousands of Hiv-positive clients" and shown no sign of contracting Hiv.

In addition, citizen with larger numbers of the Ccl3L1 gene that produces cytokines (proteins that "gum" up Ccr5 receptors) to prevent Hiv from entering their T-4 (Cd4) cells, per Genetic Hiv Resistance Deciphered have greater resistance to Hiv in comparison to others within their ethnic group that possess lesser quantities of the Ccl3L1 gene and get "sick as much as 2.6 times faster."

At the same time, up to 75% of newborn babies also possess natural immunity (for reasons still not known) when exposed to Hiv-positive blood. Although born with Hiv antibodies - thus Hiv-positive, newborns "usually lose Hiv antibodies acquired from their Hiv-positive mothers within 12-16 - maximum 18 months," in which their "spontaneous loss of [Hiv] antibodies" without medical intervention is called seroreversion. "However, with the exception of very few instances, these infants are not Hiv-infected" conclusive proof of a natural immunity to Hiv.[1] Furthermore, when pregnant Hiv-positive women are administered extremely active antiretroviral therapy (Haart), which lowers the viral attention of Hiv in their blood, an marvelous 97% of their newborns lose their Hiv antibodies straight through seroreversion to become Hiv-free per the Eunice Kennedy Shriver National develop of Child condition and Human development (Nichd) as posted under guard Monitoring for Art Toxicities Study in Hiv-Uninfected Children Born to Hiv-Infected Mothers (Smartt) (Clinical Trials.gov, 29 March 2008). However, at this time, it is not known if these newborns preserve their natural immunity throughout their lives.

Eradication:

With a cure maybe unattainable, eradication of Hiv/Aids in the same way as smallpox (with no cure) was eliminated, may be the most feasible option. agreeing to Dr. Brian Williams of the South African Centre for Epidemiological Modelling and Analysis, eradication of Hiv/Aids is an achievable goal that could be attained by 2050 if the current Hiv/Aids research paradigm is changed from focus on looking a cure to stopping transmission.

Per Dr. Williams such an exertion would need testing billions of citizen annually. Though costly, the benefits would exceed the costs "from day one" agreeing to the South African epidemiologist. anyone found with Hiv antibodies would immediately be administered antiretroviral therapy (which reduces Hiv attention 10,000-fold and infectiousness 25-fold) to halt transmission, effectively ending such transmission by 2015 and eliminating the disease by 2050 as most carriers die out, agreeing to his estimate. The guess for this optimism, per Steve Connor, Aids: is the end in sight? (The Independent, 22 February 2010), is a "study published in 2008 [that] showed it is theoretically potential to cut new Hiv cases by 95%, from a prevalence of 20 per 1,000 to 1 per 1,000, within 10 years of implementing a programme [sic] of universal testing and prescribe of [Ha]Art drugs."

Even though clinical trials to test Dr. Williams' vision will start in 2010 in Somkhele, South Africa, entrance to Haart still needs to be improved greatly to purge the disease. Presently only about 42% of Hiv-positive citizen have entrance to Haart.

Furthermore, for eradication efforts to succeed, prevention programs (which currently reach fewer than 1 in 5 in sub-Saharan Africa, the epicenter of the pandemic where the average life-expectancy has fallen below 40 leaving about 15 million children orphaned) will have to continue to play an vital role in stopping transmission. Such programs though not limited to, must contain abstinence, condom distribution, education re: transmission, safe sex, etc., and needle distribution to drug users (the latter which is badly lacking agreeing to Kate Kelland, Failure to aid drug users drives Hiv spread: study (Reuters, 1 March 2010) with "more than 90% of the world's 16 million injecting drug users offered no help to avoid contracting Aids" despite the fact that such users often share needles and approximately 18.75% are believed to be Hiv-positive).

Proof that such efforts can work is obvious when the President's urgency Plan for Aids Relief (Pepfar) created in 2003 for Africa that provides funding focused on Haart and palliative care for Hiv/Aids patients, Hiv/Aids awareness education and prevention programs (condoms, needle-exchanges, and abstinence) and financial assistance to care for the pandemic's orphans and other vulnerable children, is considered. Per Michael Smith, Pepfar Cut Aids Death Rate in African Nations (Med Page Today, 6 April 2009), the agenda "averted about 1.1 million deaths [from 2004-2007]... A 10% reduction compared to neighboring African countries."

The "Disappearing" Victims:

Despite guess for optimism based on Dr. Williams' vision of eradication, the "disappearance" of Hiv/Aids victims is extremely disturbing. In fact, when current statistics are compared to past statistics, more than 19 million victims or triple the whole of murdered Holocaust victims (1933-1945) have been purged from the legal description (effectively minimizing the severity of the pandemic) without as much as a whimper of protest, maybe because demographically speaking, a statistically-significant whole of the deceased fall into groups that have been and continue to be the subjects of racial, gender, cultural, and even religious discrimination. In the words of Charles King, an activist who spoke in San Francisco on World Aids Day in 2007, it is likely because Hiv/Aids has in general "taken the lives of citizen deemed expendable"[2] the same mentality used to by comparison Hitler's "Final Solution" and other pogroms.

Back on January 25, 2002 in Aids Death Toll 'Likely' to Surpass That of Bubonic Plague, scholar Says in British medical Journal extra Issue on Hiv/Aids (Kaiser Network), it was written, "Aids - which has already killed 25 million citizen worldwide - will overtake the bubonic plague as the 'world's worst pandemic' if the 40 million citizen currently infected with Hiv do not get entrance to life-prolonging drugs..."

A year earlier, Unaids listed the global death toll as 21.8 million with an increase of 3.2 million in 2002. By 2003, based on statistics reported by the World condition assosication (Who), Unaids, and U.S. Census Bureau as tabulated in The Global Hiv/Aids Epidemic: Current & future Challenges by Jennifer Kates, M.A., M.P.A., Director Hiv Policy, Kaiser family Foundation the global death toll had risen to 28 million by February 2003. Add annual mortality statistics of 3 million (2003), 3.1 million (2004 and 2005), 2.9 million (2006), 2.1 million (2007), and 2 million (2008, the most up-to-date perfect year of reporting) per Unaids, and an estimated, conservative total of 1.4 million (if another 28% decline as occurred between 2006 and 2007 took place between 2008 and 2009) the global death toll for year-end 2009 would be approximately 45.6 million. Yet, when Unaids released its most recent description in November 2009 as reported in the Mail & Guardian (South Africa, 24 November 2009) the worldwide death toll straight through 2008 was listed as "passing 25 million," approximately 19.2 million below the actual mark.

Per Aids cases drop due to revised data (Msnbc, 19 November 2007), the "disappearing" victims can be attributed to "a new methodology." While this may make sense with regard to prevalence since "[p]revious Aids numbers were largely based on the numbers of infected pregnant women at clinics, as well as projecting the Aids rates of distinct high-risk groups like drug users to the entire citizen at risk" versus the new methodology that incorporates data from "national household surveys," it does not with regard to mortality figures which are calculated primarily from national Aids registries and/or death certificates based on the presence of Hiv, T-4 (Cd4) cell counts below 200, and death caused by opportunistic Aids-related infections resulting from such low T-4 (Cd4) cell counts.

In retrospect, when viewing the approximate 45.6 million figure, few pandemics have killed more than Hiv/Aids - Smallpox (which had come in waves since 430 Bc until the World condition assosication (Who) certified its eradication in 1979), killed 300-500 million, Black Death/Bubonic Plague killed approximately 75 million from 1340-1771, and Spanish Influenza killed between 40-50 million from 1918-1919.

Optimism for the Future:

Until Hiv/Aids can be certified as eradicated by the Who, despite the terrible economic toll it has taken, especially on sub-Saharan Africa (due to lost skills, shrinking workforces, rising medical costs) and other developing regions and its devastating toll in human lives and on families, there is guess for optimism.

As of December 2008, per Unaids, 33.4 million citizen are infected with Hiv, a 1.2% increase from a year earlier with much of the rise attributed to a declining mortality rate due to a 10-fold increase in availability of Haart since 2004. About 2.7 million persons were newly infected in 2008, 18% and 30% decreases in new Hiv infections globally since 2001 and 1996, respectively. In another promising sign, new Hiv infections in sub-Saharan Africa, responsible for about 70% of all Hiv/Aids-related deaths in 2008, has fallen by 15% since 2001. At the same time, there were approximately 2 million Hiv/Aids-related deaths in 2008, a 35% reduction from 2004 levels when the global mortality rate peaked.

Presently, the Hiv/Aids pandemic has begun to decline or stabilize in most parts of the world. Declines have been recorded in sub-Saharan Africa and Asia (although the mortality rate is increasing in East Asia) while the pandemic has stabilized in the Caribbean, Latin America, North America and Western and Central Europe. The only part of the world where the Hiv/Aids pandemic is worsening is the Eastern European (especially in Ukraine and Russia) and Central Asian region.

The declines should continue as new methods of prevention and treatment are developed. Based on studies of Nltps, a new class of treatments focused on genetic therapy to delete the vital 32 amino acids from Ccr5 receptors, elicit perforin and granzyme B production, and develop protease inhibitors to supply immunity to Hiv and halt its spread may be developed in the future.

Though still a long way off and potentially very high-priced (up to ,000 per treatment), Drugs.com Med News reported in Gene Therapy Shows Promise Against Hiv (19 February 2010) that when researchers removed immune cells from eight Hiv-infected persons, modified their genetic code and reinserted them, the "levels of Hiv fell below the predicted levels in seven of the eight patients [with] signs of the virus disappear[ing] altogether in one" even though Haart treatment was halted. A study by Ucla Aids develop researchers, which removed Ccr5 receptors by "transplanting a small Rna molecule known as short hairpin Rna (shRna), which induced Rna interference into human stem cells to inhibit the expression of Ccr5 in human immune cells" mimicking those of Ltnps straight through the use of "a humanized mouse model," as reported on February 26, 2010 in medical News Today in Gene-Based Stem Cell Therapy Specifically Removes Cell Receptor That Attracts Hiv, showed similar success in that it resulted in a "stable, long-term reduction of Ccr5."

At the same time, as announced in Hiv/Aids drug puzzle cracked (Kate Kelland, Reuters, 1 February 2010), British and U.S. Scientists succeeded (after 40,000 unsuccessful attempts) in growing a crystal to decipher the structure of integrase, an enzyme found in Hiv and other retroviruses. This will lead to a great understanding how integrase-inhibitor drugs work and maybe to a more sufficient generation of treatments that could impede Hiv from pasting a copy of its genetic code in the Dna of victims' T-4(Cd4) cells.

Likewise, per structure of Hiv coat may help develop new drugs (Health News, 13 November 2009) scientists from the University of Pittsburgh School of treatment "unraveled the complicated structure" of the capsid coat (viewing its "overall shape and atomic details") "surrounding Hiv" that could enable "scientists to develop therapeutic compounds" to block infection.

At the same time, researchers at the University of Texas medical School may have ultimately discovered Hiv's vulnerability, per Achilles Heel of Hiv Uncovered (Ani, July 2008) - "a tiny stretch of amino acids numbered 421-433 on gp120" that must remain constant to attach to T-4 (Cd4) cells. To conceal its weakness and evade an sufficient immune response, Hiv tricks the body into attacking its mutating regions, which turn so rapidly, ineffective antibodies are produced until the immune principles is overwhelmed. Based on this finding, the researchers have created an abzyme (an antibody with catalytic or helpful enzymatic activity) derived from blood samples taken from Hiv-negative citizen with lupus (a continuing autoimmune disease that can strike any part of the body - skin, joints, and/or organs) and Hiv-positive Ltnps, which has proven potent in neutralizing Hiv in lab tests, thus gift promise of developing an sufficient vaccine or microbicide (gel to safe against sexual transmission). Although human clinical trials are to follow, it might not be until 2015 or 2020 before abzymatic treatments are available.

Elsewhere, International Aids Vaccine Initiative (Iavi) scientists recently isolated two antibodies from a Nltp Hiv-positive African inpatient - Pg9 and Pg16 (called broadly neutralizing antibodies (Bnabs) that bind to Hiv's viral spike composed of gp120 and gp41 to block the virus from infecting T-4 (Cd4) cells. Per Monica Hoyos Flight, A new beginning point for Hiv vaccine develop (Nature Reviews, MacMillan Publishers Limited, November 2009) "Pg9 and Pg16, when tested against a larger panel of viruses [Hiv] neutralized 127 and 116 viruses, respectively" providing added hopes for developing an sufficient vaccine and novel treatment regimens that induce the body to furnish Bnabs, which currently only the immune principles of Nltps can create.

At the same time, studies of newborn seroreversion and medically induced production of human leukocyte group A (Hla) antigens that coat the outside of T-4 (Cd4) cells could also ultimately lead to anti-Hiv vaccine that could safe billions of people.

In the meantime until such developments bear fruit, Haart (despite its mild side effects such as nausea and headaches in some and serious to life-threatening side effects in others) has proven to be extremely sufficient in containing Hiv with, per Gerald Pierone Jr., Md in The End of Hiv Drug development as We Know It? (The Body Pro: The Hiv resource for condition Professionals, 18 February 2010) reporting, "about 80% of patients [receiving Haart] reach an undetectable viral load." Furthermore, greater entrance to antiretrovirals, per Drop in Hiv infections and deaths (Bbc News, 24 November 2009) "has helped cut the death toll from Hiv by more than 10%" from 2004-2008 and saved more than 3 million lives based on Unaids and Who statistics. Haart has also cut the age-adjusted mortality rate by more than 70% agreeing to Kaiser family Foundation's July 2007 Hiv/Aids policy Fact Sheet, because of its effectiveness in delaying and even preventing the onset of Aids.

Despite Haart's cost (,000-,000 per inpatient per year), the State of California in a description titled, Hiv/Aids in California, 1981-2008 called it "dramatic and life-saving" especially since early intervention results in greater mean T-4 (Cd4) cell counts translating into fewer opportunistic infections and deaths. It also results in real cost savings because of the strong inverse connection between T-4 (Cd4) cell counts and linked medical expenses.

In conclusion, despite Hiv/Aids' "disappearing" victims, there is guess for optimism. research over the last year has offered any promising leads - the fundamental cause of Nltps' immunity has been discovered, the structure of the Hiv virus solved, and its weak point found - while improved entrance to Haart and Hiv/Aids education and prevention measures (with the exception of addressing intravenous drug users) have made vital inroads in reducing infection and mortality rates buying victims added years and an enhanced ability of life.

______

[1] Orapun Metadilogkul, Vichai Jirathitikal, and Aldar S. Bourinbalar. Serodeconversion of Hiv Antibody-Positive Aids Patients Following treatment with V-1 Immunitor. Journal of Biomedicine and Biotechnology. 7 September 2008.

[2] Michael Crawford. Aids: Where is Our Rage? The Bilerico Project. 2 December 2007. 28 February 2010. Http://www.bilerico.com/2007/12/aids_where_is_our_rage.php

Additional Source:

Wikipedia. 24-28 February 2010. Http://en.wikipedia.org/

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Mergers & Acquisitions Can result from Strategic Alliances

Century 21 New Braunfels Tx - Mergers & Acquisitions Can result from Strategic Alliances

Good evening. Today, I learned about Century 21 New Braunfels Tx - Mergers & Acquisitions Can result from Strategic Alliances. Which may be very helpful in my opinion and also you. Mergers & Acquisitions Can result from Strategic Alliances

Alliances often ensue in mergers and/or acquisitions. Partnering relationships, such as joint ventures or strategic alliances, can sometimes lead to a merger or acquisition situation. After companies work together for a period of time and get to know one another's strengths, weaknesses, and synergistic possibilities, new relationship opportunities come to be apparent. One could argue that a joint venture or strategic alliance is naturally the getting to know each other part of a courtship in the middle of companies and that the real marriage does not occur until the relationship has been consummated by a merger or acquisition.

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To make the point, Dan McQueen, president, at Fluid Components International (Fci) built a Partnering relationship with Vortab, a small technology company. Vortab produced static mixers, a technology favorable for flow conditioning that complemented Fci's stock offering. While Vortab also had three other distribution partners in expanding to Fci, Fci's volume with Vortab continued to grow to the point that Vortab's technology became an leading part of Fci's total sales volume. After about three years into the relationship, Fci acquired Vortab.

Because of the close relationship in the middle of Vortab and Fci, when the Vortab was put up for sale McQueen knew its true value. Resulting from his knowledge, Fci was able to buy Vortab at a much more realistic price than Vortab's asking price. The Vortab technology integrated well with Fci's core competency technology and today Fci also distributes Vortab straight through some of its non-direct competitors.

The following list demonstrates some of the definite values created or developed from the assorted organizational blending methods:

· Operational resource sharing

· Functional skill transfer

· Management skill transfer

· Leverage (economies of scale)

· Capability increases

Mergers

Mergers occur when two or more organizations come together to blend or link their strengths. Also in the deal is a blending of their weaknesses. The hopeful ensue is a new more grand assosication that can good yield goods and services, access markets, and deliver the highest potential buyer service. Mergers offer promise for synergistic possibilities. This is achieved by the blending of cultures and retaining the core strengths of each. In this scenario, a new and separate assosication commonly emerges. The goal is a sharing of power, but normally the strongest rise to the top leadership.

Exxon - Mobil

The Federal Trade Commission gave Exxon and Mobil the green light On November 30, 1999 for their billion merger. The next day the transaction was completed. The merged assosication officially became Exxon Mobil Corp. The merger assuredly brings "the companies back to their roots when they were part of John Rockefeller's accepted Oil empire. That firm was the largest oil firm in the world before it was busted up by the government in 1911."

At the 1998 proclamation of their intention to merge, Mobil chairman, Lucio Noto made a comment about the need to merge. He said, "Today's proclamation aggregate does not mean rhat we could not survive on our own. This is not a aggregate based on desperation, it's one based on opportunity. But we need to face some facts. The world has changed. The easy things are behind us. The easy oil, the easy cost savings, they're done. Both organizations have pursued internal efficiencies to the extent that they could."

While part of the deal was the selling of a Northern California refinery and practically 2,500 gas station locations, the divestiture represents only a fraction of their combined 8 billion in assets. Lee Raymond, Exxon chairman, now chairman and chief executive of the merged firm said, "The merger will allow Exxon Mobil to compete more effectively with recently combined multinational oil companies and the large state-owned oil companies that are rapidly expanding exterior their home areas."

Exxon Mobil is now like a small oil-rich nation. They have practically 21 billion barrels of oil and gas reserves on hand, sufficient to satisfy the world's whole power needs for more than a year. Yet, there is still the occasion to cut costs. The companies expect their merger's economies of scale to cut about .8 billion in costs in the near term. They also plan to cut about 9,000 jobs out of the 123,000 worldwide.

Aol - Time Warner

On January 10, 2000, Steve Case, chairman and chief executive of America Online (Aol), sent an e-letter to his 20 million members. He said, "Less than two weeks ago, habitancy all over the world came together in a global celebration of the new century, and the new millennium. As I said in my first society update of the 21st Century, all of us at Aol are very excited by the challenges and prospects of this new era, a time we think of as the Internet Century.

I believe we have only just begun to see clearly how the interactive medium will transform our economy, our society, and our lives. And we are considered to lead the way at Aol, as we have for 15 years--by bringing more habitancy into the world of interactive services, and making the online palpate an even more indispensable part of our members' lives.

That is why I am so pleased to tell you about an absorbing major improvement at Aol. Today, America Online and Time Warner agreed to join forces, creating the world's first media and communications firm for the Internet Century. The new company, to be created by the end of this year, will be called Aol Time Warner, and we believe that it will quite assuredly convert the landscape of media and communications in the new millennium."

The next day newspaper headlines read, "America Online, Time Warner recommend 3-Billion Merger." The Los Angeles Times said, "In an audacious deal bringing together former entertainment and the new world of the Internet, America Online and Time Warner Inc. On Monday announced they will merge in the largest firm transaction in history."

The story later revealed the value comparisons of the companies. While Aol earns less than Time Warner, the stock store thinks Aol's shares are worth more. "America Online is valued by the stock store at nearly twice Time Warner--3 billion, compared with 1 billion as of Friday's [1/7/00] store close--even though it has one-third Time Warner's each year revenues." The article also stated "Aol earned 2 million on .8 billion in sales in the year ended Sept. 30 [1999]."
Aol chairman, Case wants to move fast. The Times article stated, "Case said the two chairman began discussing a aggregate this fall [1999], he has tried to impress upon Levin [Gerald Levin, chairman at Time Warner] the need to operate the new firm at Internet speeds." (We all know the rest of the story...nothing is forever.)

The prophets of gloom are always ready to point out the down side to deals. In Upside magazine, Loren Fox reported some of the challenges to the marriage. They are:

· "The holy grail of strategic synergy has been elusive in the media world."

· "In the offline world, it's famed that Time and Warner Brothers have continued to run fairly independently despite a decade as Time Warner."

· "'From any standpoint, this has not been a success to date,' says Yahoo President and Coo Jeff Mallett."

· "When you buy the company, you get things you don't need."

· "Warner might make these deals easier, but it might also bring new risks--even for Aol, a veteran of 25 acquisitions over the last six years. Employees might flee to pure dot-com companies, ego clashes could stymie plans or financial gains may never cover the large selected paid for Time Warner."

· "You don't need to own everything to do what Aol and Time Warner are doing."

Warner-Lambert

Merger mania can make strange bedfellows, let alone promises unfulfilled. Alliances can lead to mergers. Warner-Lambert is an example of all the above. This is corporate soap opera at its best.

· June 16, 1999, Warner-Lambert firm announced that it has signed a letter of intent with Pfizer Inc. To continue and develop its very thriving co-promotion of the cholesterol-lowering agent Lipitor (atorvastatin calcium). The companies, which began co-promoting Lipitor in 1997, will continue their collaboration for a total of ten years. Further, with a goal of expanding their stock collaborations, the companies plan to recognize potential Lipitor line extensions and stock combinations and other areas of mutual interest.

· November 4, 1999, newspapers across America article on "one of the biggest mergers of any kind, ever." The Wall road Journal said, "Now, American Home is set to merge with Warner-Lambert Co. In a stock deal that is valued at about billion. It stands as the biggest deal in drug-industry history and one of on the biggest mergers of any kind, ever." Also reported, "Warner-Lambert held talks with Pfizer Inc. At the same time it was negotiating with American Home."

· November 4, 1999, The New York Times runs a story titled, "Can a Strong-Willed Chief Share Power in a Merger?" The article lead with, "The planned merger in the middle of American Home Products and Warner-Lambert once again raises the quiz, of whether John R. Stafford, American Home's famously strong-willed chairman and chief executive, is capable of sharing and, perhaps more important, letting go of power."

· January 13, 2000, Warner-Lambert firm indicated that, as a ensue of changing events, it is exploring strategic alternatives, together with meeting with Pfizer, following Pfizer's recent approach. In that regard, Warner-Lambert said that its Board of Directors has authorized administration to enter into discussions with Pfizer to recognize a potential firm combination. The firm stated that, in light of changing circumstances, its Board had terminated that there is a uncostly likelihood that Pfizer's previously announced conditional proposal could lead to a transaction, reasonably capable of being completed, that is good financially for Warner-Lambert shareholders than the proposed merger with American Home Products.

Lodewijk J.R. De Vink, chairman, president and chief executive officer of Warner-Lambert, stated, "It has always been the Board's objective to procure the best potential transaction for Warner-Lambert shareholders and we will now pursue discussions with Pfizer to determine if a aggregate with them to accomplish that goal is possible." The firm emphasized that there can be no assurance that any agreement on a transaction with Pfizer, or that any other transaction, will eventuate.

· January 24, 2000, in response to inquiries, Warner-Lambert firm said that it would continue to recognize strategic alternatives, together with discussions with Pfizer. The Company's unwavering goal is to contribute the greatest value to Warner-Lambert shareholders. Warner-Lambert officials emphasized that there can be no assurance that any transaction will be completed and offered no added comment.

Was American Home Products the bride left at the altar? The Wall road Journal didn't think so, in fact they called American Home the Runaway Bride in their November article. Additionally they listed some companies that American Home has them selves left at the altar.

· Early November 1997, American Home Products and SmithKline Beecham begin merger talks.

· January 30, 1999, Talks break off.

· June 1, 1998, American Home and Monsanto announce agreement to merge.

· October 13, 1998, American Home and Monsanto cancel plans to merge.

· November 3, 1999, American Home and Warner-Lambert Co. In talks to merge.

Acquisitions

An acquisition is basically the function of one firm absorbing and digesting another. The ensue is that the acquiring firm shores up core weaknesses or adds a new potential without giving up control, as might occur in a merger. Added capabilities, rather than synergy is normally the mental behind acquisitions. In this situation, the acquiring company's culture prevails. often one firm will procure an additional one for their intellectual property, their employees or to increase store share. There are numerous strategies and reasons why one firm acquires another, as you will soon discover.

Guardian protection Services has been acquiring alarm companies within its northeast region of doing to supplement its internal growth. Russ Cersosimo, president says, "This is just an additional one way for us to satisfy our appetite for growth. Our desire is to develop our opportunities in the other offices. That is an additional one fancy why it is absorbing for us to look to procure companies, to get their industrial base and industrial sales force that is in place in those offices. We wanted to make sure that we can dispell the new accounts without putting strain on our paper flow and the systems we have in place."

Who does R&D acquisitions well? Electronics firm recently answered, "Cisco Systems Inc., San Jose, the networking tool company, which boasts many success stories among its 40 acquisitions of the past six years." None of their acquisitions were in mature markets, rather all were leading edge, allowing Cisco to broaden its stock offering. Cisco hedges its acquisition bets straight through volume. Ammar Hanafi, director of the firm improvement group at Cisco says it counts on two out of three acquisitions succeeding and the remaining third doing just okay. Acquiring people, intellectual properties and specialized skills is leading to companies like Cisco. They think that even if the acquired technology does not pan out, they have the engineers. Generally, any fast growing firm like Cisco cannot hire habitancy fast sufficient and the acquired personnel are a boon to the company's progress. Retention of acquired employees is at the heart of their acquisition strategy. "If we're going to lose the habitancy who are leading to the success of the target company, we're probably not going to have an interest," says Cisco controller Dennis Powell.

"Cisco doesn't do big acquisitions, the cultural issues are too huge," Hanafi says. Cisco buys early stage companies with limited or no revenues. While they often have paid very high prices for the acquisition, they seem to do good than most with their selection. in the middle of 1993 and 1996, Cisco bought cutting edge Lan switching technologies for a total of 6 million in stock. More than half was spent on Grand Junction Networks Inc., which developed fast Ethernet switchers. At the time of purchase, it is estimated that Grand Junction's each year revenues were million. "Today, the four Lan switching acquisitions inventory for billion of Cisco's billion in each year revenues." "We procure companies because we believe they will be successful. If we didn't believe in their success, we would not procure them," says Powell.

Little known West Coast Texas Pacific Group (Tpg) has been acquiring at a feverish pace. Their semiconductor and telecom buying spree includes, Gt Com in 1995, At&T Paradyne (from Lucent Technologies Inc.) in 1996, Zilog Inc. In 1997, Landis & Gyr Communications Sa in 1998, On Semiconductor (from Motorola Inc.), Zhone Technologies Inc., Mvx.Com and developed TelCom Group Inc. In 1999.

Tpg banks heavily on intellectual capital. Many believe that by being part of Tpg, their single biggest advantage is access to broad pool of talented and well-connected people. Ceos can take advantage of Tpg's contacts in other industries around the world. "Tpg has this potential to build a virtual advisory board...that they don't even have to pay for," says Armando Geday, president and Ceo of GlobeSpan Inc.

Lucent Technologies, Inc. Has also been rampaging straight through the same store as Cisco. Lucent's 1999 (January to August) acquisitions as listed in Cfo magazine include:

· Kenan Systems for billion

· Ascend Communications for billion

· Sybarus for million

· Enable Semiconductor for million

· Mosaix for 5 million

· Zetax Tecnologia, $ N/A

· Batik Equipamentos, $ N/A

· Nexabit Networks for 0 million

· Ccom, Edisin, $ N/A

· SpecTran for million

· International Network Services for .7 billion.

An advantage that Lucent has over its competitors is access to its 25,000-employee Bell Labs idea factory. As such, they are more likely to buy technology rather than R&D. Still, Lucent continually reviews the comparative advantages of technology and R&D in relationship to its own projects in reviewing acquisition possibilities. Lucent executive vice president and Cfo Donald Peterson says, "In every space in which we have acquired, we have had simultaneous research projects inside. It makes us knowledgeable, and lets us have a build-versus-buy option."

Lucent wants their units as a hole to do well and if acquisition helps that cause, they acquire. Peterson also says, "We view acquisition as a tool among many that our firm units can use to develop their firm plans. We evaluate acquisitions one by one, in the context of the firm strategy of the unit."

Tyco International Ltd. Is a diversified global constructor and victualer of industrial products and systems with leadership positions in each of its four firm segments: Disposable and Specialty Products, Fire and protection Services, Flow Control, and Electrical and Electronic Components. straight through its corporate strategies of high-value production, decentralized operations, increase straight through synergistic and strategic acquisitions, and expansion straight through product/market globalization, Tyco has evolved. From Tyco's beginnings in 1960 as a confidentially held research laboratory, it has transformed into today's multinational industrial corporation that is listed on the New York Stock Exchange. The firm operates in more than 80 countries around the world and had fiscal 1999 revenues in excess of billion.

In the mid-1980s, Tyco returned its focus to sharply accelerating growth. While this period, it reorganized its subsidiaries into the current firm segments listed above. The Company's name was changed from Tyco Laboratories, Inc. To Tyco International Ltd. In 1993, to reflect Tyco's global operations more accurately. Furthermore, it became, and remains, Tyco's course to focus on adding high-quality, cost-competitive, low-tech industrial/commercial products to its stock lines that can be marketed globally.

In addition, the firm adopted synergistic and strategic acquisition guidelines that established three base-line standards for potential acquisitions, including:

1. A firm to be acquired must be in a firm related to one of Tyco's four firm segments.

2. A firm to be acquired must be able to develop the stock line and/or enhance stock distribution in at least one of Tyco's firm segments.

3. A firm to be acquired that will introduce a new stock or stock line must be using a manufacturing and/or processing technology already customary to one of Tyco's firm segments.

Tyco also developed a very disciplined advent to acquisitions based on three key criteria that the firm continues to use today to gauge potential acquisitions:

1. Post-acquisition results will have an immediate obvious impact on earnings;

2. Opportunities to enhance operating profits must be substantial;

3. All acquisitions must be non-dilutive to shareholders.

Fasb Accounting Rule Change

The rules of the game are changing. Some of the accounting benefits of acquisition will soon disappear. Spending some extra time with your accounting and legal departments could prove beneficial in the long-term.

George Donnelly, in his article in Cfo magazine writes, "The current state of accounting rules is clearly a factor in the frenetic acquisition performance at Cisco Systems and Lucent Technologies Inc. Like many high-tech companies, the two giants can procure with limited drag on their finances, because pooling-of-interest accounting enables them to avoid onerous goodwill charges that otherwise would ravage earnings.

But because of the death sentence the Financial Accounting Standards Board has levied on pooling, companies must use straight-purchase accounting after January 1, 2001. Then buyers will have to amortize goodwill for no more than 20 years."

Consolidations and Rollups

Bill Wade in industrial Distribution said: "The basic premise couldn't be any simpler. Take a very fragmented industry--like distribution--facing technological change, buyer upheaval or persisting financing difficulties. Add in a few well-healed foreign firms or, worse, a incorporate of previously unknown competitors from exterior the business. Since the industry leaders are probably family-run businesses with limited succession strategies, the next step to protect profit and continue increase is clear: consolidate."

A consolidation or rollup, as it's often called, commonly occurs when an assosication or private with deep pockets sets out to buy some small companies in a fragmented industry and rein them in under a new or communal pennant. In 1997 the National relationship of Wholesale-Distributors reported that 42 of the 54 industries they studied had been significantly affected by consolidation. often a professional administration and buying force originate economies of scale that allows the consolidator to pluck the low hanging fruit in the industry. They will invest significantly in systems to eliminate the duplication of effort and inefficiencies that exist within the industry being consolidated.

While some call it smoke and mirrors, many consolidators are compliancy outstanding results. In 1997, at 39 years old, financial whiz Jonathan Ledecky pulled off a bold deal. As reported in Cfo magazine, He went to the communal equity markets and raised half a billion dollars for his company, Consolidation Capital Corp., in a brazen initial communal offering. Without revenues, assets, operating history or identity (name or industry), he raised the capital in a blind pool on the force of his credit alone.

U.S. Office Products (Usop) is the ensue of 220 acquisitions. Sharp Pencil was one of six confidentially owned office-supply companies that Ledecky put together. But he didn't stop, after two years, and 220 acquisitions later, Usop was a member of the Fortune 500, with .8 in revenues. "It was crazy," says Donald Platt, senior vice president and Cfo at Usop. Platt did rely very on exterior resources, together with a team of lawyers and accountants to get the job done (the 220 acquisitions). "We restricted then to well-managed, profitable companies. At worst, we would still be making money," says Platt.

H. Wayne Huizenga is the owner of the Florida Marlins baseball team. He is also the king of consolidators. He pioneered his technique by rolling-up trash-truck businesses to originate Waste administration Inc., the nation's largest waste company. He went on to originate the largest video chain, Blockbuster Video. With AutoNation, Huizenga, now struggling, is attacking the sell automobile industry. In mid-December 1999 AutoNation had 409 sell franchises but announced the end of 23 of their used-car superstores.

Michael Riley learned about consolidations while serving as personal attorney for Huizenga. In July 1999, Riley's company, Atlas Recreational Holdings Inc., paid million to buy controlling interest in the only publicly traded Rv dealership chain in the United States, Holiday Rv Superstores Inc., in Orlando, Florida. Riley's avowed intention is to grow the firm from in each year sales in 1998 to billion by 2003 by acquiring other dealerships.

Riley says, "Consolidations assuredly will help. We can bring advantages to sales and service. We can make a disagreement in warranty. There is a real value added when you put these companies together."

Same Industry, separate Strategies

In mid-1997, roll-ups, United Rentals and NationsRent were formed. They are in a race, but are using separate strategies to accomplish their results. After two years of ravenously gobbling up companies, United had 482 locations while NationsRent had accumulated only 138 stores. NationsRent has been developing a nationwide identity with shop that look-alike and have the same signage and layout. United Rentals presence is virtually unknown since the shop withhold their old appearance.

Motivations for Consolidators

There are some good reasons why consolidators assault a single industry. The following list provides some of the rational that aid them in their decision making process. As you look to profit from the trend, keep these elements in mind as you make your selection on whom to acquire.

· Confidence by the players that they can capture indispensable and very profitable added store share by implementing the cutting edge management, procurement, distribution and aid practices that will give them a competitive edge over smaller players.

· Gain national customers straight through increased capabilities in delivering the highest levels of standardized aid and national geographical coverage.

· Larger customers of independent distribution channels are seeking broader geographic coverage and networks of locations that allow for greater aid capabilities, and the smaller customers want a high level of buyer aid and response.

· Customers' desire for more stock sophistication.

· Insurance and financing synergies.

Fragmented Industries Are Ripe for Consolidations and Rollups

Some industries that are ready for consolidations or rollup examples comprise heavy-duty truck repair, office products, recreational vehicle dealerships, rental shop (equipment, tools and party) and distribution. Consolidation does not just happen. It is triggered by shifts in victualer and buyer expectations. Consolidation in a victualer base or buyer pool often alters the economic rational for the buildings of an industry. Functional shifts are accompanied by serious margin shifts among channel participants.

Take observation of the speed in which an industry can palpate consolidation. If you are a consolidator, pick the low hanging fruit before an additional one beats you to it. If you are fighting consolidation, take observation of the state of your industry and make adjustments (like strategic alliances) to your firm plan if your industry is very fragmented.

· TruckPro, the 0 million sales creation of Haywood and Stephens Investments, was sold in May 1998 to AutoZone, the billion distribution king of do-it-yourself auto parts.

· In June 1998, nine heavy-duty distribution companies with volumes of to million, simultaneously merged and raised million from the communal for their brand new 0 million company, TransCom Usa.

· Brentwood Associates, a venture capital company, While Spring and Summer1998, created Had Parts System, Inc. A 5 million operation, by acquiring three companies in the Southeast.

· In July 1998, Aurora Capital's Qdsp acquired majority interest in nine heavy-duty companies from FleetPride, a 0 million parts and aid operation.

Stated in Truck Parts & Service, "Here the independent suffers a incredible disadvantage to roll-ups. Consolidators have access to large amounts of capital. The independent businessperson, however, must primarily finance his increase by earnings retains from current operations. New high efficiency aid bays, indispensable and growing training expenses, data processing and communications technology all clamor for increased working capital. The large players' acquisition cost advantage at last will win him all the mega-fleet firm and the vast majority of firm from mid-sized fleets.

Supplementing his parts acquisition cost advantage, the consolidator will be able to lower many overhead costs straight through centralized administration and volume discounts...Combined savings in parts acquisition cost and overhead allowance should assuredly exceed 4% of sales."

Some of the indicators that an industry (any industry) is poised for consolidation are listed below. If you observation your industry has similar issues, it is just a matter of time. Plan now for what is coming. Where do you want to be when the train arrives?

· A high degree of fragmentation with numerous smaller companies and few, if any, dominating players.

· A large industry that is carport and growing.

· Multiple benefits for economies of scale.

· Synergies that can be achieved by consolidating companies.

· Infrequent use of developed administration data systems.

· Limited access to communal capital markets and somewhat inefficient capital structures among companies.

· Lack of opportunities, historically, for owners to liquidate their businesses if they wish to leave the industry.

Reasons for firm Owners Selling to Consolidators

The reasons for a firm owner to sell his or her firm are as assorted as there are people. normally it is not one fancy but some combined reasons that work on a seller's decision. The following list provides you with the general areas that might drive a selling decision:

· First generation owner, without heirs, nearing retirement.

· Lack of capital to make indispensable technological and capital improvements to compete, within an industry, and with new competitors.

· Flat increase rate in industry.

· Better profitability as part of a larger organization.

· Centralized buying.

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