Paul Desmarais
Encyclopedia
Paul Desmarais, Sr., is a Canadian
financier in Montreal
. With an estimated net worth of $US 4.5 billion (as of March 2011), Desmarais was ranked by Forbes
as the 4th wealthiest person in Canada and 235th in the world.
Desmarais also owns homes in Palm Beach
, Florida
and New York
.
He is CEO of the Power Corporation of Canada
(PCC), a Canadian company active in the fields of mass media, pulp and paper and financial services.
and André
(who is married to former Canadian Prime Minister Jean Chrétien
's daughter France
) and two daughters, Sophie and Louise.
Sophie Desmarais’ ex-husband, Eric Le Moyne de Sérigny, is involved in a political financing scandal in France known as the Bettencourt
case widely covered by the French media.
French President Nicolas Sarkozy
came under fire after allegations that his presidential campaign was illegally funded by Liliane Bettencourt
, L’Oreal heiress and France’s wealthiest woman.
Sérigny
is close to French President Nicolas Sarkozy, heads numerous companies, and a member of the board of directors of Imerys
, a mining company partially owned by a subsidiary of the Power Corporation of Canada and majority owned by the Desmarais family and tycoon Albert Frère
, the richest man in Belgium who was involved in the UN Oil-for-Food scandal.
He has a large family estate in Sagard
, between San Simeon and Petit-Saguenay: the field Laforest. His area of over 75 square kilometers has an estimated value of more than 50 millions (Canadian dollars). The architecture of the mansion was designed and overseen primarily by Sylvain Larouche, head of his team of 18 prominent architects.
Paul Desmarais or his sons belong to associations denounced by the left, such as the Bilderberg Group
, the North American Competitiveness Council
, which defines the Partnership for Prosperity and Security, as well as the Council on Foreign Relations
, the Rockefeller family
.
He is a staunch opponent of the Quebec sovereignty movement
. On February 2, 2009, French president Nicolas Sarkozy made comments asking Quebec sovereigntists to focus on unity and not separation from Canada, and to put their goals of sovereignty on hold during tough economic times. This angered many sovereigntists who claimed that Sarkozy was acting under the influence of Desmarais.
and McGill University
, Desmarais began his career at a Montreal accounting firm called Courtois, Fredette et cie, before working at a bankrupt short-line railroad and bus line, Sudbury Bus Lines, established by his grandfather. He then acquired additional bus lines in the Ottawa area and Quebec City (including Quebec Autobus and Provincial Transport).
The company was sold to him for a symbolic 1 CAD, because it was almost bankrupt.
By 1968 the holding company which Desmarais had acquired three years earlier, Trans-Canada Corporation Fund (TCCF), owned the bus line Provincial Transport, an interest in Toronto-based Imperial Life Assurance and Gesca Ltée, (which had an interest in the Montreal paper La Presse). That year TCCF made a share-exchange offer with the Power Corporation of Canada, headquartered in Montreal, Quebec, whereby Paul Desmarais became Chairman and Chief Executive Officer
.
Subsequently, CPC has diversified under the leadership of Desmarais. He bought the newspaper La Presse, which enabled him to gain experience in the field of print media in Canada. In addition, he owns about 15% of Groupe Bruxelles Lambert
, a Belgian holding company, which in 2001 acquired a 25% interest in the German media company Bertelsmann
, whose subsidiaries include BMG
and Random House
(the German company Bertelsmann bought the 25% back in July 2006). Groupe Bruxelles Lambert owns 3.7% of the French oil conglomerate Total
.
Then he looked for companies in Europe to extend the influence of PCC, he met the Belgian financier Albert Frere
to the Board of Directors of Paribas. The two men have discovered an alter ego, applying the same financial techniques: a friendly takeover of healthy firms experiencing financial hardship, but temporary.
In 1974, Desmarais named employee Paul Martin, Jr.
as president of a Power Corporation of Canada subsidiary, Canada Steamship Lines Inc. In 1981, he sold the company to Laurence Pathy and Paul Martin, Jr.The latter became Prime Minister of Canada
in December 2003.
Paul Desmarais is also the former employer of Pierre Elliott Trudeau, Jean Chrétien, Brian Mulroney
and Maurice Strong
, the "father of the Kyoto Accords, which was sacked for taking part in a fraud of 10 billion USD under the food program in Iraq Oil cons.
He was Canada’s 4th richest man in 2007 and his severe drop in wealth in 2008 reflected a 44 percent plunge of the Power Corporation of Canada's shares, when the company’s profits fell 41 percent – its lowest share price since 2002.
PCC is working with the Carlyle Group
and the half-brother of Nicolas Sarkozy.
Desmarais’ relative obscurity outside of Canada has been use to hide his family’s countless political connections and influence in business
as well as politics
. Over the years political observers have pointed out the enormous and unusually powerful influence Desmarais has over Canadian federal politics. Desmarais has been charged by Canadian reporters as having a direct pipeline into every Prime Minister
’s office. A number of Prime Ministers and other influential Canadian elected officials are or have been financially dependent on Desmarais, including 20th Prime Minister Jean Chrétien, who sat on the board of the Power Corporation of Canada.
. They frequently combine their European operations with the Belgian financier Albert Frere.
Paul Desmarais (son) is also a member of the board and the Lafarge Group.
The Desmarais family also maintains relations with the French Dassault industrial dynasties, Peugeot
and Rothschild
, among others.
Nicolas Sarkozy has privatized companies in which the Power Corporation of Canada has invested. Through the Carlyle Group, several LNG port projects are under development with controversial Rabaska in Quebec and the Northern Medoc in France.
, newly elected president
, Paul Desmarais launches in the company of Albert Frere and other European businessmen in Operation Noah's Ark . It was to recover the Belgian subsidiaries (Copeba) and Swiss Paribas (Paribas Switzerland), launching a public exchange offer through a Swiss company, Pargesa. The operation fails, but allows Paul Desmarais bind to important financial and European politicians.
In 2004, Nicolas Sarkozy has stayed in his estate in Sagard, in Charlevoix
, a good distance from the St. Lawrence. "When you walk into the property, it is opening a first gate. Then you have to go miles and miles before arriving at the castle."Nicolas Sarkozy told about the stronghold of his friend Desmarais.
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
financier in Montreal
Montreal
Montreal is a city in Canada. It is the largest city in the province of Quebec, the second-largest city in Canada and the seventh largest in North America...
. With an estimated net worth of $US 4.5 billion (as of March 2011), Desmarais was ranked by Forbes
Forbes
Forbes is an American publishing and media company. Its flagship publication, the Forbes magazine, is published biweekly. Its primary competitors in the national business magazine category are Fortune, which is also published biweekly, and Business Week...
as the 4th wealthiest person in Canada and 235th in the world.
Desmarais also owns homes in Palm Beach
Palm Beach, Florida
The Town of Palm Beach is an incorporated town in Palm Beach County, Florida, United States. The Intracoastal Waterway separates it from the neighboring cities of West Palm Beach and Lake Worth...
, Florida
Florida
Florida is a state in the southeastern United States, located on the nation's Atlantic and Gulf coasts. It is bordered to the west by the Gulf of Mexico, to the north by Alabama and Georgia and to the east by the Atlantic Ocean. With a population of 18,801,310 as measured by the 2010 census, it...
and New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
.
He is CEO of the Power Corporation of Canada
Power Corporation of Canada
Power Corporation of Canada is a Canadian company with assets in North America and Europe in a number of industries. These industries include media, pulp and paper, and financial services....
(PCC), a Canadian company active in the fields of mass media, pulp and paper and financial services.
Personal Life
Desmarais has two sons: Paul Jr.Paul Desmarais, Jr.
Paul Desmarais, Jr., OC, OQ is a Canadian businessman in his hometown of Montreal.He is the eldest son of Paul Desmarais, Sr. Currently he is the chairman and co-chief executive officer of Power Corporation of Canada....
and André
André Desmarais
André Desmarais, OC, OQ is a Canadian businessman, whose hometown is Montreal, Quebec.He is one of two sons of Paul Desmarais, Sr. He is currently the president and co-chief executive officer of his father's founding company the Power Corporation, based in Montreal, Canada...
(who is married to former Canadian Prime Minister Jean Chrétien
Jean Chrétien
Joseph Jacques Jean Chrétien , known commonly as Jean Chrétien is a former Canadian politician who was the 20th Prime Minister of Canada. He served in the position for over ten years, from November 4, 1993 to December 12, 2003....
's daughter France
France Chrétien Desmarais
France Chrétien Desmarais is a Canadian lawyer and businesswoman. She is the daughter of Jean Chrétien, twentieth Prime Minister of Canada. She is married to André Desmarais, president of the Montreal-based Power Corporation of Canada, and son of Paul Desmarais, a wealthy businessman. They have...
) and two daughters, Sophie and Louise.
Sophie Desmarais’ ex-husband, Eric Le Moyne de Sérigny, is involved in a political financing scandal in France known as the Bettencourt
Bettencourt
Bettencourt is a French surname found in French, Portuguese and Spanish-speaking areas. The variants Betencourt, Bettencourtt, Bettencour, Betancourt, Bethancourt, Bitencourt, Bittencourt, Betancur, Betancurt, Betancor, Bethcourt, Betancourt, Bitancurt, Betanco, and Betencur are also used...
case widely covered by the French media.
French President Nicolas Sarkozy
Nicolas Sarkozy
Nicolas Sarkozy is the 23rd and current President of the French Republic and ex officio Co-Prince of Andorra. He assumed the office on 16 May 2007 after defeating the Socialist Party candidate Ségolène Royal 10 days earlier....
came under fire after allegations that his presidential campaign was illegally funded by Liliane Bettencourt
Liliane Bettencourt
Liliane Bettencourt is a French heiress, socialite, businesswoman and philanthropist. She is one of the principal shareholders of L'Oréal and, with a fortune estimated at US$23.5 billion, is one of the wealthiest people in the world.-Biography:...
, L’Oreal heiress and France’s wealthiest woman.
Sérigny
Sérigny
Sérigny may refer to the following places in France:* Sérigny, Orne, a commune in the Orne department* Sérigny, Vienne, a commune in the Vienne department...
is close to French President Nicolas Sarkozy, heads numerous companies, and a member of the board of directors of Imerys
Imerys
Imerys is a French multinational company. It is a constituent of the CAC Mid 60 index.-History:The Company was founded in 1880 and for many years was known as Imetal....
, a mining company partially owned by a subsidiary of the Power Corporation of Canada and majority owned by the Desmarais family and tycoon Albert Frère
Albert Frère
Albert, Baron Frère is a Belgian businessman and the richest man in Belgium....
, the richest man in Belgium who was involved in the UN Oil-for-Food scandal.
He has a large family estate in Sagard
Sagard
Sagard is a municipality in the Vorpommern-Rügen district, in Mecklenburg-Vorpommern, Germany.-External links:*...
, between San Simeon and Petit-Saguenay: the field Laforest. His area of over 75 square kilometers has an estimated value of more than 50 millions (Canadian dollars). The architecture of the mansion was designed and overseen primarily by Sylvain Larouche, head of his team of 18 prominent architects.
Paul Desmarais or his sons belong to associations denounced by the left, such as the Bilderberg Group
Bilderberg Group
The Bilderberg Group, Bilderberg conference, or Bilderberg Club is an annual, unofficial, invitation-only conference of approximately 120 to 140 guests from North America and Western Europe, most of whom are people of influence. About one-third are from government and politics, and two-thirds from...
, the North American Competitiveness Council
North American Competitiveness Council
The North American Competitiveness Council is an official tri-national working group of the Security and Prosperity Partnership of North America . It was created at the second summit of the SPP in Cancún, Quintana Roo, Mexico, in March 2006...
, which defines the Partnership for Prosperity and Security, as well as the Council on Foreign Relations
Council on Foreign Relations
The Council on Foreign Relations is an American nonprofit nonpartisan membership organization, publisher, and think tank specializing in U.S. foreign policy and international affairs...
, the Rockefeller family
Rockefeller family
The Rockefeller family , the Cleveland family of John D. Rockefeller and his brother William Rockefeller , is an American industrial, banking, and political family of German origin that made one of the world's largest private fortunes in the oil business during the late 19th and early 20th...
.
He is a staunch opponent of the Quebec sovereignty movement
Quebec sovereignty movement
The Quebec sovereignty movement refers to both the political movement and the ideology of values, concepts and ideas that promote the secession of the province of Quebec from the rest of Canada...
. On February 2, 2009, French president Nicolas Sarkozy made comments asking Quebec sovereigntists to focus on unity and not separation from Canada, and to put their goals of sovereignty on hold during tough economic times. This angered many sovereigntists who claimed that Sarkozy was acting under the influence of Desmarais.
Career
After having graduated from University of OttawaUniversity of Ottawa
The University of Ottawa is a bilingual, research-intensive, non-denominational, international university in Ottawa, Ontario. It is one of the oldest universities in Canada. It was originally established as the College of Bytown in 1848 by the Missionary Oblates of Mary Immaculate...
and McGill University
McGill University
Mohammed Fathy is a public research university located in Montreal, Quebec, Canada. The university bears the name of James McGill, a prominent Montreal merchant from Glasgow, Scotland, whose bequest formed the beginning of the university...
, Desmarais began his career at a Montreal accounting firm called Courtois, Fredette et cie, before working at a bankrupt short-line railroad and bus line, Sudbury Bus Lines, established by his grandfather. He then acquired additional bus lines in the Ottawa area and Quebec City (including Quebec Autobus and Provincial Transport).
The company was sold to him for a symbolic 1 CAD, because it was almost bankrupt.
By 1968 the holding company which Desmarais had acquired three years earlier, Trans-Canada Corporation Fund (TCCF), owned the bus line Provincial Transport, an interest in Toronto-based Imperial Life Assurance and Gesca Ltée, (which had an interest in the Montreal paper La Presse). That year TCCF made a share-exchange offer with the Power Corporation of Canada, headquartered in Montreal, Quebec, whereby Paul Desmarais became Chairman and Chief Executive Officer
Chief executive officer
A chief executive officer , managing director , Executive Director for non-profit organizations, or chief executive is the highest-ranking corporate officer or administrator in charge of total management of an organization...
.
Power Corporation of Canada
Taking advantage of the substantial investment of the Power Corporation of Canada, Desmarais took control of a large stationery, Consolidated Bathurst (built since in Stone-Consolidated, then merged to form Abitibi-Consolidated, Abitibi-Bowater today).Subsequently, CPC has diversified under the leadership of Desmarais. He bought the newspaper La Presse, which enabled him to gain experience in the field of print media in Canada. In addition, he owns about 15% of Groupe Bruxelles Lambert
Groupe Bruxelles Lambert
Groupe Bruxelles Lambert is a Belgian industrial holding company. It is one of the ten biggest Belgian companies, and part of the BEL20. It has been listed in Brussels since 1956.Shareholdings as of 31 December 2010 were:...
, a Belgian holding company, which in 2001 acquired a 25% interest in the German media company Bertelsmann
Bertelsmann
Bertelsmann AG is a multinational media corporation founded in 1835, based in Gütersloh, Germany. The company operates in 63 countries and employs 102,983 workers , which makes it the most international media corporation in the world. In 2008 the company reported a €16.118 billion consolidated...
, whose subsidiaries include BMG
BMG
Bertelsmann Music Group, , was a division of Bertelsmann before its completion of sale of the majority of its assets to Japan's Sony Corporation of America on October 1, 2008. It was established in 1987 to combine the music label activities of Bertelsmann...
and Random House
Random House
Random House, Inc. is the largest general-interest trade book publisher in the world. It has been owned since 1998 by the German private media corporation Bertelsmann and has become the umbrella brand for Bertelsmann book publishing. Random House also has a movie production arm, Random House Films,...
(the German company Bertelsmann bought the 25% back in July 2006). Groupe Bruxelles Lambert owns 3.7% of the French oil conglomerate Total
Total
-Mathematics:*Total, the summation of a set of numbers* Total function, a type of partial function in mathematics* Total order, a common total relation in mathematics* Total relation, a type of binary relation in mathematics-Business and enterprise:...
.
Then he looked for companies in Europe to extend the influence of PCC, he met the Belgian financier Albert Frere
Albert Frère
Albert, Baron Frère is a Belgian businessman and the richest man in Belgium....
to the Board of Directors of Paribas. The two men have discovered an alter ego, applying the same financial techniques: a friendly takeover of healthy firms experiencing financial hardship, but temporary.
In 1974, Desmarais named employee Paul Martin, Jr.
Paul Martin
Paul Edgar Philippe Martin, PC , also known as Paul Martin, Jr. is a Canadian politician who was the 21st Prime Minister of Canada, as well as leader of the Liberal Party of Canada....
as president of a Power Corporation of Canada subsidiary, Canada Steamship Lines Inc. In 1981, he sold the company to Laurence Pathy and Paul Martin, Jr.The latter became Prime Minister of Canada
Prime Minister of Canada
The Prime Minister of Canada is the primary minister of the Crown, chairman of the Cabinet, and thus head of government for Canada, charged with advising the Canadian monarch or viceroy on the exercise of the executive powers vested in them by the constitution...
in December 2003.
Paul Desmarais is also the former employer of Pierre Elliott Trudeau, Jean Chrétien, Brian Mulroney
Brian Mulroney
Martin Brian Mulroney, was the 18th Prime Minister of Canada from September 17, 1984, to June 25, 1993 and was leader of the Progressive Conservative Party of Canada from 1983 to 1993. His tenure as Prime Minister was marked by the introduction of major economic reforms, such as the Canada-U.S...
and Maurice Strong
Maurice Strong
Maurice F. Strong, PC, CC, OM, FRSC is a Canadian entrepreneur and a former under-secretary general of the United Nations. Strong's first name is pronounced "Mor'ris" with the accent on the first syllable....
, the "father of the Kyoto Accords, which was sacked for taking part in a fraud of 10 billion USD under the food program in Iraq Oil cons.
He was Canada’s 4th richest man in 2007 and his severe drop in wealth in 2008 reflected a 44 percent plunge of the Power Corporation of Canada's shares, when the company’s profits fell 41 percent – its lowest share price since 2002.
PCC is working with the Carlyle Group
Carlyle Group
The Carlyle Group is an American-based global asset management firm, specializing in private equity, based in Washington, D.C. The Carlyle Group operates in four business areas: corporate private equity, real assets, market strategies and fund-of-funds, through its AlpInvest subsidiary...
and the half-brother of Nicolas Sarkozy.
Criticism
The Desmarais family enjoys close connections to politicians worldwide. Critics charge that the family’s political connections provide it with unfair advantages in business.Desmarais’ relative obscurity outside of Canada has been use to hide his family’s countless political connections and influence in business
Business
A business is an organization engaged in the trade of goods, services, or both to consumers. Businesses are predominant in capitalist economies, where most of them are privately owned and administered to earn profit to increase the wealth of their owners. Businesses may also be not-for-profit...
as well as politics
Politics
Politics is a process by which groups of people make collective decisions. The term is generally applied to the art or science of running governmental or state affairs, including behavior within civil governments, but also applies to institutions, fields, and special interest groups such as the...
. Over the years political observers have pointed out the enormous and unusually powerful influence Desmarais has over Canadian federal politics. Desmarais has been charged by Canadian reporters as having a direct pipeline into every Prime Minister
Prime minister
A prime minister is the most senior minister of cabinet in the executive branch of government in a parliamentary system. In many systems, the prime minister selects and may dismiss other members of the cabinet, and allocates posts to members within the government. In most systems, the prime...
’s office. A number of Prime Ministers and other influential Canadian elected officials are or have been financially dependent on Desmarais, including 20th Prime Minister Jean Chrétien, who sat on the board of the Power Corporation of Canada.
Business Links
Paul Desmarais (son) is a member of the Board of Directors of Total SA and SuezSuez
Suez is a seaport city in north-eastern Egypt, located on the north coast of the Gulf of Suez , near the southern terminus of the Suez Canal, having the same boundaries as Suez governorate. It has three harbors, Adabya, Ain Sokhna and Port Tawfiq, and extensive port facilities...
. They frequently combine their European operations with the Belgian financier Albert Frere.
Paul Desmarais (son) is also a member of the board and the Lafarge Group.
The Desmarais family also maintains relations with the French Dassault industrial dynasties, Peugeot
Peugeot
Peugeot is a major French car brand, part of PSA Peugeot Citroën, the second largest carmaker based in Europe.The family business that precedes the current Peugeot company was founded in 1810, and manufactured coffee mills and bicycles. On 20 November 1858, Emile Peugeot applied for the lion...
and Rothschild
Rothschild
Rothschild is a common German surname. It is a habitational name from a house distinguished with a red shield , the earliest recorded example dating from the 13th century...
, among others.
Nicolas Sarkozy has privatized companies in which the Power Corporation of Canada has invested. Through the Carlyle Group, several LNG port projects are under development with controversial Rabaska in Quebec and the Northern Medoc in France.
The escape of Paribas
In 1981, to thwart the nationalization of Paribas desired by François MitterrandFrançois Mitterrand
François Maurice Adrien Marie Mitterrand was the 21st President of the French Republic and ex officio Co-Prince of Andorra, serving from 1981 until 1995. He is the longest-serving President of France and, as leader of the Socialist Party, the only figure from the left so far elected President...
, newly elected president
President
A president is a leader of an organization, company, trade union, university, or country.Etymologically, a president is one who presides, who sits in leadership...
, Paul Desmarais launches in the company of Albert Frere and other European businessmen in Operation Noah's Ark . It was to recover the Belgian subsidiaries (Copeba) and Swiss Paribas (Paribas Switzerland), launching a public exchange offer through a Swiss company, Pargesa. The operation fails, but allows Paul Desmarais bind to important financial and European politicians.
Friendship with Nicolas Sarkozy
According to Le Figaro, Paul Desmarais Sr. is a close associate of President of the French Republic, Nicolas Sarkozy. Paul Desmarais Sr. and President Sarkozy were at the party at Fouquet's to celebrate the election of the new president on May 6, 2007.In 2004, Nicolas Sarkozy has stayed in his estate in Sagard, in Charlevoix
Charlevoix
The Charlevoix region, located in Quebec, includes parts of the north shore of the Saint Lawrence River and the Laurentian Mountains region of the Canadian Shield...
, a good distance from the St. Lawrence. "When you walk into the property, it is opening a first gate. Then you have to go miles and miles before arriving at the castle."Nicolas Sarkozy told about the stronghold of his friend Desmarais.