In The Papers 18 November

18-11-2008

by Sylvia Leatham

BCM denies Whampoa approach | Yahoo's Yang to step down

The Irish Times reports that 12 Irish tech firms will pitch to a panel of five investors at an event in Trinity College Dublin on Tuesday. The panel consists of representatives of US venture capital firms Kleiner Perkins Caufield Byers, Intel Capital and Venrock, as well as investment banks Morgan Stanley and Credit Suisse. Twenty-five firms applied to pitch at the event, which is being organised by the Irish Technology Leaders Group (ITLG), a group of senior Irish and Irish-American tech execs whose aim is to foster links between the industry in Ireland and Silicon Valley. The companies presenting are Lincor Solutions, Wavebob, Ocean Energy, Openhydro, DecaWave, Powervation, ChipSensors, Ammado, Customer Minds, Design Hosting Software, Firecomms and RipFactory.

The paper also notes that the owners of Xsil are in negotiations to sell a stake in the tech firm to two unnamed parties, in an effort to rescue jobs at the laser tools firm. Xsil's 44 staff were placed on protective notice in September but are now on temporary lay-off while negotiations over the sale continue. Founder and chairman of Xsil, Peter Conlon, said the dramatic deterioration in the company's finances was due to delays in introducing new technology and customers not paying for products received, as well as the wider economic downturn.

The Irish Examiner notes that a website promoting the attractions of the Dingle area has been launched by a local couple. Tourdingle.com contains information for locals and visitors and its aim is to act as a marketing tool for Dingle and its environs. The site was set up by Lisa and Pat Hennessy.

According to the same paper, Minster for Science, Technology and Innovation Dr Jimmy Devins has said Ireland's competitiveness is dependent on the output of research teams. "Innovation is clearly about creativity and I know that researchers supported by Science Foundation Ireland have the ability to come together, tackle questions and deliver innovative solutions which will bring economic and indeed, societal benefits," he said. Dr Devins was speaking at the SFI science summit in Lyrath Estate, Kilkenny on Monday.

The paper also reports that Babcock & Brown Capital (BCM), the Australian investment firm that controls Eircom, has denied a report that chairman Kerry Roxburgh was approached by Hutchison Whampoa about an acquisition of Eircom. A Sunday Tribune report citing Roxburgh was "incorrect", said Erica Borgelt, a spokeswoman for the Sydney-based company. Hutchison spokeswoman Laura Cheung declined to comment.

The Wall Street Journal reports that Yahoo co-founder and chief executive Jerry Yang is to step down as soon as the company finds a replacement. Yahoo chairman Roy Bostock and Yang, who will stay on as a senior executive and board member, have been discussing for weeks the possibility the CEO might step aside, according to sources. The move could pave the way for Yahoo to complete a takeover deal with Microsoft. Yahoo's board members have chosen executive-search firm Heidrick & Struggles International to find Yang's successor. The board is likely to consider Susan Decker, Yahoo's president, who is well-liked by some board members, said sources.

The paper also says that Hewlett-Packard has become the latest tech firm to take short-term cost-cutting measures as the economy struggles. The company notified employees last week that it would extend its normal week-long Christmas shutdown to two weeks to "achieve significant operational savings," a spokeswoman said. HP is in the process of laying off more than 24,000 employees worldwide as part of the process of integrating EDS, which HP acquired earlier this year.

The Financial Times reports that Carphone Warehouse has said it would consider a de-merger of its retail and telecoms interests, as the company predicted the next year was likely to be the most challenging economic environment it had ever operated in. Some of Carphone's shareholders have been pressing for a de-merger, and the company's shares jumped almost 25 percent in early trading. The group reported a loss before tax of STG11 million for the six months to 27 September, compared to a loss of STG38 million in the same period last year.

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