In the papers 13 September

13-09-2006

by Sylvia Leatham

Motorola to cut jobs in Cork | Digicel to float on the New York Stock Exchange

The Irish Independent reports that AIB is to relocate its computer services division -- currently located in Donnybrook House in Dublin -- over the next few years, a spokesman has confirmed. The bank will sell and lease back Donnybrook House, bringing to 11 the number of premises for sale and leaseback in the capital.

The paper also reports that mobile phone maker Motorola plans to shed more jobs at its mobile networks plant in Cork. It is thought that up to 60 jobs could go, on top of the 30 positions that were cut last July. "Motorola is in discussions with its staff in Cork regarding the future requirements on the site," said a company spokesman.

The same paper says that the decision on the future of PPARS, the botched EUR130 million health service computer system, has been suspended until after the general election. The Government and the Health Service Executive were accused on Tuesday night of "playing politics" with the controversial project and deliberately delaying the decision. Opposition parties promised to raise the issue with ministers when the Dail resumes at the end of the month.

The Irish Times reports that Denis O'Brien is preparing to float his Caribbean mobile operator, Digicel, on the New York Stock Exchange later this year, according to a source. The sale could net O'Brien USD2 billion or more as Digicel may be worth up to USD2.5 billion and is 87 percent to 90 percent owned by O'Brien. On Tuesday, O'Brien announced that he was resigning as deputy governor of Bank of Ireland. It is understood that O'Brien has also resigned from, or is in the process of resigning from, almost all non-executive directorships of Irish firms that he does not own, including Norkom and the Smurfit School of Business.

The paper also says that Hewlett-Packard has announced the January departure of Chairman Patricia Dunn. Read the full story as reported by ENN on Tuesday.

The same paper reports that NBC Universal is trying to challenge Yahoo and Google for supremacy in the burgeoning market to distribute online video. The media group has launched a new marketplace for online video that includes its 230 affiliate television stations as well as more than two dozen outside partners. The initiative, known as the National Broadband Company, or nbbc, will allow partners to make video clips available to a central pool from which others can draw and post on their own sites.

The paper also says that interim losses at e-learning firm ThirdForce have more than doubled. Read more on the company's results as reported by ENN.

The paper also reports that Dell chief executive Kevin Rollins has said that the company's Irish manufacturing operations in Limerick will continue to "meet the needs of customers in parts of Europe" but that an Eastern European manufacturing facility was essential to be "close to customers" in emerging markets. Speaking at Dell's annual technology day in New York, Rollins did not provide any further detail on the likely location of the new European factory or how it might affect employment levels in Limerick.

In more news of Dell, the Financial Times reports that Michael Dell, chairman and founder of the world's largest PC maker, has said he shared the blame for stumbles that have battered Dell's reputation this year. Dell said he continued to support Kevin Rollins, who took over from him as chief executive two years ago, in spite of the company's falling share price. "Kevin and I run this business together," he said. "If you want to blame someone, you can blame me too."

The paper also reports that there has been no shortage of interest from buy-out firms and telecoms groups in the prospect of Telecom Italia's break-up. Analysts believe many of the largest buy-out groups from the US and UK, possibly working with some local Italian houses, would be likely to team up in perhaps two consortia to take part in any auction of Telecom Italia assets. There is likely to be interest from industry bidders, too.

The Wall Street Journal says that Canon will inspect as many as 1.87 million personal photocopiers shipped worldwide because of a danger they may catch fire or generate smoke from overheating. Canon said six cases have been reported since 1992 in which copiers have caused smoke or fire because of faulty connections in the heating units. The cost of checking the products, which were shipped between 1987 and 1997, could total as much as JPY200 million (USD1.7 million), a Canon spokeswoman said.