ROUNDUPS
In the papers 28 November
28-11-2005
by
Apparent collapse of Swisscom's bids for Eircom and TDC raises concern in Berne and Dublin | O2 executives offered 'golden handcuffs' by Telefonica
The Irish Times reports that Swisscom's state owners on Sunday struggled to defend their decision to ban all foreign acquisitions, including that of Eircom. Speculation mounted about an imminent meeting of Swisscom's board and the possible resignation of leading staff, including Jens Alder, chief executive. Swisscom officials declined to confirm the timing of any meeting, but said the new circumstances made clarification urgent. The speculation followed Friday's statement by the Swiss government that it would oppose attempts by the company to break out of its limited home market by buying counterparts abroad.
The Irish Independent reports that the vacant post of chief scientific adviser to the government will be openly advertised in January. The job, previously held by Barry McSweeney, who has left the post amid controversy, will not require a doctorate. McSweeney was moved to a new post in the Department of Communications earlier this month after it was revealed that his PhD came from a discredited institution.
The Financial Times reports that Marconi, the telecommunications equipment supplier, on Friday put forward detailed plans for the return of STG577.5 million to shareholders through a special dividend and share consolidation. The company, which last month agreed to sell the bulk of its assets to Ericsson, its Swedish rival, for STG1.2 billion, is to pay a special dividend of STG2.75 a share to investors following the completion of the deal. The remaining Marconi business, to be renamed Telent, will consolidate every seven existing shares into two new shares to keep the share price at a stable level following the pay-out. Marconi also unveiled interim results, largely in line with expectations, showing flat revenues and a small improvement in profitability, the paper said.
The same paper reports that Google has dipped its toe into a new part of the search engine advertising business that relies on the telephone to connect advertisers with potential customers. The service, called "Click to Call," appears to be aimed at the many small businesses that cannot use Google's existing online advertising service because they have no web presence of their own, according to analysts and rivals. Ebay, AOL and Yahoo already have similar services, or plans to roll out such services.
The Wall Street Journal reports that Nokia's chief executive said the global mobile phone market is likely to grow faster next year than many people expect. The Finnish company, which produces one of every three mobile phones sold worldwide, has forecast that the mobile device market this year would reach 780 million units. Regarding next year, Chief Executive Jorma Ollila said, "The robust growth will continue and will exceed expectations, as it did this year." Nokia expects a large portion of that expansion to come from China.
The newspaper also reports that TiVo is partnering with several big ad firms to offer its users a system that lets them search for commercials centered around a specific topic. Expected to launch next spring, the feature comes as Madison Avenue is contemplating a number of ways to reach consumers who use technology to avoid traditional advertising.
The Sunday Tribune reports that the chief executive of O2 Ireland, Danuta Gray, will receive a EUR5 million payment if Telefonica's planned takeover of the O2 group goes ahead. The arrangement is designed to ensure that Gray remains at the helm of the Irish firm following the planned buyout. Other O2 executives in the UK and Germany are expected to be given similar packages.
The paper also reports that online accommodation company Web Reservations saw profits triple to EUR10.2 million in 2004. The company operates over 600 websites and has made several acquisitions over the last few years.
The same newspaper reports that Eircom's management is seeking to devise an emergency communications plan to reassure investors that the firm has a growth strategy if a bid from Swisscom fails to materialise. The news comes after it was reported on Friday that the Swiss government will not allow Swisscom to acquire any telecoms firms abroad, including Eircom and Denmark-based TDC.
In its own coverage of the Swisscom buyout of Eircom, the Sunday Business Post reports that the board of Swisscom will make a last-ditch effort this week to rescue its planned EUR2.59 billion bid for Eircom. The Swiss finance ministry, which has a 66 percent stake in Swisscom, moved last Friday to block the prospective deal. The Swiss board, led by chief executive Jens Alder, will argue that it should be allowed to go ahead and bid for Eircom. Sources in Berne and Dublin said Swisscom would instead drop any plans it had to buy TDC in Denmark.
The same newspaper reports that the managing director of a company that is promising businesses cheaper insurance has complained about the allegedly anti-competitive reaction of some insurance companies to his new website. Michael McLaughlin of Galway insurance brokerage McLaughlin and Greaney said he had written to the Competition Authority after some of his suppliers asked him to remove their names from Cheaperinsurance.ie. McLaughlin invested about EUR200,000 in the website, which he launched earlier this month.
The Sunday Business Post also reports that WorldSpreads -- the Irish financial spread betting company and owner of SportsSpreads -- plans to float on the stock market this time next year. The company, founded by former Dublin bankers Conor Foley and Brian O'Neill, is set to appoint an adviser to guide the company to a listing. It has also recently attracted three high-profile British shareholders of Indian extraction. The best known of these is Alpesh Patel, the former Financial Times columnist and market commentator.
The same newspaper reports on the anticipated buyout of Wicklow-based micro-payments infrastructure company Valista by US-based Motricity. The deal is thought to be worth around EUR100 million and comes on the back of Valista's most recent results, which included EUR7 million in turnover in 2004 and a EUR7.8 million loss for the 12 months. Valista's management has refused to comment on the possibility of a buyout.
The Sunday Business Post also reports that Prime Carrier, a Dublin telecoms software firm, made an operating loss of EUR4.2 million last year, pushing its accumulated loss to almost EUR10.4 million. Accounts filed by the company show that it had a deficit of EUR1.3 million on its shareholders' funds at the end of 2004. The company raised EUR600,000 in funding from existing shareholders during the year. The shareholders also provided Prime Carrier with a loan of EUR500,000, which has since been converted into share capital. Earlier this year, the firm raised EUR2.5 million from existing shareholders, bringing its total backing to EUR12 million.
In more results news from the Sunday Business Post, the paper reports that video games software firm Havok made a profit last year as revenues rose almost 60 percent to USD5.1 million. Havok made a pre-tax profit of USD176,413 last year, compared with a pre-tax loss of USD2.35 million in 2003, when turnover was USD3.2 million.
In its "Done Deal" section, the paper resorts that IT outsourcer IT Alliance has invested EUR800,000 in a new Dublin-based shared services centre (SCC), creating 11 new jobs. The paper also reports that the Financial Support Services Unit set up last year by the Joint Managerial Body, which represents Ireland's 400 voluntary secondary schools, has awarded a EUR400,000 contract to IT company Sage Ireland.
The Sunday Times reports that the deputy business editor of the Irish Independent has been asked to co-operate with an Irish Stock Exchange inquiry into share price movements at Eircom. The company's share price rose in the days before and after reports in the Irish Independent that Eircom was the subject of a takeover bid from Swisscom, another telecoms company, which is 66 percent owned by the Swiss government.
The same newspaper reports that Ireland's image as a technological leader has been damaged by a survey that reveals almost 60 percent of its population never use e-mail. Despite being the European base of Intel, Google and Microsoft, 55 percent of people surveyed say they have no access to the internet at home or for personal use elsewhere, according to the Joint National Listenership Research (JNLR) survey. The result is that online business has not taken off in the Republic. About 69 percent of Irish people have never bought a holiday or flight through a website, while 94 percent have never bought groceries online.
Creating successful email surveys: Denise Cox of email specialist Newsweaver argues that you can tap into your readers' likes or dislikes by surveying them.
