In the papers 23 April

23-04-2007

by Jonathan Farrelly

DoubleClick defends Google acquisition | Imagine acquires Dutch telco Coolwave

The Irish Examiner reports that IT distribution firm Horizon Technology paid its chief financial officer a bonus of EUR762,000 last year. The company said the payment was in lieu of share options that should have been awarded to CFO Cathal O'Caoimh, which would have reduced the company's earnings per share. Having met the terms of Horizon's incentive plan for senior executives, O'Caoimh was in line to be awarded more than 1.2 million share options. The cash payment brought O'Caoimh's pay packet last year to EUR1.1 million.

The paper also says that mobile operator O2 has come under fire over its extension of peak calling times for subscribers. From next month, most of O2's 1.1 million pay-as-you-go customers will see peak rates apply for 10 hours instead of the current eight. This means that the off-peak period will run for 14 hours instead of 16. The Consumers' Association of Ireland (CAI) has accused O2 of profiteering, saying the company is introducing a price rise through the back door. "The only people who will benefit from these changes will be the company and not their hard-pressed customers who will be facing higher bills," said CAI chief executive Dermott Jewell.

The Financial Times says that India's law ministry has given a favourable opinion on Vodafone's bid for control of Hutchison Essar, marking a crucial step that could move India's largest telecoms deal closer to government approval. The law ministry's opinion that Hutchison Essar has not violated foreign investment regulations has already been submitted to regulators, according to sources, and this legal opinion will have the most sway on whether the Foreign Investment Promotion Board will finally approve Vodafone's USD11 billion bid for Hutchison Essar.

According to the Wall Street Journal, DoubleClick has defended Google's proposed USD3.1 billion acquisition of the internet-advertising provider, which has been criticised by digital-privacy advocates. DoubleClick pledged that the information it collects about, and for, its graphical-advertising customers won't be shared with Google after the acquisition closes sometime this year. "Google would not be able to match its search data to the data collected by DoubleClick, as DoubleClick does not have the right to use its clients' data for such purposes," the company said in a statement.

The paper also says that Research In Motion is set to launch new software that will allow features of its popular BlackBerry wireless e-mail device to be used on non-BlackBerry devices. The features in question include e-mail, a chat function and electronic maps. Later this year RIM will begin selling the software, which initially will be available only for some devices equipped with Microsoft's Windows Mobile. RIM says it also plans to eventually release versions for other mobile operating systems.

The Sunday Business Post reveals that an Irish subsidiary of Microsoft paid a dividend of almost EUR3 billion to its US parent last year. Microsoft Ireland Operations paid the dividend after making a pre-tax profit of more than EUR2 billion in the financial year to the end of June 2006. Microsoft Ireland Operations is the software giant's main trading company and employs more than 1,200 people in Sandyford, Dublin.

The same paper reports that thousands of public sector workers are to be offered cheap PCs and laptops as part of a government drive to increase PC penetration in Ireland. State agencies will buy bulk supplies of the latest laptops and PCs and offer them to state employees at discount prices.

The paper also states that Symantec, the multinational software giant that employs 600 people in Ireland, has lodged a claim with the Revenue Commissioners for a multi-million-euro tax rebate. The claim was lodged in recent months and relates to the 2003 and 2004 financial periods.

The same paper also says that a telecoms company that was involved in building the Three mobile network is suing a former member of staff to try and stop him working for a rival company. Killarney Telecommunications, which is based in Maynooth, Kildare, is taking a High Court action against Declan Brazil in an effort to enforce a restrictive covenant in his contract that stops him working for a rival company after leaving the company.

The same paper reveals that eSpatial, a software company backed by Dermot Desmond, will provide the technology for the US government's geological survey, which aims to map the entire continental US. Executives at eSpatial spent last week in discussions with US government officials about further uses of the technology in other US departments.

The paper also reports that Dublin-based technology company Free-hotspot.com has set up 1,000 wireless internet hotspots around Europe since it was founded two years ago. The company provides broadband equipment to cafes, pubs and hotels that want to offer free Wi-Fi access to customers.

The paper also reveals that Asavie, a Dublin firm whose technology allows workers to access office information remotely, has signed a significant deal with Alltel, the US telecoms giant. The deal is Asavie's first major contract in the US and is believed to be worth a six-figure sum for the Irish firm.

The Sunday Tribune says that the Department of Communications and the Commission for Communications Regulation (ComReg) will start discussions this week to finalise the scheme for national broadband coverage to provide a service for the remaining 10 percent of the population that lacks broadband access. According to a spokesman, the department is expected to issue a call for tenders in early May.

The Sunday Times reports that from Monday, Google workers in 17 countries will be able to auction off vested stock options online, rather than exercising them. The options can be sold to financial institutions, which will pay a premium above the difference between the exercise price and the market price for Google stock, even where the exercise price is higher -- making the options a hedging tool.

Finally, the same paper says that Imagine, the telecommunications company run by serial entrepreneur Sean Bolger, has made its first European carrier acquisition, in a deal valuing the company at EUR103 million. Bolger's telco has bought the Dutch company Coolwave for EUR18 million. The acquisition is the first step in Bolger's ambition to develop a pan-European mobile virtual network operator (MVNO).