IN THE PAPERS
In the papers 25 March
25-03-2008
by Deirdre McArdle
Payzone to face challenge of new rival | Icahn turns up the pressure on Motorola
The Irish Times reports that Google has launched a new front in its lobbying campaign to try to pry open more access to US airwaves for wireless internet use. Along with the controversial "spectrum sensing" approach, which tries to identify which parts of the spectrum are in use to avoid interference, Google has backed a Motorola plan that would prevent a device from transmitting on a particular wave length until it had received an "all clear" signal from a local transmitter. If regulators go along with the plan, new devices using the service could be on sale by next year, according to Rick Whitt, Google's lead counsel in Washington.
The Irish Independent reports that e-payments group Payzone, which is just getting over a highly-public boardroom battle, is facing another headache as the founder of its cash machines business prepares to bring a new rival to the stock market later this year. Payzone was created out of the merger of Irish e-payments firm Alphyra with UK ATM machine operator Cardpoint last December. Mark Mills, the businessman who built Cardpoint into one of the largest independent players in the sector in the UK, is currently readying a plan to float another ATM business, to be called Cash, on London's Alternative Investment Market (AIM) by the end of the year.
According to the Irish Examiner Irish technology firm Vimio says it is relying on loans from its directors to stay afloat. The company, which develops technology to allow TV to be viewed over mobile phones, said it had a "considerable debtor list," which is likely to be the subject of "substantial provisions" in the accounts for 2007 as the majority of these debts were greater than 90 days old. Vimio, which is listed on London's AIM, said it has been in discussions with various parties regarding its financing options.
The Wall Street Journal writes that Carl Icahn has rejected an offer from Motorola that would have given him two board seats, and has sued the telecomms-equipment maker for access to crucial board documents. The moves turn up the pressure on Motorola, which is trying to assuage the activist investor while seeking answers for its unprofitable handset business. Icahn held 6.3 percent of the company's stock as of early March. Motorola made the offer in the hopes of ending Icahn's proxy battle for four board seats ahead of the 5 May shareholder meeting, according to a person familiar with the situation. However, the telecoms firm wouldn't seat one of Icahn's candidates: Keith Meister, who manages the USD8 billion fund Icahn Partners.
The same paper says the US Justice Department has approved the merger of satellite-radio companies Sirius Satellite Radio and XM Satellite Radio Holdings, leaving just one more major regulatory hurdle -- the Federal Communications Commission -- before a deal that was given little chance of success a year ago can be completed. Even if the FCC consents, the combined company will face market challenges in the form of stiff competition from traditional broadcasters, iPods, mobile phones and other emerging ways for consumers to access music and other programming.
According to the Financial Times, 3i, a former powerhouse of Europe's venture capital industry, is abandoning early-stage investing in start-up companies to focus on buy-outs, growth capital and infrastructure. "Early-stage has not been an easy place," Philip Yea, 3i's chief executive, told the Financial Times. "It is a natural evolution, because there is more value for us in later-stage companies internationally and that is what we have been doing more and more."
Caped Koala Studios has built a virtual world for kids, combining education and social networking 