In The Papers 8 October

08-10-2008

by Sylvia Leatham

Carraig must make firm offer for Andor | SMEs use net to cut costs

The Irish Times reports that the UK takeover panel has ruled that Carraig Capital, an investment group controlled by Kingspan founder Eugene Murtagh and his son Paul, must make a firm offer for Belfast's Andor Technology by close of business 13 October. The takeover panel said that Carraig must either announce a "firm intention to make an offer" for camera equipment maker Andor, or state that it will "not proceed" with a bid. If Carraig does not make an offer, the takeover panel has ruled that it will be precluded from making a bid for six months. Andor is already the subject of a bid from a management-led group called Thorndale Trading.

The Irish Independent says that research from Premierline Direct, a business insurance company, shows that SMEs are relying on the internet to help cut the cost of running their companies. More than half of firms surveyed are purchasing more online than they did three years ago. Fifty-four percent buy IT equipment via the web, 43 percent use it for ordering stationery and over a third for making travel arrangements. Fifty-one percent of businesses said they spend online because it gives them more control over expenditure and is more cost-effective than traditional methods of purchasing goods or services. In addition, half said they pay bills online, while 72 percent use the net to manage their finances.

According to the Financial Times, spending on online advertising in the US slowed sharply even before the financial crisis of recent weeks, and the rate of growth of online shopping has also decreased significantly. New figures from the Interactive Advertising Bureau suggest that although the long-term shift of advertising and commerce online is set to continue, it could prove to be more vulnerable to an economic downturn than many had hoped. In the second quarter, US online advertising spending rose 12.8 percent to USD5.7 billion, a slowdown from the 18.2 percent growth of the preceding three months.

The paper also says that EMI is planning to enter the crowded digital music marketplace, forming its own site to join the likes of iTunes and MySpace and marketing its artists' music directly to fans online. EMI.com, a consumer-facing portal to be launched before Christmas, will offer audio and video content. Users will be able to buy music and download it. There will also be unique content and elements of the site will be free. EMI declined to comment further about its plans.

The Wall Street Journal reports that Google has created a new e-commerce ad format for its video website YouTube called "click to buy". The new feature includes ads that will appear on videos from the site's music partners EMI Group and Universal Music Group. By clicking on the ad, consumers can buy the songs via Apple's iTunes and Amazon.com's MP3 Store. YouTube, which gets paid each time a consumer makes a purchase, hopes to expand the feature to other content partners.

The paper also notes that Monster Worldwide has completed its acquisition of ChinaHR, paying USD174 million for the remaining 55 percent stake in the Beijing-based online recruitment company that it did not already own. Monster hopes the acquisition will give it a stronger foothold in the recruitment business in China, Taiwan and Hong Kong. "We've looked at other potential assets in China, and we by far believe this is the most attractive and the one with best brand recognition," said Sal Iannuzzi, chief executive for Monster.

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