In The Papers 9 October

09-10-2008

by Sylvia Leatham

Hewlett-Packard to cut 133 Irish jobs | Payzone sells overseas units to LCom

The Irish Times reports that Hewlett-Packard expects 133 Irish staff to lose their jobs as part of a global cost-cutting exercise. The firm, which employs more than 4,000 people in Ireland, is looking to cut worldwide staff numbers by 24,600, with the aim of reducing costs following its acquisition of technology services firm EDS. "Over the coming days, there will be meetings with both HP and EDS employee representatives to share information on the proposed integration plan for Ireland," said HP in a statement. "HP expects that the number of positions impacted in Ireland over the two-year time frame will be 133. HP will make every effort where possible to redeploy impacted individuals."

The paper also says that shares in Dublin-based e-payments group Payzone fell to an all-time low on Wednesday after the firm announced it has sold its businesses in France, Italy and Spain for EUR20 million. The businesses are being sold to LCom, a French company that specialises in the distribution of payment products and services. Under the deal, Payzone will receive EUR13.2 million in cash and EUR6.8 million "by way of assignment of financial guarantees". In addition, Payzone will write off EUR4.2 million it is owed by the businesses. The deal is scheduled to close on 31 October, subject to regulatory approval in France. Payzone said it would use the majority of the funds to pay down debt.

The Irish Independent says that Nokia has launched its much-anticipated touch-screen handset with unlimited music downloads. The Nokia 5800 XpressMusic device has 8 gigabytes of memory and is equipped with maps and satellite navigation. The handset will sell this quarter for EUR279 without subsidies or taxes. Versions with free downloads will be available later in 2009. The phone is compatible with Nokia's Comes With Music programme, a competitor to iTunes.

The Irish Examiner reports that pre-ticked boxes and other means of tricking consumers into spending more when buying online are to be banned under stricter protection for consumers. One-third of Europe's consumers shop online, but the number could be much higher with clearer information and greater customer guarantees, according to the European Commission. The proposed rules would also cut red tape for those selling online and update the law to cover new sales methods, such as online auctions. "We need an EU-wide safety net of rights so consumers have the security they need to shop around with peace of mind," said EU Consumer Commissioner Meglena Kuneva. Draft legislation under the Consumer Rights Directive is due to go to the European Parliament and then to the EU member states.

The paper also says that Fexco, a Kerry-based financial services and online travel bookings group, posted a major drop in pre-tax profits to a little less than EUR1.44 million in 2007, down from EUR41 million a year earlier. The fall was attributed to impairment costs on some of its investments and the winding up of one of its subsidiaries, FAI Finance Corporation, which went into liquidation in February 2008. The 2006 profit figure was heavily boosted, by around EUR23.5 million, by the proceeds from the sale of four subsidiary companies that year. A spokesperson for Fexco said the group remained in "a very strong financial position" and expected to see "a substantial profit" recorded for 2008.

The Wall Street Journal reports that Broadcom is mounting another legal attack on rival Qualcomm, this time taking aim at a key tactic used by a patent-licensing business that provides the bulk of Qualcomm's profits. The suit, filed in a US District Court in San Diego, seeks to stop Qualcomm from a long-time practice of charging patent royalties both for mobile phones and for the chips used inside them. Broadcom, relying on a Supreme Court ruling in June, argues that a principle known as patent exhaustion prevents Qualcomm from what Broadcom sees as charging customers twice. Broadcom said in a statement that Qualcomm's patents and licences are unenforceable, and that its "practices constitute patent misuse that has brought Qualcomm a financial windfall and brought harm to the industry and consumers." Qualcomm disputes Broadcom's assertions.

The same paper notes that China's Huawei Technologies has pulled the plug on the auction of a major stake in its mobile devices unit, citing weak market conditions. Only two bidders submitted offers, prompting the firm to cancel the auction. The offers submitted did not achieve the valuation Huawei had wanted.

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