IN THE PAPERS
In the papers 16 October
16-10-2007
by Deirdre McArdle
Alphyra's Cardpoint merger gets welcome boost | Ericsson shares plummet on earnings forecast
The Irish Times reports that environmental group Greenpeace has claimed Apple's iPhone contains hazardous chemicals and materials that are difficult to recycle. According to the group's report -- Missing Call: iPhone's Hazardous Material -- some iPhone components tested positive for chlorinated plastic polyvinyl chloride (PVC) and bromine flame retardants (BFRs) that can be a toxin after being thrown away. The combination handheld media player's battery could also cause environmental problems, according to the report.
The Irish Independent writes that Irish electronic payment firm Alphyra's plans for a EUR700 million merger with Cardpoint, the UK cash machines operator, have been given a boost ahead of a crucial vote next month. It has emerged that Goldman Sachs, one of the advisers on the merger, has built up a 10 percent stake in Cardpoint and is likely to vote in favour of the deal at the firm's extraordinary general meeting in mid-November. This news significantly boosts the chance of the crucial 75 percent approval level being met.
According to the Examiner Eastern European crime gangs are sending college-educated fraudsters to Ireland to run ATM scams that can net as much as EUR13 million a year. The gangs have reportedly stolen EUR3 million from Irish ATMs this year. Una Dillon, of the banks' Irish Payment Services Organisation, told an anti-fraud seminar in Cork on Monday that the gangs and the banking industry were in a constant battle to stay one step ahead of each other. "The gangs cherry-pick people from the street and put them through three or four years at technical college so when they come out they know how bank systems work."
The paper also reports that Irish e-learning firm, PulseLearning has picked up a major international award. The firm, which is valued at EUR30 million and lists NASA, Dell and Pfizer among its clients, won the gold award at the CLO (chief learning officer) Learning Leaders Awards in Arizona, beating off competition from 14 companies in seven countries.
The Wall Street Journal says that Hewlett-Packard has agreed to a USD117.5 million settlement of a class-action suit tied to allegations of stock-options backdating at software maker Mercury Interactive, which HP bought last year. According to Labaton Sucharow, the New York law firm representing the Mercury Pension Fund Group, which filed the suit, the settlement is the largest related to options backdating. Labaton disclosed the settlement's size.
The paper also reports that Oracle is reshuffling its product-development group, and a high-profile executive is stepping down, according to people familiar with the matter. The changes, which were reported on the technology blog ZDNet, come a week after Oracle launched a bid to buy BEA Systems. John Wookey, senior vice president of applications development, is said to be leaving Oracle, though he will stay for an indefinite period to help with the transition, these people say. Thomas Kurian, the senior vice president responsible for Oracle's middleware business, will now also be responsible for applications of Fusion, and if Oracle's bid for BEA is successful, he would likely be responsible for that, too, these people say. An Oracle spokesman declined to comment.
LG Electronics is considering overseas acquisitions to provide new areas of growth as the South Korean company tries to become one of the world's top three electronics makers, according to the Financial Times. Nam Yong, chief executive of LG, told the Financial Times that he is interested in pursuing M&A opportunities if they can help create value for the company. "I am not limiting myself to organic growth only. I am looking for inorganic growth as well," Nam said in his first interview since taking over the helm of the world's fifth-largest mobile handset maker in January.
The paper also reports that telecoms equipment firm Ericsson has sharply cut its third-quarter earnings forecast, causing its shares to lose nearly a quarter of their value in early trading. The Swedish company said it now expected sales to drop 9 percent compared with the second quarter to SKr43.5 billion (EUR4.75 billion, USD6.75 billion), operating income lower by 39 percent compared to the previous quarter to SKr5.6 billion and cash flow of SKr1.6 billion for the third quarter. "This is below the company's own as well as current market expectations and primarily a result of an unexpected shift in the business mix," said Carl-Henric Svanberg, president and chief executive of Ericsson.
Caped Koala Studios has built a virtual world for kids, combining education and social networking 