IN THE PAPERS
In the papers 31 October
31-10-2007
by Sylvia Leatham
Ericsson sued for allegedly misleading market | Ofcom criticises proposed shake-up of EU telecoms regulation
The Irish Times reports that the board of software maker BEA Systems has said it is still looking at ways to maximise shareholder value, including the possible sale of the firm, after a bid from Oracle expired on Sunday. However the board reiterated its opposition to selling the company at USD17 a share -- the sum Oracle had proposed to pay in its expired offer.
The Irish Examiner says that staff at Seagate who are being made redundant have been told they will receive a package of as much as STG20,000 each, but only if they stay until the company closes down next year. Read more on the closure of Seagate's Limavady plant as reported by ENN on Tuesday.
According to the Financial Times, Ericsson is being sued in the US for allegedly misleading the market following the issue of a profit warning on 15 October that wiped out a quarter of its market value in a day. A US law firm has alleged that the company and its senior managers knew Ericsson's earnings were bad well before they told the market. Coughlin Stoia Geller Rudman & Robbins also alleges that Ericsson was aware of its problems when it held a conference for investors just three weeks earlier in London on 11 September. It is seeking compensation for anyone who bought shares between 11 September and 15 October.
The paper also says that a shake-up of EU telecoms regulation risks undermining national watchdogs and creating an unnecessary layer of bureaucracy in Brussels, according to UK telecoms regulator Ofcom. Ed Richards, chief executive of Ofcom, has warned against a European Commission proposal to expand its powers over the telecoms industry. Ofcom is concerned that the Commission, as part of a revised EU framework on telecoms regulation, could secure the right to veto certain liberalisation measures put forward by national watchdogs. Viviane Reding, the European commissioner responsible for telecoms, is due to publish her plan to reform the EU telecoms framework next month.
The paper also reports that the US House of Representatives has voted unanimously to extend a tax moratorium that was first adopted to promote US internet access in the early days of the online medium, despite state and local government opposition. The latest ban, which prevents local authorities from levying a number of potential internet taxes, marked a victory for technology and telecommunications companies. While short of the permanent ban they had lobbied for, it still extends the moratorium for seven years.
The Wall Street Journal reports that Samsung Electronics has re-stated results for all four quarters of 2006 to comply with South Korea's new tax-related accounting standard, resulting in a small reduction in its full-year net profit. The company said the accounting treatment lowered net profit in three quarters of last year and raised it slightly in one. In all, Samsung's 2006 net profit was lowered by SKW9.5 billion to SKW7.92 trillion. That amounts to a USD10 million reduction, to USD8.64 billion, based on year-end exchange rates.
Caped Koala Studios has built a virtual world for kids, combining education and social networking 