IN THE PAPERS
In the papers 16 July
16-07-2007
by Jonathan Farrelly
Vodafone under pressure to break up | Eircom has highest costs in Europe for installing new lines
The Irish Examiner reports that Vodafone is facing increased pressure to break itself up after influential American investor group Glass Lewis publicly supported radical proposals from a rebel shareholder. The activist investor Efficient Capital Structures (ECS) has called on Vodafone to carry out a capital structure overhaul amid concerns over its "underperforming" share price. ECS has succeeded in getting its proposals included as resolutions to be put to shareholder vote at Vodafone's annual general meeting on 24 July.
The Financial Times says that I-design, a UK company that creates and sells adverts for cash machines, is to raise about STG3.5 million when it floats on the AIM. The firm plans to use the money from the flotation to expand its London-based team. Dealings in the shares are expected to commence on 20 July.
The paper also says that the introduction of consumer-driven web 2.0 technologies into businesses is set to usher in a new phase of productivity growth, according to John Chambers, chairman and chief executive of Cisco Systems. "We are at the very beginning of the next phase of creativity that will last, I think, a minimum of 10 years, probably 15 years," said Chambers in an interview with the newspaper. The head of the world's biggest maker of data networking equipment said that social networks, collaborative websites, teleconferencing and other technologies that allow interaction on a large scale could change entire business models.
The Wall Street Journal says that Philips Electronics has posted a strong rise in second-quarter net profit after selling shares it owned in Taiwan Semiconductor Manufacturing Co., although sales declined. Net profit came in at EUR1.57 billion, up from EUR301 million a year earlier, but falling slightly short of analyst expectations of EUR1.59 billion. The figure includes a EUR1.22 billion gain on the sale of TSMC shares. The company reported sales of EUR6.1 billion, down 4 percent from last year and falling short of the EUR6.22 billion analysts had expected.
According to the same paper, Spain's Telefonica has said it will push for internal growth, steering clear of big deals and reassuring investors still skittish about the telecom company's debt pile. Telefonica, the owner of O2, spent more than EUR100 billion during the past decade building a sprawling empire with operations in 22 countries. This year it vowed not to make any major acquisitions -- a self-imposed moratorium that expires at the end of the year and has some investors nervous. Now, however, Telefonica's finance chief says the company has really sworn off big deals and will push for internal growth instead.
The Sunday Business Post reports that the cost incurred by Eircom of installing new phone lines and repairing existing lines is the highest of any telecoms company in Western Europe, according to a study of the industry by Mercer Management Consulting. The survey also found that the cost of line installation to the company was 40 percent higher than the European average and higher than anywhere in Europe, North America or Latin America.
The same paper reveals that Dublin technology firm Intune has raised EUR13 million in funding from a group of international investors. The funding round was led by Balderton Capital, the London-based venture capital firm that recently changed its name from Benchmark Europe.
The same paper says that wireless internet provider Clearwire Broadband plans to increase its Irish staff levels by 10 percent, due to the launch of a new customer support service. Clearwire recently launched its Third Line Care service in the Irish market.
The paper also reports that Irish firm Saadian Technologies is on course for growth of 60 percent for the second year running. The mobile software company has two key business areas -- mobile messaging services and its Prisoner Intelligence Notification System (PINS). The PINS product has not been launched in the Irish market, due to the small size of the Irish prison population.
The paper also relates how a Dublin firm whose software automates the process of managing unpaid invoices expects to have up to 3,000 businesses signed up by the end of the year. Cashcollector was set up by David Malone, the former boss of e-mail marketing company Twelve Horses. It is currently targeting the US and Europe and has signed deals with major distributors in both markets.
The same paper says that an American firm that buys and exploits technologies worldwide has set up an Irish subsidiary to take advantage of Ireland's low tax rate and skilled workforce. RBID.com has incorporated a Dublin company called RBID Technologies, which will house all the firm's technologies and intellectual property, allowing it to pay lower tax than in the US.
The same paper reports that computer maker Dell has launched a new product stream aimed at small businesses, but the new range will not result in any new jobs at the firm. Dell has sought up to 100 voluntary redundancies at its Limerick plant, as part of global downsizing plans announced last month.
The Sunday Times says that Glonav, a global positioning system (GPS) software company controlled by Irish private-equity firm Atlantic Bridge Ventures, has struck a deal to supply its technology to one of the three biggest mobile phone manufacturers in China. Glonav is also targeting the US and European markets.
The same paper says that a row has erupted between Eircom senior management and Communications Workers' Union officials over the leaking last week of company documents detailing redundancy payments paid to two CWU negotiators, who are former Eircom employees. The CWU has sought legal advice over the leaking of the documents to a national newspaper. It said that it was prepared to fund a legal action on behalf of the two officials, Jerome Barrett and James O'Connor, over the issue.
Meanwhile, the Sunday Tribune reports that plans to deal with the "worst case" possibility of a full-scale strike at Eircom next week is a work in progress, according to management. Four unions are at loggerheads with Eircom over an unpaid 2 percent pay increase due to them in May as part of the Toward 2016 social partnership deal. The Communications Workers' Union and Impact have given notice of industrial action to commence on 19 July.
Caped Koala Studios has built a virtual world for kids, combining education and social networking 