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The Irish Examiner reports that the Valentia consortium will learn by the end of this week if its offer will be sent to the Competition Authority. Mary Harney has been studying the Valentia offer for some weeks and has just a couple of days left to decide if it should be examined by the Competition Authority. Harney is studying whether there is any conflict between Tony O'Reilly's position as chairman of Valentia and his controlling interest in Independent News & Media, which would damage competition in the telecoms sector. If she feels there may be a conflict, the deal would be scrutinised by the Competition Authority and could delay the payment of cheques to shareholders.
The Irish Times reports that staff at EMC's Cork operation have been asked to take up to an average of 10 days' unpaid leave between now and Christmas in a bid to cut costs. The compulsory leave has been introduced to pare costs and avoid job cuts at its Ovens plant in Ireland, a spokeswoman said. All staff at the company will be affected by the compulsory holiday leave. However, it is understood that technical staff may be required to take just five days' leave, while administration staff will have to take 10 days.
The same paper also reports that a survey by IBEC's Telecommunications User Group (TUG) found that almost a third of Irish businesses believed there was inadequate fixed-line and broadband telecoms infrastructure in the State. The survey shows the mobile market grew to 2.62 million connections in the second quarter 2001, up from 1.84 million in the previous year. Two-thirds of businesses believe mobile phone firms offer inconsistent and uneven service, while 50 per cent of Irish companies are dissatisfied with the high cost of mobile calls. The survey also highlighted that there was strong demand for fixed-line broadband services which could offer customers a range of high-speed Internet services.
The Irish Independent reports that US and Europe stock markets plummeted on Tuesday on news of the biggest fall in American consumer confidence for seven years. The Conference Board, a private business research group, said its index of consumer confidence plunged for a fourth straight month to 85.5 in October, worse than Wall Street expectations of 95.6. By the close of trade in New York, the Nasdaq technology stock market was down 1.9 percent, and the Dow Jones fell 1.6 percent. In London, the FTSE closed down 1.6 percent, the Irish market fell 1.8 percent and in Paris the CAC was down three percent.
The same paper also reports that Intel has reduced the price of its Pentium 4 personal computer processors by as much as 29 percent, as it strives to boost sales. The move means the price of the chips has more than halved since their launch on 24 November 2000.
The Financial Times reports that Verizon Communications announced on Tuesday that costs related to the 11 September terrorist attacks would be between USD1.7 billion and USD1.9 billion, but that the company expected the impact on earnings to be fully accounted for in the third and fourth quarters of this year. The company has an insurance policy worth USD1 billion that covers the replacement of property and costs related to the interruption of business and it is also likely to receive additional funds from the US government. The company cut annual sales growth estimates by one percent and said it expected year-end earnings per share of USD3 to USD3.03.
The same paper also reports that IBM on Tuesday moved to strengthen its e-business software division with the acquisition of CrossWorlds Software for USD129 million in cash. The purchase of CrossWorlds will add to IBM's middleware products, which allow businesses to integrate different software applications with a network. CrossWorlds has been an IBM partner for the last four years and its 350 employees will be merged into IBM's business integration software unit.
The Wall Street Journal reports that Adobe Systems Inc. lowered its fiscal fourth-quarter revenue and earnings targets and reduced its workforce by five percent or 150, blaming the sales shortfall on weak economic conditions. Adobe expects fourth-quarter revenue of USD275 million to USD285 million for the fiscal period ending 30 November. In mid-September, the company said it expected to generate revenue of USD310 million to USD320 million, but those forecasts did not factor in the potential economic impact from the 11 September attacks, Adobe said Tuesday. The company also said growth next year would be less than five percent.
The same paper also reports that 24/7 Media Inc. acquired rival on-line advertising firm Real Media Inc. in a stock deal valued at less than USD2 million. The New York based firms will combine to form 24/7 Real Media. The new company will be headed by 24/7 Media chief executive David Moore. A transition team will manage the integration process and issue a recommendation on a permanent name change. PubliGroupe S.A., a large advertising company and primary owner of Real Media, will own 15 percent of the combined company. PubliGroupe will offer 24/7 Real Media financing up to USD7.5 million in loans and funding, the companies said.
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