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WorldCom secures USD1.5 billion financing programme | AIB and Bank of Ireland may be in talks to merge IT operations
The Irish Examiner carries a story about Microsoft's current antitrust case in the US. The paper reports that US District Judge Colleen Kollar-Kotelly said lawyers for Microsoft should make sure their client complies with any order that she issues regarding a remedy for the company's violations of US antitrust law. The comments came at the close of three days of questioning from Kollar-Kotelly on several motions filed by the company before she listens to closing arguments on 19 June.
The Irish Independent reports that ICT Ireland, the IBEC body meant to look out for the interests of the Irish IT sector, has asked the new government to promise to keep the low corporation tax levels currently in force. Read the full story on ElectricNews.Net's Business section.
The FT reports that WorldCom, the debt-ridden global telecoms player, has made progress in locking in long-term financing, hopefully quelling fears that it is facing a liquidity crisis. It has reached agreement with its banks on a revised USD1.5 billion financing programme. WorldCom's finances were in doubt when it cut revenue forecasts last month, causing concern it would have to borrow more money next year to meet debt repayments.
The paper also reports that Network Associates, the computer security group, plans to restate the last three years of profit and loss statements and balance sheets following an internal investigation into accounting methods.
The Wall Street Journal reports that Lucasfilms says it is going to make videogame versions of its coming on-line PC game, called Star Wars Galaxies, for Microsoft's Xbox and Sony's PlayStation 2. The deal gives Lucasfilm an opportunity to reach a wider audience for the title, which is set for release on PC platforms this December.
The paper also reports that a group of ex-Dell managers has formed a company to market a new kind of ultraportable PC combining wireless networking and handwriting recognition. Motion Computing Inc., next month plans to show a first design, based on Microsoft's Windows XP Tablet PC operating software. The company will compete against similar devices from Acer, Fujitsu and Hewlett-Packard.
The Guardian reports that researchers are exploring the possible effect gay Internet chatrooms might have towards high-risk sexual activity among gay and bisexual men. Health advisers want to determine whether the increasing opportunities to use the Web, rather than cruise gay bars and gyms, could be encouraging some men into sexual behaviour more likely to lead to the transmission of STDs.
The Sunday Business Post reports that a senior source inside AIB claims the bank is in talks with the Bank of Ireland to merge IT operations. Reports focus on how the two institutions can merge some elements of their hardware and software development in a bid to drive down costs.
The paper also reports that lots of Irish technology companies are over-valued. The paper describes how ratings agency Standard & Poor's sees dozens of companies that are employing many thousands which are currently "massively overvalued." Additionally, they are not providing attainable earnings figures. The key issue centres around company share options. According to one of S&P's own examples, the network equipment maker Cisco should have reported a net loss of USD0.35 per share in 2001, if taking account of stock options. However, by ignoring these items, Cisco was able to report a loss of just USD0.14 per share.
The Sunday Business Post also reports that Aircraft Management Technologies (AMT), a Dublin software firm, has raised EUR5 million in second round funding. The new round was led by the UK venture capital firm Pentech Ventures. Other investors included Enterprise Ireland and private clients of Davy Stockbrokers. Davy Corporate Finance was appointed by AMT to advise on the round last year. AMT has won over EUR3 million of business for its eTechlog software which allows airline crews to create an electronic version of existing paper documentation normally needed on commercial flights.
The Sunday Business Post also reports on a research report from Merrion Stockbrokers that warns investors about placing funds with troubled e-security outfit Baltimore and the directory enquiries company Conduit. The report, called "Value Opportunities in Irish Tech," says both companies are best left out of portfolios, "on the basis of management execution risk and lack of clear value."
The Sunday Times says that Crescent Capital, a Belfast-based venture capital company, is developing a fund of around STG20 million, which it will invest at between STG500,000 and STG1 million in high-technology spin-offs. The money is mainly intended for Ulster's universities. Aidan Langan, Crescent's investment manager, told the paper, "We are seeing more and more opportunities coming from university spin-off companies."
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