First Mover in Mobile
How Nokia is selling cell phones to the developing world
by Jack Ewing
Looking for ways to make mobile handsets practical for people living in developing countries, Finnish mobile-phone maker Nokia Corp. (NOK) has trekked to far corners of the globe, from the narrow alleys of Mumbai to the vast slums of Nairobi. The result is a slew of new features especially designed for places with harsh weather and harsher living conditions. One example: The company created dustproof keypads—crucial in dry, hot countries with many unpaved roads, as Nokia executives learned from visits to customers' homes in India. Innovations like those helped generate sales in 2006 of $3.7 billion for Nokia in India, making the company the market leader in the fastest-growing mobile-phone market in the world.
But Nokia's initiatives for emerging markets reach way beyond traditional product innovation. These days, it's also breaking the mold on how it markets, distributes, and sells phones in developing countries. In India, Nokia estimates there are 90,000 points-of-sale for its phones, ranging from modern stores to makeshift kiosks, even more than China's 40,000.
More at: http://www.businessweek.com/innovate/content/may2007/id20070504_299909.htm
Thursday, December 13, 2007
More on Coalitions
Delta merger talks must include pilots, union boss says
By RUSSELL GRANTHAM
The Atlanta Journal-Constitution
Published on: 12/13/07
Any successful merger talks involving Delta Air Lines will have to include the pilots union from the start, the union's top leader says.
"Any consolidation attempt involving Delta will fail if it does not involve Delta's pilots in the formative stage and does not provide adequate protection and added value for Delta's pilots in any consolidated entity," union chairman Lee Moak said Thursday in a letter to pilots.
institutional shareholder, Pardus Capital, urged management in November to combine with United Airlines in a stock-swap deal. The New York hedge fund, which owns shares in both airlines, hired retired Continental Airlines Chief Executive Gordon Bethune to talk up the proposed merger among other investors.
So far there's been no indication that other investors are pushing a Delta-United combination. But worsening industry conditions could continue to fuel speculation.
On Thursday, German carrier Lufthansa reached an agreement to buy a 19 percent stake in discount carrier JetBlue Airways. Airline shares have dropped significantly amid investor fears that rising jet fuel prices and a weakening economy could undermine the industry's recovery from years of losses.
"We are not opposed to consolidation, could support a rational consolidation strategy, and at some point may even determine that consolidation is desirable," he said.
He said Delta will have to emerge from any deal a stronger carrier, and it will have to "reward the pilots for their participation as stakeholders in the transaction, and will provide the necessary platform for long-term growth in pilot earnings and career progression."
More at:
http://www.ajc.com/business/content/business/delta/stories/2007/12/13/delta_1214.html?cxntlid=inform
By RUSSELL GRANTHAM
The Atlanta Journal-Constitution
Published on: 12/13/07
Any successful merger talks involving Delta Air Lines will have to include the pilots union from the start, the union's top leader says.
"Any consolidation attempt involving Delta will fail if it does not involve Delta's pilots in the formative stage and does not provide adequate protection and added value for Delta's pilots in any consolidated entity," union chairman Lee Moak said Thursday in a letter to pilots.
institutional shareholder, Pardus Capital, urged management in November to combine with United Airlines in a stock-swap deal. The New York hedge fund, which owns shares in both airlines, hired retired Continental Airlines Chief Executive Gordon Bethune to talk up the proposed merger among other investors.
So far there's been no indication that other investors are pushing a Delta-United combination. But worsening industry conditions could continue to fuel speculation.
On Thursday, German carrier Lufthansa reached an agreement to buy a 19 percent stake in discount carrier JetBlue Airways. Airline shares have dropped significantly amid investor fears that rising jet fuel prices and a weakening economy could undermine the industry's recovery from years of losses.
"We are not opposed to consolidation, could support a rational consolidation strategy, and at some point may even determine that consolidation is desirable," he said.
He said Delta will have to emerge from any deal a stronger carrier, and it will have to "reward the pilots for their participation as stakeholders in the transaction, and will provide the necessary platform for long-term growth in pilot earnings and career progression."
More at:
http://www.ajc.com/business/content/business/delta/stories/2007/12/13/delta_1214.html?cxntlid=inform
Coalitions
Activision-Vivendi's Game-Changing Deal
The new Activision Blizzard will give EA a heavyweight to contend with in the increasingly important market of massive multiplayer online games
by Reena Jana and Matt Vella
The $18.9 billion tieup between Activision (ATVI) and Vivendi (VIV.PA) is numbingly complex in its structure, but the motivations behind it are simple: Video game publishers want to bulk up to cover the rising costs of developing games, which can easily soar to tens of millions of dollars. And increasingly, game companies are tying their fortunes to trendy online, multiplayer games such as the popular fantasy title World of Warcraft—developed by Vivendi's Blizzard Entertainment—which has 9.3 million subscribers and will be owned and operated by the new venture.
If approved, the deal could effectively realign the industry landscape, creating two massive gaming heavyweights with similarly matched creative clout and global distribution. During a Dec. 3 conference call, executives said the new company, called Activision Blizzard, would start with 15% of the worldwide games market, including PC and console games. In 2006, the total video game market was worth some $28 billion, according to research firm NPD Group. Activision Blizzard's revenues for 2007 are expected to be about $3.8 billion.
All Sights Are on the MMO Market
But rival Electronic Arts (ERTS), with expected 2007 revenues of $3.2 billion, has been on its own spending spree. It is retooling its portfolio of games to include more online multiplayer games and original content. In October EA announced the $860 million acquisition (BusinessWeek.com, 10/29/07) of two independent games studios, in part because one is developing a massively multiplayer online game, or MMO, which analysts and industry insiders say could challenge World of Warcraft. In 2006, EA spent $76 million to acquire Mythic Entertainment, an independent developer of online games.
More at:
http://www.businessweek.com/technology/content/dec2007/tc2007123_075300.htm?chan=innovation_game+room_top+stories
The new Activision Blizzard will give EA a heavyweight to contend with in the increasingly important market of massive multiplayer online games
by Reena Jana and Matt Vella
The $18.9 billion tieup between Activision (ATVI) and Vivendi (VIV.PA) is numbingly complex in its structure, but the motivations behind it are simple: Video game publishers want to bulk up to cover the rising costs of developing games, which can easily soar to tens of millions of dollars. And increasingly, game companies are tying their fortunes to trendy online, multiplayer games such as the popular fantasy title World of Warcraft—developed by Vivendi's Blizzard Entertainment—which has 9.3 million subscribers and will be owned and operated by the new venture.
If approved, the deal could effectively realign the industry landscape, creating two massive gaming heavyweights with similarly matched creative clout and global distribution. During a Dec. 3 conference call, executives said the new company, called Activision Blizzard, would start with 15% of the worldwide games market, including PC and console games. In 2006, the total video game market was worth some $28 billion, according to research firm NPD Group. Activision Blizzard's revenues for 2007 are expected to be about $3.8 billion.
All Sights Are on the MMO Market
But rival Electronic Arts (ERTS), with expected 2007 revenues of $3.2 billion, has been on its own spending spree. It is retooling its portfolio of games to include more online multiplayer games and original content. In October EA announced the $860 million acquisition (BusinessWeek.com, 10/29/07) of two independent games studios, in part because one is developing a massively multiplayer online game, or MMO, which analysts and industry insiders say could challenge World of Warcraft. In 2006, EA spent $76 million to acquire Mythic Entertainment, an independent developer of online games.
More at:
http://www.businessweek.com/technology/content/dec2007/tc2007123_075300.htm?chan=innovation_game+room_top+stories
Negotiations and Strategic Moves
New EU-Africa trade pacts flounder
10.12.2007 - 09:29 CET By Honor Mahony
EU attempts to get an overall deal with African states on new trade rules failed over the weekend during a difficult summit where there were also clashes over human rights issues.The European Union has been aiming to get all African countries to sign up to new economic partnership agreements (EPAs) before an end-of-year deadline.
But some African politicians made clear at the meeting in Lisbon on Sunday (9 December) that they were pulling out of the negotiations."It's clear that Africa rejects the EPAs," said Senegalese president Abdoulaye Wade, according to AFP.
The EPAs were supposed to be a key part of a strategic package that would give Europe more of a foothold in Africa, directly competing with China which has been investing heavily in Africa for years.A new trade regime has to be in place by the end of the year, according to a ruling by the World Trade Organisation (WTO), which deemed illegal the EU's current regime with African states under which preferential trade systems are in place for former colonies.The EU says that if the new rules are not put in place, African countries could lose tariff-free access to European markets .European Commission president Jose Manuel Barroso said the EPAs were "a good offer for Africa," with the EU now having to take a decision on whether to impose tariffs on all but the poorest African states if the deadline is not met.Under the EPAs, the EU is offering duty-free terms for most African imports on condition that African markets gradually open up to competition.
More at: http://euobserver.com/9/25304
10.12.2007 - 09:29 CET By Honor Mahony
EU attempts to get an overall deal with African states on new trade rules failed over the weekend during a difficult summit where there were also clashes over human rights issues.The European Union has been aiming to get all African countries to sign up to new economic partnership agreements (EPAs) before an end-of-year deadline.
But some African politicians made clear at the meeting in Lisbon on Sunday (9 December) that they were pulling out of the negotiations."It's clear that Africa rejects the EPAs," said Senegalese president Abdoulaye Wade, according to AFP.
The EPAs were supposed to be a key part of a strategic package that would give Europe more of a foothold in Africa, directly competing with China which has been investing heavily in Africa for years.A new trade regime has to be in place by the end of the year, according to a ruling by the World Trade Organisation (WTO), which deemed illegal the EU's current regime with African states under which preferential trade systems are in place for former colonies.The EU says that if the new rules are not put in place, African countries could lose tariff-free access to European markets .European Commission president Jose Manuel Barroso said the EPAs were "a good offer for Africa," with the EU now having to take a decision on whether to impose tariffs on all but the poorest African states if the deadline is not met.Under the EPAs, the EU is offering duty-free terms for most African imports on condition that African markets gradually open up to competition.
More at: http://euobserver.com/9/25304
Ratatouille and Strategic Voting
Nose on the Prize, but Which Oscar to Sniff?
By MICHAEL CIEPLY
Published: November 28, 2007
LOS ANGELES, Nov. 27 — Eddie Valiant, the hard-nosed private eye played by Bob Hoskins in “Who Framed Roger Rabbit,” wasn’t about to fiddle with animation. “Forget it,” he said. “I don’t work Toontown.”
Now the makers of “Ratatouille” are about to find out if Valiant also speaks for the movie academy in Hollywood.
As the awards season heats up, the Walt Disney Company and its Pixar Animation Studios unit have been wrestling with a conundrum posed by their warmly received, computer-animated fable about a rat who aspires to become a Parisian chef: Any move to promote it as the year’s best picture might lead to ballot-splitting that would diminish its chances of getting the less prestigious but more easily won Oscar for best animated film.
More than a technical issue, the dilemma goes to the heart of Hollywood’s evolving attitude toward animated movies. Only one, “Beauty and the Beast,” also from Disney, has ever been nominated for best picture by the Academy of Motion Picture Arts and Sciences. (It lost in 1992 to “The Silence of the Lambs.”) In 2002 “Shrek” became the first winner of an Oscar for best animated feature.
But an unintended consequence of the new category was to confine animated movies to a kind of Academy Awards ghetto precisely as they were flourishing at the box office and challenging the best live-action films with their storytelling art.
more at:
http://www.nytimes.com/2007/11/28/movies/awardsseason/28rata.html?_r=1&ref=awardsseason&oref=slogin
By MICHAEL CIEPLY
Published: November 28, 2007
LOS ANGELES, Nov. 27 — Eddie Valiant, the hard-nosed private eye played by Bob Hoskins in “Who Framed Roger Rabbit,” wasn’t about to fiddle with animation. “Forget it,” he said. “I don’t work Toontown.”
Now the makers of “Ratatouille” are about to find out if Valiant also speaks for the movie academy in Hollywood.
As the awards season heats up, the Walt Disney Company and its Pixar Animation Studios unit have been wrestling with a conundrum posed by their warmly received, computer-animated fable about a rat who aspires to become a Parisian chef: Any move to promote it as the year’s best picture might lead to ballot-splitting that would diminish its chances of getting the less prestigious but more easily won Oscar for best animated film.
More than a technical issue, the dilemma goes to the heart of Hollywood’s evolving attitude toward animated movies. Only one, “Beauty and the Beast,” also from Disney, has ever been nominated for best picture by the Academy of Motion Picture Arts and Sciences. (It lost in 1992 to “The Silence of the Lambs.”) In 2002 “Shrek” became the first winner of an Oscar for best animated feature.
But an unintended consequence of the new category was to confine animated movies to a kind of Academy Awards ghetto precisely as they were flourishing at the box office and challenging the best live-action films with their storytelling art.
more at:
http://www.nytimes.com/2007/11/28/movies/awardsseason/28rata.html?_r=1&ref=awardsseason&oref=slogin
Wednesday, December 12, 2007
Fairness of the cost split?
Tuition: Earn More, Pay More?
Some public-college business majors pay more than their liberal arts peers. Schools claim the increases are necessary, but are they fair?
by Alison Damast
Eric DeFries, a senior business major at Utah State University in Logan, has watched his tuition slowly creep up two to three percentage points a year since he arrived as a freshman. The modest increases were bearable for DeFries, who's studying finance. That all changed when he received an e-mail from the business school last spring informing him that because he was a business major, his tuition would be an additional $445 per semester, on top of his $2,150 base tuition and mandatory fees.
While many college students are concerned about rising tuition costs, undergraduate business students at Utah State's Jon M. Huntsman School of Business and elsewhere are finding themselves facing costs they haven't expected. For the first time this year, Huntsman undergrads who register for upper-division business classes are being charged an additional $35 per credit hour. The new fees will tack on an average of $735 more in tuition to their bills over the year, administrators say.
DeFries is part of a growing cohort of college students being singled out by schools because of their choice of major. Many universities are now deploying a practice known as differential tuition, charging different prices to individual students based on their majors or levels. It's a model that is becoming increasingly widespread as public universities struggle with diminishing state financial support and higher operating costs.
Undermining Schools' Democratic Mission
Schools defend the practice, saying it helps them maintain their programs and compete with private colleges for expensive professors and programs (BusinessWeek.com, 10/1/07). But the pricing strategy is worrying some advocates of public education, who are concerned that the democratic mission of public universities is undergoing a radical shift, falling prey to market forces as schools are becoming more pinched for money.
Ronald Ehrenberg, the director of Cornell University's Higher Education Research Institute, said that public education used to be viewed as a "social good" that benefited not only the people being educated, but society at large. That perspective is in danger, he said.
"We used to think about education and college education as a place where students would find themselves and they should be free to study whatever they want and not have to worry about a price," he said. "Now, when we put these prices on, we may discourage students from making these switches."
Responding to Rising Costs
Differential tuition isn't new, and for years some schools have been effectively imposing increases on certain majors by tacking on surcharges such as "program fees." But posting higher tuition for certain majors is becoming more common as public universities struggle with funding issues, according to a report released in September by the Boulder (Colo.)-based Western Interstate Commission for Higher Education, a higher education consortium of 15 western states. According to the September report, 26 out of 107 four-year schools, many of them state flagships and research universities, are making students pay more for certain fields of study.
It is quickly becoming a national trend that is on the "permanent increase," said John Fernandes, president of the Association to Advance College Schools of Business. "Within the last five years, it has started to take hold in undergraduate business schools," Fernandes said. "In the past, you would be admitted to a university and pay the university's prices. That was the tradition for over 100 years but not anymore, and it is not likely that schools will go back to their old ways."
Source: http://www.businessweek.com/bschools/content/dec2007/bs2007124_770986.htm
Some public-college business majors pay more than their liberal arts peers. Schools claim the increases are necessary, but are they fair?
by Alison Damast
Eric DeFries, a senior business major at Utah State University in Logan, has watched his tuition slowly creep up two to three percentage points a year since he arrived as a freshman. The modest increases were bearable for DeFries, who's studying finance. That all changed when he received an e-mail from the business school last spring informing him that because he was a business major, his tuition would be an additional $445 per semester, on top of his $2,150 base tuition and mandatory fees.
While many college students are concerned about rising tuition costs, undergraduate business students at Utah State's Jon M. Huntsman School of Business and elsewhere are finding themselves facing costs they haven't expected. For the first time this year, Huntsman undergrads who register for upper-division business classes are being charged an additional $35 per credit hour. The new fees will tack on an average of $735 more in tuition to their bills over the year, administrators say.
DeFries is part of a growing cohort of college students being singled out by schools because of their choice of major. Many universities are now deploying a practice known as differential tuition, charging different prices to individual students based on their majors or levels. It's a model that is becoming increasingly widespread as public universities struggle with diminishing state financial support and higher operating costs.
Undermining Schools' Democratic Mission
Schools defend the practice, saying it helps them maintain their programs and compete with private colleges for expensive professors and programs (BusinessWeek.com, 10/1/07). But the pricing strategy is worrying some advocates of public education, who are concerned that the democratic mission of public universities is undergoing a radical shift, falling prey to market forces as schools are becoming more pinched for money.
Ronald Ehrenberg, the director of Cornell University's Higher Education Research Institute, said that public education used to be viewed as a "social good" that benefited not only the people being educated, but society at large. That perspective is in danger, he said.
"We used to think about education and college education as a place where students would find themselves and they should be free to study whatever they want and not have to worry about a price," he said. "Now, when we put these prices on, we may discourage students from making these switches."
Responding to Rising Costs
Differential tuition isn't new, and for years some schools have been effectively imposing increases on certain majors by tacking on surcharges such as "program fees." But posting higher tuition for certain majors is becoming more common as public universities struggle with funding issues, according to a report released in September by the Boulder (Colo.)-based Western Interstate Commission for Higher Education, a higher education consortium of 15 western states. According to the September report, 26 out of 107 four-year schools, many of them state flagships and research universities, are making students pay more for certain fields of study.
It is quickly becoming a national trend that is on the "permanent increase," said John Fernandes, president of the Association to Advance College Schools of Business. "Within the last five years, it has started to take hold in undergraduate business schools," Fernandes said. "In the past, you would be admitted to a university and pay the university's prices. That was the tradition for over 100 years but not anymore, and it is not likely that schools will go back to their old ways."
Source: http://www.businessweek.com/bschools/content/dec2007/bs2007124_770986.htm
Auctions&Bidding
27-year-old who needs date turns it into a bidding war and a blog
By HELENA OLIVIERO
The Atlanta Journal-Constitution
Published on: 12/12/07
Karen Adler's objective for the office holiday party is spelled out in evergreen-colored letters on a newly created Web site:
1. Obtain a legitimate date to the Fitzgerald & Co. 2007 holiday party. 2. Increase favorability and preference for the Karen Adler brand among eligible bachelors in the metro Atlanta area.
Faced with another last-minute scramble for a date to the holiday party, Adler took her quest online — and added a holiday twist.
She's auctioning herself to the highest bidder.
It's not for money, and it can't be a complete stranger, but there's no question the 27-year-old advertising executive is taking the date-seeking challenge seriously this year, turning her quandary of lonely hearts into a game of romance. It all plays out at happyholidating.blogspot.com.
The best nonmonetary gift wins the date.
Photoshopped in an elf costume, a smiling Adler (who looks much prettier in person) blogs and is keeping the line open for bidding until noon Friday — one day before the office party.
"I love parties. But then I found out that dates and spouses are welcome, and that's where the wheels fell off the bus," said Adler. "As a single girl who has attended many a holiday party, I know from experience that the pressure is on to bring someone, and to bring someone good."
About a week into the dating experiment, she's received about 10 offers. Most are from men, but some pals and family members have also offered to keep Adler company.
Some of the offerings are intriguing. She's warm to the promise of a home-cooked meal and massage. And she's touched that an old college pal has offered to fly in from Chicago for the party.
Others get a chuckle but not much else. One guy has promised to give her a lobster, but she'd have to promise to keep it as a pet.
"What good is it if I can't eat it?" she asks.
Others just don't make the cut.
Carlos Ricque, 38, an executive creative director at the agency, offered a wind-up toy featuring a duck riding a tricycle. Ricque said he's kept the colorful tin toy on his desk for years for inspiration.
"It's pretty awesome, but at some point, you have to hold yourself up to a higher standard than a wind-up toy," she said.
Her ploy for a date was almost not needed.
Her company's original party plans called for a simple brunch and early dismissal. But employees wanted the royal treatment — the cocktails, the miniature beef Wellingtons, smoked trout and carving stations.
So the boss decided on a more lavish affair for the company's 160 employees at a Buckhead mansion, complete with DJ and dance floor.
Suddenly, Adler found herself bemoaning the change. Some of her single co-workers felt her pain and suggested they all go stag.
But Adler said she wouldn't fall into that trap.
"Everybody says they will go by themselves, and then in the end they bring someone and you feel like the 17th wheel," said Adler.
She will make her decision at noon Friday. The party is the following evening.
On a recent morning at the Buckhead advertising agency, scores of staffers were checking the blog and bids.
David Rollo, a media planner at the company, has been using a Google tool to track the number of visitors to Adler's site and tallying the average time spent perusing.
Rollo, who is married, said it's been fun to watch co-workers get involved in the game.
Many of Adler's co-workers think she's a catch. Described as hardworking, she's also playful at the office, keeping a Nerf gun at her desk. She started a daily "5 o'clock dance party," which involves a mix of '80s classics and R. Kelly. And when her "office sweater" went missing, she posted missing signs all over the office.
After keeping a close eye on the bidding for the past several days, Ricque knows his chances are slim.
"That guy who's willing to fly here from Chicago? He'll win hands down!" insists Ricque.
And then, with Adler nearby, he grabs 45 yards of twine and smiles.
"You think I would do any better with this?"
THE CONTENDERS
Here's the short list of date contenders based on current bids.
1. Tim, an old pal from Chicago (they went to graduate school together), offers to fly last minute for the bash. That's chivalry and expensive.
2. Shira, Karen's older sister, offers her designer clothes and shoes (includes Manolo Blahniks).
3. The mystery man. A friend of a friend, who works at another ad agency across town, posts as "Anonymous." He throws his name into the ring on Karen's birthday. Nice touch.
4. Marcee, a friend of two years, offers to be her "wing girl." Her safety.
5. Carlos. An agency VP offers a wind-up toy duck. It's funny. And Carlos is cute. But it's still just a duck.
KAREN'S FIVE EVALUATION CRITERIA
1. Potential compatibility
2. Unique value of offer
3. Monetary value of offer
4. Humorous value of offer
5. Value specifically to Karen, as determined by her own parameters
Source:
http://www.ajc.com/holidayguide/content/holidayguide/stories/2007/12/11/officedate_1212.html?cxntnid=biz121207e
By HELENA OLIVIERO
The Atlanta Journal-Constitution
Published on: 12/12/07
Karen Adler's objective for the office holiday party is spelled out in evergreen-colored letters on a newly created Web site:
1. Obtain a legitimate date to the Fitzgerald & Co. 2007 holiday party. 2. Increase favorability and preference for the Karen Adler brand among eligible bachelors in the metro Atlanta area.
Faced with another last-minute scramble for a date to the holiday party, Adler took her quest online — and added a holiday twist.
She's auctioning herself to the highest bidder.
It's not for money, and it can't be a complete stranger, but there's no question the 27-year-old advertising executive is taking the date-seeking challenge seriously this year, turning her quandary of lonely hearts into a game of romance. It all plays out at happyholidating.blogspot.com.
The best nonmonetary gift wins the date.
Photoshopped in an elf costume, a smiling Adler (who looks much prettier in person) blogs and is keeping the line open for bidding until noon Friday — one day before the office party.
"I love parties. But then I found out that dates and spouses are welcome, and that's where the wheels fell off the bus," said Adler. "As a single girl who has attended many a holiday party, I know from experience that the pressure is on to bring someone, and to bring someone good."
About a week into the dating experiment, she's received about 10 offers. Most are from men, but some pals and family members have also offered to keep Adler company.
Some of the offerings are intriguing. She's warm to the promise of a home-cooked meal and massage. And she's touched that an old college pal has offered to fly in from Chicago for the party.
Others get a chuckle but not much else. One guy has promised to give her a lobster, but she'd have to promise to keep it as a pet.
"What good is it if I can't eat it?" she asks.
Others just don't make the cut.
Carlos Ricque, 38, an executive creative director at the agency, offered a wind-up toy featuring a duck riding a tricycle. Ricque said he's kept the colorful tin toy on his desk for years for inspiration.
"It's pretty awesome, but at some point, you have to hold yourself up to a higher standard than a wind-up toy," she said.
Her ploy for a date was almost not needed.
Her company's original party plans called for a simple brunch and early dismissal. But employees wanted the royal treatment — the cocktails, the miniature beef Wellingtons, smoked trout and carving stations.
So the boss decided on a more lavish affair for the company's 160 employees at a Buckhead mansion, complete with DJ and dance floor.
Suddenly, Adler found herself bemoaning the change. Some of her single co-workers felt her pain and suggested they all go stag.
But Adler said she wouldn't fall into that trap.
"Everybody says they will go by themselves, and then in the end they bring someone and you feel like the 17th wheel," said Adler.
She will make her decision at noon Friday. The party is the following evening.
On a recent morning at the Buckhead advertising agency, scores of staffers were checking the blog and bids.
David Rollo, a media planner at the company, has been using a Google tool to track the number of visitors to Adler's site and tallying the average time spent perusing.
Rollo, who is married, said it's been fun to watch co-workers get involved in the game.
Many of Adler's co-workers think she's a catch. Described as hardworking, she's also playful at the office, keeping a Nerf gun at her desk. She started a daily "5 o'clock dance party," which involves a mix of '80s classics and R. Kelly. And when her "office sweater" went missing, she posted missing signs all over the office.
After keeping a close eye on the bidding for the past several days, Ricque knows his chances are slim.
"That guy who's willing to fly here from Chicago? He'll win hands down!" insists Ricque.
And then, with Adler nearby, he grabs 45 yards of twine and smiles.
"You think I would do any better with this?"
THE CONTENDERS
Here's the short list of date contenders based on current bids.
1. Tim, an old pal from Chicago (they went to graduate school together), offers to fly last minute for the bash. That's chivalry and expensive.
2. Shira, Karen's older sister, offers her designer clothes and shoes (includes Manolo Blahniks).
3. The mystery man. A friend of a friend, who works at another ad agency across town, posts as "Anonymous." He throws his name into the ring on Karen's birthday. Nice touch.
4. Marcee, a friend of two years, offers to be her "wing girl." Her safety.
5. Carlos. An agency VP offers a wind-up toy duck. It's funny. And Carlos is cute. But it's still just a duck.
KAREN'S FIVE EVALUATION CRITERIA
1. Potential compatibility
2. Unique value of offer
3. Monetary value of offer
4. Humorous value of offer
5. Value specifically to Karen, as determined by her own parameters
Source:
http://www.ajc.com/holidayguide/content/holidayguide/stories/2007/12/11/officedate_1212.html?cxntnid=biz121207e
Tuesday, December 4, 2007
Changing the rules of the game
Through Genetics, Tapping a Tree’s Potential as a Source of Energy
By ANDREW POLLACK
Published: November 20, 2007
It might be true that “only God can make a tree,” as the poet Joyce Kilmer wrote. But genetic engineers can fundamentally redesign them.
Aiming to turn trees into new energy sources, scientists are using a controversial genetic engineering process to change the composition of the wood. A major goal is to reduce the amount of lignin, a chemical compound that interferes with efforts to turn the tree’s cellulose into biofuels like ethanol.
Vincent L. Chiang, co-director of the forest biotechnology group at North Carolina State University, has developed transgenic trees with as little as half the lignin of their natural counterparts. “I think the transgenic tree with low lignin will contribute significantly to energy needs,” he said.
Environmentalists say such work can be risky, because lignin provides trees with structural stiffness and resistance to pests. Even some scientists working on altering wood composition acknowledge that reducing lignin too much could lead to wobbly, vulnerable trees.
“Nature would have selected for lower-lignin trees if they could survive,” said Shawn Mansfield, associate professor of wood science at the University of British Columbia.
More at:
http://www.nytimes.com/2007/11/20/science/20tree.html?_r=2&oref=slogin&oref=slogin
By ANDREW POLLACK
Published: November 20, 2007
It might be true that “only God can make a tree,” as the poet Joyce Kilmer wrote. But genetic engineers can fundamentally redesign them.
Aiming to turn trees into new energy sources, scientists are using a controversial genetic engineering process to change the composition of the wood. A major goal is to reduce the amount of lignin, a chemical compound that interferes with efforts to turn the tree’s cellulose into biofuels like ethanol.
Vincent L. Chiang, co-director of the forest biotechnology group at North Carolina State University, has developed transgenic trees with as little as half the lignin of their natural counterparts. “I think the transgenic tree with low lignin will contribute significantly to energy needs,” he said.
Environmentalists say such work can be risky, because lignin provides trees with structural stiffness and resistance to pests. Even some scientists working on altering wood composition acknowledge that reducing lignin too much could lead to wobbly, vulnerable trees.
“Nature would have selected for lower-lignin trees if they could survive,” said Shawn Mansfield, associate professor of wood science at the University of British Columbia.
More at:
http://www.nytimes.com/2007/11/20/science/20tree.html?_r=2&oref=slogin&oref=slogin
Wednesday, October 17, 2007
Cooperation gives higher payoffs
In the article provided, the players manage to achieve their goal and higher payoff by cooperating against their rival.
http://www.reuters.com/article/reutersEdge/idUSL1742352720071017
Trade buyers team up to triumph in M&A
Wed Oct 17, 2007 1:31pm EDT
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By Mark Potter and Eleanor Wason - Analysis
LONDON (Reuters) - Team work is playing an increasing part in the traditionally cut-throat world of corporate mergers and acquisitions (M&A).
Danish brewer Carlsberg (CARLb.CO: Quote, Profile, Research) and Dutch rival Heineken (HEIO.AS: Quote, Profile, Research) on Wednesday became the latest companies to join forces in a bid to buy and break up a competitor -- Britain's Scottish and Newcastle (SCTN.L: Quote, Profile, Research).
This, on the day that a consortium of banks led by Royal Bank of Scotland (RBS.L: Quote, Profile, Research) completed their takeover of Dutch bank ABN AMRO (AAH.AS: Quote, Profile, Research), and while British chemicals group ICI (ICI.L: Quote, Profile, Research) is also in the midst of being carved up by two of its rivals.
With debt markets clogged by the fallout from losses on poor quality U.S. mortgage loans, and equity markets suffering bouts of volatility, the team-up trend could be here to stay, investors and bankers say.
"It's all to do with reducing your risk," said one M&A banker at a major investment bank in London.
"If everything is going fantastically well in debt and equity, you can buy all of it (the target business) and auction bits off." If not, it can be better to form a consortium and agree a break up before the deal is done, he continued.
Richard Cranfield, a partner at law firm Allen & Overy which advises on M&A deals, said consortium deals were often complicated to put together, but that apparent successes -- notably the RBS-led bid for ABN AMRO -- could encourage more.
"The execution risk is now better understood...It's about the experience of doing them successfully," he said.
Colin Morton, a fund manager at Rensburg Fund Managers, said the Carlsberg/Heineken move for Scottish & Newcastle was reigniting speculation about other potential corporate break-up targets, such as food and consumer goods giant Unilever (ULVR.L: Quote, Profile, Research) (UNc.AS: Quote, Profile, Research) and mobile phone group Vodafone (VOD.L: Quote, Profile, Research).
But much would depend on the macro-economic outlook, which is currently in the balance, he said.
"If things get any worse, you'd typically expect M&A to dry up," Morton said. "What you're seeing at the moment is that a lot of companies have been through a lot of restructuring over the past five years or so. They've cut debt and restored profitability and they're now wondering what next? Doing a deal can give them another few years of cost-savings. But valuations are high, so they're often getting together with someone else."
REASONS TO COOPERATE
Allen & Overy's Cranfield said there were many reasons why companies get together to do an M&A deal.
One is to give them more chance of success in a bid battle.
RBS's decision to team up with Spain's Santander (SAN.MC: Quote, Profile, Research) and Belgium's Fortis (FOR.BR: Quote, Profile, Research), for example, gave it a decisive advantage over Britain's Barclays (BARC.L: Quote, Profile, Research), which was trying to buy ABN AMRO on its own.
Another reason to find a partner is to avoid buying something you don't want.
Hence British insurer Standard Life's (SL.L: Quote, Profile, Research) is working with Swiss Re (RUKN.VX: Quote, Profile, Research) on a possible bid for Resolution (RSL.L: Quote, Profile, Research) because it is not interested in the target's closed life funds.
A third motive is to drive up the price of a bid to persuade a reluctant seller.
Dutch chemicals group Akzo Nobel (AKZO.AS: Quote, Profile, Research), for example, managed to increase its bid for ICI by over 10 percent -- and win over the British company's board -- after it struck a side deal to sell on some assets to Germany's Henkel (HNKG_p.DE: Quote, Profile, Research).
Looking to avoid trouble with competition regulators is a further reason to work with another company.
"That's why you've got Carlsberg and Heineken coming together," Rensburg's Morton said.
"Getting together might be complicated. But if you can get through that, it can often make a complicated deal easier."
© Reuters2007All rights reserved
http://www.reuters.com/article/reutersEdge/idUSL1742352720071017
Trade buyers team up to triumph in M&A
Wed Oct 17, 2007 1:31pm EDT
Email Print Digg Reprints Single Page
By Mark Potter and Eleanor Wason - Analysis
LONDON (Reuters) - Team work is playing an increasing part in the traditionally cut-throat world of corporate mergers and acquisitions (M&A).
Danish brewer Carlsberg (CARLb.CO: Quote, Profile, Research) and Dutch rival Heineken (HEIO.AS: Quote, Profile, Research) on Wednesday became the latest companies to join forces in a bid to buy and break up a competitor -- Britain's Scottish and Newcastle (SCTN.L: Quote, Profile, Research).
This, on the day that a consortium of banks led by Royal Bank of Scotland (RBS.L: Quote, Profile, Research) completed their takeover of Dutch bank ABN AMRO (AAH.AS: Quote, Profile, Research), and while British chemicals group ICI (ICI.L: Quote, Profile, Research) is also in the midst of being carved up by two of its rivals.
With debt markets clogged by the fallout from losses on poor quality U.S. mortgage loans, and equity markets suffering bouts of volatility, the team-up trend could be here to stay, investors and bankers say.
"It's all to do with reducing your risk," said one M&A banker at a major investment bank in London.
"If everything is going fantastically well in debt and equity, you can buy all of it (the target business) and auction bits off." If not, it can be better to form a consortium and agree a break up before the deal is done, he continued.
Richard Cranfield, a partner at law firm Allen & Overy which advises on M&A deals, said consortium deals were often complicated to put together, but that apparent successes -- notably the RBS-led bid for ABN AMRO -- could encourage more.
"The execution risk is now better understood...It's about the experience of doing them successfully," he said.
Colin Morton, a fund manager at Rensburg Fund Managers, said the Carlsberg/Heineken move for Scottish & Newcastle was reigniting speculation about other potential corporate break-up targets, such as food and consumer goods giant Unilever (ULVR.L: Quote, Profile, Research) (UNc.AS: Quote, Profile, Research) and mobile phone group Vodafone (VOD.L: Quote, Profile, Research).
But much would depend on the macro-economic outlook, which is currently in the balance, he said.
"If things get any worse, you'd typically expect M&A to dry up," Morton said. "What you're seeing at the moment is that a lot of companies have been through a lot of restructuring over the past five years or so. They've cut debt and restored profitability and they're now wondering what next? Doing a deal can give them another few years of cost-savings. But valuations are high, so they're often getting together with someone else."
REASONS TO COOPERATE
Allen & Overy's Cranfield said there were many reasons why companies get together to do an M&A deal.
One is to give them more chance of success in a bid battle.
RBS's decision to team up with Spain's Santander (SAN.MC: Quote, Profile, Research) and Belgium's Fortis (FOR.BR: Quote, Profile, Research), for example, gave it a decisive advantage over Britain's Barclays (BARC.L: Quote, Profile, Research), which was trying to buy ABN AMRO on its own.
Another reason to find a partner is to avoid buying something you don't want.
Hence British insurer Standard Life's (SL.L: Quote, Profile, Research) is working with Swiss Re (RUKN.VX: Quote, Profile, Research) on a possible bid for Resolution (RSL.L: Quote, Profile, Research) because it is not interested in the target's closed life funds.
A third motive is to drive up the price of a bid to persuade a reluctant seller.
Dutch chemicals group Akzo Nobel (AKZO.AS: Quote, Profile, Research), for example, managed to increase its bid for ICI by over 10 percent -- and win over the British company's board -- after it struck a side deal to sell on some assets to Germany's Henkel (HNKG_p.DE: Quote, Profile, Research).
Looking to avoid trouble with competition regulators is a further reason to work with another company.
"That's why you've got Carlsberg and Heineken coming together," Rensburg's Morton said.
"Getting together might be complicated. But if you can get through that, it can often make a complicated deal easier."
© Reuters2007All rights reserved
Sequential move game
The article talks about the never ending game between labor and civil liberties organization and the US government. In this case the NGOs protect the rights of 8 million illegal immigrants working for USA companies. This is a sequential move game and I believe that US Government will react to the necessitated pause in their project.
http://www.ajc.com/business/content/shared-gen/ap/Finance_General/Immigrant_Employers_Lawsuit.html?cxntnid=biz101107e
Plan to Enforce Labor Rule Stalled
By JULIANA BARBASSA Associated Press Writer
SAN FRANCISCO — A federal judge on Wednesday granted a request by labor and civil liberties organizations to temporarily block the U.S. government from proceeding with a program to crack down on businesses that may be employing illegal immigrants.
U.S. District Judge Charles Breyer said the Social Security Administration and the Department of Homeland Security could not go ahead with their plan to send joint letters warning businesses they'll face penalties if they keep workers whose Social Security numbers don't match their names.
Breyer said the new work-site rule would likely impose hardships on businesses and their workers. Employers would incur new costs to comply with the regulation that the government hasn't evaluated, and innocent workers unable to correct mistakes in their records in the given time would lose their jobs, the judge wrote.
"The plaintiffs have demonstrated they will be irreparably harmed if DHS is permitted to enforce the new rule," Breyer wrote.
The so-called "no match" letters, including a Department of Homeland Security warning, were supposed to start going out in September but were held after labor groups and immigrant activists filed a federal lawsuit.
The government had about 140,000 letters ready to go, each containing the names of 10 or more employees with mismatches in their records. About 8 million employees would be affected, according to court documents.
The decision Wednesday was disappointing, said Homeland Security Secretary Michael Chertoff, but wasn't more than a "bump in the road" in the agency's drive to vigorously enforce laws aimed at keeping illegal immigrants out of the work force.
The government will evaluate the "modest legal obstacles" presented by the judge, addressing them in litigation or outside court, as it examines its options and determines whether to appeal the decision, Chertoff said.
"I don't think there's anything in the judge's ruling that is insurmountable," Chertoff told The Associated Press by telephone. "The key is to move forward. We're committed to using every tool available to enforce our immigration laws."
But plaintiffs, which include the AFL-CIO, the American Civil Liberties Union and the U.S. Chamber of Commerce, saw the decision as a significant victory against a program they believe would foster discrimination on the work site, lead to job losses by lawful employees and expose businesses to additional expenses and the fear of prosecution.
"Judge Breyer's decision today reassures authorized workers and U.S. citizens that their rights will be protected," said Marielena Hincapie, with the National Immigration Law Center, an attorney on the case. "We're very pleased to find the court held there is a serious question whether the Department of Homeland Security has exceeded its authority."
The injunction blocks the implementation of the government's plan until the lawsuit is resolved or an appeals court overturns this judge's decision.
The government had argued that the rule doesn't impose an expense and simply provides guidelines to businesses that want to avoid liability for hiring undocumented workers.
"If an employer gets an indication of problems with an employee's Social Security number or their name, they've got to ask about it," Chertoff said. "That seems commonsense to me."
In August, Chertoff announced the agency would start notifying businesses that if workers were unable to clear up problems with their Social Security numbers within 90 days, the employees would have to be terminated. If not, their bosses could face criminal fines and other sanctions.
The ruling Wednesday came as Latinos in northern Virginia filed a lawsuit against Prince William County in an attempt to halt the implementation of a resolution that aims to deny a wide range of public services to illegal immigrants.
___
October 10, 2007 - 6:28 p.m. EDT
Copyright 2007, The Associated Press. The information contained in the AP Online news report may not be published, broadcast or redistributed without the prior written authority of The Associated Press.
http://www.ajc.com/business/content/shared-gen/ap/Finance_General/Immigrant_Employers_Lawsuit.html?cxntnid=biz101107e
Plan to Enforce Labor Rule Stalled
By JULIANA BARBASSA Associated Press Writer
SAN FRANCISCO — A federal judge on Wednesday granted a request by labor and civil liberties organizations to temporarily block the U.S. government from proceeding with a program to crack down on businesses that may be employing illegal immigrants.
U.S. District Judge Charles Breyer said the Social Security Administration and the Department of Homeland Security could not go ahead with their plan to send joint letters warning businesses they'll face penalties if they keep workers whose Social Security numbers don't match their names.
Breyer said the new work-site rule would likely impose hardships on businesses and their workers. Employers would incur new costs to comply with the regulation that the government hasn't evaluated, and innocent workers unable to correct mistakes in their records in the given time would lose their jobs, the judge wrote.
"The plaintiffs have demonstrated they will be irreparably harmed if DHS is permitted to enforce the new rule," Breyer wrote.
The so-called "no match" letters, including a Department of Homeland Security warning, were supposed to start going out in September but were held after labor groups and immigrant activists filed a federal lawsuit.
The government had about 140,000 letters ready to go, each containing the names of 10 or more employees with mismatches in their records. About 8 million employees would be affected, according to court documents.
The decision Wednesday was disappointing, said Homeland Security Secretary Michael Chertoff, but wasn't more than a "bump in the road" in the agency's drive to vigorously enforce laws aimed at keeping illegal immigrants out of the work force.
The government will evaluate the "modest legal obstacles" presented by the judge, addressing them in litigation or outside court, as it examines its options and determines whether to appeal the decision, Chertoff said.
"I don't think there's anything in the judge's ruling that is insurmountable," Chertoff told The Associated Press by telephone. "The key is to move forward. We're committed to using every tool available to enforce our immigration laws."
But plaintiffs, which include the AFL-CIO, the American Civil Liberties Union and the U.S. Chamber of Commerce, saw the decision as a significant victory against a program they believe would foster discrimination on the work site, lead to job losses by lawful employees and expose businesses to additional expenses and the fear of prosecution.
"Judge Breyer's decision today reassures authorized workers and U.S. citizens that their rights will be protected," said Marielena Hincapie, with the National Immigration Law Center, an attorney on the case. "We're very pleased to find the court held there is a serious question whether the Department of Homeland Security has exceeded its authority."
The injunction blocks the implementation of the government's plan until the lawsuit is resolved or an appeals court overturns this judge's decision.
The government had argued that the rule doesn't impose an expense and simply provides guidelines to businesses that want to avoid liability for hiring undocumented workers.
"If an employer gets an indication of problems with an employee's Social Security number or their name, they've got to ask about it," Chertoff said. "That seems commonsense to me."
In August, Chertoff announced the agency would start notifying businesses that if workers were unable to clear up problems with their Social Security numbers within 90 days, the employees would have to be terminated. If not, their bosses could face criminal fines and other sanctions.
The ruling Wednesday came as Latinos in northern Virginia filed a lawsuit against Prince William County in an attempt to halt the implementation of a resolution that aims to deny a wide range of public services to illegal immigrants.
___
October 10, 2007 - 6:28 p.m. EDT
Copyright 2007, The Associated Press. The information contained in the AP Online news report may not be published, broadcast or redistributed without the prior written authority of The Associated Press.
Repeated Bidding?
The article is not only about biding and giving the right price. It about the game that BEA as a company willing to be acquired by bigger market players, want to initiate with the potential buyers. In order to achieve the needed price BEA tries to involve other bidders and refused Oracle’s first offer. I believe that the game between Oracle and BEA will be a repeated one and probably other players will offer other payoffs.
http://online.wsj.com/article/SB119218622871657224.html?=djemalert&mod=djm_HAWSJSB_Welcome
Oracle Discloses Pitch for BEA
Offer of $6.7 Billion Too Low, Target Says;Icahn Presses for Sale
By VAUHINI VARAOctober 13, 2007; Page A3
Larry Ellison, founder and chief executive of Oracle Corp., may be entering the end game in his four-year play to consolidate the business-software industry around his company.
The software giant disclosed a $6.7 billion unsolicited offer to buy BEA Systems Inc., a Silicon Valley company that helped build the market for Web-services software. The bid, a 25% premium to BEA's closing price Thursday, comes as activist investor Carl Icahn, BEA's biggest shareholder, has put pressure on the smaller software company to sell itself.
BEA responded that the offer significantly undervalues the company, but didn't reject it outright.
An acquisition of BEA would be the second-biggest purchase ever by Mr. Ellison. In June 2003, he launched a hostile bid for rival PeopleSoft Inc. that included a drawn-out battle to overcome the smaller company's antitakeover defenses.
An extended acquisition spree followed. If it lands BEA, which Mr. Ellison has long coveted, Oracle would be close to meeting its goal to be a leader in most big-business software categories.
The bid highlights two opposing views of the industry's future. When Mr. Ellison began predicting consolidation in the software industry, BEA CEO Alfred Chuang argued that smaller software companies like his remain independent by innovating quickly.
Recent events seem to be supporting Mr. Ellison's view, and are giving big shareholders the opening to press managements to sell. "The smaller software companies are going to have more and more trouble competing, so there's a great need for a catalyst like me," Mr. Icahn said in an interview.
Mr. Icahn has been increasing his stake in BEA in the past several weeks and now owns 13.22% of the company's shares. He said he is "certainly happy" about Oracle's bid, adding that BEA "definitely should be taken over." He said the company "would be a great fit with Oracle" but added that he "would like to see it command a better price" and named SAP AG, International Business Machines Corp. and Hewlett-Packard Co. as other possible acquirers.
BEA, of San Jose, Calif., has been battling IBM, Oracle and others in the market for "middleware," an umbrella term for several kinds of programs that act as a foundation for building custom business programs. BEA, with a product called WebLogic, pioneered one category of middleware called application servers that are used to build Web services.
IBM and Oracle have been able to use their massive sales forces, and steep discounting, in competing against BEA. Last year, IBM had 32% share of the middleware market, compared with 10% for BEA and 9% for Oracle, according to research firm Gartner Inc. Buying BEA would make Oracle the No. 2 middleware vendor after IBM.
A person familiar with IBM's thinking said IBM is unlikely to enter the bidding fray, because IBM typically buys small software companies, and the Oracle offer for BEA is already about twice as much as IBM has ever paid for an acquisition. Plus, this person said, there is enough overlap between IBM's WebSphere software and BEA products that it would probably raise antitrust scrutiny. An IBM spokesman declined to comment.
A person familiar with SAP's thinking said the company would be unlikely to be interested in buying BEA because it wants to focus on a competing product, called NetWeaver. An SAP spokesman declined to comment.
An H-P representative said H-P isn't interested in entering BEA's market, but declined to comment specifically on whether it had any interest in buying the company.
The Oracle bid comes at an awkward time for BEA, because the smaller company is in the midst of restating its quarterly earnings over a 10-year period because of issues associated with the way it accounted for stock options.
According to documents made public yesterday, Oracle co-president Charles Phillips on Tuesday sent a letter to BEA offering to buy the business-software maker, in a bid that values BEA at $17 a share. "We believe our all-cash offer provides the best value for BEA's shareholders and the best home for BEA's employees and customers," Mr. Phillips said in the letter, adding, "We look forward to completing a friendly transaction as soon as possible."
Thursday, BEA wrote back to Mr. Phillips saying "BEA is worth substantially more to Oracle, to others and, importantly, to our shareholders than the price indicated in your letter." The company added that "the absence of current financial information in the public markets limits investor visibility into our performance."
Following word of the bid, BEA's stocked surged 38% to $18.82, up $5.20, on Nasdaq.
---- William Bulkeley, Don Clark, and Ben Charny contributed to this article.
Write to Vauhini Vara at vauhini.vara@wsj.com
http://online.wsj.com/article/SB119218622871657224.html?=djemalert&mod=djm_HAWSJSB_Welcome
Oracle Discloses Pitch for BEA
Offer of $6.7 Billion Too Low, Target Says;Icahn Presses for Sale
By VAUHINI VARAOctober 13, 2007; Page A3
Larry Ellison, founder and chief executive of Oracle Corp., may be entering the end game in his four-year play to consolidate the business-software industry around his company.
The software giant disclosed a $6.7 billion unsolicited offer to buy BEA Systems Inc., a Silicon Valley company that helped build the market for Web-services software. The bid, a 25% premium to BEA's closing price Thursday, comes as activist investor Carl Icahn, BEA's biggest shareholder, has put pressure on the smaller software company to sell itself.
BEA responded that the offer significantly undervalues the company, but didn't reject it outright.
An acquisition of BEA would be the second-biggest purchase ever by Mr. Ellison. In June 2003, he launched a hostile bid for rival PeopleSoft Inc. that included a drawn-out battle to overcome the smaller company's antitakeover defenses.
An extended acquisition spree followed. If it lands BEA, which Mr. Ellison has long coveted, Oracle would be close to meeting its goal to be a leader in most big-business software categories.
The bid highlights two opposing views of the industry's future. When Mr. Ellison began predicting consolidation in the software industry, BEA CEO Alfred Chuang argued that smaller software companies like his remain independent by innovating quickly.
Recent events seem to be supporting Mr. Ellison's view, and are giving big shareholders the opening to press managements to sell. "The smaller software companies are going to have more and more trouble competing, so there's a great need for a catalyst like me," Mr. Icahn said in an interview.
Mr. Icahn has been increasing his stake in BEA in the past several weeks and now owns 13.22% of the company's shares. He said he is "certainly happy" about Oracle's bid, adding that BEA "definitely should be taken over." He said the company "would be a great fit with Oracle" but added that he "would like to see it command a better price" and named SAP AG, International Business Machines Corp. and Hewlett-Packard Co. as other possible acquirers.
BEA, of San Jose, Calif., has been battling IBM, Oracle and others in the market for "middleware," an umbrella term for several kinds of programs that act as a foundation for building custom business programs. BEA, with a product called WebLogic, pioneered one category of middleware called application servers that are used to build Web services.
IBM and Oracle have been able to use their massive sales forces, and steep discounting, in competing against BEA. Last year, IBM had 32% share of the middleware market, compared with 10% for BEA and 9% for Oracle, according to research firm Gartner Inc. Buying BEA would make Oracle the No. 2 middleware vendor after IBM.
A person familiar with IBM's thinking said IBM is unlikely to enter the bidding fray, because IBM typically buys small software companies, and the Oracle offer for BEA is already about twice as much as IBM has ever paid for an acquisition. Plus, this person said, there is enough overlap between IBM's WebSphere software and BEA products that it would probably raise antitrust scrutiny. An IBM spokesman declined to comment.
A person familiar with SAP's thinking said the company would be unlikely to be interested in buying BEA because it wants to focus on a competing product, called NetWeaver. An SAP spokesman declined to comment.
An H-P representative said H-P isn't interested in entering BEA's market, but declined to comment specifically on whether it had any interest in buying the company.
The Oracle bid comes at an awkward time for BEA, because the smaller company is in the midst of restating its quarterly earnings over a 10-year period because of issues associated with the way it accounted for stock options.
According to documents made public yesterday, Oracle co-president Charles Phillips on Tuesday sent a letter to BEA offering to buy the business-software maker, in a bid that values BEA at $17 a share. "We believe our all-cash offer provides the best value for BEA's shareholders and the best home for BEA's employees and customers," Mr. Phillips said in the letter, adding, "We look forward to completing a friendly transaction as soon as possible."
Thursday, BEA wrote back to Mr. Phillips saying "BEA is worth substantially more to Oracle, to others and, importantly, to our shareholders than the price indicated in your letter." The company added that "the absence of current financial information in the public markets limits investor visibility into our performance."
Following word of the bid, BEA's stocked surged 38% to $18.82, up $5.20, on Nasdaq.
---- William Bulkeley, Don Clark, and Ben Charny contributed to this article.
Write to Vauhini Vara at vauhini.vara@wsj.com
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