Acer shares down after takeover bid (AP)

Acer said it will pay $1.90 a share, a 57 percent premium to the closing price of U.S.-based Gateway’s shares on Friday.

The deal, expected to close by December, will push the combined company past China’s Lenovo Group Ltd. as the world’s third-largest vendor of personal computers, behind Hewlett-Packard Co. and Dell Inc.

Some analysts believe the deal may be overpriced and Acer could be paying too much to expand market share.

Acer shares dropped 6.9 percent Tuesday, nearly the daily downside limit of 7 percent at NT$59.20, where they had been for most of the session.

“It’s a very expensive deal,” said Calvin Huang, an analyst at BNP Paribas, which maintained a “buy” rating on Acer’s shares. He estimates the acquisition’s fair value at a 10 percent to 20 percent premium to Gateway’s Friday closing price.

“Acer is now paying around $350 million for every additional 1 percent of global market share,” Huang said.

By comparison, when Lenovo Group Ltd. bought the personal computer arm of International Business Machines Corp. in 2005, it paid $290 million for every 1 percent of additional global market share, Huang said.

There may be more selling pressure in coming days as investors wait for further details of the deal, especially the price of Gateway’s planned acquisition of the parent company of Packard Bell BV, a PC maker based in the Netherlands, analysts said.

Macquarie Research said the deal is expected to use up nearly half of Acer’s current cash, in exchange for only limited earnings contribution.

“We believe Acer has underestimated the risk it may encounter after the acquisition, due to the fast-dropping market share of Gateway and the weakening U.S. PC market,” it said in a statement.

After trading as high as $81.50 in 1999, Gateway shares gained 50 percent on the news of the acquisition Monday and closed at $1.82

Samsung, Sony ship from latest LCD line (AP)

The eighth generation line at the venture, called S-LCD Corp., makes panels of 46 inches and 52 inches measured diagonally from corner to corner.

“Our sights are now on LCD TVs in the 50-inch class and we aim to lead that segment,” Chang Won-kie said in a statement. The first panels shipped were 52-inch ones.

The new facility is capable of manufacturing some of the world’s largest substrates — the glass sheets used to make screens for flat screen televisions — measuring 100 inches by 88 inches.

Samsung and Sony founded S-LCD in 2004 to produce panels to meet demand for flat screen televisions, which has soared in recent years as consumers give up bulky cathode-ray tube sets for the sleeker versions.

Succeeding generation of plants use larger glass substrates to cut LCD panels, thereby boosting output and eventually helping LCD makers cut manufacturing costs.

S-LCD, based in Asan, about 55 miles south of Seoul, said the new line would reach its full monthly capacity of 50,000 panels by the end of the year.

Sony President and CEO Ryoji Chubachi and Samsung Electronics CEO Yun Jong-yong were among executives who attended the shipment launch.

India’s Wipro to open center in Atlanta (AP)

Wipro will initially employ 200 people and anticipates about 500 positions within three years, mostly graduates from state universities, the company said in a statement.

“The center is part of Wipro’s strategy to build global delivery capabilities and will significantly increase the company’s presence and base of local hires in the United States,” the Monday statement said.

Western companies routinely shift information technology jobs to countries such as India, where wages are low and skilled workers are plentiful.

The practice has benefited Indian software companies, some of which are now setting up centers outside India to compete with IBM Corp., Accenture and other global computer services companies.

“The work we’re doing requires more and more knowledge of the customers’ businesses, and you want local people to do that,” said P.R Chandrasekar, President, Wipro Technologies Ltd. “The Atlanta center is an investment that will help Wipro’s existing customers as well as help address new business opportunities.”

Wipro already operates software development centers in Brazil, Eastern and Western Europe, China, Mexico and Canada. The company said it chose Atlanta because of its proximity to key universities.

The University System of Georgia has already provided Wipro with “a comprehensive work force development program,” Wipro’s statement quoted chancellor Erroll B. Davis Jr. as saying.

“We tapped into the resources of Georgia’s 35 public colleges and universities to find the best solution for this company,” said Davis.

Also, Kennesaw State University and Southern Polytechnic State University are collaborating with Wipro to create an innovative curriculum development and delivery system, he said.

Earlier this month, Wipro Ltd. said it would buy Infocrossing Inc. for about $600 million. The New Jersey-based company provides outsourcing services to mid-sized companies in the United States.

IFA: Battle over high-def formats comes to Berlin (InfoWorld)

As the two formats duel for the title of successor to current DVD movie discs, many European consumers haven't decided which kind of player they will buy.

"Everyone is waiting for IFA where many new products are expected to be announced," said Frank Simonis, chairman of the Blu-ray Disc Association.

Both HD DVD and Blu-ray Disc have sold in lower quantities in Europe than in other regions and prices are still relatively high, between €599 (US$814 ) and €899, according to Simonis.

Currently, five manufacturers have launched Blu-ray Disc players in Europe, including Sony Corp. and Matsushita Electric Industrial Co. Ltd. (Panasonic). Five additional vendors are expected to launch Blu-ray Disc players at IFA, while companies with players already in the market plan to introduce devices with new features, Simonis said.

Many of the manufacturers are major suppliers of HDTV sets and hope to leverage that expertise to "accelerate the adoption of Blu-ray Disc," he said.

The format has received a big boost from its use in Sony's PlayStation 3 games console, with sales of more than 1.4 million units in Europe, according to Simonis.

The HD DVD camp is also bringing new wares to IFA, according to Frank Eschholz, business development manager of HD DVD products at Sony Deutschland GmbH. "There will be new devices and new features and more."

Both types of players are designed with many of the same components inside and offer many of the same features, according to Simonis. But one of Blu-ray Disc's key benefits is its ability to store up to 50G bytes of data, he said. "Studios want to pack a bunch of extras onto discs in addition to the movies, and Blu-ray Disc allows them to do so," he said.

The Blu-ray Disc camp, however, was jolted when Paramount Pictures and DreamWorks Animation announced last week that they would align themselves exclusively with the HD DVD high-definition format. The decision comes at a time when market indicators have been pointing to competitor Blu-ray Disc as having the lead.

In addition to next-generation movie-disc players, visitors to this year's IFA can expect to see plenty of HDTV sets, camcorders, digital cameras, MP3 players and notebook computers.

Samsung Electronics Co. Ltd. will introduce new products in all those categories, according to a spokeswoman. The company may launch two handsets as well, she said.

Sony has decided to return to IFA after its absence last year, with plans to exhibit new Blu-ray Disc players, new Walkman music players and HDTV sets, according to a spokeswoman.

More information about IFA — the letters stand for Internationale Funkausstellung, although the full name is rarely used these days — is available at the show's .

Motorola sues Aruba for patent infringement (Reuters)

Motorola said subsidiaries Symbol Technologies and Wireless Valley Communications sought a permanent injunction against Aruba and monetary damages in the suit filed in the U.S. District Court for the District of Delaware.

(Reporting by Sinead Carew)

Lure of iPhone proves too strong for some in Vermont (USATODAY.com)

The South Burlington resident is too busy surfing the Internet, perusing his e-mail, compiling driving directions and keeping track of the stock market - all on what amounts to a portable computer he cradles in the palm of his hand.

Canning bought an iPhone, the trendy gadget from Apple that combines a wireless phone, iPod digital music player and Internet and e-mail applications.

That made Canning something of a risk-taker. The device is tethered exclusively to AT&T, which offers no wireless service in Vermont and threatens in legal documents and media interviews to terminate the contracts of anyone who buys an iPhone while living here.

Canning is among a sprinkling of people in Vermont and other states nationwide where AT&T has a limited or non-existent presence who have purchased the gadget regardless of the risk.

Those pioneering users have weighed the gizmo's utility and hip factor against the potential of AT&T expulsion, and they've decided the gamble is worthwhile.

"It certainly is much easier to use and more well-thought-out than any other cellphone I've ever used," says Canning, president of Physician's Computer, a Winooski-based software developer for pediatricians. "I used to sit down on the computer, but now I just grab my iPhone."

Apple released the iPhone to considerable fanfare and critical and consumer acclaim on June 29. The device is available to any of the 284 million people in 13,000 communities across the country to which AT&T says its network extends.

Vermont and Alaska remain the only states where the company has no presence whatsoever; the iPhone also is unavailable to people who live in large but mostly rural regions that lack AT&T coverage in 17 other states.

AT&T devices work in locales without direct coverage through agreements with other companies that do offer service. In Vermont, AT&T's partner is Unicel.

Earlier this summer, AT&T announced plans to buy Alaska's primary wireless provider, a move that would leave Vermont alone in its cocoon of iPhone isolation. AT&T says it hopes to complete the deal by year's end.

Allure vs. risk

Casting their worries aside, some of Vermont's most devout Apple enthusiasts have paid $499 to $599 for one of the iPhone's two models.

Canning purchased his during a recent stay in Boston. His hotel was next to an AT&T store, and his resistance crumbled each time he walked past the prominent display.

"It said, 'Buy me, buy me!' " Canning said. "I withheld for the first two days, but I finally broke down on the third."

Demonstrating the device one afternoon at his busy office, Canning clicked through Web pages, e-mail messages, photographs and a camera interface with a flick of his finger on the touch-sensitive screen. The display read "AT&T" in listing the service provider on whose network Canning's phone was operating.

"I've been using it non-stop," he said.

Canning said he's confident he's adhering to his contract terms. A provision says users can't spend more than 40% of their monthly minutes on non-AT&T networks, and Canning said he's closely monitoring his talking and surfing to keep within that boundary.

AT&T spokesman Mark Siegel points to another contract clause, though, which says users must live in a community that receives direct service.

The company has canceled the contracts of "a very small percentage" of its 63.7 million subscribers, Siegel said, declining to provide figures. People who live in places where AT&T offers no service shouldn't buy an iPhone, he said.

"Just by doing that, you're violating the terms of the agreement," Siegel said.

Conflicted resellers

The risk of termination is too much for some longtime Apple aficionados. Bert Samsa, who owns Apple reseller MacMan in Fairbanks, Alaska, said he won't buy an iPhone until he can do so properly.

"The only way we can get one is to go to Washington and lie," said Samsa, in the Apple business since 1990. "As soon as it's available, of course, we'll all jump right on it."

For employees of Waitsfield, Vt.-based Apple reseller Small Dog Electronics, the iPhone's allure has proved persuasive enough to overcome the worries.

Chief Executive Don Mayer formulated a back-up plan: If AT&T boots him, he'll sell his iPhone through online auction site eBay. The gadget's technological advances overshadow potential hassles, he said.

"It is an incredibly innovative and handy device in a nice, small package," said Mayer, who estimated about half a dozen other Small Dog employees also own iPhones. "I have virtually everything I need in a handheld device."

Shiseido breaks ranks in Japan, featuring Japanese women in ads

"Junk sleep" damaging teenagers' health (Reuters)

Advice body The Sleep Council said "junk sleep" could rival the consumption of unhealthy junk food as a major lifestyle issue for parents of teenage children.

Its poll of 1,000 youngsters aged 12 to 16 found that 30 percent managed just 4 to 7 hours sleep as opposed to the recommended 8 or 9 hours.

Almost a quarter said they fell asleep more than once a week while watching TV, listening to music or using other electronic gadgets.

"This is an incredibly worrying trend," said Dr Chris Idzikowski of the Edinburgh Sleep Centre.

"What we are seeing is the emergence of Junk Sleep - that is sleep that is of neither the length nor quality that it should be in order to feed the brain with the rest it needs to perform properly at school."

Nearly all the teenagers had a phone, music system or TV in their bedroom, with around two-thirds possessing all three.

Almost one in five of the teenage boys said the quality of their sleep had been affected by leaving their TV or computer on. The survey also found that 40 percent of youngsters felt tired each day, with girls aged 15 to 16 faring the worst.

However just 11 percent said they were bothered by the lack or quality of sleep.

"I'm staggered that so few teenagers make the link between getting enough good quality sleep and how they feel during the day," Idzikowski said.

"Teenagers need to wake up to the fact that to feel well, perform well and look well, they need to do something about their sleep."

Subprime fallout could hit internet firms: report (Reuters)

Many online companies rely for a disproportionate amount of their income on financial services advertising, with subprime in some cases accounting for a large part of it, the FT said.

Sixteen percent of all online advertising comes from financial services companies, making it the second biggest source of advertising behind the retailing sector, the report said, citing Sandeep Aggarwal, an internet analyst at Oppenheimer.

Mortgage lenders Countrywide Financial Corp and Low Rate Source were two of the 10 biggest online advertisers in the United States in July, according to data from Nielsen/NetRatings, the report said.

(Reporting by Lewis Krauskopf)

TVs, PCs fight for living room space at tech fair (Reuters)

Exhibitors from around the world will descend on Berlin hoping to tempt almost a quarter of a million visitors expected at the show to upgrade to slimmer, sleeker TV sets promising sharper pictures and helped by rapidly falling prices.

"Glass, in the form of TVs, is going to be huge again," says Gartner analyst Mike McGuire. "I don't see the TV losing the space in the living room just yet."

Globally, more than 200 million TV sets are expected to be sold this year, worth about $115 billion, or more than a third of total consumer electronics sales. Of those, most will still be traditional curved-screen cathode-ray tube TVs.

Electronics manufacturers are hoping a looming cut-off of analogue TV signals in the United States, Europe and parts of Japan together with slowly starting high-definition TV (HDTV) broadcasts will persuade consumers to exchange their old sets.

Thin-screen LCD or plasma versions are on average five times more expensive.

A TV from Grundig that can be watched outdoors and a Loewe HDTV that can communicate with digital cameras, MP3 players and PC networks will be among the thousands of models on display at Europe's biggest consumer electronics fair.

In time, though, televisions, hi-fis and other analogue equipment are expected to be replaced by PC-based systems. Gartner estimates this will take another three to four years. By that time, most market researchers expect TV set sales to begin falling.

That development is being pushed not only by PC makers such as Hewlett-Packard or Fujitsu-Siemens who have been offering complete home-entertainment systems for years, but also telecoms operators keen to enter a new market.

This year's IFA will include a day-long conference on IPTV, which is still being held back by limited broadband delivery capacity and content rights issues. Deutsche Telekom's stand display will focus on IPTV.

While frenzied demand for hot consumer electronics products such as MP3 portable music players has slowed this year, PC sales are reviving.

Makers of video games consoles are also vying for their devices to take a central place in the living room while the portable versions are gaining new features.

Sony, for example, is expanding a planned video download service for its PlayStation Portable and aims to start selling an accessory next year that will turn it into a satellite navigation device.

Navigation devices themselves, meantime, are becoming much more than route finders: iPublish will be showing off its Merian Scout Navigator that comes complete with audio guides that automatically play when you pass a place of interest.

Gartner's McGuire says the new generation of young adults will drive a move away from TV-centered homes.

"If you're a young adult who grew up playing on a PlayStation 3 it's easier conceptually to add on features, it's a kind of logical extension if those subsystems perform well," he says. "They're a kind of Trojan Horse into the living room."

The IFA opens to the public on August 31 and runs until Sept 5.