Electronic Data Systems, (EDS) the beleaguered IT services group, which employs around 400 people in Dublin, is trying to renegotiate an $8 billion outsourcing deal with Procter & Gamble to reduce the initial capital investment required from $800 million to just $100 million.
The deal is seen as critical to EDS's ability to pursue large deals in the wake of a surprise earnings warning last month. It could also affect whether credit-ratings agencies cut its debt rating.
EDS is trying to weather a sharp fall in cash flow because of problem contracts with the US Navy and the UK government, plus bankrupt WorldCom and US Airways accounts. - (Financial Times Service)
MyTravel chief forced to leave group
MyTravel chief executive Mr Tim Byrne paid a heavy price for failing to meet his investors' expectations yesterday, when he was forced to leave the embattled travel group - formerly Airtours - by "mutual consent" after shareholders decided his position was untenable.
Mr David Crossland, MyTravel's chairman and largest shareholder, has postponed his retirement by up to 12 months and will assume operational responsibility until a suitable replacement for Mr Byrne has been found.
Mr Byrne's departure followed a series of meetings between Mr Crossland and some of the group's main shareholders. "The one common theme to come out of the meetings was that Tim Byrne had to go," said one top 10 shareholder. "Investors ended up thinking he was too long on chat."
Some board members are also thought to have pushed for Mr Byrne's exit, following the company's second profits warning in four months and the surprise news last week that the dividend would be cut. The resulting tumble in the shares has left the company more susceptible to a bid from First Choice, its greatest rival in the leisure sector. - (Financial Times Service)
Schering-Plough in SEC investigation
Schering-Plough is being investigated by the US Securities and Exchange Commission over its disclosures last week, including meetings with investors and analysts, and their relation to a sharp share price fall.
Under scrutiny are meetings, significantly higher share trading activity, and eventually a late-night profit warning last Thursday. Its shares fell more than 20 per cent in trading from last Tuesday to the weekend.
The company said it welcomed the opportunity to co- operate with the Commission. It has denied leaking any financial information that would cause share selling and said it had "complied with all applicable securities laws". - (Financial Times Service)
British Energy reports pension fund shortfall
Cash-strapped nuclear power firm British Energy reported a potential gap in funding for its employee pension scheme yesterday that could cost it up to £13 million sterling (next year.
The statement came as emergency rescue talks continued between the provider of up to a quarter of Britain's electricity and the British government.
British Energy blamed the falling value of stock market investments for the shortfall. - (Reuters)
Angry scenes at last Marconi agm
Shareholders in telecoms equipment maker Marconi gathered one last time yesterday to heckle management before a £4 billion sterling (€6.4 billion) refinancing all but wipes out their one-time British blue-chip shares.
Defying one official's prediction that the mood would be sad, the annual meeting featured shouting and finger-pointing, laughter and even a bit of poetry.
"Oh to be a shareholder, what are we but pawns in the game," said one shareholder, before lambasting former chief executive Mr George Simpson and ex-finance director Mr John Mayo for turning a £1 billion cash pile into £5 billion in debt.
The restructuring will leave shareholders with just 0.5 per cent of the shares in the newly formed Marconi Corporation. - (Reuters)
Tullow Oil appoints Brian O Cathain
Tullow Oil has appointed Mr Brian Ó Catháin as managing director of the international business. Tullow chief executive Mr Aidan Heavey said Mr Ó Catháin's appointment underlined the company's commitment to international development.
