Puerto Rico to consider anti-discrimination bill






SAN JUAN, Puerto Rico (AP) — Puerto Rico’s legislature is expected to approve a long sought-after bill that would make it a crime to discriminate against people based on their gender or sexual orientation.


The bill was submitted Tuesday by Senator Ramon Luis Nieves of the Popular Democratic Party, which gained control of the Senate and House of Representatives after November’s general election.






The bill aims to protect people in the U.S. territory from being discriminated at work, in public places, and during transactions including renting or selling property.


“A human being’s dignity cannot be violated,” said Nieves, who was flanked by supporters including Pedro Peters Maldonado, a San Juan legislator who is Puerto Rico’s first openly gay elected official.


A similar proposal was approved by the House of Representatives in recent years, but was rejected by the Senate, which was then controlled by the pro-statehood New Progressive Party.


Human rights organizations have long demanded such a bill, saying that many gay, lesbian and transgender people in the conservative U.S. territory are at the mercy of homophobic attitudes. Most government departments already have their own anti-discriminatory policies, but human rights activists say they are often not enforced.


The bill comes a week after another legislator submitted a bill demanding that all partners, regardless of their sexual orientation or civil status, be covered by domestic violence laws.


Legislators are expected to debate both bills in upcoming weeks.


Latin America News Headlines – Yahoo! News





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Tablet shipments in 2013 could be lower than previously expected









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Lindsay Lohan pleads not guilty to car crash charges






LOS ANGELES (Reuters) – Lindsay Lohan pleaded not guilty on Tuesday to three charges related to a June traffic accident that led a judge to revoke the troubled actress’ probation last month.


Lohan, 26, who did not attend the hearing, was arraigned on misdemeanor charges of reckless driving, lying to police and obstructing police when she said she was not behind the wheel of her sports car, which smashed into a truck in Santa Monica, California.






Lohan’s not guilty plea was entered in a Los Angeles court by her attorney.


The “Liz & Dick” actress is on probation for a 2011 jewelry theft and could be sent to jail if she is found to have violated the terms of her probation.


Los Angeles Superior Court Commissioner Jane Godfrey, who will also preside over Lohan’s probation hearing, on Tuesday ordered the actress to attend a January 30 pretrial hearing. A date for Lohan’s probation hearing will be set at that time.


Lohan has been in and out of rehab and jail since a 2007 arrest for drunk driving and cocaine possession.


The former “Parent Trap” child star was arrested in New York on a misdemeanor assault charge on the same day that the Santa Monica car crash charges were filed.


The Manhattan district attorney’s office has not filed a criminal complaint in the assault case.


(Reporting by Eric Kelsey, editing by Jill Serjeant and Stacey Joyce)


Celebrity News Headlines – Yahoo! News





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AstraZeneca’s new CEO removes R&D, commercial heads






LONDON (Reuters) – AstraZeneca‘s new chief executive stamped his authority on the struggling drugmaker on Tuesday by removing the heads of research and commercial operations in a management revamp designed to speed decision-making.


Pascal Soriot, who took the helm at Britain’s second-biggest pharmaceutical company in October, said the roles held by Martin Mackay and Tony Zook respectively had been eliminated and both men would leave the company at the end of January.






Instead, Soriot is creating three senior research and development (R&D) roles responsible for discovery and early stage development in small molecules, biologics and late-stage development.


On the commercial side, three positions will in future represent the different regions. A further senior role – to be filled at a later date – will oversee the global portfolio and product strategy, bridging the R&D and sales organizations.


The move effectively strips out a layer of senior management and means executives in charge of different divisions will have a seat at the executive top table – something Soriot hopes will reduce bureaucracy.


“This new senior executive team structure, that draws heavily from the leadership talent within the company, enables us to bring an even sharper management focus to key pipeline assets, key brands and key markets, and helps us further accelerate decision-making,” Soriot said.


The former Roche executive is striving to return AstraZeneca to health in the face of one of the industry’s steepest patent “cliffs” – when patents expire and drugs face generic competition.


He is expected to set out his ideas for the group when he presents full-year results on January 31, before delivering full details of an in-depth strategy review during a meeting for analysts and investors in March.


CLEARING THE DECKS


“He is clearing the decks,” said Navid Malik, an analyst at Cenkos Securities.


“But it is a surprise to see Mackay leaving. He was a one-time head of research at Pfizer, so he’s a heavy-hitter brought on board to solve problems and he hasn’t really had a lot of time to do that.”


Mackay jumped ship from Pfizer, the world’s biggest drugmaker, to AstraZeneca in May 2010.


Malik said AstraZeneca’s decision to give biologic products an equal ranking with traditional small molecule drugs in the R&D structure reflect a renewed focus on biotech treatments, which are increasingly seen as the future of modern medicine.


Soriot himself has extensive experience of the biologics side of the industry from his time at Roche, where he headed up its Genentech biotech unit.


His first decision on taking office was to suspend share buybacks, prompting immediate speculation that he will embark on more acquisitions to replace lost revenue. But he is also likely to re-focus both R&D and marketing operations in a bid to make the most of existing assets.


The company is not alone in facing big patent losses, but while rivals like GlaxoSmithKline and Sanofi have now put the worst behind them, AstraZeneca still has the worst to come.


Its two biggest selling drugs – Nexium for stomach acid and the cholesterol fighter Crestor – will lose U.S. protection in 2014 and 2016.


Soriot’s new line-up for the key R&D functions will see Mene Pangalos take over as head of innovative medicines, with Bahija Jallal responsible for biologic drug development at the MedImmune unit, and Briggs Morrison heading up global medicines development.


(Additional Reporting by Karen Rebelo in Bangalore; Editing by Jane Merriman and David Cowell)


Medications/Drugs News Headlines – Yahoo! News





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Analysis: Once reliable technology sector drags down earnings






NEW YORK (Reuters) – This earnings season, the U.S. technology industry is in an unusual position – dragging corporate America down, rather than lifting it up.


Wall Street expects the tech sector’s fourth-quarter earnings to be down 1.1 percent from a year ago, the first drop since the third quarter of 2009, even though overall S&P 500 profits are still forecast to show growth, according to Thomson Reuters data.






Chip companies are expected to be among the worst performers because of softer-than-expected personal computer sales. Weak overseas demand and worries about the U.S. fiscal crisis have also likely caused corporations to put off IT spending.


“The lack of economic growth we’ve seen in Europe, the deceleration of emerging markets – that has put a significant amount of pressure, particularly on technology,” said Omar Aguilar, chief investment officer for equities at Charles Schwab Corp, in San Francisco.


Tech stocks have struggled recently and further weakness could dent the bullish 2013 forecasts many strategists have for the U.S. stock market. But some investors and analysts say weak fourth-quarter numbers have already been baked into many tech stock prices and valuations are attractive.


Analysts at Bank of America Merrill Lynch wrote in a note this week that tech stocks are undervalued by about 32 percent, more than any other sector, based on current forward price-to-earnings ratios. Every tech industry except IT services is trading well below historical levels, the note said.


Within tech, “you’re finding a lot of cash-rich companies trading at reasonably cheap multiples. So to value investors like us … it starts to seem intriguing,” said Eric Kuby, chief investment officer at North Star Investment Management Corp in Chicago, whose firm owns Microsoft Corp and Intel Corp.


It is unusual for tech, the largest of the Standard & Poor’s 500 index’s 10 industry sectors and accounting for nearly 23 percent of earnings, to underperform. Tech has been in the top half of S&P sectors for the last four earnings periods and it has posted stronger profit growth than the overall market 83 percent of the time in the last 10 years, according to Thomson Reuters.


Apple Inc usually provides one of the biggest boosts to U.S. corporate earnings, but this time its December quarter profit is forecast to fall 3.8 percent year on year, compared with the S&P 500‘s overall 1.8 percent profit growth, according to Thomson Reuters data.


Apple has only missed analyst earnings expectations four times in the last 10 years, two of those in the most recent reporting periods, Thomson Reuters data showed. Its shares are down again this week after reports the company is ordering fewer components because of lower-than-expected demand for its iPhone5.


But even Apple stock, which fell below $ 500 a share on Monday for the first time since February, is looking more attractive to value investors, Kuby said.


INTEL FIRST


The bulk of technology companies do not start to report results until next week, but Intel is due out on Thursday.


Among tech’s sub-industries, 13 semiconductor companies are expected to report an aggregate 28.4 percent fall in quarterly profit and four semiconductor equipment makers are expected to see a 50.7 percent drop, Thomson Reuters data showed.


Texas Instruments Inc was among top chip companies that have warned on the fourth quarter, along with Applied Materials Inc. Texas Instruments, which last cut its profit target in December, cited restructuring charges. The stock closed on Tuesday at $ 32.28, off its $ 34.24 high in March.


Others warnings have come from Cisco Systems Inc, Hewlett Packard Co and Qualcomm Inc.


The S&P 500 tech sector rose 13.2 percent in 2012, about the same as the S&P 500‘s 13.4 percent gain, but tech stocks by at least one measure have been underperforming since September. The SPDR XLK technology fund ETF ended last quarter with a loss of 6.1 percent, while the S&P 500 was down just 1 percent.


“The S&P 500 peaked in mid-September, had a pullback and it’s already pretty close to that September high. Contrasting that, the XLK hasn’t even come close to getting back to where it was in September,” said Chris Burba, co-founder and chief technical strategist at miAnalysis Inc in New York.


(Reporting by Caroline Valetkevitch; Editing by Tiffany Wu and Andre Grenon)


Business News Headlines – Yahoo! News





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Voter turnout push could challenge Israeli leader






JERUSALEM (AP) — With large numbers of Israelis expected to sit out next week’s election, centrist activists have launched a last-ditch appeal to get out the vote, hoping to defy what appears to be a guaranteed victory for a hard-line bloc led by Prime Minister Benjamin Netanyahu.


This grassroots effort could be the moderate camp’s only chance. Moderate, secular voters tend to turn out in smaller numbers than ideologically motivated hard-liners. Reversing this trend, experts say, is the surest way to take on the government’s handling of major issues like stalled peacemaking with the Palestinians, Iran’s nuclear program and a troubled economy.






Polls published in Israeli newspapers over the weekend projected Netanyahu and his traditional right-wing and religious allies winning between 64 and 71 seats, enough to secure a majority in the 120-member parliament, compared to 49 to 56 for centrist and Arab parties.


Pollster Camil Fuchs says those numbers reflect current trends. “But a four to five percentage point change in turnout could change things,” he said.


The get-out-the vote campaigners, including television personalities and local celebrities, present their efforts as non-partisan, but many are perceived to be aligned with Netanyahu’s opponents.


Netanyahu’s opponents say the stakes are especially high in the current election. Critics point to the deadlock in peace efforts with the Palestinians, his repeated run-ins with President Barack Obama and Iran’s suspect nuclear program. Without a strong alliance with the U.S., they say, it would be difficult to halt the Iranians or rally international support for Israel’s positions toward the Palestinians.


Netanyahu’s Likud Party has fielded an especially hawkish slate of candidates who reject concessions to the Palestinians. The rise of “Jewish Home,” a pro-settler party that could play a major role in the next coalition government, could further affect peace efforts. Jewish Home’s leader, Naftali Bennett, and many inside Likud have advocated annexing parts of the West Bank.


Reflecting his hawkish line Monday, Netanyahu told Israel‘s Channel 2 TV that Palestinian President Mahmoud Abbas does not want to negotiate. “We don’t have to say that we don’t have a future here because Abu Mazen doesn’t want to negotiate with us,” Netanyahu said, referring to Abbas by his nickname. Abbas blames Israel for a four-year stalemate in peace talks.


The Palestinians claim all of the West Bank and east Jerusalem, territories captured by Israel in the 1967 Mideast war, for their hoped-for state. Israeli moderates warn that Israel’s continued control of these territories and their millions of Palestinian residents threaten Israel’s status as a Jewish democracy.


Despite the pressing issues, turnout in recent elections has been just over 60 percent. Fuchs said turnout among supporters of Netanyahu and his allies is generally higher than among the rest of the population.


According to pollsters, turnout is especially low among several key groups — political moderates, people under 30 and Israeli Arabs. These constituencies all tend to favor Netanyahu’s opponents.


Political parties are conducting classic get-out-the-vote campaigns, with automated phone calls, parlor meetings, transportation to polling stations and specific appeals to groups, like women and young voters.


Other groups not directly affiliated with specific parties are also getting out the message.


Israel’s president, Shimon Peres, teamed up with people from Israel’s popular TV satire “A Wonderful Country” to produce a get-out-the-vote video clip for his Facebook page. In his largely ceremonial post, Peres, 89, is supposed to avoid politics, but the Nobel peace laureate’s dovish leanings are well known.


Social activists who drew hundreds of thousands of protesters into the streets last year to demonstrate against the gaps between rich and poor have recruited dozens of artists, TV personalities and journalists to take part in an ad campaign called “2013 elections — this time we’re all voting.” In ads, they don black shirts that read, “Vote or they’ll vote for you.”


Israeli film producer Ofir Kedar, who is based in London, is pushing a get-out-the-vote campaign with two YouTube videos he hopes will go viral. One of the clips, produced with the “One Voice” non-profit organization, shows a potential voter having a nightmare in which he is fired from his job and Israel is under attack and isolated internationally. He snaps out of it only when his young son says “wake up,” followed by a call to go vote.


“I’m trying to help the center-left bloc, not necessarily a specific party, but those who support a two-state solution,” Kedar said.


Under Israel’s system of proportional representation, voters cast ballots for parties, not individuals, and parties receive seats in parliament based on the percentage of votes they win. To enter parliament, a party must win at least 2 percent of all votes cast, or about 70,000, giving them a minimum of two seats.


“If two … parties on the left pass the threshold, that could change the blocs,” Fuchs said. “The chance for a big change is small but it exists.”


A recent poll by the University of Haifa predicted that just half of Israeli Arabs will vote. Two-thirds of those surveyed said they have no faith that Arab parties will be able to improve the lot of their communities, which suffer from poverty and discrimination.


If the Arab voters were to increase their turnout by 10 percentage points, they could win an additional five or six parliamentary seats, said Ytzhak Katz, of the Maagar Mohot survey service. “They could tap their electoral potential and strengthen themselves, but they don’t do it,” he said.


Helmi Kittani, executive director of the Center for Jewish-Arab Economic Development, has appealed to Arab voters directly, telling them it’s not too late to speak up.


“It’s not right to sit in your chairs and watch others wage your just struggle,” he said. “Elections are an opportunity to change your lives. Don’t sit at home.”


____


Online: http://www.youtube.com/watch?v=t-kvsmXvUhU


Middle East News Headlines – Yahoo! News





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Apple stock wilts on worries about iPhone demand






SAN FRANCISCO (AP) — Apple‘s stock slipped below $ 500 for the first time in 11 months on Monday as investors reacted to reports signaling the company’s latest iPhone is falling further behind a slew of sleek alternatives running Google’s Android software.


The latest indication that Apple, the world’s most valuable company, is seeing sluggish demand for its iPhone 5 emerged in separate stories published Monday in the Japanese newspaper Nikkei and The Wall Street Journal. Both publications cited unnamed people familiar with the situation saying Apple has dramatically reduced its orders for the parts needed to build the newest iPhone because the device isn’t selling as well as the company hoped.






The adjustment means Apple will buy about half as many display screens for the iPhone as management originally planned for the opening three months of the year, according to the newspapers.


Apple Inc., which is based in Cupertino, Calif., declined to comment Monday. Spokeswoman Natalie Kerris said Apple executives would share their views on market conditions Jan. 23 when the company is scheduled to release its financial results for the final three months of 2011. The period covers the first full quarter that the iPhone 5 was on sale.


Although Apple hailed the iPhone 5 as the best version yet of a product that has revolutionized the telecommunications and computing industry, the company’s stock has wilted since the device hit the market.


After peaking at $ 705.07 on the day of the iPhone 5′s Sept. 21 release, Apple’s stock has plunged nearly 30 percent. The shares fell $ 18.55, or 3.6 percent, to close Monday’s regular trading at $ 501.75, dragging the company’s market value nearly $ 190 billion below where it stood in late September. The stock traded at $ 498.51 earlier in the day, its lowest price since February.


The stock’s decline hasn’t been entirely caused by concerns about the iPhone 5′s sales performance. Industry analysts are also worried about the recent introduction of a smaller, less expensive iPad cutting into the company’s profits.


But the biggest fears hover around the iPhone because it has become Apple’s most valuable product since the company’s late CEO, Steve Jobs, unveiled the first model in 2007. Apple has sold more than 271 million of the devices since then, and in the company’s last fiscal year ending in September, the iPhone generated $ 80 billion in sales to account for more than half of the company’s total revenue.


But Apple’s upgrades of the iPhone in the past two years have disappointed gadget lovers who have been clamoring for Apple to do more to stay in front of device makers relying on the free Android software made by Google Inc. For instance, there were high hopes for a larger iPhone screen with the release of the 2011 model, but Apple waited until last September to take that leap. And when Apple moved to a larger display screen with the iPhone 5, it didn’t include a special chip to enable users to make mobile payments by tapping the handset on another device at the checkout stand. Such a mobile payment feature is available on some Android phones.


Finally, Apple has insisted that wireless carriers subsidize so much of the iPhone’s cost in exchange for customers’ two-year commitments on data plans that the carriers make little or no money by selling the devices. That has prompted more wireless carriers to tout less expensive Android phones in their stores, undercutting the demand for iPhones, said Darren Hayes, who has been studying the shifting market conditions as chairman of the computing systems program at Pace University in New York.


Through the third quarter of last year, Android devices represented 75 percent of smartphone shipments worldwide according to the research firm International Data Corp. That was up from 58 percent at the same point 2011. Meanwhile, Apple’s share of worldwide smartphone shipments has fallen from a peak of 23 percent in the fourth quarter of 2011 to 15 percent in the third quarter of last year.


Samsung Electronics, in particular, has been benefiting from the growing popularity of its Android-powered phones, led by its Galaxy S line. The company said Monday that it sold more than 100 million Galaxy S phones in less than three years. It took the iPhone nearly four years to reach that milestone.


“This is a real wake-up call for Apple,” Hayes said. “They need to be more flexible in how they do things.” Among other things, Hayes thinks Apple may have to reduce the financial burden on wireless carriers selling the iPhone and spend more money advertising the devices, especially with the recent wave of phones running on Microsoft Corp.’s Windows software. Apple’s efforts to sell more iPhones to companies also could be short-circuited if Research in Motion Ltd.’s upcoming release of a revamped BlackBerry proves to be a hit. The BlackBerry is due out Jan. 30.


In an attempt to regain its competitive edge, Apple already is considering the release of a less expensive version of the iPhone made of cheaper parts to boost sales in less affluent countries, according to a report last week in The Wall Street Journal. The company so far hasn’t commented on that speculation, either. The least expensive iPhone 5 without a wireless contract sells for $ 649. With the subsidy included with a two-year wireless service contract, the iPhone 5 sells for as little as $ 199.


Even as it loses ground to Android products, the iPhone remains a solid seller. Some analysts believe Apple sold more than 50 million iPhones in its last quarter ending in December, which would be far the most units that the company has ever shipped during any previous three-month period.


What’s more, the iPhone 5 got off to a torrid start in China, where Apple expects to eventually sell more devices than it does in the U.S. Apple said it sold more than two million iPhone 5s in the three days after its debut in China last month.


Wireless News Headlines – Yahoo! News





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Natalie Wood may have sustained bruises before drowning death: report






LOS ANGELES (Reuters) – Actress Natalie Wood had bruising on her arms and wrists and scratches on her neck when her body was pulled from the Pacific Ocean in 1981, suggesting she was injured before she hit the water, according to a report released by Los Angeles County Coroner’s Office on Monday.


But the report, written in June 2012, said there was not enough evidence to say that her death was definitively “non accidental.”






The body of the “West Side Story” star, 43, was found floating in a Santa Catalina Island cove off the coast of Southern California in 1981 after she had spent a night of dining and drinking on the island and on a yacht with her husband, television star Robert Wagner, and actor Christopher Walken.


The case has been surrounded by mystery and suspicion for decades and Los Angeles homicide detectives reopened the investigation into Wood’s death in 2011.


In June 2012, authorities changed Wood’s death certificate to “drowning and other undetermined factors” from the original finding of accidental drowning, but did not explain why.


The change was based on a 10-page document, drawn up as an addendum to the original autopsy report, that said Wood died shortly after she entered the water.


“The location of the bruises, the multiplicity of the bruises, lack of head trauma, or facial bruising, support bruising having occurred prior to the entry into the water,” the supplemental coroner’s report states.


“This medical examiner is unable to exclude non-volitional, unplanned entry into the water … Since there are many unanswered questions and limited additional evidence available for evaluation, it is opined by this medical examiner that the manner of death should be left as undetermined,” it adds.


A spokesman for the Los Angeles County Sheriff’s Department said on Monday the case was still open but declined to discuss any new evidence that may have been discovered.


The Sheriff’s Department has said that neither Wagner, now 82, nor Walken are suspects.


Wood starred opposite James Dean in the classic 1955 film “Rebel Without a Cause,” and later in musical “West Side Story” and “Splendor in the Grass.”


(Reporting by Eric Kelsey; Editing by Mohammad Zargham)


Celebrity News Headlines – Yahoo! News





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Some docs screen for prostate cancer without asking






NEW YORK (Reuters Health) – One in four family doctors doesn’t ask male patients before screening them for prostate cancer, according to a new survey.


So-called prostate specific antigen (PSA) testing has been controversial in recent years because of uncertainty about whether it actually saves lives and concern about side effects from potentially unnecessary and invasive follow-up tests and treatments.






The U.S. Preventive Services Task Force, a government-backed panel, recommended against PSA tests for normal-risk men in 2012, saying there is no evidence that screening has more benefits than harms.


Screening is still acceptable, according to the USPSTF, if the man being tested understands the possible outcomes – good and bad – and makes the personal decision to get tested.


But that may not always happen, researchers found.


“There’s some amount of confusion for providers about what the right course of action is,” said Dr. Craig Pollack, who has studied doctors’ attitudes toward prostate cancer screening at Johns Hopkins Medicine in Baltimore, Maryland.


In addition, “one of the big drivers of PSA screening is patient expectations – that doctors think their patients expect to get screening,” said Pollack, who was not involved in the new research.


For the current study, Robert Volk from The University of Texas MD Anderson Cancer Center in Houston and his colleagues surveyed 246 family doctors in 2007 and 2008 about whether and how they screened their male patients for prostate cancer.


Of those doctors, 24 percent said they ordered PSA tests without first discussing screening with patients.


Another 48 percent talked about the possible benefits and harms with their patients and let men decide for themselves whether to get screened.


Most of the remaining doctors also discussed screening’s pluses and minuses but specifically recommended it, Volk’s team reported Monday in the Annals of Family Medicine.


It’s concerning that some men may not know all the implications of being screened but get PSA tests anyway, researchers said.


“One of the main concerns with PSA screening is it can set people down a pathway of getting the biopsy, potentially getting a cancer diagnosis and treatment that may not have (been) needed,” Pollack told Reuters Health.


Volk agreed, calling prostate cancer screening the beginning of a “slippery slope.” That’s because some men will be diagnosed with slow-growing cancer and will need to decide whether to get treatment – and risk side effects such as impotence and incontinence – or wait to see if the cancer grows and poses any danger.


“Men really need to be aware of these issues (when they are) making a decision about screening, because of all the decisions that come after that,” he told Reuters Health.


About one in six men will be diagnosed with prostate cancer during his lifetime, according to the American Cancer Society. However far fewer – about one in 36 – will die of the disease, in part because prostate cancer is often slow-growing and affects mostly older men.


“A fairly large proportion of men will die with their prostate cancer instead of from their prostate cancer,” Pollack explained.


Volk said men “need to be given quality information” about the benefits and risks of PSA tests, including what could happen after a positive test.


Men, he added, “should feel empowered to ask their doctors about screening and have a very frank discussion about what’s important to them.”


SOURCE: http://bit.ly/cZf2s9 Annals of Family Medicine, online January 14, 2013.


Diseases/Conditions News Headlines – Yahoo! News





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Is Michael Dell Finally Taking His Company Private?






On June 3, 2010, Michael Dell was sitting before a room full of analysts and investors at a Sanford C. Bernstein (AB) conference in New York City. Dell was asked whether he ever thinks about taking his computer company private. His simple answer: “Yes.” The stock closed at $ 13.76 a share that day, up almost 5 percent.


Dell took no more questions at the time, though obviously he’s since come to a decision: As our Bloomberg News colleagues Serena Saitto and Jeffrey McCracken have just reported, citing two unnamed sources, Dell (DELL) is in talks to go private.






That the company finds itself in this situation is not much of a surprise. Michael Dell returned as chief executive officer in early 2007 and has spent the last few years promising a shift toward higher-profit businesses and away from being so dependent on PCs. According to recent data from Gartner (IT), Dell’s PC sales slowed by about 20 percent in the fourth quarter, as the company lost ground to Hewlett-Packard (HPQ) and Lenovo (992). PC shipments overall fell 5 percent during the quarter, to 90.3 million units.


In the meantime, Dell has become an acquisition machine, gobbling up storage system specialists, software makers, and services companies, including its flashy $ 3.9 billion deal for Perot Systems. Its revenue has become more diverse, and some of these big bets have started to pay off. Wall Street, however, has continued to push its shares down—Dell’s market value fell 31 percent last year—seeing the company as tied to technology that’s past its heyday.


The notion of Dell going private has been floated time and again. Michael Dell still owns almost 16 percent of his creation, according to the most recent filings, and the company continues to earn substantial profits.


The knock on Dell is that it’s hard to see how it can deliver a more exciting future. The company’s strategy hasn’t looked all that original. It’s essentially trying to become more like IBM (IBM) and Hewlett-Packard by having a more diverse product and services portfolio. Its rivals, though, headed in this direction years ago. (And, as our recent cover story showed, things haven’t worked out terribly well for HP.) Dell has argued that it can cater to smaller and midsize companies better and perform services work, for example, cheaper than its much larger competitors.


Going private would carry with it some measure of embarrassment for Michael Dell. For years he was held up as an entrepreneurial hero who forged the company from a college dorm room. During Dell’s glory days and Apple’s (AAPL) darkest hour, Michael Dell infamously suggested Apple should go private and return the money to shareholders rather than continuing on as a going concern. Apple, of course, came up with the mother of all second acts with the iPod—and then a third and fourth with the iPhone and iPad, respectively.


Will Michael Dell’s latest move give his company a glorious second act? It’s not impossible, but it sure won’t be easy, as San Francisco-based analyst Shaw Wu told Bloomberg Businessweek back in June 2010. Going private “really doesn’t change anything, because the fundamental disadvantages don’t go away,” Wu said. “The competitors are still there.”


Businessweek.com — Top News





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