The premiers of Victoria and South Australia, Denis Napthine and Jay Weatherill, are set to hold talks with Prime Minister Tony Abbott following the announcement by Holden it will end production in Australia by 2017. The decision by Holden’s parent company, General Motors, to end production in Australia will directly impact 2900 jobs over the next four years across Victoria and South Australia, with more than 30,000 jobs at risk nationally. “It's about the whole industrialisation of our economy, and what now needs to be put in place to replace what is a very significant element of the South Australian economy, indeed of the national economy,” Weatherill says. “I'll seize that opportunity to talk to Mr Abbott about the future of Toyota and how the federal government can work with the state government and Toyota and the entire automotive supply chain industry to secure the future of Toyota,” Napthine says. “I spoke to Mr Yasuda of Toyota last night. Obviously the government will be talking to Toyota… We want Toyota to continue. They are in a slightly different position to Holden – much more of their local production has been for export,” Abbott says. Bill Morrow to be named new NBN boss Vodafone chief executive Bill Morrow is set to be named as the new chief executive of the NBN Co., according to reports. The announcement is set to be made as Communications Minister Malcolm Turnbull prepares to deliver a strategic review into the rollout, which identifies cost issues and flaws in Labor’s rollout of the project. Vodafone plays hardball on rents Mobile communications giant Vodafone is threatening to abandon stores as part of its hardball negotiating tactics with retail landlords, as the struggling telco attempts to renegotiate leases on its stores. “[They] verbally are refusing to pay the rent. For an enterprise of the calibre of Vodafone, this is cowboy behaviour, considering all the bad press Vodafone have had. They are playing hardball,” one landlord told Fairfax. “This request [to cut rents] is on the back of numerous store closures that have been performed in the last two years due to the significant losses that have been incurred from the impact of customers leaving. In conjunction with the above customer base loss there have been considerable revenue losses,” a leaked letter from the company to landlords reportedly states. Overnight The Dow Jones Industrial Average is down to 5109.5. The Aussie dollar is down to US90.63 cents.
Freelancer.com’s $US400 million takeover offer from Japanese recruitment company Recruit Co has attracted plenty of attention. It’s a hefty chunk of money for a company that grew out of chief executive Matt Barrie’s garage. If the $US400 million offer for the global online outsourcing platform is accepted, it’s likely to be one of the biggest technology company deals done in Australia this year. Here are some of the top technology deals in Australia in the past 12 months whose dollar value has been reported, from data compiled by Charles Lindop of KTM Capital: 1. M2 Telecommunications and Dodo Australia, Eftel In March this year M2 Telecommunications bought phone and internet provider Dodo Australia and telecommunications infrastructure company Eftel for $248 million. M2 said in a statement at the time Dodo and Eftel were highly complementary to its “sizeable” consumer division. “The acquisitions are an excellent complement to our consumer division and combined, our business possesses an excellent capability to grow our share of both the consumer and small to medium business market,” M2 chief executive Geoff Horth said. 2. Corporation Service Company and Melbourne IT Melbourne IT sold its Digital Brand Services division to US-based Corporation Service Company for $152.5 million in March. DBS provides online brand protection and consultancy services to global organisations. “While this was not a business that we had specifically earmarked for sale, given the value creation provided by the transaction, this was an opportunity which could not be ignored,” Melbourne IT chief executive Theo Hnarakis said in a statement. 3. William Hill and tomwaterhouse.com UK betting giant William Hill took a punt on bookmaker Tom Waterhouse’s online business last month in a deal that could be worth up to $104 million. Under the deal, William Hill paid $34 million up front, and a potential further $70 million if certain earnings targets are met. “International expansion is a key part of William Hill’s growth strategy and making Australia our second home is our priority,” William Hill chief executive Ralph Topping said in a statement. 4. iiNet and Adam Internet Internet provider iiNet offered to buy South Australia-based Adam Internet for $60 million in August. Telstra had tried to buy Adam but was thwarted by the Australian Competition and Consumer Commission. “We believe that this transaction provides real benefit to Adam Internet’s customers and staff as it aligns them with iiNet, Australia’s leading ISP in customer service,” Adam’s chief executive Greg Hicks said. 5. Webjet and Zuji Travel booking website Webjet snapped up fellow online travel agency Zuji for $25 million in December last year. Webjet managing director John Guscic told SmartCompany the deal represented a unique opportunity to substantially expand Webjet's marketing footprint, particularly in Asia. “We've known Zuji since its inception and we know they’ve built out a very attractive business in Asia and we have a desire to expand into the Asian markets and Zuji has given us the platform to achieve that,” he said. 6. SMS Management & Technology and Indicium In July SMS Management & Technology bought IT infrastructure and managed services company Indicium for $22 million. SMS CEO Tom Stianos said in a statement at the time: “The acquisition of Indicium supports our growing Managed Services and Infrastructure Consulting capability, and meets our strategic imperative to increase our annuity revenue. This is a high growth segment of the market and Indicium will accelerate SMS’ offer of managed services in the cloud market.” 7. Woolworths and Quantium The supermarket giant took a 50% stake in Quantium, Australia’s leading data consultancy, for a reported $20 million in May. Quantium said in a statement it would provide a “wide range of data, analytical, media and software services to Woolworths as well as help deliver customer insights to Woolworths’ suppliers”. And where would the Freelancer.com deal rank among deals in the world? Pretty highly according to data compiled by Australian investment firm Right Click Capital. While it’s nowhere near the $US130 billion deal Verizon Communications has made to buy Vodafone’s 45% of Verizon Wireless this month, or Microsoft’s $US7.2 billion takeover of Nokia, it’s not far off the €360 million ($US477 million) paid by French payment solutions provider Ingenico for online payment provider Ogone in January.
US hedge funds Centerbridge Partners and Oaktree Capital have accused Billabong of ignoring their rival debt-for-equity bid for the troubled surfwear giant, which they claim would have seen existing shareholders emerge with less debt and more equity. "Centerbridge and Oaktree are very credible, interested parties, and to not even have a discussion with them when they've flown in from the US was astonishing,” a source for the consortium told The Australian. Billabong chairman Ian Pollard rejects the accusation. “We gave [Centerbridge and Oaktree] ample opportunity to provide some indication, at the very least, of what their terms might be, but they indicated they couldn't put up a proposal until they had done due diligence. So we executed the only executable transaction we had,” Pollard says. Telstra threatens to sue Vodafone over 4G speed claims Telstra is threatening to sue Vodafone over claims its 4G network is the fastest in Australia and that its coverage now reaches 96% of the Australian population, claims the incumbent telecommunications giant alleges are untrue. "Telstra is confident of the claims that we make about our network. This type of action is not uncommon," a Telstra spokesperson says. "Vodafone customers in 4G areas with compatible devices will have access to speeds that are among the fastest not only in the country but in many parts of the world," Vodafone chief executive Bill Morrow said last month. Queensland government considering second Brisbane casino Queensland Deputy Premier Jeff Seeney has stated the question of a second Brisbane casino is an essential one for the state government, but it has not finalised a decision on whether or not Brisbane should be a one or two casino town. The news comes as both James Packer-led gaming giant Crown and Sydney casino operator Echo intensify their campaigns over a second Brisbane casino. “The casino operators have no need to be taking shots at each other in the public, in the media as we have seen,” Seeney says. Overnight The Dow Jones Industrial Average is up 0.12% to 15470.52. The Aussie dollar is up to US92.42 cents.
Treasurer Chris Bowen has announced Australia will move to a floating carbon price from July next year, with many businesses currently paying a fixed $24.15 per tonne of carbon set to move to a market-based price of between $6 and $10 per tonne. However, the Minerals Council of Australia and the Australian Petroleum Production and Exploration Association say the move does not go far enough to alleviate the concerns of the resource and energy sectors. “While the move to a floating price may represent a short-term lowering of the price facing liable entities, Australia is still imposing a cost on its gas export industry that will not be borne by any of its LNG competitors,” APPEA spokesman Michael Bradley says. Vodafone unveils controversial new ad campaign Vodafone chief marketing officer Kim Clarke has unveiled a new advertising campaign aimed at restoring consumer confidence in the troubled telco, after losses of around $1.2 billion and a million customers abandoning the carrier in 2011 and 2012. The controversial ad campaign, aimed at presenting a company “more confident” with its network, shows a heartbroken teenager waiting for a call from a love interest who never calls, with the tagline, “If you don't get that call, it's probably not our network.” “We've pretty much had our heads down and bums up for the first half of this year, focusing on the network and the experience we're providing our customers. What you're seeing now for the first time is an outward expression of that confidence. And the only reason we're able to do this is because we can see what our customers are experiencing,” Clarke says. New concerns about Boeing’s 787 Dreamliner after yet another fire New safety questions have emerged following a fire aboard an Ethiopian Airlines Boeing 787 Dreamliner at London’s Heathrow Airport over the weekend, following a technical fault aboard a TUI Travel-owned Thomson Airways plane. “We want to reassure our customers that we have every confidence in this aircraft and would never operate it if we weren't 100% sure of its safety," a TUI Travel spokesperson says. A number of airlines set to take orders of the troubled jumbo jets, including Virgin Atlantic, remain committed to their orders of the troubled jets as Boeing reassures airlines, investors and shareholders of its safety. Overnight The Dow Jones Industrial Average closed up 0.02% to 15464.3. The Aussie dollar is up to US90.81 cents.
Margaret Thatcher died peacefully last night, aged 87, with Britain’s first female prime minister set to receive a ceremonial funeral with full military honours at St Paul's Cathedral. Thatcher is considered to be a hero by many conservatives, who credit her with rebuilding the British economy through key policies, which included the privatisation of government assets and her role in ending the UK coal miners’ strike, which in turn drew controversy from those on the political left. “It was with great sadness that I learned of the death of Lady Thatcher. We have lost a great leader, a great prime minister and a great Briton,” says British Prime Minister David Cameron. “The Labour party disagreed with much of what she did and she will always remain a controversial figure. But we can disagree and also greatly respect her political achievements and her personal strength,” says British Labour leader Ed Miliband. Holden told to "go better" after cutting 500 jobs General Motors Holden has announced plans to cut nearly a quarter of its workforce, with 400 jobs set to go in South Australia and a further 100 job losses in Victoria, prompting renewed criticism about government subsidies for the auto giant. “After the loss of these 400 to 500 staff [the cost per job] then rises to more than $50,000 of subsidy per employee. It's quite a large sum of money,” said Simon Cowan from the Centre of Independent Studies. “I think we deserve better. There are a range of important undertakings in that agreement that I want to ensure are delivered to South Australians and now we need to have some serious discussions with the company," said South Australian Premier Jay Weatherill. Vodafone announces 4G network rollout Vodafone has announced the rollout of 4G services, following significant falls in the company’s subscriber base in recent years. “At least for a period of time, we will have the fastest 4G network in Australia. We will have a bit of a differentiation point that no one else has,” said Vodafone chief executive Bill Morrow. Overnight The Dow Jones Industrial Average is up 0.33 per cent, at 14,613.40. The Aussie dollar is up to US104.10 cents.
Long after many in the tech industry believed contactless payments in phones would be the norm, a new partnership between technology giant Samsung and payment group Visa may lead to more widespread adoption of using phones as wallets.
Newspaper and radio conglomerate APN News & Media has been rocked by the resignation of its director and chief executive, along with three other directors, in the wake of a major clash with investors.
Insurance giant QBE is set to cut around 700 jobs as part of a push to save $200 million a year in operating costs.
Telco giant Vodafone is continuing to consolidate its retail base, announcing the end of the Crazy John's brand after acquiring the chain just over four years ago, with the intention of moving stores under its own name.
Troubled surfwear giant Billabong could be broken up if a joint $527 million bid for the company by US clothing giant VF Corporation and investment fund Altamont Capital Partners is successful.
Sydney-based tech start-up Tapit Media plans to take its near field communications technology (NFC) to the global stage, after completing a $2.3 million Series A round led by MPC Ventures.
Government regulations need to change if Australia is to create a 'Silicon Beach' that will compete with the world's leading digital economies, a gathering of tech giants and start-ups has told Prime Minister Julia Gillard.
Venture capital firms are too focused on funding “network users” such as mobile apps rather than the networks themselves, according to a new report.
Developers should treat hackathons as an opportunity to hone their skills, an expert says, after the Vodafone Foundation announced it will host a hackathon on behalf of charities next month.
An advertising company is trying to make mobile phone users listen to commercials – when they call someone else.
Raging at the incompetency of a large, faceless corporation via their outsourced call centre is an experience that most of us have had to endure.
Facebook plans to help app developers bypass the app stores of its rivals on mobile phones, and will also help them understand which mobile browsers support the functionality of their apps.
Sydney Population: 4.5 million Start-up survival rate: 73.4% (2007 to 2009) While few people – even Melburnians – would dispute Sydney’s position as the financial and big business hub of Australia, the city has suffered from a series of setbacks in recent years.
Start-ups have been urged to start using Facebook more proactively and engage more with customers, after a new study has found that many brands have plenty of fans, but aren’t engaging with them effectively.
All start-ups should ensure costs don’t run out of control, but when you operate in a cutthroat industry such as modelling, you can’t afford to skimp on much if your business is to grow.