UPDATE 1-Investor group to vote against Murdochs at News Corp AGM
* HEOS says will also withhold support from Siskind and
KnightLONDON, Oct 14 (Reuters) - Rupert Murdoch’s campaign to keep
control of News Corporation suffered a fresh blow on
Friday after another key shareholder group called for his
eviction from the board of the embattled media company.Hermes Equity Ownership Services (HEOS) the shareholder
advisory service affiliated to Britain’s largest pension fund,
issued a rallying cry to investors to eject Murdoch and sons
James and Lachlan from the board at its upcoming annual meeting
on Oct. 21.The organisation, which votes on behalf of the BT Pension
Fund and more than 20 other institutional clients running $140
billion of assets, has also called for an independent
investigation into the phone hacking scandal that forced the
closure of top-selling British tabloid The News of the World.”The time is right for the company to appoint an independent
chairman to rebuild trust, help correct the governance discount,
and ensure that the interests of all investors are properly
represented,” Jennifer Walmsley, Director of Hermes Equity
Ownership Services, said.”News Corp has not reacted with sufficient urgency to
investor concerns about its board composition and corporate
culture,” Walmsley added.HEOS also said it would withhold support for the re-election
of directors Arthur Siskind and Andrew Knight, citing concerns
for their independence.The statement from HEOS follows a flurry of anti-Murdoch
lobbying from corporate governance watchdogs all over the world.Earlier this week, News Corp hit back at critics including
ISS in a letter to shareholders which said the “disproportionate
focus” on the News of the World phone hacking saga was
“misguided”.
EURO GOVT-ECB seen buying Italian bonds post-auction
Earlier 10-year yields rose to 5.87 percent, their highest
since the central bank began purchasing Italian debt in August
as part of an effort to cap the country’s rising cost of
borrowing. The 10-year yield was last at 5.80 percent, 6 basis
points higher on the day.
UPDATE 4-No end in sight for global BlackBerry outage
* Finds no evidence of hacking or system breach* Outage could escalate pressure for sweeping changes* Shares down 3.9 pct in Toronto after conference callLONDON/TORONTO, Oct 12 (Reuters) - Research In Motion said on Wednesday it was working to end a
three-day global disruption of BlackBerry services that has
frustrated millions of smartphone users and put more pressure
on the company for sweeping changes.The Canadian company, in a hastily announced conference
call, did not say when it would fully restore service to the
tens of millions of customers who have been affected. But it
said it found no evidence that hacking or a system breach
caused the outage, which has affected email and instant
messaging services on five continents.”Our priority is to get the service up and running, because
at the end of the day what’s going to make our customers happy
is to have their BlackBerrys working again,” David Yach, RIM’s
chief technology officer for software, said during the call.Shares of RIM were down 3.9 percent in Toronto trade after
the late-afternoon call, which RIM held days after the
disruptions began in Europe, the Middle East, Africa and India.
The outage later spread to the Americas.The disruption, the worst since an outage swept North
America two years ago, is likely to fuel calls for a management
shake-up and a possible sale or split of the company, which has
failed to keep pace with Apple and other rivals in a
rapidly changing market.The troubles could damage RIM’s once-sterling reputation
for secure and reliable message delivery and risks a further
devaluation of its proprietary BlackBerry offering.RIM’s system, unlike those used by other handset makers,
compresses and encrypts data before pushing it to BlackBerry
devices via carrier networks.
UPDATE 4-No end in sight for global BlackBerry outage
* Finds no evidence of hacking or system breach* Outage could escalate pressure for sweeping changes* Shares down 3.9 pct in Toronto after conference callLONDON/TORONTO, Oct 12 (Reuters) - Research In Motion said on Wednesday it was working to end a
three-day global disruption of BlackBerry services that has
frustrated millions of smartphone users and put more pressure
on the company for sweeping changes.The Canadian company, in a hastily announced conference
call, did not say when it would fully restore service to the
tens of millions of customers who have been affected. But it
said it found no evidence that hacking or a system breach
caused the outage, which has affected email and instant
messaging services on five continents.”Our priority is to get the service up and running, because
at the end of the day what’s going to make our customers happy
is to have their BlackBerrys working again,” David Yach, RIM’s
chief technology officer for software, said during the call.Shares of RIM were down 3.9 percent in Toronto trade after
the late-afternoon call, which RIM held days after the
disruptions began in Europe, the Middle East, Africa and India.
The outage later spread to the Americas.The disruption, the worst since an outage swept North
America two years ago, is likely to fuel calls for a management
shake-up and a possible sale or split of the company, which has
failed to keep pace with Apple and other rivals in a
rapidly changing market.The troubles could damage RIM’s once-sterling reputation
for secure and reliable message delivery and risks a further
devaluation of its proprietary BlackBerry offering.RIM’s system, unlike those used by other handset makers,
compresses and encrypts data before pushing it to BlackBerry
devices via carrier networks.