Fla. wireless NeoMedia buys Mobot of Lexington
(Correction: Because of a reporting error, a Business in Brief item yesterday about NeoMedia Technologies Inc. inaccurately described the stock exchange on which shares of NeoMedia are listed. They are traded on the Nasdaq Over-the-Counter Bulletin Board.)
THE REGION
Mobot Inc., a Lexington company that has pioneered systems that allow people to use wireless camera phones to get information from print advertisements, has agreed to be purchased for up to $11 million in cash and stock by a Florida wireless company. The buyer, NeoMedia Technologies Inc., is a penny stock that trades on the Nasdaq ''pink sheets." Two-year-old Mobot has run promotions with magazines such as Jane and Vibe and the Warner Music Group that enable people who want to enter sweepstakes or get more information about an ad in a magazine to take a picture of the ad and e-mail it from their cellphone. NeoMedia offers similar services. (Peter J. Howe)
Waltham company to cut 50 positions worldwide
Novell Inc., a seller of network software and consulting services, said it will eliminate 120 to 150 jobs in Europe, the Middle East, and Africa in an effort to cut costs after results fell short of estimates. The cuts will cost about $10 million to $12 million, most of which will be recorded in the third quarter, the Waltham company said in a filing with the Securities and Exchange Commission. The move will reduce quarterly operating expenses by about $3 million to $4 million, Novell said. (Bloomberg)
Burlington's Intranets.com bought for $45m in cash
WebEx Communications, a provider of online business meetings, said it agreed to buy privately held Intranets.com of Burlington for about $45 million in cash, subject to future adjustments. San Mateo, Calif.-based WebEx, which has historically focused on helping big business customers conduct meetings online, said the acquisition helps WebEx expand into the small and medium-sized business market. Intranets.com offers communication services to more than 300,000 paying subscribers and 10,000 small- and medium-sized businesses. The deal has been unanimously approved by the boards of both companies. (Reuters)
Summit Partners acquires 33 of Calif. hedge fund
Summit Partners, a Boston buyout and venture capital firm that raised its biggest fund in June, purchased one third of hedge fund company Coast Asset Management LLC for $126.8 million to round out its alternative investments. Coast Asset Management, based in Santa Monica, Calif., manages about $5 billion in assets, the companies said. Peter Y. Chung, general partner at Summit will join the hedge fund's board of directors. (Bloomberg)
THE NATION
Pipeline operator pays $5.6b total for Terasen
US pipeline operator Kinder Morgan said it reached a deal to buy Canadian pipeline company Terasen Inc. for $3.1 billion in a move that will enable it to grab a share of growing Canadian oil shipments. The purchase also calls for Kinder Morgan to take on $2.5 billion in Terasen debt. Terasen also owns a utility in western Canada that distributes natural gas to 875,000 customers in British Columbia. Under the deal's terms, Terasen shareholders can elect to receive $35.75 Canadian in cash per share, 0.3331 shares of Kinder Morgan common stock per share, or $23.25 Canadian in cash plus 0.1165 Kinder Morgan common stock per share, the companies said. The deal requires Terasen shareholders' approval. (Reuters)
Drug industry turns down moratorium on new ads
Drug industry lobbyists have rejected a two-year moratorium on new advertising, rebuffing US Senate Majority Leader Bill Frist's request. A draft version of the voluntary code of conduct for drug advertising said a waiting period ''could have the unintended consequence of denying patients important information." A final version of the code will be unveiled today by the Pharmaceutical Research and Manufacturers of America. Some drug advertising has been criticized for minimizing risks, overstating benefits, and raising prices. Calls to limit drug ads escalated after the heavily advertised painkiller Vioxx was linked to heart problems. Though the new guidelines don't include the moratorium called for by Frist, Republican of Tennessee, they will ask companies to submit television ads to regulators for prior review. (Diedtra Henderson)
THE WORLD
Nokia CEO to step down, successor has been named
Nokia Oyj chief executive Jorma Ollila, who turned the former maker of toilet paper and rubber boots into the world's largest mobile phone company, will step down next year and be replaced by handset chief Olli-Pekka Kallasvuo. Ollila plans to remain nonexecutive chairman when he resigns as chief executive June 1. Kallasvuo joined Nokia in 1980 and has also served as chief financial officer. (Bloomberg) 