Messaging app Line mulls U.S., Japan IPO, report says

The popular messaging app, Line, owned by Asia's Naver Corp, is preparing an initial public offering in the United States and Tokyo as soon as November, Bloomberg reported Tuesday, citing people who were familiar with the matter.

The company was working on the IPO with Morgan Stanley and Nomura Holdings, the report said.

The app, popular in Japan and one of the world's largest with some 450 million users, could command a valuation of more than $10 billion, the sources were cited as saying.

Line has not yet decided on a stock exchange, the size of an IPO or which investment bankswould underwrite the offering, Bloomberg said.

Naver and Line were not available for comment outside of Asian business hours. Officials atMorgan Stanley and Nomura were not immediately available for comment.

Investor interest in mobile messaging apps has grown in the wake of Facebook's record $19 billion acquisition of WhatsApp, which pushed up industry valuations and cast a spotlight on the rapidly expanding market.

AT&T raises full-year revenue outlook for second time

 AT&T Inc T.N raised its full-year revenue forecast for a second time, citing strong growth in its equipment installment plan even as its service revenue stagnated.

The No. 2 U.S. telecom services provider said on Tuesday it now expects full-year revenue to increase 5 percent, compared with its prior forecast of 4 percent.

AT&T shares inched up 0.3 percent at $35.55.

By the end of 2014, analysts expect two-thirds of AT&T's postpaid wireless customers to be on its NEXT pricing plan, which unbundles device payments from mobile service payments. Due to the growing popularity of the plan, the company said it expects no service revenue growth in the second quarter and lower average revenue per user.

Net subscriber additions to the company's wireless services are expected to exceed 800,000 in the second quarter, it said, well above Wall Street estimates of 525,000.

AT&T reaffirmed its full-year forecast for adjusted profit, margins, capital expenditure and free cash flow.

The company, which is scheduled to report second-quarter results on July 23, said it expects to report sales of about 3.2 million AT&T Next smartphones in the current quarter.

AT&T also expects increased content costs on its wireline business, a concern the company has said drove its $48.5 billion bid on DirecTV last month.

Bitcoin entrepreneur settles SEC charges over stock sales

A well-known proponent of the electronic currency bitcoin agreed to pay nearly $51,000 to settle U.S. Securities and Exchange Commission civil charges that he publicly offered unregistered shares in two Internet ventures, the regulator said on Tuesday.

Erik Voorhees, 29, published prospectuses and solicited investors through the Bitcoin Forum website to buy shares in FeedZeBirds and SatoshiDICE, both of which he co-owned, without first registering the offerings as required under federal securities law, according to the SEC.

The settlement calls for Voorhees to give up $15,844 in profit and interest, and pay a $35,000 fine. He did not admit or deny wrongdoing.

Voorhees is also a founder of Coinapult, which lets users transfer bitcoin via email or messaging service. The virtual currency is transacted independent of central control, and is not backed by any government or central bank.

"All issuers selling securities to the public must comply with the registration provisions of the securities laws, including issuers who seek to raise funds using bitcoin," said Andrew Ceresney, head of the SEC enforcement division.

Brian Klein, a lawyer for Voorhees, did not immediately respond to requests for comment. Klein has also worked for the nonprofit Bitcoin Foundation, which advocates use of the currency.

The SEC said Voorhees helped raise 2,600 bitcoins in May 2012 through the sale of 30,000 shares in FeedZeBirds, which promises to pay bitcoins to Twitter users who forward sponsored text messages.

It also accused Voorhees of helping raise 50,600 bitcoins from August 2012 to February 2013 through the sale of 13 million shares of SatoshiDICE, a gaming website that pays out casino-like winnings in bitcoin.

SatoshiDICE was sold last July for more than $11 million, Voorhees said at the time.

According to the SEC, the value of bitcoin has fluctuated since Voorhees' first unregistered offering from about $5 to $1,200 per bitcoin.

Rogers, Vodafone announce partner market deal

Rogers Communications Inc, Canada's biggest wireless company, and Vodafone Group PLC, the global telecoms group, announced a new market agreement on Tuesday to broaden the services they offer each other's customers.

They did not provide many details on the scope of the partnership or the terms, but said the non equity deal will make Rogers the exclusive partner of Vodafone Canada, and that they will explore new business opportunities.

Vodafone, the world's largest mobile phone company with networks from Australia toIndia, in the Middle East and across Europe, said its scale will allow Rogers to make more money and cut more costs.

Canaccord Genuity analyst Dvai Ghose said the deal likely cements existing roaming agreements, but is positive for Rogers because the Canadian company has been challenged by the development of a shared next-generation network built by wireless competitors BCE Inc and Telus Corp.

The agreement, presumably, will also help Rogers win multinational corporate customers with business in Canada, Ghose wrote in a note to clients.

Rogers' new chief executive officer, Guy Laurence, who joined the Canadian company late last year from Vodafone's UK unit, said the partnership will give Rogers access to resources and expertise, allowing it to improve services for its customers.

Shares in Rogers rose 0.3 percent to C$44.58 on the Toronto Stock Exchange. Vodafone was down 0.75 percent at 207 pence in London.

Software maker Kinaxis trims expected price of planned offering

Kinaxis Inc trimmed the expected offer price of its initial public offering on Tuesday, in a sign that market demand for the Canadian software company's equity issue may not be as hot as originally expected.

The Ottawa-based company, which provides software to help with supply chain operations, now plans to raise C$100.6 million ($92.34 million), it said in a regulatory filing. It previously said it expected to raise between C$108.4 million and C$123.8 million,

The stock is are now set to price at C$13 a share, compared with the previous price range between C$14 and C$16.

The offering is being structured as an IPO combined with a secondary offering from Kinaxis's current investors, private equity firms HarbourVest, based in Boston, and TechnoCap, based in Montreal, the company said in the filing.

Kinaxis is selling 5 million shares from its treasury, with the remaining 2.74 million being sold by the two fund managers. Following the close of the deal, HarbourVest will retain a roughly 14.7 percent stake in the company, while TechoCap will hold about 23.3 percent, the filing said..

Those stakes could be reduced a bit, if BMO Capital Markets and Canaccord Genuity Corp, the firms book-running the deal, opt to purchase a further 1.6 million shares to cover for any over-allotments.

Kinaxis said it plans to use proceeds from the deal toward debt repayment and for general corporate purposes.

The offering is expected to close on June 10. Shares in the company are set to trade on the Toronto Stock Exchange under the symbol "KXS".

German firm behind goal-line technology looks beyond World Cup

 With two weeks to go to the finals of the soccer World Cup in Brazil, small German start-up company GoalControl has the technology ready make the calls cheered and challenged around the globe: goal or no goal.

This year's World Cup will be the first when 'goal-line technology' will be used, years after the concept was introduced to sports such as cricket, rugby and tennis.

The system, which costs 100,000-170,000 euros ($136,000-$2 31,200) a year, makes use of 14 cameras. They send digitalized pictures to a data room, sitting in the top of the soccer stadium. After analyzing the data, the message will be sent to a special watch, worn by the referee with the word "GOAL" if the balls is over the line. The process takes less than a second.

"Clearly, the world cup is very important to us. We hope to convince some sceptics about the technology," said Dirk Broichhausen, managing director and co-founder of GoalControl.

At the moment the company makes less than 10 million euros in annual revenues. But it estimates it is tapping into a market of about 100 million euros.

"The game is changing rapidly and we are looking at other sports which can use our technology," Broichhausen said at the Tivoli soccer stadium, which has the system installed.

FIFA was persuaded to move to technology after an incident in the 2010 World Cup when England's Frank Lampard was denied a goal against Germany when his shot hit the bar and officials failed to spot it had bounced down just behind the line. That would have tied the match at 2-2 but Germany went on to win 4-1.

The incident had echoes of a famous incident in 1966 when England beat West Germany 4-2 in the final at Wembley, helped by a similar disputed goal that was given to the English on this occasion.

Germans sometimes use the phrase "Wembleytor" to refer to such incidents when the eye struggles to see whether the ball has crossed the line.

It was a similar incident five years ago, during the German second soccer division game between Munich 1860 and Kaiserslautern, that prompted Broichhausen to wonder whethersoftware could recognize the ball and make the call. It could.

BACK IN SPOTLIGHT

Earlier this month the technology moved back into the spotlight after the German cup final between Bayern Munich and Borussia Dortmund, only weeks after the German clubs had rejected the technology.

Dortmund were confident they had scored against champions Bayern when Mats Hummels headed into goal in the 64th minute and defender Dante cleared the ball near the line with the score at 0-0.

Television replays showed both Dante's leg and the ball were clearly over the line. Instead it was Bayern who struck twice in extra time to lift the trophy and complete the domestic double.

GoalControl is looking at other applications. The software can help to establish whether a player was offside or not.

The English Premier League adopted goal-line technology this past season when it started using a system supplied by Hawk-Eye, a British-based company owned by Sony (6758.T).

The 36 German clubs from the first and second soccer division rejected the introduction of the technology in March because of the technology's cost.

Earlier in the season Bayer Leverkusen's Stefan Kiessling scored a 'phantom goal' against Hoffenheim when the ball went in through the side netting.

Bayern Munich last week asked for introduction of the technology just for the Bundesliga after Germany's football league (DFL) had said would review the matter if a club filed another request.

Broichhausen is convinced the world's most popular game is on the verge of big changes. "We are making history. The soccer fans want this technology. They don't want to debate after a game whether it was a goal or not. They just want to know."

Intel readies 3D-printed robots for handy consumers

 Intel Corp introduced a walking, talking robot on Wednesday made from 3D-printed parts that will be available to consumers later this year, if they are willing to assemble it with a kit that costs around $1,600.

The company's Chief Executive Brian Krzanich was accompanied by "Jimmy" on stage at the Code Conference in Rancho Palos Verdes, California. The white 2-foot tall robot shuffled onto the stage, introduced itself and then waved its arms.

Intel describes Jimmy as a research robot, but the company intends to make 3D-printable plans available without charge for a slightly less advanced version, and partners will sell components that cannot be 3D-printed, such as motors and an Intel Edison processor, in kits.

Jimmy can be programmed to sing, translate languages, send tweets and even serve a cold beer.

Under Krzanich, who took over a year ago, the chipmaker is trying to be an early player in emerging technologies like smart clothing, after coming late to the mobile revolution and making little progress in smartphones and tablets.

Its strategy includes engaging tech-savvy do-it-yourselfers and weekend hobbyists working on everything from Internet-connected baby blankets to robots and drones.

Owners of the robots will be able to program them to perform unique tasks. They can then share the programs with other owners as downloadable apps.

Intel, based in Santa Clara, California, hopes the price for the robot kits will fall below $1,000 within five years.

Separately on Wednesday, entrepreneur Bill Gross announced plans for a 3D printer that would sell for $149, far less than devices that now typically sell for $1,000 or more.

Infosys running out of time to name new CEO as president quits

 India's second largest IT services exporter Infosys Ltd is under pressure to bring in a new chief executive soon to check an exodus of junior staff and reassure investors after a slew of departures at the top.

Shares in Infosys, the most widely held Indian stock, fell to their lowest level in nine months on Thursday, the day after it announced president and board member B.G. Srinivas had resigned.

The departure of Srinivas, the 10th senior executive to exit in the last year, widens a leadership vacuum at Infosys as it searches for a new chief executive. It also increases the chance the company will break with tradition and hire an outsider for the job, analysts said.

Srinivas was widely seen as a frontrunner for the top job among internal candidates after Chief Executive S.D. Shibulal, one of company's seven founders, said in April that he wants to retire by January 2015 at the latest.

"With his (Srinivas') resignation, the impression is quite clear that the company is going to get an outsider for the job," RK Gupta, managing director of Taurus Asset Management, which owns Infosys shares, told Reuters.

"With a large organization like Infosys you need new blood. Old guards sometimes have a sense of lethargy."

A decision on the new CEO is likely to be made earlier than expected, possibly during the July-September quarter, said two people with knowledge of the matter. The sources declined to be named as the selection process is confidential.

Infosys did not reply to a Reuters email seeking comment.

The company, which has been losing market shares to its rivals Tata Consultancy Services Ltd and Cognizant Technology Solutions Corp, did not give a reason for Srinivas' resignation in a stock exchange filing.

Srinivas' resignation follows the departure of at least nine senior executives who left since the company brought founder N.R. Narayana Murthy back from retirement to help revive its fortunes in June last year..

INVESTOR CONFIDENCE

Infosys was once a star performer in India's more than $100 billion outsourcing sector, but the uncertainty at the top and its shrinking market share have dimmed its status as the employer of choice for young IT workers, with staff leaving at an unprecedented pace.

Analysts said the company would benefit from swiftly appointing a new CEO.

"They should announce the next CEO in one or two months to bring some stability and boost investor confidence," said Sanjeev Hota, assistant vice president of institutional equities at brokers Sharekhan.

Infosys shares were trading down 7.2 percent at 0728 GMT, underperforming the main Mumbai market index which was down 0.7 percent and the IT sector index, which was trading 2.8 percent lower. The stock is down nearly 16 percent so far this year.

Some analysts said the stock was likely to remain under pressure until the new CEO proved themselves capable of turning Infosys around.

In a research report published on Thursday, Barclays analysts Bhuvnesh Singh and Hitesh Das said the CEO selection process may lead to "further management churn".

"We believe that the probability of an external candidate may indicate that the company's problems are more deep seated than earlier thought and that an external person is required to bring significant changes within the organization," they wrote.

Taiwan's Acer launches cloud computing drive in shift from PC reliance

 Taiwan's Acer Inc 2353.TW detailed its long-touted push into cloud computing on Thursday, as the struggling computer maker responds to a shrinking PC market by pitting itself against cloud leaders Amazon.com Inc AMZN.O andGoogle Inc GOOGL.O.

The world's fourth-biggest producer of personal computers (PC) aims to start makingsoftware and offering online computing services under the heading Build Your Own Cloud (BYOC).

Acer announced BYOC with few details at the end of 2013 when the company booked a third straight loss after the global PC market shrank 10 percent. PCs have been losing out to tablet computers and sidestepped by the cloud, where users store files remotely and run applications over the internet.

"The computer is still our foundation, but BYOC is a new platform for integration, cross-compatibility and convenience," company founder and chairman Stan Shih said at a news conference.

Acer is promoting BYOC as the future of cloud computing by focusing on the so-called Internet of Things, which allows for remote connectivity across a range of devices. In a promotional video, Acer detailed how BYOC will allow users to operate home appliances or automobiles, for example, using smartphones.

Shih said, without elaborating, that he will help Acer find partners for BYOC initiatives beyond his previously announced retirement in June.

But with BYOC, Acer will enter a fledgling market already so competitive that in March Amazon and Google dropped their prices. Either side of their announcements, both Cisco Systems Inc CSCO.O and Hewlett-Packard Co HPQ.N revealed cloud investment of $1 billion.

Acer is therefore likely to have difficulty differentiating BYOC, but the company may benefit from its strength in manufacturing and hardware cost management, said analyst James Lin of KGI Securities.

"Acer has proven itself good at supply-chain integration, so it may be able to exert better cost control over its data centers than players who have less hardware experience," Lin said before Acer's Thursday announcement.

PC DECLINE CASUALTY

Acer has been one of the more notable casualties of a decline in the global PC market. Acer's PC shipments fell 20.2 percent in the first quarter of 2014 compared with an overall market decline of 4.4 percent, showed data from researcher IDC.

That led to a January-March net profit of only T$1 million ($33,200), continuing Acer's trend of booking a meager profit or loss in every quarter since early 2011.

Over that time frame, Acer has fallen to the world's No.4 PC vendor from No.2, according to researcher Gartner. The company has also had three chief executives, and has had to contend with two employees being investigated for insider trading.

Shares of Acer have fallen almost 80 percent since January 2011. They were trading 0.8 percent lower after Thursday's BYOC announcement, compared with a 0.2 percent decline in the broader TAIEX index .TWII.

Apple to get Beats, music mogul Iovine for $3 billion

 Apple Inc (AAPL.O) will buy Beats for about $3 billion and bring recording mogul Jimmy Iovine into its ranks, hoping to win points with the music industry and help it catch up in fast-growing music streaming.

As expected, Beats co-founders Iovine and rapper Dr. Dre will join Apple as part of the acquisition of the music streaming and audio equipment company.

They should prove key in forging relationships with an industry that historically viewed Apple with suspicion but in recent years has pressed the iPhone maker to do more on subscription services, a market expected to eclipse song downloads in the long run.

Iovine's music industry relationships could ease notoriously difficult licensing negotiations for a future streaming service, recording industry executives say.

"The ugly truth is that there is such a Berlin Wall between Silicon Valley and LA," Apple Chief Executive Tim Cook told the Wall Street Journal in an interview. "The two don't respect each other, don't understand each other."

While the price tag represents an iota of Apple's roughly $150 billion cash hoard, it marks a significant departure for a company that for two decades has stuck mainly to acquisitions worth hundreds of millions of dollars.

The deal is seen as Apple's effort to jump-start an uneven attempt to make headway in music streaming, the fastest-growing segment of the market, as iTunes sales decline.Pandora Media Inc (P.N) and Spotify have raced ahead while Apple's eight-month-old iTunes Radio has not made much of a dent.

With music downloads in decline, record labels have also put pressure on Apple to get its act together on streaming. The record labels hope Apple can turn Beats Music into a strong competitor to Spotify and other streaming services, sources familiar with the matter have said.

“Apple created the digital download business and has had an amazing run, but the industry is going in the streaming service direction," said Daniel Weisman, a manager for Roc Nation who represents bands.

The transaction is expected to close in the fourth quarter, Apple said on Wednesday. Shares in the company stood largely unchanged in after-hours trade.

GAINING COOL

Apple is also gaining a line of high-end headphones popular with a young urban demographic, bumping up its "cool" factor, analysts have said. But industry executives say the company was most impressed with Beats' five month-old music service.

The market as a whole is burgeoning. Streaming subscriptions jumped 51 percent in 2013 to $1.1 billion, out of $15 billion spent on music, according to the International Federation of the Phonographic Industry. Meanwhile, downloads slipped 2.1 percent.

The other prize is Beats' co-founder himself. Iovine, 61, is best known as the co-founder of Interscope Records, a rap music pioneer that branched out to include acts like Lady Gaga and U2.

"He founded, and for more than 20 years has led Interscope, a label that has consistently been in the forefront of the music business," Lucian Grainge, chairman of Universal Music Group, said in a statement on Wednesday. "We ... look forward to enhancing our partnerships with Apple and Beats for many years to come."