DealBook: H.P. Said to Have Suitors for Two Units

Hewlett-Packard has received a number of inquiries from would-be buyers for its Autonomy and Electronic Data Systems units in recent weeks, though the technology company is not interested in selling at the moment, a person briefed on the matter said on Wednesday.

The calls from potential suitors and bankers picked up after H.P. filed its annual report with regulators on Dec. 28, said the person, who did not want to be identified because management deliberations were confidential.

In the securities filing, the company said, “We also continue to evaluate the potential disposition of assets and businesses that may no longer help us meet our objectives.”

That is standard legal boilerplate. But H.P. has been struggling with poor performance at both Autonomy and E.D.S., having significantly written down the value of those acquisitions.

The company has also claimed to have found accounting and disclosure issues at Autonomy, and has forwarded findings from an internal inquiry to securities regulators in the United States and the division’s home in Britain.

Shares of H.P. rose 4 percent on Wednesday after The Wall Street Journal reported news of the expressions of interest. Over the last 12 months, the shares have fallen 35 percent.

But H.P.’s management team, led by Meg Whitman, is not interested in selling what it considers to be core businesses. Instead, the company intends to focus on developing its enterprise operations, the person said.

The inquiries may also have been stoked by the sudden flurry of news coverage surrounding a potential leveraged buyout of Dell. That company still appears to be closing in on a potential deal to sell itself to a consortium that includes its founder, Michael S. Dell, and the investment firm Silver Lake, in the biggest leveraged buyout in more than five years.

Advisers to Dell and Silver Lake are still negotiating a number of elements in what is proving to be a complicated deal, though they have made advancements, according to a person briefed on the matter who did not want to be identified because the talks were private. A potential takeover may be priced around $14 a share, valuing the company at more than $24 billion.

Mr. Dell is expected to contribute his roughly 16 percent stake to a leveraged buyout. And Silver Lake has been in talks with potential partners, including sovereign wealth funds like Temasek of Singapore, about contributing additional capital, this person said.

Banks are also working on lining up the financing necessary for a deal, which could reach $15 billion. While an enormous amount of money, bankers are betting that debt investors will clamor for the financing package, hoping to reap yields that are higher than those for Treasury bonds.

Still, this person cautioned that the discussions could fall apart.

Confronting H.P. and Dell is the grinding pressure on both companies’ personal computer businesses, where profit margins have declined in the last few years as competition toughened.

The two tech companies are trying to decrease their dependence on making PCs.

That move had prompted H.P. to buy both E.D.S. and Autonomy, paying more than $20 billion for the pair.

A version of this article appeared in print on 01/17/2013, on page B4 of the NewYork edition with the headline: Two Units Of Hewlett Reportedly Draw Suitors.
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Standoff After Militants Seize Americans and Other Hostages in Algeria





BAMAKO, Mali — The Algerian military launched an operation on Thursday against armed Islamist extremists holding dozens of hostages including Americans and other foreigners at a remote gas field on Thursday, and a top Algerian official said at least four hostages were freed. There were unconfirmed reports of multiple casualties.







Kjetil Alsvik/Statoil, via Agence France-Presse — Getty Images

An undated photo of the In Amenas gas field in Algeria, where Islamist militants took dozens of foreign hostages on Wednesday.






The military operation, confirmed by an Algerian official and the governments of Japan and Britain, which said they had been informed by Algerian authorities, came more than 24 hours after the armed extremists seized the hostages at the internationally managed gas field near the Libyan border in retaliation for the French military intervention in Mali last week.


“There was an assault, yes,” said the Algerian official, who spoke on condition of anonymity because of the sensitivity of the operation. “There are burned-out vehicles. Four hostages have been saved.”


The official said reports that Algerian army helicopters had strafed the gas field and had killed 35 hostages and 15 kidnappers were “exaggerated.” He said that some kidnappers had been killed but he would not say whether any hostages had been killed.


“We are waiting for official confirmation,” he said.


News agencies in Algeria and neighboring Mauritania said the helicopters may have attacked when the kidnappers sought to move their hostages from one part of the installation to another.


British officials in London said Algerian authorities had informed them that an “operation” was under way at the remote location in the desert, but gave no further details. “It remains an ongoing situation,” one official said, speaking in return for anonymity under departmental rules. Japanese authorities were still trying to ascertain if any Japanese hostages had escaped, the top Japanese government spokesman, Chief Cabinet Secretary Yoshihide Suga, told a news conference.


The situation is “very confused,” President François Hollande of France said at a news conference in Paris and was “evolving hour by hour.” Mr. Hollande confirmed for the first time officially that French citizens were among the captives.


The kidnapping in Algeria was a retaliation for the continuing French military assault on Islamist extremists in Mali that has escalated into a much broader conflict spilling beyond Mali and North Africa to the United States and other countries with citizens held hostage. Reuters said the survivors of the Algerian assault included hostages from the United States, Belgium, Japan and Britain. The full extent of the casualties was not immediately clear.


Before reports of an assault began to emerge, many hostages — both Algerian and foreign — were reported to have escaped as the kidnappers sought and failed to persuade Algerian authorities to give them safe passage with their captives.


The Algerian news Web site TSA, quoted a local official, Sidi Knaoui, as saying 10 foreign hostages and 40 Algerians had escaped Thursday after the kidnappers had made several aborted attempts to flee with their captives. Mr. Knaoui said he had been scheduled to meet with the hostage takers in an attempt at negotiations. He could not be reached for confirmation.


The Irish government confirmed that an Irish national had escaped or been released. The man had contacted his family and was "understood to be safe and well and no longer a hostage," Ireland’s Department of Foreign Affairs and Trade said in a statement.


Other Algerian news reports said that 30 Algerian hostages and 15 foreigners escaped, but there was no immediate independent confirmation of that account. The Associated Press, quoting an unidentified Algerian official, said 20 foreigners, including some Americans, had escaped.


Earlier, a French television station, France 24, quoted an unidentified hostage as saying the attackers “were heavily armed and forced several hostages to wear explosives belts. They threatened to blow up the gas field if Algerian forces attempted to enter the site,” the station reported.


Adam Nossiter reported from Bamako, and Alan Cowell and Scott Sayare from Paris. Reporting was contributed by Clifford Krauss from Houston, Rick Gladstone from New York, Elisabeth Bumiller from Rome, and Steven Erlanger from Paris.



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DealBook: Goldman Sachs Earnings Soar

9:46 a.m. | Updated

Goldman Sachs on Wednesday reported a fourth-quarter profit of $2.89 billion, or $5.60 a share, a significant jump from the period a year earlier.

The per-share figure is after the company paid preferred dividends, and comes in well ahead of analysts’ expectations of $3.78 a share, according to Thomson Reuters.

Analysts had been anticipating a fairly decent quarter for Goldman, and its results were buoyed by strong trading and investment banking results and lower compensation costs. In the fourth quarter of 2011, the bank earned $1.01 billion, or $1.84 a share.

The bank’s most recent results reflect a continued focus on cutting expenses as well as a number of investing gains, including $485 million from debt and security loans, the company said.

“While economic conditions remained challenging for much of last year, the strengths of our business model and client franchise, coupled with our focus on disciplined management, delivered solid performance for our shareholders,” Goldman’s chairman and chief executive, Lloyd C. Blankfein, said in a news release.

The results had an immediate effect on the firm’s stock, sending it up 2.7 percent in early morning trading.

Over all, the firm produced $9.24 billion in revenue in the quarter ended Dec. 31, up 53 percent from the same quarter in 2011. That also beat analysts’ estimates of quarterly revenue of $7.91 billion.

Goldman also revealed how much it had set aside for compensation, paying out $12.9 billion in 2012, an average of $399,506 to each of its 32,400 employees. This represented 37.9 percent of Goldman’s revenue for the year.

Over the last year, Goldman has reduced its payroll by 900 people. In 2011, the bank set aside $12.22 billion, or 42.4 percent, of its 2011 net revenue to pay compensation and benefits for its employees.

Goldman partners, a small group of top managers at the firm, will learn their 2012 compensation packages on Wednesday. The vast majority of employees, however, will be told what their bonuses will be on Thursday in what is known at Goldman as compensation communication day. These bonuses are on top of annual salaries, which can range from roughly $100,000 to $2 million for executives like Mr. Blankfein.

Bonuses on Wall Street — both the size of them and how they are paid — always draw scrutiny. Goldman Sachs decided this week not to delay the payment of bonuses to its staff members in Britain, a move that would have helped investment bankers and other highly paid employees benefit from a lower income tax rate.

Goldman Sachs was already drawing attention in the United States after it distributed $65 million in stock to 10 senior executives in December instead of January, when the firm typically makes such awards. That move helped the executives avoid the higher tax rates that will now be imposed on income of $450,000 or more.

The firm’s annual return on equity was 10.7 percent, up from 2011, when it was 5.8 percent. While this is far below its performance in boom years like 2006, when its return on equity was 41.5 percent, it is an achievement that it has broken above 10 percent.

Banks continue to fight difficult economic conditions at home and abroad, and Goldman’s results are still well below what it was producing before the financial crisis. Those outsize profits, however, were fueled by borrowing on credit and selling mortgage-linked products, and they have dwindled. New regulations aimed at reining in risk-taking have also reduced the profitability of certain businesses.

Revenue from investment banking came in at $1.41 billion, up 64 percent from the year-ago period.

Net revenue in Goldman’s powerful division that trades bonds, currencies and commodities was $2.04 billion, up 50 percent from levels in the quarter a year earlier. The firm said those results reflected an increase in mortgage revenues, which were “significantly higher” when compared with 2011.

The firm’s investing and lending division also had a stronger-than-expected quarter, posting revenue of $1.97 billion, up 126 percent from year-ago levels. The firm said this unit benefited from an increase in equity prices in Asia and Europe and a number of one-time gains. For instance, it logged a gain of $334 million from its investment in the Industrial and Commercial Bank of China, a strategic investment the firm made in 2006. It also had gains from the debt securities and loans it holds.

Goldman is one of a number of banks releasing earnings this week. JPMorgan Chase also Wednesday weighed in with its results, reporting a strong profit of $5.7 billion for the fourth quarter, up 53 percent from the previous year.

These positive results put pressure on Morgan Stanley to post good results when it releases its fourth quarter numbers on Friday. Analysts polled by Thomson Reuters are expecting Morgan Stanley to report earnings of 27 cents a share, up from a loss of 14 cents in the year-ago period.

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Phys Ed: Exercise Can Boost Flu Shot's Potency

Phys Ed

Gretchen Reynolds on the science of fitness.

As this year’s influenza season continues to take its toll, those procrastinators now hurrying to get a flu shot might wish to know that exercise may amplify the flu vaccine’s effect. And for maximal potency, the exercise should be undertaken at the right time and involve the right dosage of sweat, according to several recent reports.

Flu shots are one of the best ways to lessen the risk of catching the disease. But they are not foolproof. By most estimates, the yearly flu vaccine blocks infection 50 to 70 percent of the time, meaning that some of those being inoculated gain little protection. The more antibodies someone develops, the better their protection against the flu, generally speaking. But for some reason, some people’s immune systems produce fewer antibodies to the influenza virus than others’ do.

Being physically fit has been found in many studies to improve immunity in general and vaccine response in particular. In one notable 2009 experiment, sedentary, elderly adults, a group whose immune systems typically respond weakly to the flu vaccine, began programs of either brisk walking or a balance and stretching routine. After 10 months, the walkers had significantly improved their aerobic fitness and, after receiving flu shots, displayed higher average influenza antibody counts 20 weeks after a flu vaccine than the group who had stretched.

But that experiment involved almost a year of dedicated exercise training, a prospect that is daunting to some people and, in practical terms, not helpful for those who have entered this flu season unfit.

So scientists have begun to wonder whether a single, well-calibrated bout of exercise might similarly strengthen the vaccine’s potency.

To find out, researchers at Iowa State University in Ames recently had young, healthy volunteers, most of them college students, head out for a moderately paced 90-minute jog or bike ride 15 minutes after receiving their flu shot. Other volunteers sat quietly for 90 minutes after their shot. Then the researchers checked for blood levels of influenza antibodies a month later.

Those volunteers who had exercised after being inoculated, it turned out, exhibited “nearly double the antibody response” of the sedentary group, said Marian Kohut, a professor of kinesiology at Iowa State who oversaw the study, which is being prepared for publication. They also had higher blood levels of certain immune system cells that help the body fight off infection.

To test how much exercise really is required, Dr. Kohut and Justus Hallam, a graduate student in her lab, subsequently repeated the study with lab mice. Some of the mice exercised for 90 minutes on a running wheel, while others ran for either half as much time (45 minutes) or twice as much (3 hours) after receiving a flu shot.

Four weeks later, those animals that, like the students, had exercised moderately for 90 minutes displayed the most robust antibody response. The animals that had run for three hours had fewer antibodies; presumably, exercising for too long can dampen the immune response. Interestingly, those that had run for 45 minutes also had a less robust response. “The 90-minute time point appears to be optimal,” Dr. Kohut says.

Unless, that is, you work out before you are inoculated, another set of studies intimates, and use a dumbbell. In those studies, undertaken at the University of Birmingham in England, healthy, adult volunteers lifted weights for 20 minutes several hours before they were scheduled to receive a flu shot, focusing on the arm that would be injected. Specifically, they completed multiple sets of biceps curls and side arm raises, employing a weight that was 85 percent of the maximum they could lift once. Another group did not exercise before their shot.

After four weeks, the researchers checked for influenza antibodies. They found that those who had exercised before the shot generally displayed higher antibody levels, although the effect was muted among the men, who, as a group, had responded to that year’s flu vaccine more robustly than the women had.

Over all, “we think that exercise can help vaccine response by activating parts of the immune system,” said Kate Edwards, now a lecturer at the University of Sydney, and co-author of the weight-training study.

With the biceps curls, she continued, the exercises probably induced inflammation in the arm muscles, which may have primed the immune response there.

As for 90 minutes of jogging or cycling after the shot, it probably sped blood circulation and pumped the vaccine away from the injection site and to other parts of the body, Dr. Kohut said. The exercise probably also goosed the body’s overall immune system, she said, which, in turn, helped exaggerate the vaccine’s effect.

But, she cautions, data about exercise and flu vaccines is incomplete. It is not clear, for instance, whether there is any advantage to exercising before the shot instead of afterward, or vice versa; or whether doing both might provoke the greatest response – or, alternatively, be too much and weaken response.

So for now, she says, the best course of action is to get a flu shot, since any degree of protection is better than none, and, if you can, also schedule a visit to the gym that same day. If nothing else, spending 90 minutes on a stationary bike will make any small twinges in your arm from the shot itself seem pretty insignificant.

Read More..

Phys Ed: Exercise Can Boost Flu Shot's Potency

Phys Ed

Gretchen Reynolds on the science of fitness.

As this year’s influenza season continues to take its toll, those procrastinators now hurrying to get a flu shot might wish to know that exercise may amplify the flu vaccine’s effect. And for maximal potency, the exercise should be undertaken at the right time and involve the right dosage of sweat, according to several recent reports.

Flu shots are one of the best ways to lessen the risk of catching the disease. But they are not foolproof. By most estimates, the yearly flu vaccine blocks infection 50 to 70 percent of the time, meaning that some of those being inoculated gain little protection. The more antibodies someone develops, the better their protection against the flu, generally speaking. But for some reason, some people’s immune systems produce fewer antibodies to the influenza virus than others’ do.

Being physically fit has been found in many studies to improve immunity in general and vaccine response in particular. In one notable 2009 experiment, sedentary, elderly adults, a group whose immune systems typically respond weakly to the flu vaccine, began programs of either brisk walking or a balance and stretching routine. After 10 months, the walkers had significantly improved their aerobic fitness and, after receiving flu shots, displayed higher average influenza antibody counts 20 weeks after a flu vaccine than the group who had stretched.

But that experiment involved almost a year of dedicated exercise training, a prospect that is daunting to some people and, in practical terms, not helpful for those who have entered this flu season unfit.

So scientists have begun to wonder whether a single, well-calibrated bout of exercise might similarly strengthen the vaccine’s potency.

To find out, researchers at Iowa State University in Ames recently had young, healthy volunteers, most of them college students, head out for a moderately paced 90-minute jog or bike ride 15 minutes after receiving their flu shot. Other volunteers sat quietly for 90 minutes after their shot. Then the researchers checked for blood levels of influenza antibodies a month later.

Those volunteers who had exercised after being inoculated, it turned out, exhibited “nearly double the antibody response” of the sedentary group, said Marian Kohut, a professor of kinesiology at Iowa State who oversaw the study, which is being prepared for publication. They also had higher blood levels of certain immune system cells that help the body fight off infection.

To test how much exercise really is required, Dr. Kohut and Justus Hallam, a graduate student in her lab, subsequently repeated the study with lab mice. Some of the mice exercised for 90 minutes on a running wheel, while others ran for either half as much time (45 minutes) or twice as much (3 hours) after receiving a flu shot.

Four weeks later, those animals that, like the students, had exercised moderately for 90 minutes displayed the most robust antibody response. The animals that had run for three hours had fewer antibodies; presumably, exercising for too long can dampen the immune response. Interestingly, those that had run for 45 minutes also had a less robust response. “The 90-minute time point appears to be optimal,” Dr. Kohut says.

Unless, that is, you work out before you are inoculated, another set of studies intimates, and use a dumbbell. In those studies, undertaken at the University of Birmingham in England, healthy, adult volunteers lifted weights for 20 minutes several hours before they were scheduled to receive a flu shot, focusing on the arm that would be injected. Specifically, they completed multiple sets of biceps curls and side arm raises, employing a weight that was 85 percent of the maximum they could lift once. Another group did not exercise before their shot.

After four weeks, the researchers checked for influenza antibodies. They found that those who had exercised before the shot generally displayed higher antibody levels, although the effect was muted among the men, who, as a group, had responded to that year’s flu vaccine more robustly than the women had.

Over all, “we think that exercise can help vaccine response by activating parts of the immune system,” said Kate Edwards, now a lecturer at the University of Sydney, and co-author of the weight-training study.

With the biceps curls, she continued, the exercises probably induced inflammation in the arm muscles, which may have primed the immune response there.

As for 90 minutes of jogging or cycling after the shot, it probably sped blood circulation and pumped the vaccine away from the injection site and to other parts of the body, Dr. Kohut said. The exercise probably also goosed the body’s overall immune system, she said, which, in turn, helped exaggerate the vaccine’s effect.

But, she cautions, data about exercise and flu vaccines is incomplete. It is not clear, for instance, whether there is any advantage to exercising before the shot instead of afterward, or vice versa; or whether doing both might provoke the greatest response – or, alternatively, be too much and weaken response.

So for now, she says, the best course of action is to get a flu shot, since any degree of protection is better than none, and, if you can, also schedule a visit to the gym that same day. If nothing else, spending 90 minutes on a stationary bike will make any small twinges in your arm from the shot itself seem pretty insignificant.

Read More..

News Analysis: Momentum Seems to Build for Gargantuan Buyout of Dell

Dell is advancing toward a goal many thought was all but unattainable since the financial crisis: a leveraged buyout worth more than $20 billion.

The company is in talks with investment firms and its founder, Michael S. Dell, over a deal that would take the technology company off the public markets, people briefed on the matter said on Tuesday.

One potential transaction that appears to be gaining steam is one that would be led by Silver Lake, a private equity firm that focuses on technology deals, one of these people said. The investment shop has already tasked a number of banks — Bank of America Merrill Lynch, Barclays, Credit Suisse and Royal Bank of Canada — with lining up the enormous amount of financing that would be needed, perhaps as much as $16 billion.

Silver Lake is also sounding out potential partners that could help contribute equity financing for the deal, a group that may include wealthy Asian investors, this person said.

Dell is contemplating using some of its enormous store of cash, totaling about $11.3 billion as of Nov. 2, to help defray the deal’s cost. It may do so even though more than 80 percent of its cash is held overseas, and bringing it home could generate a big tax penalty.

Mr. Dell is expected to contribute his roughly 16 percent stake in the company to the deal, helping to lower the ultimate price tag. His shares as of Tuesday’s market close were worth about $3.6 billion. It is unclear whether he would invest additional money as part of a buyout.

Nonetheless, the deal talks appear to have momentum, although one of the people briefed on the matter cautioned that they could still fall apart.

Representatives for Dell, Silver Lake and the banks declined to comment.

Should a deal come together, it would be the most radical step yet to revive a company once so profitable that it gave rise to a class of “Dellionaires” during the Internet boom.

Mr. Dell, who founded the computer maker in his dorm room in 1984, has long cast about for a solution to a world where revenue from personal computer sales has consistently fallen in recent years.

Behind any move to take Dell private is the hope that, freed from the tough scrutiny of public shareholders, the company can continue moving into the more lucrative and stable market of providing hardware and software services for corporations.

The company’s stock had fallen nearly 48 percent in the five years through last Friday, the day before Bloomberg News reported Dell’s talks with private equity firms. Since then, the stock price has climbed 21 percent.

A leveraged buyout of Dell would be one of the biggest private equity transactions since the Blackstone Group acquired Hilton Hotels for $25 billion more than five years ago. To date, no leveraged buyout announced since the financial crisis has surpassed the $7.2 billion that Kohlberg Kravis Roberts and others paid for the Samson Investment Company, an oil and gas driller, in fall 2011.

In part, that has been a matter of logistics. Leveraged buyouts require private equity firms to put money down, much as borrowers do for a mortgage. On average, that amount has been around 30 percent of the overall deal price, meaning that the equity required for a Dell takeover could be significant.

That is why Silver Lake is seeking to bring in at least one partner to help buoy a bid, one of the people briefed on the matter said.

But private equity firms have also taken pains to avoid club deals, in which two or more of them partner together to buy a company. Investors in these firms have complained that the practice essentially multiplies their exposure to a particular transaction.

Private equity firms aren’t fond of them because they essentially erase the distinctions between competitors, potentially making it harder to raise money for new funds.

Any deal would also require a seemingly daunting amount of debt financing, raised from bank loans and junk-bond sales. Several deal makers have expressed confidence in their ability to raise that money, given a hunger among investors for bonds that yield even a few percentage points more than Treasury bonds.

The co-head of JPMorgan Chase‘s global debt capital markets, Jim Casey, told CNBC in October that his firm could raise $15 billion to $25 billion in noninvestment-grade debt for a single transaction.

Some of the other obstacles to a Dell takeover lie specifically with the company. It already bears $4.9 billion in long-term debt — and that is before it assumes the enormous amount that would come from a private equity deal.

While Dell still reports a healthy amount of cash from operations, totaling $3.7 billion for the year ended Nov. 2, much of that could be consumed with paying down debt. A. M. Sacconaghi, an analyst with Sanford C. Bernstein, estimated on Tuesday that the company could pay about $820 million in interest payments each year.

Analysts have questioned whether a private Dell would have the capital to pay for acquisitions, which has been an important vehicle for expanding into new markets. Last year alone, the company struck 10 deals, including the $2.4 billion purchase of Quest Software.

“With a large debt load, we believe Dell would have a more difficult time acquiring smaller enterprise companies — making it harder to diversify away from PCs,” analysts with Barclays wrote in a research note on Tuesday.

“We would be quite surprised if a transaction would take place.”

Ben Protess contributed reporting.

A version of this article appeared in print on 01/16/2013, on page B7 of the NewYork edition with the headline: Signs of Gathering Momentum for a Hefty Buyout of Dell.
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Berlusconi Stirs Up Elections in Italy





ROME — The dark, double-breasted suits have long been a mainstay, but now former Prime Minister Silvio Berlusconi has taken to wearing the occasional fedora. It lends him a rakish, retro air as he embarks on what many Italians, foreign investors and no doubt Chancellor Angela Merkel of Germany hoped would never happen: another election campaign.




In recent weeks, Mr. Berlusconi, a center-right candidate, has blitzed the airwaves with a theatrical blend of anti-establishment populism, this from someone who governed Italy for the better part of the last decade. His prime targets are Prime Minister Mario Monti, a well-behaved technocrat now vying to retain his post, and Ms. Merkel, cast as the taskmaster of the austerity that is suffocating southern Europe.


With every hour that he appears on television, the medium he knows best and that made him rich, Mr. Berlusconi rises in opinion polls. His People of Liberty party is now in second place, after the center-left Democratic Party and before Mr. Monti’s nascent and still incoherent centrist bloc. They are trailed by the grass-roots Five Star Movement of Beppe Grillo, a comedian, which has tapped into a groundswell of antipolitical sentiment.


Analysts widely agree that there is little chance Mr. Berlusconi will govern Italy again after elections scheduled for February. But they say he is likely to win enough seats in Parliament to achieve his goals: protecting his interests on issues like justice reform, digital television rights and wiretap laws — and weakening the center-left Democratic Party and Mr. Monti, whose popularity has dropped since the economist became a candidate.


“It’s a very confusing time,” said Giuliano Ferrara, the editor of the conservative daily Il Foglio and a sometime Berlusconi adviser. “People don’t want the insider,” he said of Mr. Berlusconi, “and they don’t want the outsider,” he added of Mr. Monti.


Mr. Berlusconi, a skilled campaigner, has cast himself as an outsider while making an “insider” of Mr. Monti, who was lionized when he first took office in November 2011 precisely because he was seen as apolitical.


Despite his many legal tangles and the dire performance of Italy’s economy under his leadership, Mr. Berlusconi maintains a residual popularity through charm, mastery of the media and a lack of strong competing parties.


Last week, Mr. Berlusconi appeared for two hours on a television program hosted by one of his old enemies. Questioned about the number of politicians with criminal records elected on his party’s slate over the years, Mr. Berlusconi said he had not sought them out. “You take 100 priests and you don’t find 100 saints,” he said.


“This country is ungovernable!” he said with glee at one point, only to be reminded that his governments had the largest majority in postwar Italian history. At another moment, Mr. Berlusconi stood up in outrage, threatened to leave but eventually calmed down, deftly taking out a white handkerchief to brush off his chair before sitting back down.


The show drew nine million viewers, a quarter of the Italian audience share.


“He’s an ex-prime minister who is doing showmen’s gags on television,” said Marco Damilano, a political correspondent for L’Espresso, a left-wing weekly magazine, whom Mr. Berlusconi cheerfully pretended to hit on the head with a poster on a television program on Tuesday.


Always a savvy populist, Mr. Berlusconi now rails against the fiscal consolidation policies advocated by Germany, sounding not unlike the leftist Syriza party in Greece, which leads in opinion polls there. He has also taken to quoting the New York Times columnist Paul Krugman, a critic of austerity.


His message has struck a nerve in Italy and has helped put Mr. Monti, the darling of Europe and the United States, who calmed financial speculation and put Italy back on the world stage, on the defensive on television, a medium that Mr. Berlusconi dominates the way Fred Astaire did the dance floor.


Appearing on Italy’s most widely watched interview program on Monday evening, Mr. Monti, who routinely treats his predecessor with understated irony, compared Mr. Berlusconi to “the Pied Piper” who entranced Italy but ultimately led it to its death.


Gaia Pianigiani contributed reporting.



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DealBook: Alibaba's Founder to Give Up C.E.O. Title, but Will Remain Chairman

After 14 years of building up the Alibaba Group into one of the biggest Internet companies in the world, Jack Ma is taking a step back from the chief executive role of the Chinese e-commerce giant.

But Mr. Ma isn’t leaving entirely; he will hold on to the role of executive chairman, he told DealBook in an interview on Monday. He plans to name his successor when his title change becomes effective on May 10.

He won’t be the only one to hand over some of the company’s reins. Mr. Ma said that most of Alibaba’s leaders “born in the 1960s” will pass their leadership responsibilities to younger colleagues, born in the 1970s and 1980s.

“We believe that they understand the future better than us, and then have a better chance of seizing the future,” he wrote in an e-mail to employees explaining his change in duties.

The shift is the biggest change yet at Alibaba in some time, as it continues to ready itself for the next chapter of its existence. Last week, the company said that it was cleaving itself into 25 smaller divisions — to give managers more flexibility.

And it follows the transformative deal that Alibaba struck with Yahoo last year, in which the Chinese company agreed to buy back about half of the stake in itself held by Yahoo, its American partner. Alibaba had long sought to repurchase the shares to help regain control over its corporate destiny.

For Mr. Ma, the decision to step back from day-to-day management was borne of several reasons. One of them was personal: the job is increasingly tiring.

“I’m 48. I’m no longer young enough to run such a fast-growing business,” Mr. Ma said in the interview. “When I was 35, I was so energetic and fresh-thinking. I had nothing to worry about.”

Come May, Mr. Ma will slide into the role of executive chairman, which he said would let him focus on broad strategic issues, as well as corporate development and social responsibility.

It is a move that the entrepreneur said had been in the works for some time. He has been training “a few candidates” among the younger generation for the chief executive position.

Speculation about who will take over is likely to focus on the heads of Alibaba’s biggest businesses, including Alibaba.com, an online market for small businesses; Taobao, an enormous consumer shopping site; and Alipay, an online payment platform.

Mr. Ma’s early departure will give his replacement time to grow into the role, Mr. Ma said. That could be important when Alibaba finally goes public, sometime down the road. Mr. Ma added that the exact timing or other details of an initial offering haven’t been determined.

Until then, Mr. Ma will remain a powerful figure within the company he founded.

“I will still be very active,” he said. “It is impossible for me to retire.”

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Personal Best: Training Insights From Star Athletes

Of course elite athletes are naturally gifted. And of course they train hard and may have a phalanx of support staff — coaches, nutritionists, psychologists.

But they often have something else that gives them an edge: an insight, or even an epiphany, that vaults them from the middle of the pack to the podium.

I asked several star athletes about the single realization that made the difference for them. While every athlete’s tale is intensely personal, it turns out there are some common themes.

Stay Focused

Like many distance swimmers who spend endless hours in the pool, Natalie Coughlin, 30, used to daydream as she swam laps. She’d been a competitive swimmer for almost her entire life, and this was the way she — and many others — managed the boredom of practice.

But when she was in college, she realized that daydreaming was only a way to get in the miles; it was not allowing her to reach her potential. So she started to concentrate every moment of practice on what she was doing, staying focused and thinking about her technique.

“That’s when I really started improving,” she said. “The more I did it, the more success I had.”

In addition to her many victories, Ms. Coughlin won five medals in the 2008 Beijing Olympics, including a gold medal in the 100-meter backstroke.

Manage Your ‘Energy Pie’

In 1988, Steve Spence, then a 25-year-old self-coached distance runner, was admitted into the United States Long Distance Runner Olympic Development Program. It meant visiting David Martin, a physiologist at Georgia State University, several times a year for a battery of tests to measure Mr. Spence’s progress and to assess his diet.

During dinner at Dr. Martin’s favorite Chinese restaurant, he gave Mr. Spence some advice.

“There are always going to be runners who are faster than you,” he said. “There will always be runners more talented than you and runners who seem to be training harder than you. The key to beating them is to train harder and to learn how to most efficiently manage your energy pie.”

Energy pie? All the things that take time and energy — a job, hobbies, family, friends, and of course athletic training. “There is only so much room in the pie,” said Mr. Spence.

Dr. Martin’s advice was “a lecture on limiting distractions,” he added. “If I wanted to get to the next level, to be competitive on the world scene, I had to make running a priority.” So he quit graduate school and made running his profession. “I realized this is what I am doing for my job.”

It paid off. He came in third in the 1991 marathon world championships in Tokyo. He made the 1992 Olympic marathon team, coming in 12th in the race. Now he is head cross-country coach and assistant track coach at Shippensburg University in Pennsylvania. And he tells his teams to manage their energy pies.

Structure Your Training

Meredith Kessler was a natural athlete. In high school, she played field hockey and lacrosse. She was on the track team and the swimming team. She went to Syracuse University on a field hockey scholarship.

Then she began racing in Ironman triathlons, which require athletes to swim 2.4 miles, cycle 112 miles and then run a marathon (26.2 miles). Ms. Kessler loved it, but she was not winning any races. The former sports star was now in the middle of the pack.

But she also was working 60 hours a week at a San Francisco investment bank and trying to spend time with her husband and friends. Finally, six years ago, she asked Matt Dixon, a coach, if he could make her a better triathlete.

One thing that turned out to be crucial was to understand the principles of training. When she was coaching herself, Ms. Kessler did whatever she felt like, with no particular plan in mind. Mr. Dixon taught her that every workout has a purpose. One might focus on endurance, another on speed. And others, just as important, are for recovery.

“I had not won an Ironman until he put me on that structure,” said Ms. Kessler, 34. “That’s when I started winning.”

Another crucial change was to quit her job so she could devote herself to training. It took several years — she left banking only in April 2011 — but it made a huge difference. Now a professional athlete, with sponsors, she has won four Ironman championships and three 70.3 kilometer championships.

Ms. Kessler’s parents were mystified when she quit her job. She reminded them that they had always told her that it did not matter if she won. What mattered was that she did her best. She left the bank, she said, “to do my best.”

Take Risks

Helen Goodroad began competing as a figure skater when she was in fourth grade. Her dream was to be in the Olympics. She was athletic and graceful, but she did not really look like a figure skater. Ms. Goodroad grew to be 5 feet 11 inches.

“I was probably twice the size of any competitor,” she said. “I had to have custom-made skates starting when I was 10 years old.”

One day, when Helen was 17, a coach asked her to try a workout on an ergometer, a rowing machine. She was a natural — her power was phenomenal.

“He told me, ‘You could get a rowing scholarship to any school. You could go to the Olympics,’ ” said Ms. Goodroad. But that would mean giving up her dream, abandoning the sport she had devoted her life to and plunging into the unknown.

She decided to take the chance.

It was hard and she was terrified, but she got a rowing scholarship to Brown. In 1993, Ms. Goodroad was invited to train with the junior national team. Three years later, she made the under-23 national team, which won a world championship. (She rowed under her maiden name, Betancourt.)

It is so easy to stay in your comfort zone, Ms. Goodroad said. “But then you can get stale. You don’t go anywhere.” Leaving skating, leaving what she knew and loved, “helped me see that, ‘Wow, I could do a whole lot more than I ever thought I could.’ ”

Until this academic year, when she had a baby, Ms. Goodroad, who is 37, was a rowing coach at Princeton. She still runs to stay fit and plans to return to coaching.

The Other Guy Is Hurting Too

In 2006, when Brian Sell was racing in the United States Half Marathon Championships in Houston, he had a realization.

“I was neck-and-neck with two or three other guys with two miles to go,” he said. He started to doubt himself. What was he doing, struggling to keep up with men whose race times were better than his?

Suddenly, it came to him: Those other guys must be hurting as much as he was, or else they would not be staying with him — they would be pulling away.

“I made up my mind then to hang on, no matter what happened or how I was feeling,” said Mr. Sell. “Sure enough, in about half a mile, one guy dropped out and then another. I went on to win by 15 seconds or so, and every race since then, if a withering surge was thrown in, I made every effort to hang on to the guy surging.”

Mr. Sell made the 2008 Olympic marathon team and competed in the Beijing Olympics, where he came in 22nd. Now 33 years old, he is working as a scientist at Lancaster Laboratories in Pennsylvania.


This post has been revised to reflect the following correction:

Correction: January 15, 2013

An earlier version of this post misstated the year in which Steve Spence competed in the Olympic marathon, finishing 12th. It was 1992, not 2004. It also misidentified the institution at which he is a coach. It is Shippensburg University, not Shippensburg College.

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Disruptions: Disruptions: Design Is Driving Technology Forward

Last year, at Apple’s event to announce the iPad Mini, I was wandering around the gadget petting zoo the company sets up after each product unveiling. As I turned a corner, I bumped into Timothy D. Cook, Apple’s chief executive, who immediately wanted to show me something.

“Nick, just look at this,” Mr. Cook said as he held the miniaturized iPad in the air, brushing his hand along its edge as if he were about to perform a magic trick. Then, his index finger stopped, standing to attention as it pointed to two flat black buttons on the side. “Just look at those volume buttons. Have you ever seen anything like it? Aren’t they just outstanding?”

I took the iPad Mini from him, examining the buttons, which were the size of a grain of rice. “They sure are, Tim,” I replied in all seriousness. “Beautiful.”

What struck me about our brief conversation wasn’t that Mr. Cook was talking about two teensy buttons — this is Apple, after all — but that he never once mentioned the technology in the iPad Mini. Instead, he talked about one thing: design.

To this day, I’m not actually sure how many megahertz my iPad operates on. And frankly, I don’t care about the technology inside the technology anymore. It just works — for the most part — and therefore consumers no longer need to think about it.

“We’re on the tail end of technology being special,” says John Maeda, president of the Rhode Island School of Design. “The automobile was a weird alien technology when it first debuted, then, after a while, it evolved and designers stepped in to add value to it.”

Walk into most car showrooms in America and sales clerks might spend more time explaining the shape of the heated seat than the engine that moves the car along. Several decades ago, he might have been heralding pistons and horsepower.

Now, Mr. Maeda said, this shift has happened to technology, be it computers, smartphones or the iPad Mini.

“We have this exciting next step for design,” he said. “Now that we have enough technology to do anything, design can now begin to be better than the technology itself.”

This, for example, is what happened with the Nike FuelBand, the bracelet that can track a user’s daily activity and connect to a smartphone.

“We want to make the product emotional for the person using it, and that happens with the design of it,” said Stefan Olander, Nike’s vice president for digital sport, who worked on the wristband. “You have to create a visceral, emotive experience around the design, which is something everyone cares about.”

Mr. Olander said that people did not look at the FuelBand and ask what technology powered it, they looked at the design of this device that, once on your wrist, disappeared.

“You try to make it smaller, you try to make it lighter, you try to make it go away,” he said.

As a result of the technology slipping into the background, Nike has become one of the most advanced companies for wearable computers.

The worship of design has also taken designers out of the back offices and into top executive jobs. Engineers are still in the mix, to be sure. But they don’t rule the roost in product development, which may also be why tech products are easier to use, more human. “Design used to be the gravy at the end of the meal,” Mr. Maeda said. “But now the quantity of design needed to be increased because of all of these screens, and we now metabolize this design for much longer.”

Now, the entire business is a Web site. Or an app. Or something else that is made to just vanish.

E-mail: bilton@nytimes.com

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