Democrat and Chronicle from Rochester, New York on October 18, 2015 · Page B6
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October 18, 2015

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Democrat and Chronicle from Rochester, New York · Page B6

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Sunday, October 18, 2015
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Elliottis“best knownforitshighly contentiousactivist battles. ” InstitutionalInvestor’sAlpha NEWYORK Beforehelpingto spurarecord-breakingtechnol- ogymergerbetweenDelland EMC,hedgefundElliottManage- mentwasbestknownforhard- ballinvestingtactics,suchas whenitseizedanArgentinenavy shipaspaybackfordebtsowed. ButElliott’sroleinsecuring EMCshareholdersarecord $67billionpricetagwithoutso muchasraisingitsvoicecould helprevampthe$27billion hedgefund’simageatatime whenactivistinvestors,whopush forchangesthatcouldboost stocks,aretrippingoverthem- selvestolookliketeamplayers. Afterbuyinga2.2%stakein EMClastsummer,Elliott’sJesse CohnwroteEMC’sboardaletter identifyingproblemshesaid couldberesolvedbyEMCspin- ningo assetsorpursuinga merger.Threemonthsafterthe October2014letter,thedatastor- agecompanyagreedtoputtwo peoplerecommendedbyElliott onitsboardofdirectors,without abitterproxy fi ght. AndonMonday,EMCan- nouncedplanstomergewithDell ina$67billiondealthatCohn, whoheadsElliott’sU.S.activist investingunit,saidhesupported andwouldnotoppose. Thesheerlackofdramawas notableforahedgefund fi rm whosehigh-pro fi letussleshave leftitanditsbillionairefounder, PaulSinger,withreputationsas cutthroatadversaries. Elliottis“bestknownforits highlycontentiousactivistbat- tles, ” accordingtohedgefund publication InstitutionalInves- tor’sAlpha .Singer,thenewsletter said,isknownas“atenacious adversarywhoisnotafraidto fi ghtbattles,oftenusingthelegal system. ” Butexpertssaythatthehar- moniousnatureofElliott’sdeal- ingswithEMCcomesasno surprise,andthatElliott’sreputa- tionasabruiserhasbeenexag- geratedbythehigh-pro fi lenature ofitsmostcontentiousbattles. “Theaveragepersonwhohas heardofElliottknowsofElliott asthehedgefundthatstolethe boatandforputtingcreditors overabarrel, ” saysKenSquire, founderof13DMonitor,which tracksactivistinvestors.“ButEl- liothasneverbeenaguns-blazing activist, ” hesaidofitse ortsto pushforchangesatspeci fi ccom- panies,knownasactivistinvest- ing. Indeed,Elliotthaswaged proxycampaigns—anindication ofbadbloodwithcompaniestar- geted—25%ofthetime,accord- ingtodatafromFactSet.That’s belowCarlIcahn’srecordfor wagingproxybattles37%ofthe time,andhedgefundStarboard Value’srecordfordoingso58%of thetime,FactSetsaid. Perhapsnotsurprisingly,peo- pleatElliottsaytheyagree. “Constructive,collaborativedi- alogueisbyfarourpreferredway todothings, ” CohntoldUSATO- DAY.“Wecameoutwithathesis andkeptanopenmind,andthe companyremainedengagedand thoughtfulthroughoutthe process. ” ‘Vulturefund’getsanimagereboot RecordEMCdeal wasalsonotablefor sheerlackofdrama KajaWhitehouse USATODAY REMYSTEINEGGER,SWISS-IMAGE.CH PaulSinger,billionairefoun- derofhedgefundElliottMan- agement,oftenhassought solutionsviathelegalsystem. 6B E3 USATODAY — DEMOCRATANDCHRONICLE SUNDAY,OCTOBER18,2015 BUSINESSSURVELLIANCE DOWJONESHACKED u Inanutshell: Russianhackers penetratedserversatDowJones tostealinformationtomake trades,Bloombergreported Friday. u Thefallout: TheFBIand SecuritiesandExchangeCom- missionareinvestigatingthe in fi ltration,thenewsorganiza- tionreported.Inastatement, DowJonessaidthatsinceBloom- bergpublisheditsarticle,“we haveworkedhardtoestablish whethertheallegationsitcon- tainsarecorrect.Todate,we havebeenunableto fi ndevi- denceofanysuchinvestigation. ” u Theupshot: Thistypeof targetedwhite-collarhackingis ontherise,KenWestin,asenior securityanalystforTripwire,a Portland,Ore.-basedsecurity company,toldourElizabeth Weise. ONTHEFRONTBURNER SWIPERIGHTFORANIPO MatchGroup,thedatingcompa- nythatownsTinder,Match.com andOkCupid,has fi ledtogo public.Thecompanywilltrade underthetickersymbolMTCH.A pricehasnotbeenset.Theinitial place-holderamountinthe fi ling was$100million.MatchGroup ownsmorethan45dating brandswith59millionmonthly activeusersin190countries,the companysaid.Ithad4.7million paidmembersasofthequarter thatendedSept.30. INTHEHOTSEAT WINTERKORNSTEPSDOWN Volkswagen’sformerCEO,Mar- tinWinterkorn,issteppingdown asheadofPorsche,theholding companyownedbythePorsche andPiechfamiliesthatcontrola majorityoftheGermanauto group’svotingstocksaidSat- urday.Accordingtoareportin TheWallStreetJournal,the movecomeslessthanamonth afterWinterkornresignedas chiefexecutiveofVolkswagen aftertheautomakeradmittedit manipulatedemissionstestsof somediesel-poweredcarsand lighttrucksintheU.S.and Europe.Thecompanyisunder investigationonsuspicionof fraudinboththeU.S.andGer- manyandisgearingupto launchamassiverecallofupto 11millionvehicles. MONEYLINE BethBelton @bethbelton USATODAY SPENCERPLATT,GETTYIMAGES WallStreetfacesagrowing riskofwhite-collarhacking. ODDANDERSEN,AFP/GETTYIMAGES MartinWinterkornnowalso resigninghisPorschepost. USASNAPSHOTS © Legalmarijuana 81% ofemployers ofemployers aren’t aren’t concerned concerned thatemployees thatemployees thatemployees willcometo willcometo workunder workunder workunder theinfluence. theinfluence. Source EMPLOYERSsurvey of500smallbusinesses JAEYANGANDPAULTRAP,USATODAY MONEY DUBLIN WebSummithelpedput Irelandonthetechmap.Anan- nualgatheringthatdrawsthe likesofBono,ElonMuskand JackDorsey,itcelebratesideas, bigpersonalitiesandthejoysof thepubcrawl. “Ibelieveinchasingrainbows, ” saysPaddyCosgrave,theindefati- gableintellectualwhofounded theconferenceandactsasits host.Todayit’sconsideredoneof thepre-eminenttechshowsof theyear,acivilizedalternativeto bloatedgatheringssuchasCES andMobileWorldCongress. WhenWebSummitdecidedto leaveDublin,after fi veyears,for thewarmerclimesofLisbon, Portugal,inNovember2016,it sentripplesthroughtheIrish techcommunity.(AU.S.compan- ionshow,Collision,isdeparting LasVegasforNewOrleansnext year.) ThemovetoPortugaliscon- sideredbysomeasymbolicand fi nancialblowtothelocalecono- my,whichhauledin$110million duringWebSummit2014.Butit’s alosstheincreasinglyvibrant techeconomyherecanhandle, withstart-upsbloomingandan avalancheofAmericantechcom- paniesestablishingoperations. Amidtherelocationandre- criminations,Ireland’stechscene isgrowing—whetheratSilicon Docks,thehomeofGoogle,Face- bookandTwitter’slocalopera- tions,orthroughoutDublin, whereaherdofstart-upsare gainingtraction. TheEuropeanislando ersthe lureofminimalregulationand signi fi cantlylowercorporatetax rates(12.5%vs.35%intheU.S.),a majorreasonwhytop U.S.techcompanies— includingApple,Google, Amazon,Facebook,Ya- hoo,Microsoft,Twitter andeBay—havecorpo- ratefacilitiesinIreland, wheretheyemploy thousands. YetDublin’sthriving start-upcommunitywill greatlydeterminethe fateandfortunesofthis businessnarrative.They employmoreworkers andaregreatlyinter- twinedinthenational economy. “We’reasmall,little companyonanisland withaloudvoice, ” says BarryNapier,CEOofCu- bicTelecom,a54-person out fi tthatplanstodou- bleinsizenextyearandbeworth $500millionto$1billionwithina year.“We’restreet fi ghters. ” ThinkofCubicTelecomasthe SwitzerlandofIreland’stech start-upscene.It’sathird-party provideroftechnologythatcon- nectsmobiledevices,cars,com- putersandotherdevices acrossmultiplecoun- trieswithoutsteep roamingcharges. Itsspareo ceinthe Sandyfordsuburbis crammedwithseveral dozenemployees,fes- toonedwithinspiration- alquotesonthewall fromSteveJobsand others. AquoteaboveCubic’s entrancesumsupits convivialculture:“Ev- eryonebringsjoytothis o ce.Somewhenthey enter,otherswhenthey leave. ” There’sacertainhint ofbravurasurrounding Cubicandforgoodrea- son:Tesla,Hewlett- Packard,Qualcommand Walmartareamongitspartners andcustomers. Cubic’squickpathtosuccessis illustrativeofacan-dospiritin theLandofPoets,wherethere aremorethan1,500techcompa- niestoday,accordingtoentrepre- neursandventurecapitalists, thougho cialstatisticsarehard to fi nd. “Thereisagrowingfusion(in Ireland)ofhumancapitaland venturecapital;we’rebuildingan innovativeecosystem, ” saysBen Hurley,CEOofearly-stageinves- torNDRC.He’sseatedinacon- ferenceroomatDigitalExchange, anacceleratorforaboutadozen start-upslocatedinarusticbuild- ingconstructedfrom1879to1883 thatusedtobepartofSt.James’s GateBrewery,whereGuinnessis made.Itsresidentsincludesecu- rity fi rmSensipassandChasing Returns,aprogramtoparsebe- havioraldataofretailtraders. Withintheco-workingspace, entrepreneursworktogether,lis- tentolecturesandwelcome mentoringfromestablishedcom- panies. Theafter-hourssceneismuch thesame.Thepreviousevening, adjacenttotheHouseofLords, about25hopefulstart-ups—par- cel-trackingserviceXpresoand Optrace,amakerofserializedho- lographiclabels,amongthem— gatheredtomakeelevatorpitch- es,shareinsausagebitesandpine forfameandfortune.“These eventsaremorecommonasour industrygrowshere, ” saysTom Farrell,vicepresidentofmarket- ingatSwrve,anexhibitor. Mobile-gamesdeveloper Swrve,likemanystart-upsbased inDublin,hassetupshopinSan Francisco,atacitadmissionofthe importanceofestablishinga beachheadinSiliconValley. Butnooneexpectsinstant riches.Irelandmustcontendwith nearbyLondonforengineering talentanditfacestheSisyphean taskofcompetingwithexotic venuessuchasBarcelonaand Lisbonforlucrativetechshows. “Seetheseblotchesonmy face? ” saysNapier,whoplansto openaCubico ceinSanFran- cisconextyear.“Theycomefrom stress.Igoonvacation,theygo away.OnceI’mbackatwork,they return.That’sthenatureofwork- ingatastart-up. ” Sucharethevagariesofcreat- inghardwareandsoftwarein Ireland. JONSWARTZ,USATODAY JONSWARTZ,USATODAY Dublin’stechsceneo ersthelureofminimalregulation. Becauseofthecan-dospiritintheLandofPoets, morethan1,500techcompaniesarethrivingthere CUBICTELECOM BarryNapier EUGENELANGAN BenHurley JonSwartz @jswartz USATODAY TECHSCENE BLOOMSINIRELAND

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