AER LINGUS SALE: BILLIONAIRE DONALD TRUMP WARNS TAOISEACH AGAINST IAG DEAL - US billionaire Donald Trump has strongly warned the Taoiseach against selling the State's shareholding in Aer Lingus, claiming it would damage the country's tourism industry and links to foreign direct investment.
Mr Trump, who is considering a run for the White House, insists the airline provides "strategic advantages" to Ireland and "should not be given away to the highest bidder". The high-profile businessman claims IAG boss Willie Walsh has the interest of shareholders as his "number one priority", adding: "I do not think this is a good deal for Ireland." Significantly, Mr Trump indicates that protecting the State's shareholding in Aer Lingus is important to his plans to further invest "many millions of dollars" in his hotel and golf resort in Doonbeg, Co Clare. "Aer Lingus, like the Irish shamrock and Guinness, is essentially Irish with a strong national identity which is very important to your country. It should not be given away to the highest bidder," Mr Trump wrote. "Aer Lingus is a brand that you and your country should be very proud of. It is much more than a business transaction," he added. The decision by the high-profile businessman to wade into the row over the future of Aer Lingus comes as negotiations enter their most crucial phase. And it comes after the Richard Branson-owned airline, Virgin Atlantic, claimed the sale of the State's 25.1% stake would jeopardise competition and result in increased ticket prices. Mr Trump's warning is made in a letter sent personally to Enda Kenny last month, which has been obtained by the Irish Independent.
***
GOVERNMENT CANCELS CLOUD COMPUTING PROJECT GCSC - The Government has cancelled a major technology project that would have allowed it to buy cloud computing services in a way that reduced complexity in the procurement process and potentially cut IT costs. Almost two years in gestation, the Government Cloud Services Catalogue (GCSC) project was intended as a pre-approved list of IT suppliers and pricing models for services such as email, IT security, HR and payroll and records management. Extensive in scope, potential users included Ministers and Government departments, non-commercial agencies and organisations, local authorities, contracting authorities throughout the health sector, schools and third-level institutions, An Garda Síochána and the Defence Forces. The project garnered high levels of interest from across the Irish IT industry, says the Irish Times. However, in a letter issued to suppliers dated March 16th, the Department of Public Expenditure and Reform said it was cancelling the project because the economic and technical requirements for it had “fundamentally changed”. In a statement last night, the department said the Government had approved a new ICT strategy for the public service that included a “build to share” objective which envisages a Government “cloud” to provide common IT systems and infrastructure across the public sector. It said work on developing this was under way and that the only costs incurred were internal resources to develop and evaluate the framework and responses.
***
REVENUE GAIN AT WH SMITH FAILS TO BOOST PROFITS - Sales of John Green’s The Fault in Our Stars helped revenues at the Irish arm of WH Smith soar last year to €19.29m. However, new data show the sharp jump in revenues, from €11.6m to €19.29m, in the year to the end of August 31, did not translate into higher pre-tax profits. Accounts just filed by WH Smith Ireland Ltd show that pre-tax profits fell from €1.54m to €1.5m. This arose chiefly from administrative expenses and distribution costs jumping from €4.2m to €8.2m, writes the Irish Examiner. The main concentration of WH Smith’s stores in Ireland is at Dublin Airport, while it also operates stores at Shannon Airport and at Arnotts. The rise in revenues followed WH Smith winning the contract to run shops in Dublin Airport’s Terminal One in Augusts 2013. WH Smith Ireland was also helped by the books market here stabilising, according to figures provided by Nielsen BookScan that show that overall sales here topped €106m in 2014. The year’s big sellers, books on Roy Keane and Brian O’Driscoll, were published after the end of WH Smith’s financial year.
***
RIVAL ROTHSCHILD BRANCHES FACE COURT BATTLE OVER FAMILY NAME - More than two centuries after the first Rothschild made his fortune in European banking, two branches of the dynasty are set to do battle in the French courts - over the family name. Edmond de Rothschild Group, a Franco-Swiss private bank and asset manager, is about to issue a cease-and-desist order to the French financial adviser Rothschild & Cie, insiders have disclosed reports the Financial Times. The Swiss-based group says the parent company of the French business unfairly refers to itself as “parent of the Rothschild group” - implying that they have sole claim to the banking dynasty name. “No entity has the right to lay sole claim to the Rothschild name,” said a person close to Edmond de Rothschild Group. Rothschild & Cie’s parent company, Paris-Orléans, declined to comment but a person familiar with the situation said it had not received any documents relating to the case and remained “extremely relaxed” about any challenge. News of the impending cease-and-desist order reflects an escalation of hostilities between two sides of the family, and represents one of the first acts of Ariane de Rothschild, who took over as chief executive of Edmond de Rothschild at the end of January. Almost three years ago, Lord David de Rothschild brought together the French and British arms of the two centuries old banking dynasty, under the Paris Orléans parent group.
