Biz People

Rollins rolling in it to tune of $48m

Dell Inc former Chief Executive Officer Kevin Rollins (above), ousted after failing to revive sales at the world's second-largest personal-computer maker, will receive $48.5 million for stock options awarded during his tenure.

The cash payout is based on the 7.37 million shares that had vested before Rollins retired on May 4, Round Rock, Texas-based Dell said.

Rollins, who joined Dell in 1996 and became CEO in 2004, helped extend the direct-sales strategy pioneered by Michael Dell. After Rollins lost the PC market lead to Hewlett-Packard Co, Michael Dell reclaimed the CEO title in January. Rollins served as an adviser for four months.

Russian tycoon buys GM stake

Russian billionaire Oleg Deripaska has bought a stake of under 5 percent in US car manufacturer General Motors, Russian newspaper Vedomosti reported on Tuesday.

The paper, citing sources close to the businessman, said Deripaska saw the investment as a speculative move on the stock market rather than the start of a takeover attempt.

"He is making no secret of it (the investment). Some of his business partners are already aware," one unnamed associate told the newspaper.

Deripaska's holding company, Basic Element, could not be immediately reached to comment on the report.

General Motors, the largest US automaker, posted its third straight quarterly profit in the second quarter this year in a further sign of revival after a string of financial losses.

After losing 3.4 billion dollars (2.5 billion euros) in the same period last year, GM reported an 891-million-dollar gain for the second quarter.

Deripaska was ranked number 62 in the Forbes Rich List in 2006 after making his fortune in the aluminum business.

Murdoch plans Times challenge

News Corp Chairman Rupert Murdoch said he will take on the New York Times once his purchase of Dow Jones & Co is complete by expanding non-business coverage at the Wall Street Journal.

News Corp will invest in Europe and Asia and expand international and national coverage to compete with the Times, said Murdoch, 76. Pairing Dow Jones with News Corp's marketing and global reach will enhance the brand, he said.

The comments, in a conference call with analysts following News Corp's fourth-quarter results, were Murdoch's first on his plans for the Journal since agreeing last week to buy Dow Jones for $5.2 billion.

News Corp will sell off Dow Jones' local newspapers "quickly", he said, and save more than $150 million by cutting costs required of Dow Jones as a public company.

With the purchase, Murdoch gets Dow Jones Newswires, Marketwatch, the Journal and Barron's, which will bolster News Corp's more than 110 newspapers, stretching from Sydney to New York to London, as well as film and television studios and the Fox cable and broadcast networks.

Clifford to take helm at Qantas

Qantas Airways Ltd, Australia's biggest airline, named Leigh Clifford (above) as its next chairman, replacing Margaret Jackson when she retires in November.

Clifford, who stepped down as chief executive officer of Rio Tinto Group in April, will join the board immediately, Sydney-based Qantas said yesterday.

Qantas said the decision was influenced by his experience with acquisitions and the consolidation of Rio's position in Asia.

(China Daily 08/10/2007 page16)