Second surf manufacturer to become takeover target

Rip Curl has received several approaches from potential bidders, becoming the latest Australian surfwear brand to become a takeover target following two private-equity offers for rival Billabong International.

Rip Curl has been approached by private equity and trade buyers particularly interested in the closely held company's growth potential in emerging markets, such as Asia and South America.

An outright sale could value the business at $500 million, a person familiar with the matter said.
Rip Curl was founded in 1969 by surf-mad friends Doug "Claw" Warbrick and Brian "Sing Ding" Singer who like many locals close to Bell's Beach in Victoria, were producing surfboards out of garages and tool sheds.

The Torquay-based partners pooled their funds to buy a pre-World War II sewing machine which would piece together their first wetsuits.

Since then, Rip Curl has expanded its footprint in Australia and worldwide, with offices in countries such as the US, France, South Africa, and Brazil.

Australia's first professional surfing competition, The Rip Curl Pro, was first held in 1973 and still attracts the world's best as one of 10 legs of the Association of Surfing Professionals World Championship Tour.

In a statement, Rip Curl said it had appointed Bank of America Merrill Lynch to weigh the offers and it may introduce a new investor.

"The board recognises that if any such investment were to occur, it would need to be consistent with our objectives of ensuring our company values and brand values are respected, supporting our staff and being in the interests of our shareholders," Rip Curl said.

Rip Curl's forecast earnings before interest, tax, depreciation and amortszation (EBITDA), in the 2013 fiscal year is $48 million, the person said.

Recent single-brand transactions, including Billabong's

 stake sale of Nixon to Trilantic Capital Partners, VF Corp's acquisition of Timberland and PPR's acquisition of Volcom Inc have been completed at price-to-earnings multiples between 9.2 times and 15.8 times.

A direct competitor of Rip Curl, Billabong has received competing $694.5 million proposals from global private equity firms TPG Inc and Bain Capital.

Source: http://www.theaustralian.com.au/business/companies/surf-brand-rip-curl-mulls-takeover-offers/story-fn91v9q3-1226475832749

Australia one of the top email spam producers

Australia has emerged as a global leader in the production of spam, according to a new international report.

Other security software providers have disputed the findings, but AVG Technologies said Australian sources generate more dangerous and unwanted email than Russia, Canada and Holland.

The company, recently listed on the New York Stock Exchange, puts Australia in sixth place for spam origination, providing 3.1 per cent of global spam between April and June this year.

The United States led the list with a massive 42.2 per cent of the total tracked by AVG for 2012's second quarter. Britain (8.5 per cent), France (5.1 per cent), Germany (4.6 per cent) and Brazil (3.4 per cent) were next, but it was Australia's inclusion on the list that stood out.

“It could be compromised email servers, compromised machines, that are sending spam,” said Yuval Ben-Itzhak, AVG's chief technology officer.

“The spammers don't want to send it from their own servers because they will be shut down immediately. So they use spam malware and it is not a malware that is necessarily trying to steal anything from you as an individual, but basically using your computer and mostly the IP address to send spam around the world.

“[The numbers are] just for this particular quarter. When we analyse the spam messages that our software detects and look at the regional IP, it was coming from Australia.”

Analysis from another security company, McAfee, supported AVG's detection of an Australian spike, but Michael Sentonas, McAfee's chief technology officer, Asia Pacific, said a number six global ranking seemed unusually high.

“We did see a small increase over the second quarter period in servers hosting malicious content,” said Sentonas. “[But] I think that is a very high number for Australia, and talking to some of the leading ISPs in Australia over the last week I don't think they would agree. Spam volume that we have tracked from January through to July has stayed basically flat.”

A Symantec spokesman, meanwhile, flagged AVG's figures, claiming its own latest analysis suggested Australia did not even rank in the top 20 of source countries for sending spam.

The AVG report is also at odds with a report from SophosLabs which did not include Australia in its "dirty dozen" list of spam originators between January and June 2012. The SophosLabs report puts India (11.4 percent), Italy (7 per cent), South Korea (6.7 per cent), USA (6.2 per cent), Vietnam (5.8 per cent) and Brazil (4.4 per cent) in the top six. Taiwan was twelveth on the list with 2.6 per cent.

At the time of writing, Australian ISP's BigPond, iiNet and Primus did not respond to requests for comment from ITPro but AVG stands by its data and analysis.

“There was something that happened in this quarter that should require some action,” said Ben-Itzhak, speaking at the launch of AVG's 2013 product list in New York.

“We will see what we end up with for the next quarter. We need to see if it was specific for this quarter, where there was an attack happening and it was shut off, or if this is a rolling issue.”

Ben-Itzhak said Australia was not unique as a virtual launch pad for criminal endeavour but spam and related types of cyber-crime were providing high levels of return on investment for savvy criminals.

“Otherwise they would not invest in innovation,” he said. “Multiple people working hard, constantly innovating, constantly getting traction means they are making money.

“Attacks are coming from everywhere. The malware creators are typically coming from Eastern Europe and Russia but that doesn't mean you won't find someone in the US or Asia. That's the so-called beauty of cyber-crime. The law is local but the crime is global.

"You can sit in one country, do the crime in another country, and target people from a third country. It gives a lot of challenges to law enforcement.”

Source: http://www.brisbanetimes.com.au/it-pro/security-it/australia-among-worlds-top-spam-producers-report-20120913-25ulu.html

Aldi buys its way into a 5-star rating

The discount supermarket chain Aldi has paid a survey company thousands of dollars to stamp its brand with a "five-star rating" for having the most satisfied customers.

But competing data from industry-respected global market research firm Nielsen shows the two supermarket chains that fared worst in the Canstar Blue survey - Woolworths and Coles - consistently top the rankings for overall customer satisfaction.

An Aldi spokeswoman said: "Aldi was given and accepted the opportunity to further promote this award win. This was after the Canstar Blue award had been voted on, therefore would have no effect on those consumers' decisions."

Aldi are believed to have paid Canstar Blue $10,000 for the licence to promote its five-star ratings in marketing and advertising initiatives for the next 12 months. Canstar Blue's practice of selling ratings to everything from fast food chains to luxury carmakers - exposed by The Sunday Telegraph last year - has infuriated firms that have missed out.

Coles spokesman Jon Church said shoppers were not influenced by star ratings.

"Independent surveys can be helpful to consumers as long as they are fair and representative, but hanging some stars above the door doesn't fool customers because they rightly judge you on what they find every time they shop, not once a year," he said.

Woolworths spokeswoman Kristen Young said store managers' bonuses were now based on customer satisfaction.

"One of the key scores is called the net promoter score, which is how likely a customer is to recommend shopping at that particular Woolworths store to a friend or family member," she said.

The survey, conducted by independent research firm Colmar Brunton on behalf of Canstar Blue, consulted 2339 respondents, each of whom had purchased something from any given supermarket in the previous month.

Although Aldi scored highest of all the shopping chains in the overall satisfaction category the research firm would not reveal how many respondents selected the chain, citing confidentiality.

Source: http://www.news.com.au/national/aldi-pays-for-canstar-tick-of-approval/story-fndo4bst-1226474739946

Kogan announces "world first" iPhone 5 sales

An Australian retailer has already started selling the Iphone 5 before worldwide preorders kickoff tomorrow, and is offering customers a $100 discount.

Australian retailer Kogan is selling SIM free models of the Iphone 5 from today, and is undercutting Apple's retail price by $100. It's offering the 16GB model for $699, the 32GB model for $799 and the 64GB model at $899, with plans to ship the devices on 21 September.

"We've been working very hard here at Kogan to be the first retailer in the world to sell it, and can confirm that they are now available for our customers to order at unbelievable prices," said the retailer.

Source: http://www.theinquirer.net/inquirer/news/2205196/retailer-starts-selling-the-iphone-5-early-and-at-a-discount

New laptops shipped with pre-installed viruses, malware

A customer in Shenzhen, China, took a brand new laptop out of its box and booted it up for the first time. But as the screen lit up, the computer began taking on a life of its own. The machine, triggered by a virus hidden in its hard drive, began searching across the internet for another computer.

The laptop, supposedly in pristine, super-fast, direct-from-the-factory condition, had instantly become part of an illegal, global network capable of attacking websites, looting bank accounts and stealing personal data.

For years, online investigators have warned consumers about the dangers of opening or downloading files emailed to them from unknown or suspicious sources. Now, they say malicious software and computer code could be lurking on computers before the bubble wrap even comes off.

The shopper in this case was part of a team of Microsoft researchers in China investigating the sale of counterfeit software. They suddenly had been introduced to a malware called Nitol. The incident was revealed in court documents unsealed Thursday in a federal court in Virginia. The records describe a new front in a legal campaign against cybercrime being waged by the maker of the Windows operating system, which is the biggest target for viruses.

The documents are part of a computer fraud lawsuit filed by Microsoft against a web domain registered to a Chinese businessman named Peng Yong. The company says it is a major hub for illicit Internet activity. The domain is home base for Nitol and more than 500 other types of malware, making it the largest single repository of infected software that Microsoft officials have ever encountered.

Mr Peng, the owner of an internet services firm, said he was not aware of the Microsoft lawsuit but he denied the allegations and said his company does not tolerate improper conduct on the domain, 3322.org. Three other unidentified individuals accused by Microsoft of establishing and operating the Nitol network are also named in the suit.

What emerges most vividly from the court records and interviews with Microsoft officials is a disturbing picture of how vulnerable internet users have become, in part because of weaknesses in computer supply chains. To increase their profit margins, less reputable computer manufacturers and retailers may use counterfeit copies of popular software products to build machines more cheaply. Plugging the holes is nearly impossible, especially in less regulated markets like China, and that leaves openings for cybercriminals.

"They're really changing the ways they try to attack you," said Richard Boscovich, a former federal prosecutor and a senior attorney in Microsoft's digital crimes unit.

And distance doesn't equal safety. Nitol, for example, is an aggressive virus found on computers in China, the United States, Russia, Australia and Germany. Microsoft has even identified servers in the Cayman Islands controlling Nitol-infected machines. All these compromised computers become part of a botnet - a collection of compromised computers - one of the most invasive and persistent forms of cybercrime.

Nitol, meanwhile, appears poised to strike. Infection rates have peaked, according to Patrick Stratton, a senior manager in Microsoft's digital crimes unit who filed a document in the court case explaining Nitol and its connection to the 3322.org domain.

For Microsoft, pursuing cybercriminals is a smart business. Its Windows operating system runs most of the computers connected to the Internet. Victims of malware are likely to believe their problems stem from Windows instead of a virus they are unaware of, and that damages the company's brand and reputation.

But more than Microsoft's image is stake when counterfeit products are tainted by malware that spreads so rapidly, Mr Boscovich said. "It's more than simply a traditional intellectual property issue," Mr Boscovich said. "It's now become a security issue."

The investigation by Microsoft's digital crimes unit began in August 2011 as a study into the sale and distribution of counterfeit versions of Windows. Microsoft employees in China bought 20 new computers from retailers and took them back to a home with an Internet connection.
They found forged versions of Windows on all the machines and malware pre-installed on four.

The one with Nitol, however, was the most alarming because the malware was active.
"As soon as we powered on this particular computer, of its own accord without any instruction from us, it began reaching out across the Internet, attempting to contact a computer unfamiliar to us," Mr Stratton said in the document filed with the court.

Mr Stratton and his colleagues also found Nitol to be highly contagious. They inserted a thumb drive into the computer and the virus immediately copied itself onto it. When the drive was inserted into a separate machine, Nitol quickly copied itself on to it.

Microsoft examined thousands of samples of Nitol, which has several variants, and all of them connected to command-and-control servers associated with the 3322.org domain, according to the court records.

"In short, 3322.org is a major hub of illegal Internet activity, used by criminals every minute of every day to pump malware and instructions to the computers of innocent people worldwide," Microsoft said in its lawsuit.

Mr Peng, the registered owner of 3322.org, said he has "zero tolerance" for the misuse of domain names and works with Chinese law enforcement whenever there are complaints. Still, he said, his huge customer base makes policing difficult.

"Our policy unequivocally opposes the use of any of our domain names for malicious purposes," Mr Peng said in a private chat via Sina Weibo, a service like Twitter that's very popular in China. "We currently have 2.85 million domain names and cannot exclude that individual users might be using domain names for malicious purposes."

But past warnings by other online security firms have been ignored by Mr Peng, Mr Boscovich said. 3322.org accounted for more than 17 per cent of the world's malicious web transactions in 2009, according to Zscaler, a computer security firm in San Jose, California. In 2008, Russian security company Kaspersky Lab reported that 40 per cent of all malware programs, at one point or another, connected to 3322.org.

US District Judge Gerald Bruce Lee, who is presiding in the case, granted a request from Microsoft to begin steering Internet traffic from 3322.org that has been infected by Nitol and other malwares to a special site called a sinkhole. From there, Microsoft can alert affected computer users to update their anti-virus protection and remove Nitol from their machines.

Since judge Lee issued the order, more than 37 million malware connections have been blocked from 3322.org, according to Microsoft.

Source: http://www.news.com.au/technology/new-laptops-now-come-with-pre-installed-viruses-spyware/story-e6frfro0-1226473783533

Stokes could miss out on Consolidated Media

Kerry Stokes will lose his bid for permission to buy pay-TV group Consolidated Media, industry experts believe, after the competition watchdog flagged concerns about the proposal.

The media magnate will now have to decide whether to sell his ConsMedia stake to suitor News Corporation or stay on as a minority investor, analysts say.

In a statement yesterday, the competition regulator said it was concerned about the impact of Mr Stokes' proposal on the bidding process for sports rights.

The Australian Competition and Consumer Commission delayed its decision on Mr Stokes' proposal, calling for further submissions.

Mr Stokes has sought the watchdog's approval to make a counter bid for ConsMedia, which owns a quarter of Foxtel and half of content provider Fox Sports.

He would make the bid through his media and mining company Seven Group, which owns about 25 per cent of ConsMedia. Mr Stokes owns 67 per cent of Seven.

The ACCC said its concerns centred on "the influence Channel 7 may be able to exert over Fox Sports ... in joint bids and other commercial arrangements in relation to sports rights".

It said that if Seven owned half of Fox Sports, it would have "significant influence" over the pay-TV channel, which would potentially favour Seven over rival free-to-air networks.

James Packer, who owns half of ConsMedia, supports the $2 billion takeover offer tabled by News Corp, publisher of the Herald Sun.

Greg Fraser, a senior analyst at research house Fat Prophets, said the ACCC's statement indicated it would be difficult for the ACCC to approve a rival takeover proposal by Seven. "The only real question that remains open is what will Seven do with their holding in Consolidated Media once the ACCC knocks it back," Mr Fraser said.

Speaking before the ACCC released its statement, Argo Investments chief Jason Beddow said, "If Stokes is going to do anything with his stake or push his leverage, he'll have to play his hand".

The investment firm is a ConsMedia shareholder. News formalised its offer for ConsMedia last week. ConsMedia shareholders are due to vote on the deal at the October 31 annual meeting.

Source: http://www.news.com.au/business/companies/blow-to-kerry-stokes-bid-for-pay-tv-group-consolidated-media/story-fnda1bsz-1226473725226

Keith Urban to leave The Voice

Where ya goin', Keith Urban? Perhaps to a certain Fox reality show that features Ryan Seacrest and lots of Coke products?

The country superstar has decided to leave the Australian adaptation of The Voice after serving as a judge in season one along with Seal, Delta Goodrem and Joel Madden.

"I've been so fortunate to have been a part of The Voice. And as much as I'd love to do it again, it's clear that the recording and promoting of a new album, a tour and other commitments will keep me from being a part of the second season," Urban says in a statement. "To everyone who sang on the show, I thank you; you've inspired not just me, but countless others. To everyone behind the scenes and to my on-camera family… Delta, Joel and Seal, thank you for making it so much fun."

"Other commitments," hmmmm? Of course, he could be talking about his darling family with wife Nicole Kidman, or he could be dropping a hint that he'll be joining the 12th season of American Idol.

Urban has been one of the many names thrown around as possible Idol replacements for Jennifer Lopez and Steven Tyler. No official announcement has been made yet, but we hear that Fox might be revealing the judges as early as tomorrow morning. Other frontrunners include rapper Nicki Minaj and Latin singer-songerwriter Enrique Iglesias. Mariah Carey is the only celeb confirmed for the new season, while Randy Jackson will most likely be back as well.

UPDATE:

Keith Urban has been confirmed as the newest guest judge on American Idol, alongside Nicki Minaj.

Source: http://au.eonline.com/news/345687/keith-urban-quits-australia-s-the-voice-amid-idol-rumors-cites-other-commitments