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10、Morales nationalizes Bolivia natural gas By DAN KEANE, Associated Press Writer
Sun Dec 3, 1:17 PM ET



LA PAZ, Bolivia - President Evo Morales signed into law Sunday contracts giving the government control over foreign energy companies' operations, completing a process begun May 1 with the nationalization of Bolivia's petroleum industry.

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The deals, signed by the companies last month, also grant Morales' government a majority share of the foreign companies' revenues generated in Bolivia. Companies that signed contracts include Brazilian state energy giant Petroleo Brasileiro SA (Petrobras), Spanish-Argentine Repsol YPF, France's Total SA, and British Gas, a unit of BG Group PLC.

Morales also announced Sunday that Royal Dutch Shell PLC had agreed to transfer to his government majority control of its Bolivian subsidiary Transredes, which operates the country's largest network of gas pipelines.

Bolivia's natural gas reserves are South America's largest after Venezuela's.

"We thank the Bolivian people who have struggled to recover their natural resources," Morales said in a signing ceremony at the presidential palace in the capital of La Paz. "We have now completed the first step. This process will continue next year with the recovery of other natural resources benefiting the Bolivian people."

Morales has said he also plans to nationalize Bolivia's mining sector.

Bolivia's first Indian president, Morales has vowed to reverse centuries of dominance by the country's European-descended minority, granting greater political and economic power to the poor indigenous majority.

Morales recently returned from a trip to Nigeria, which like Bolivia remains bitterly poor despite its vast petroleum reserves. On Sunday he said he hoped that nationalization initiatives similar to his own might lift oil-rich African nations from poverty.

"If we want to free ourselves as a people, if we want to resolve our social and economic problems, we must both liberate human beings and liberate their economies ― their natural resources, especially," Morales said. "Only then will there be justice and equality."

The contracts signed by the president Sunday were ratified by Bolivia's Senate in a hastily called session Tuesday night, during which lawmakers from Morales' Movement Toward Socialism party also pushed through a sweeping land-reform bill and an open-ended military cooperation pact with Venezuelan President Hugo Chavez.

The session ended a boycott by conservative lawmakers who intended to block Morales' reforms. But opposition leaders have questioned the legality of the session, in which assistants of two absent senators were called in to vote.

Completion of oil and natural gas nationalization has given Morales a sizable political boost. A poll published this week in the Bolivian newspaper La Razon found Morales' approval rating leaping to 67 percent in November from a low of 50 percent in October.

The poll of 1,019 residents in Bolivia's four largest cities was conducted Nov. 13-20 and had a margin of error of 3 percent points.

11、Lockheed fighter jet program vulnerable By STEPHEN MANNING, AP Business Writer
Sun Dec 3, 4:47 PM ET



ARLINGTON, Va. - To the military and defense firms that make it, the F-35 Lightning II is a "next generation" fighter jet, a technological leap meant to replace several aging fighters and help America maintain its dominance in aerial warfare.

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The     Pentagon plans to buy thousands of the new stealthy jets, to be flown by three branches of the military and by eight foreign countries. And despite being the most expensive Pentagon spending program ever, with a total cost of about $275 billion, each plane is supposed to be relatively cheap to build, a rarity in defense spending.

But as the first F-35 prepares for its inaugural flight sometime this month, it takes off into some cloudy skies. The program's cost has grown substantially while the number of planes to be built has dropped. Congress has shown a willingness to make cuts, and the coming leadership change at the Pentagon may muddy the plane's future.

Although officials from the Pentagon and the lead contractor, Bethesda, Md.-based Lockheed Martin Corp., say they are optimistic about the plane's future, they acknowledge the risk of the jet falling into a defense "death spiral," a cycle of cuts and higher costs that beset one of the F-35's closest fighter jet kin.

"You get into this classic problem of the airplane continues to get more expensive, and therefore you buy less airplanes, and it gets more expensive and you buy less airplanes," Lockheed F-35 program head Tom Burbage said at a briefing this fall at the company's offices near the Pentagon in Arlington. "We are trying to get out of that spiral."

The jet program is at a vulnerable moment in its 10-year life, shifting from the costly research and development phase to the infancy of production. Under the Pentagon plan, spending on new F-35s is projected to average more than $1 billion per month by 2012, a clip expected to last for more than ten years. Up to 2,500 planes would be built for the United States alone.

The project's large price tag makes it a tempting target for lawmakers ― it narrowly avoided deep cuts this fall in Congress and saw its initial production numbers scaled back. Budget watchdogs warn that the Pentagon is rushing the F-35 into production without first proving its advertised capabilities.

Some military analysts say the early erosion is a worrisome sign.

"Every time critics succeed in getting it cut, the average cost of the airplane goes up," said Loren Thompson, a military analyst with the nonpartisan Lexington Institute, who predicts the number of F-35s made for the U.S. military could eventually be cut by up to a third. "What is beginning to happen to the F-35 is precisely what happened to the F-22."

The recent resignation of Defense Secretary Donald Rumsfeld also clouds the picture of the F-35, said Richard Aboulafia, an aerospace analyst with the Teal Group. Rumsfeld was a foe of the F-22, a high-performing plane popular with the Air Force. His departure could shift more funds to the costly F-22 at the F-35's expense.

"The real danger is if the F-22 gobbled up the cash," Aboulafia said.

The F-22, conceived to fight the now defunct Soviet Union, is another technologically advanced jet and a cousin to the F-35. But the program has been sharply scaled back. Initial plans called for 750, but only 183 are slated to be built, with each plane costing around $350 million, including development costs.

The F-35 is a similar jet, with the same stubby nose and twin tail fins, advanced radar, stealth design and other fighting capabilities. But it is also designed for greater versatility; It will be one of the first to allow a pilot to easily shift from bombing runs to aerial combat on the same mission. It will replace several older fighters, including the Air Force's workhorse F-16.

First proposed in the 1990s, the F-35, also called the Joint Strike Fighter, or JSF, was a new tack in defense contracting. It is a single plane to meet the different needs of three military branches, a rarity for big weapons deals. That meant a jet with three variations ― an aircraft carrier plane for the Navy, an Air Force jet that uses a runway and a Marine Corps plane that can take off and land vertically. Countries such as Britain, Australia and Canada also plan to fly the F-35.

Each variation uses the same research process and can be constructed on the same assembly line. That emphasis on cost was rare for bid defense programs, said Jacques Gansler, the former undersecretary of defense in charge of contracting during the late 1990s.

"It is going to be a very expensive program, but it is a low-cost airplane," said Gansler. "It is hard to put those words together, but the reality is that it is a low-cost airplane times a large number of airplanes."

Yet that cost savings has already shrunk. Upfront development costs make up a major portion of the cost of a new fighter, meaning if fewer are made, the per plane cost is higher. The F-35 cost $45 billion to develop ― a figure that is up 84 percent from 1990s estimates. Problems with weight and other factors helped drive up the price.

Meanwhile, the number of F-35s dropped. More than 2,800 were planned when Lockheed won the contract in 2001, at a price between $37 million and $47 million depending on the version. By the end of 2005, only 2,450 were envisioned, at a cost of between $44.5 million and $61.7 million each, according to a report by the     Government Accountability Office.

In September, Congress approved funding for only two of the five first jets requested, although it did budget to buy parts for 12 more. An earlier Senate proposal would have blocked funding of all five

Lockheed and defense officials say it is important that Congress allowed production to begin, but they stress that future reductions could be costly.

"You can easily make JSF an unaffordable airplane," said Air Force Brig. Gen. Charles Davis, the F-35's program officer.

But there are concerns the F-35 is moving too fast. In a report in March, the GAO said the Pentagon planned to produce 424 planes through 2013 before all the flight testing was finished. If early problems arise, the program could face delays and even greater costs, the GAO concluded.

Davis said those fears are exaggerated, that much of the ground testing already done on the F-35 should reduce the risk of problems arising later. He said the F-35 team has closely analyzed woes that beset the F-22, such as software errors and development problems, to avoid any repeats.

Despite the challenges, Davis predicts the plane will meet its goals. But it depends on how well the F-35 performs, both in the skies and at the bottom line.

"We control our own destiny," he said. "I hope that if we are able to deliver on schedule, to deliver on budget, to keep the performance going that we won't be handed cuts just because cuts need to be made."

12、Pfizer shares at risk following heart-drug failure
Sun Dec 3, 2006 4:57pm ET

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More Business News... Email This Article | Print This Article | Reprints [-] Text [+] By Ransdell Pierson

NEW YORK (Reuters) - With the sudden failure of torcetrapib, Pfizer Inc.'s most important experimental product, financial analysts predict shares of the world's largest drugmaker could fall from 5 to 25 percent on Monday and that Pfizer will need to buy other products to fill the void.

On Saturday Pfizer (PFE.N: Quote, Profile , Research) halted development of torcetrapib, which was designed to raise levels of "good" HDL cholesterol, after an independent safety monitoring board cited increased deaths and heart problems among patients given the product in a late-stage trial.

While some rival companies could benefit from the news, including Abbott Laboratories Inc. (ABT.N: Quote, Profile , Research), experts warned that shares of other drugmakers could be hurt as the setback underscores the risk of drug development and dangers of relying too heavily on potential blockbuster products.

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"When you live by the blockbuster, you can be badly hurt when the blockbuster fails to materialize," said Steve Brozak, an analyst with WBB Securities, who predicted Pfizer shares would tumble 15 percent on Monday.

Pfizer on Saturday said it would accelerate plans to improve operations and cut costs in view of the torcetrapib setback and reaffirmed plans to introduce about six products a year, starting in 2010.

Investors were counting on torcetrapib to be approved before the patent expires by 2010 or 2011 on Lipitor, Pfizer's $13 billion-a-year pill that cuts levels of "bad" LDL cholesterol, and make up for most of Lipitor's lost sales.

Torcetrapib in earlier clinical trials had boosted HDL cholesterol by 60 percent, raising hopes that it could greatly reduce the risk of heart attacks and strokes. But it caused slight elevations in blood pressure, itself a major risk of heart disease.

Pfizer shares fell to about $20 a year ago when Indian drugmaker Ranbaxy Laboratories Inc. (RANB.BO: Quote, Profile , Research) threatened to launch a generic form of Lipitor. But the threat evaporated last December when a federal judge upheld the validity of Lipitor's patents, and Pfizer's shares have since rebounded, closing on Friday at $27.86.   Continued...

13、 U.S. retail gas prices continue to rise Sun Dec 3, 5:37 PM ET



CAMARILLO, Calif. - Gas prices continued to rise during the holiday shopping season.

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Gas prices rose about 4 cents per gallon nationwide compared to two weeks ago, industry analyst Trilby Lundberg said Sunday.

The national average for self-serve regular was $2.27 per gallon on Dec. 1, according to Lundberg's latest survey of 7,000 gas stations across the country.

The national average for mid-grade was $2.38, while premium was $2.48 per gallon.

The lowest average price in the nation for self-serve regular was in Tulsa, where a gallon cost $2.09. The highest average price in the nation for self-serve regular was Honolulu at $2.74.

____

On the Net:

Lundberg Survey: http://www.lundbergsurvey.com

14、Weak dollar boosts international ETFs Mon Dec 4, 2:06 AM ET



NEW YORK - International exchange-traded funds have been strong performers this year, and their investors owe a debt of gratitude to the weakening dollar.

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The strength of foreign currencies against the U.S. dollar has often contributed as much to the performance of foreign-stock ETFs this year as has the strength of foreign companies.

It's been a good ride, but it may be time for investors to take a look at how much in international ETFs they want to hold. Owning some international stocks can smooth out a portfolio's performance in the long run. But investors who wouldn't be comfortable taking a rider on the price of the euro or pound might think twice about staying heavily invested in international ETFs ― or trying to dart in and out of them.

"Most, if not all, international ETFs are unhedged," says Andrew Clark, an analyst at Lipper Inc., meaning the funds don't take steps to limit the swings of currencies.

Long-term investors should see the trends even out, but "if you are too short-term you can get whipsawed by currency shifts," he says.

ETFs resemble index-oriented mutual funds but trade on an exchange like a stock.

The funds have made it easier for Main Street investors to trade international stocks. Alternatives such as mutual funds usually discourage rapid buying and selling, and American Depositary Receipts, which represent shares of individual foreign companies, require large sums for proper diversification.

Given the strong returns of foreign investments, investor money is pouring into international ETFs and into "global" ETFs, which invest in the U.S. and abroad. Assets grew 46 percent to $95.3 billion from $65.2 billion during the first 10 months of year, according to the Investment Company Institute, the trade group for mutual funds and ETFs.

The largest international ETF is Barclays PLC's $31 billion iShares MSCI EAFE Index Fund, which follows the Morgan Stanley Capital International Europe, Australasia, and Far East index.

Year to date through Nov. 28, the EAFE index was up 17.4 percent in dollar terms but had gained only 7.9 percent in local currencies.

A Barclays spokesman noted a recent research paper by the firm which states that investors are "openly exposed to fluctuations in both local equity and currency returns" and benefit from a "thorough understanding of the source and correlations of these exposures."

Two ETFs, Barclays' iShares MSCI Emerging Markets Index Fund and Vanguard Group Inc.'s Emerging Markets ETF, track the MSCI Emerging Markets index, which has returned an eye-popping 26.9 percent so far this year in dollars, but a smaller 13.8 percent in local-currency terms.

The results are similar for ETFs by those firms' main ETF rival, State Street Corp. The Dow Jones Euro Stoxx 50 Index, the basis for a State Street "StreetTracks" ETF, is up 23.8 percent year to date through Nov. 28, calculated in dollar terms, and 11.1 percent in euro terms.

What's giving extra juice to these funds and the indices they track is the beleaguered U.S. dollar, which recently hit a 20-month low against the euro and a 14-year low against the British pound.

The weak dollar boosts the U.S. value of overseas assets, and stocks are no exception. But the direction of the dollar can quickly change.

"Currency can dominate returns for U.S. investors," said Dodd Kittsley, director of ETF research at State Street Global Advisors. While U.S. investors have benefited this year, "it could swing the other way."

Vanguard recently published a research paper noting that currency movements cut close to 20 percent from 12-month returns of international stocks in 1984, then turned around the next year and added more than 30 percent in 1985-1986.

"If you look at international stocks as a class and measure the returns versus U.S. stocks, they will demonstrate higher volatility," said Paul Lohrey, a principal in the quantitative equity group at Vanguard.

Of course, that doesn't mean investors in U.S. stocks don't sometimes feel currency fluctuations too. Large U.S. companies like Coca-Cola Co. and International Business Machines Corp. generate more than half their revenue abroad. But while exchange rates do affect earnings, day-to-day stock-price movements tend to reflect overall company valuations.

Adding some overseas holdings to a U.S. investor's portfolio can dampen its overall volatility. How much in foreign stocks should U.S. investors own? Different investors come up with different answers, but one Vanguard study suggests investors may find the best balance between benefits and risks by putting 20 percent to 40 percent of their stock portfolios in overseas companies.

15、Oil prices fall despite worries 1 hour, 57 minutes ago



LONDON - Oil prices dropped Monday, reversing some of their increases last week. Last week's climb reflected worries about possible production cuts by     OPEC and the impact of wintry weather on fuel demand in the United States.

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Light, sweet crude for January delivery fell 63 cents to $62.80 a barrel in electronic trading on the New York Mercantile Exchange by midday in Europe.

January Brent crude at London's ICE Futures exchange fell 81 cents to $63.81 a barrel.

"Corrections should be short-lived, though, as we believe participants have adopted a 'buy the dips' mentality," said John Kilduff, senior vice president for energy risk management at Fimat USA.

Comments from key members of the Organization of Petroleum Exporting Countries over the weekend suggested the cartel would push for further cuts in output at its meeting later this month.

OPEC is set to decide on its output policy at a Dec. 14 meeting in the Nigerian capital, Abuja. The 11-member group is expected to address the need to sharply accelerate oil production cuts they have implemented to stem an oversupply, seen mainly in the bulging inventories of the wealthiest industrialized nations.

Recent data from the International Energy Agency showed stocks held among the 30 Organization of Economic Cooperation and Development member countries at the end of September were 2.76 billion barrels, the highest level in almost eight years and 4.5 percent higher than a year ago.

This means OECD members have 55 days' worth of oil consumption in stock, a significant two days more than a year ago.

On Saturday, OPEC's de facto leader, Saudi Arabia's Oil Minister Ali Naimi said the cartel needed to take 100 million barrels out of the market to balance it. Kuwait's Oil Minister Sheik Ali Al Jarrah Al Sabah, who was also at a meeting of Arab oil producers in Cairo, agreed.

The figure is close to what the IEA estimates is the stock build in the third quarter of this year ― the highest for the period in 14 years ― and it equates to more than 1 million barrels a day.

Edmund Daukoru, Nigeria's oil minister and OPEC president, said Friday the group is likely to trim production again and he expects a cut of at least 500,000 barrels a day.

"There is likely to be some further trimming, the actual amount will depend on the circumstances," said Daukoru. While the specific amount will be decided at the OPEC meeting based on data and trends, "I don't expect anything less" than 500,000 barrels per day to be cut, he said.

Heating oil futures fell more than 2 cents to $1.8257 a gallon , unleaded gasoline edged down to $1.6840 while natural gas prices dipped 19 cents to $8.230 per 1,000 cubic feet.

16、Investors seek signs of robust spending By TIM PARADIS, AP Business Writer
Sun Dec 3, 8:56 PM ET



NEW YORK - With December under way, Wall Street might begin counting down the number of shopping days left ― not until the holidays, but until retailers can say with certainty how the shopping season fared and whether consumer spending held up as hoped.

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Investors have received mixed signals on the health of retailers and consumers in general recently and in the coming week will be eyeing reports on factory orders as well as unemployment to gauge whether the economy is headed toward a soft landing as many hope following more than two years of interest rate hikes.

Strong consumer spending has been a pillar of the robust economic growth seen in recent years, but uneven reports from retailers raised questions about whether consumers will deliver for Wall Street this year. Last week, Wal-Mart Stores Inc. surprised investors by posting a drop in its November same-store sales, a primary retail measure reflecting sales at stores open at least a year. It was the first decline in a decade for the world's largest retailer.

As it seeks more data on how consumers are faring, Wall Street will no doubt take note of Friday's employment report from the Labor Department, particularly the government's jobs creation figure. Weekly unemployment claims rose unexpectedly last week to a 13-month high, causing some concern about the direction of the economy. While unemployment has been near five-year lows recently, a spike in jobless claims could signal businesses are cutting back ahead of an expected downturn.

Some on Wall Street keeping tabs on retailers are also watching the housing sector, wondering whether consumers might pare spending at the mall if they have concerns about falling home values. Investors have been wondering whether the well-documented slowdown in housing might pull the economy into recession or perhaps merely serve as a drag on growth. A quarterly report from upscale homebuilder Toll Brothers Inc. this week could lend some additional insight into the state of the sector.

In any case, investors will be hoping for a better week. Last week, the markets gave up ground, with the Dow Jones industrial average losing 0.70 percent. The Standard & Poor's 500 index fell 0.30 percent, while the Nasdaq composite index lost 1.91 percent.

ECONOMIC DATA

On Tuesday, the Labor Department reports revised productivity figures for the third quarter, though Wall Street isn't expecting a sizable change.

Also Tuesday, the     Commerce Department reports factory orders for October, and the Institute for Supply Management issues its services sector business index. That follows an important report Friday, November's ISM manufacturing figure, which showed the first decline in manufacturing in more than three years.

Thursday brings weekly data on weekly jobless claims. Later that day, the     Federal Reserve is expected to release its consumer credit report for October, a sometimes volatile reading of consumer debt.

Friday brings the Labor Department's November employment report, which includes the number of jobs created, average hourly earnings and the unemployment rate. The jobs creation figure often draws interest as it indicates the degree to which the economy might be growing or contracting.

The day also brings the University of Michigan's preliminary consumer confidence reading for December. The mood of consumers is of particular concern to Wall Street during the holidays because a strong showing in either direction could signal how retailers might make out during what is for many the most important selling period of the year.

EARNINGS

The earnings schedule is light for the week and gets started Tuesday with a third-quarter report from grocer Kroger Co., which is expected to earn 28 cents per share. The company, which has traded between $18.05 and $24.15 in the past 52 weeks, closed Friday at $21.65.

Wall Street also expects to hear from Toll Brothers Inc. Tuesday and predicts the company will earn $1.06 per share for its fiscal fourth quarter. The stock closed Friday at $32.16 and has traded between $22.22 and $39.98 in the past 52 weeks.

The same day, Novell Inc., which makes open-source software, including a version of the     Linux operating software, plans to report its fiscal fourth-quarter results. Wall Street is expecting a profit of 4 cents per share. The stock closed Friday at $6.29 and has traded between $5.73 and $9.83 in the past 52 weeks.

On Thursday, National Semiconductor Corp. is seen as reporting fiscal second-quarter earnings of 27 cents per share. The chip maker, which has traded between $20.56 and $30.93 in the past 52 weeks, closed Friday at $24.17.

17、Philly papers meet again with union By JOANN LOVIGLIO, Associated Press Writer
Sun Dec 3, 9:58 PM ET



PHILADELPHIA - Contract negotiations between the largest union at Philadelphia's two biggest newspapers and management lasted late Sunday evening, one day after a marathon 14-hour session in which both sides reported some progress.

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Negotiators returned to the bargaining table just after noon Sunday and were still meeting at 9 p.m.

Henry Holcomb, president of the Newspaper Guild of Greater Philadelphia, said the sides discussed the Guild's biggest concerns: management proposals to freeze pensions and to carry out layoffs without regard to seniority.

"We're making progress on some major issues," Holcomb said. He declined to talk about specific discussions.

Holcomb said the Guild was willing to stay as long as needed.

"We always do, and we'll stay until the mediator sends us home," he said.

Union members hoped to avert a strike, but plans are in place if talks reach an impasse, Guild spokesman Stu Bykofsky said. Those plans include a news Web site, PhilaPapers.com, which would compete with the company-owned Philly.com.

The Guild represents more than 900 editorial, advertising, circulation and clerical workers at The Philadelphia Inquirer and the Philadelphia Daily News. The last strike at the newspapers, in 1985, lasted 46 days.

The Guild's contract expired after midnight Thursday but it held off a threatened walkout after the union and management reported progress. Nine other unions still negotiating said they wanted to avoid what they believe would be a damaging strike.

Philadelphia Media Holdings LLC, a group of local investors that bought the Knight Ridder newspapers in June, is seeking contract concessions and up to 150 newsroom job cuts amid sharp declines in advertising revenue and circulation.

A call to Philadelphia Media Holdings spokesman Jay Devine was not immediately returned Sunday. Devine told the Inquirer for a story Sunday that the parties were "continuing to make a little progress."

18、Wall Street Journal to unveil new design By SETH SUTEL, AP Business Writer
Mon Dec 4, 1:41 AM ET



NEW YORK - The Wall Street Journal is moving to a smaller format early next year and adding more color, graphics and other user-friendly elements in a bid to make the longtime stalwart of the financial world more appealing to a wider audience.

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The changes, which were to be announced in New York on Monday, will go into effect Jan. 2. The new size will be about three inches narrower, about the same as one column, and will bring the paper in line with a widely used industry standard, allowing it to be printed in more places.

Many stories will be shorter, and fewer will "jump" to the inside of the newspaper, said Robert Christie, a spokesman for Dow Jones & Co., the newspaper's publisher. However, the paper will still highlight long-form stories, Christie said.

Christie described the changes in general but declined to provide fuller details ahead of the announcement.

Other major newspapers have cut their width in recent years as a way to save money, including Tribune Co.'s Los Angeles Times, The Washington Post and Gannett Co.'s USA Today. The New York Times is planning to reduce its width in 2008.

Dow Jones says reducing the Journal's width will save about $18 million a year.

Because of its wide format, the Journal can't be printed in Hawaii because it can't find presses wide enough to accommodate its size, Christie said. Papers must be flown in.

Years ago, many major U.S. newspapers were printed in a size similar to the Journal's, but most have since cut back, said Michael Grady, director of production operations at the Newspaper Association of America.

In fact, the Journal was the last major U.S. paper to continue to print in such a wide format, Grady said, although some smaller community newspapers still use it.

The Journal has struggled more than other major newspapers in recent years due to a prolonged slump in financial and technology advertising, which are its two mainstays.

The Journal has gone through a number of other changes in recent years to reach beyond its core audience of business leaders and advertisers.

In 1998, it launched a highly successful arts and leisure section on Fridays called "Weekend Journal," and in 2002 it made a number of other changes including a new section on personal finance and consumer issues, as well as adding more color and graphics. Last year, it started a Saturday edition with yet more consumer coverage and advertising.

The new look is aimed at making the paper more accessible to readers. Despite the three-inch reduction in width, the space available for news will only decrease by 10 percent as several statistical elements move from the newspaper to the Web site, Christie said.

"Initially it may be a bit of a shock to their regular readers, because let's be honest, The Wall Street Journal doesn't change all that much," said Brenda White, a print advertising buyer with Starcom, which is a unit of the French advertising and media services company Publicis Groupe SA.

"To me, this was something that has to be done to keep up with how the consumer is changing out there," White said. "There are a lot of choices out there, and you want to make a newspaper as appealing as possible."

Dale Travis, who manages newspaper advertising buying for OMD Worldwide, a unit of Omnicom Group Inc., said he didn't think the smaller format and design changes would compromise the newspaper's reputation.

"They've been a very conservative group and I applaud their attempt to embrace change and offer greater readability and greater utility to readers," Travis said.

___

On the Net:

http://www.wsj.com

10、Qualcomm buys two chip businesses
Mon Dec 4, 2006 2:52am ET

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Bank of New York to buy Mellon
Pfizer shares plunge after key drug fails
Pilgrim's Pride, Gold Kist reach deal
VIDEO: Drugmakers in focus
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By Megan Davies

NEW YORK (Reuters) - Wireless technology firm Qualcomm Inc. (QCOM.O: Quote, Profile , Research) said on Monday it was buying two micro-chip businesses to boost its core wireless technology product offerings.

Qualcomm said the combined effect of the acquisitions on its earnings per share would be dilutive by about 4 cents in its fiscal year ending September 2007 and modestly accretive in the full year 2008.

The deals are expected to close by the end of December.


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It is buying the majority of microchip maker RF Micro Devices Inc.'s (RFMD.O: Quote, Profile , Research) Bluetooth assets, based in San Diageo, for $39 million.

It is also paying an undisclosed amount of cash to buy privately-owned startup Airgo Networks Inc., which provides wireless local area network technology.

Qualcomm said the deals would allow the company to "extend our leadership in mobile broadband."

The RF Micro deal gives Qualcomm access to next-generation Bluetooth technology. Bluetooth is a short-range wireless link that transfers data between mobile phones, computers and their accessories.

RF Micro said the deal would allow it to increase its focus on its highest growth wireless business opportunities.

Airgo develops and sells chipsets and software for wireless networking, according to the company's Web site.

The Palo Alto, California company was founded in January 2001, according to its Web site and had investment from venture firms including OVP Venture Partners, Oak Investment Partners and BlueRun Ventures.

Qualcomm shares have lost about 20 percent in the past 52 weeks, partly on uncertainty created by legal disputes with Nokia and other companies.