Intel seen winning EU approval for McAfee deal: sources

Intel CEO Paul Otellini talks during the company's unveiling of its second generation Intel Core processor family during a news conference at the Consumer Electronics Show (CES) in Las Vegas January 5, 2011.

Credit: Reuters/Rick Wilking

By Foo Yun Chee

BRUSSELS | Thu Jan 20, 2011 3:04pm EST

BRUSSELS (Reuters) - Intel Corp is set to win EU approval next week for its $7.68 billion purchase of security software maker McAfee Inc after offering more concessions to ease antitrust concerns, two sources with direct knowledge of the matter said on Thursday.

The company has already secured clearance from the U.S. Federal Trade Commission to acquire McAfee, the world's No. 2 purveyor of anti-virus software after Symantec Corp. McAfee's other competitors include Finland's F-Secure, and German companies Avira and G Data.

Intel, the world's No. 1 chipmaker, had offered some concessions to the European Commission and in recent days proposed more remedies after complaints by some of McAfee's rivals that they were inadequate, the sources said.

"The Commission's clearance is likely next week," one of the sources said.

The second source said the main element of Intel's concessions related to interoperability features that will allow products from McAfee's competitors to function on Intel products without restrictions.

Last week, Intel Chief Executive Paul Otellini said the acquisition could close in the first quarter if the Commission had no more requests for information.

Intel spokesman Chuck Mulloy told Reuters on Thursday that Intel expects the transaction to close "before midyear" but he would not comment on the new concessions.

The European Union regulator had been concerned that Intel might embed certain elements of McAfee's virus-fighting technology in its widely used microprocessors for personal computers, giving it an unfair competitive advantage, two other persons familiar with the case told Reuters earlier this month.

Intel's plan to buy McAfee underscores how security has become a concern in a world of Web-enabled devices.

Swallowing McAfee would give Intel the opportunity to sell high-profit security software alongside its microprocessors to its traditional PC customers.

Intel's planned acquisition of McAfee also reflects a trend in the technology sector for hardware and software companies to merge in order to offer clients one-stop solutions.

"The lines and distinctions between hardware and software are blurring -- what's being implemented in software, what's being implemented in hardware and how to bring very vast, rapidly evolving ecosystems together," said Alex Gauna, an analyst at JMP Securities.

EU Competition Commissioner Joaquin Almunia is expected to hold a news conference on Wednesday to announce the decision in the case.

Intel shares were trading 0.8 percent lower at $20.84 while McAfee was up 0.7 percent.

(Additional reporting by Noel Randewich in San Francisco; Editing by Bate Felix, David Holmes and Steve Orlofsky)

LinkedIn plans to go public in 2011: sources

A LinkedIn profile is seen in a handout image.

Credit: Reuters/Handout

By Nadia Damouni

NEW YORK | Thu Jan 6, 2011 2:53am EST

NEW YORK (Reuters) - LinkedIn, the social networking site for professionals, plans to go public in 2011 and has selected its financial underwriters, three sources familiar with the process told Reuters.

Morgan Stanley, Bank of America and JPMorgan are among the book runners, these sources said. Bankers made their pitches to the privately-held company in November, one of the sources said.

"An IPO is just one of many tactics that we could consider," a spokesman for LinkedIn said on Wednesday. He declined further comment.

Internet companies such as LinkedIn and Zynga, a popular maker of online social games, are considering offerings well ahead of a potential IPO of Facebook, two sources said.

"Some of these companies want to go public because they want to beat Facebook and others out," said one of the sources. "If Facebook went public before Linkedin, do you think anyone would pay that much attention to Linkedin?" You might want to surpass the beast."

Zynga couldn't be reached immediately for comment.

Facebook is not expected to file for a public offering until late 2012, Facebook board member Peter Thiel told Reuters in September.

But that could change. Regulators are scrutinizing a $500 million investment and a commitment to raise at least $1 billion more in Facebook this week by Goldman Sachs and Digital Sky Technologies, one of the sources said.

The SEC is reviewing whether the number of shareholders in Facebook has exceeded a 499 limit in order to remain private. If the SEC decided Facebook has moved past the threshold, it could accelerate Facebook's timeline for an offering, the source said.

Facebook and Goldman have declined to comment.

The people familiar with the process said LinkedIn is hoping to attract investors on its reputation as one of the Web's fastest growing social network sites.

The site claims more than 85 million members.

The filing of LinkedIn's S-1 registration statement with the U.S. Securities and Exchange Commission, which contains the basic financial information of an issuer, could take months, said one of the sources.

"There are lots of things that are worked on that they could put on hold; they miss numbers; they want to grow a little more," another of the sources said.

Linkedin, which does not disclose financial results, makes money from advertising and premium services. The valuation of a Linkedin IPO was not given by the sources.