ProfNet Wire: Business for 12-13-04

ROUND-UP: FOREIGN TAX HAVENS (continued)

We've added the following to items posted previously at http://www.profnet.com/organik/orbital/thewire/lst_leads.jsp?iLRTopicID=6120

**1. MARK P. LEWIS, partner and co-manager of the investment funds team at WALKERS, one of the largest law firms in the Cayman Islands, specializes in all aspects of mainstream corporate work, including investment funds and asset finance: "Offshore transactions contribute significantly to U.S. capital markets. They are a conduit to allow non-U.S. funds to be pumped back into U.S. markets."

LEADS

**. AIRLINES: BUYING TICKETS ON BANKRUPT AIRLINES. JEFFREY MILLER, travel industry attorney with THE MILLER TRAVEL GROUP, has more than 25 years experience of following travel issues and trends and is available to discuss the financial instability of the airline industry and how it impacts the traveling public: “Any consumer buying a ticket from an airline in bankruptcy, including US Airways, United, ATA, Hawaiian and possibly Delta, in the near future should be absolutely certain to purchase those tickets with a credit card –- never a check or cash. Under federal law, consumers have more protection with regard to either being reimbursed or not having to pay for tickets if the airline either eliminates flights or shuts down its operation all together.”

**. BUSINESS: CHINA'S LENOVO TO BUY IBM'S PC DIVISION. DR. USHA HALEY, an expert on Chinese business at the UNIVERSITY OF NEW HAVEN and author of "The Chinese Tao of Business: the Logic of Successful Business Strategy": "The announcement that China's Lenovo (formerly Legend) would acquire IBM's PC division met with mixed reaction. Chinese companies have shown that they have the economic clout to purchase venerable American brands. However, effectively managing these brands will pose a problem. Chinese companies, though strong in manufacturing, are poor in brand management and service. Governance will also become an issue."

**. E-COMMERCE: ONLINE RETAILERS LOSE CUSTOMERS BECAUSE OF FAULTY SEARCH FUNCTIONS. JOHN RUETER, senior vice president at FAST SEARCH & TRANSFER: "Eighty percent of customers abandon their online purchase if the search function doesn’t work well. In fact, retailers lose 30 percent of customers with each unnecessary click. A great selection of products isn’t worth a dime if shoppers can’t find what they want.” Rueter can discuss the role of search technology as well as practical measures e-tailers can take to mitigate customer abandonment.

**. E-COMMERCE: CONSUMERS LOOK FOR SPEED AND RELIABILITY WHEN SHOPPING ONLINE. STEPHEN SCARR, CEO of INFO.COM INC., a metasearch platform that aggregates results from 14 leading search engines, including eBay and Shopping.com, can provide insight into the e-commerce and search industries by highlighting this season’s trends and sharing last-minute online shopping tips: “Time is even more valuable during the holiday season, and the surplus of information on the Internet makes it difficult for consumers to find, research and buy holiday gifts. Consumers are looking to the Internet for speed and reliability. Online shopping is expected to approach $15 billion in 2004, with U.S. consumers spending an average of more than $200 on their online holiday gift purchases.”

**. INSURANCE: THE SIGNIFICANCE OF THE WORLD TRADE CENTER TWO- OCCURRENCES DECISION. JOHN SARICH, global industry marketing manager of the insurance sector of the FILENET CORPORATION: "The principal issue is the occurrence form versus the claims made form. Silverstein had an occurrence policy. The issue is whether the first plane that hit the WTC was the only occurrence, and if the second plane to hit was another occurrence. Generally, FC&S has viewed two events occurring in near proximity are a single occurrence. So this ruling is going to have some consequences around occurrence versus claims made. With reinsurance policies generally on the occurrence form, this could ratchet the cost of insurance throughout the industry.”

**. MANAGEMENT: INTERIM MANAGERS ARE FILLING IN FOR RETIRING EXECS. VINCE PAPI, managing director of BOYDEN INTERIM MANAGEMENT, says there aren’t enough skilled managers to fill vacancies being created as baby boomers retire: "Millions will retire in the next decade. Demand for interim managers -– highly qualified specialists who work for six to nine months -- is skyrocketing. By 2008, 12 million baby boomers will retire. The replacements just aren't there. That's why we expect companies to turn to interim managers. These are seasoned senior managers that have had fulfilling corporate careers and are now eager to share their skills in short-term assignments.”

**1. PERSONAL FINANCE: BUDGET WITHOUT THE BAH-HUMBUG. KAY SHIRLEY, Ph.D., CFP, president of the FINANCIAL DEVELOPMENT CORP./MUTUAL SERVICE CORPORATION: “Many people who mind their money well the rest of the year get into a credit crunch over the holidays. You can be generous, just don’t go to extremes. When you make a budget, be sure to include all sorts of holiday expenditures, not just gifts. Common money mistakes include forgetting to plan for extras such as wrapping, shipping, party clothes and pet boarding, which can really add up."

**. PERSONAL FINANCE: FAFSA APPLICATIONS -- THE EARLY BIRD GETS THE WORM. MARTHA HOLLER, spokesperson for SALLIE MAE, can offer tips for completing the Free Application for Federal Student Aid (FAFSA). High-school seniors can complete the application -- the student's starting point for nearly all financial aid programs -- beginning Jan. 1: "When it comes to financial aid, the early bird gets the worm. Awareness of financial aid has a huge impact on decisions to complete education after high school or to continue on to further opportunities through higher education."

**. PERSONAL FINANCE: THERE'S STILL TIME TO CUT YOUR 2004 TAX BILL. ROSS RIZZO, director of tax at SALIBELLO & BRODER LLP: "There are still steps you can take -- if you take them quickly -- that will cut your 2004 tax bill. They include maxing out retirement contributions, postponing income and speeding up deductions, and using up all your flexible spending account dollars."

**. TAXATION: THE AMERICAN JOBS CREATION ACT. JOHN A. NIXON, ESQ., partner with national law firm BLANK ROME LLP., is an expert in federal tax and is available to comment on the most significant change in U.S. corporate taxation in nearly 20 years, the American Jobs Creation Act: "Recent corporate scandals have cast a harsh light on executive compensation practices, including deferred compensation plans benefiting officers, directors and high-level executives. As part of the act signed by President Bush on Oct. 22, 2004, Congress addressed these concerns by imposing numerous restrictions on non- qualified deferred compensation plans ("NQDCs"). In addition to the deferred compensation provisions, the act represents the most significant change in U.S. corporate taxation since the Tax Reform Act of 1986."