News Digest for September 9, 2006

Tension Escalates Over HP Scandal
Hewlett-Packard Co.’s board of directors yesterday called an emergency meeting for Sunday as a scandal involving spying on board members and journalists escalated and prompted Chairman Patricia C. Dunn to say she would step down if asked.

BW Writers Targeted by HP
Hewlett-Packard Co. targeted three BusinessWeek reporters among the nine journalists whose phone records it sought through a controversial method known as “pretexting,” the computer maker confirmed on Sept. 8. BusinessWeek has learned that the Justice Dept. has launched a federal investigation into the case.

Disclosure a Key Question in HP Spat
The handling by Sonsini and his partners of the disclosure that followed the resignation of Tom Perkins from the board raises perplexing questions about their judgment.

The AFSCME AIG Decision: Mea Culpas Not Enough To Allow Inconsistent Interpretation
“I think investors would welcome a broad reopening of proxy access by the commission, particularly in light of failures of corporate boards in recent years, most recently the option disaster. ”

IRS Joins Probe Of Backdating Stock Options
Federal prosecutors announced Thursday that the Internal Revenue Service has joined a growing investigation into the alleged practice of some Silicon Valley companies to backdate the stock options they offered executives and key employees.

The growth of shareholder activism
A look at at the growing trend of shareholder activism in Australia and how Japan’s shareholder activism has fared after Murakami.

HSBC fund sees China investor attitudes changing
China, with some $2 trillion in personal savings — much of it now parked in low-yielding bank deposits — holds vast potential for the fund management industry. Official data show that funds under management have ballooned to about $65 billion from virtually zero six years ago.

CIO Jury: Corporate blogs more than a fad
Corporate blogs can be a useful communication and collaboration tool but businesses need to approach them with caution, say leading CIOs.

Xerox technology protects sensitive digital information
Scientists at PARC and Xerox’s research laboratory in Webster, NY, are making progress with a technology that automatically protects and selectively reveals information contained in documents, without creating multiple versions of them or hogging as much memory as today’s encryption programs do.