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TOP STORIES FOR MONDAY, MAY 17, 2004
  Oracle Lowers Bid for PeopleSoft
  Panel Calls for Restraint in Data Mining
  Forrester Gives New Estimates for Offshoring


ORACLE LOWERS BID FOR PEOPLESOFT
Citing "changes in market conditions," Oracle has lowered its bid for
rival PeopleSoft from $26 per share to $21. The lower price represents
a total bid of $7.7 billion, compared to $9.6 billion at the higher
price. According to a statement from Jeff Henley, chairman and CFO of
Oracle, the revised bid is in response to lower market valuation for
PeopleSoft. Henley noted that the new bid represents a higher premium
over PeopleSoft's current stock price than did the original bid and
said the proposed takeover would "benefit stockholders of both
companies." A statement from PeopleSoft said its board would consider
the offer but criticized Oracle for announcing the new bid the day
before an annual PeopleSoft event for customers. "This is one more
instance of what we firmly believe is Oracle's ongoing effort to
damage our business," read PeopleSoft's statement.
CNET, 14 May 2004
http://news.com.com/2100-1012_3-5213271.html

PANEL CALLS FOR RESTRAINT IN DATA MINING
A federal panel has written a report that calls on the Defense
Department as well as other areas of government to institute strong
measures to protect civil liberties in the context of data mining.
Secretary of Defense Donald Rumsfeld appointed the panel, called the
Technology and Privacy Advisory Committee, in early 2003 in response to
criticisms of the Pentagon's data-mining program, the Terrorism
Information Awareness program. The panel's report, which is expected
to be released in about two weeks, says that although the goals of
data-mining programs are worthwhile, the government must take steps to
ensure that they do not infringe on individuals' privacy. The panel
also called on Congress, the president, and the courts to be involved
in efforts to safeguard personal privacy, as federal agencies sift
through databases with personally identifiable information, trying to
combat terrorism. Newton N. Minow, head of the panel and former
chairman of the Federal Communications Commission, noted that the
panel's recommendations would add a new burden of responsibility to
the government but said that the changes would enhance personal privacy
and ultimately national security. One panel member, William T. Coleman
Jr. filed a dissent, stating that the panel's proposals far exceed
what is required by the Constitution, federal laws, or former court
decisions.
New York Times, 17 May 2004 (registration req'd)
http://www.nytimes.com/2004/05/17/politics/17privacy.html

FORRESTER GIVES NEW ESTIMATES FOR OFFSHORING
A new report from Forrester Research forecasts that a total of 830,000
jobs will have been moved from the United States overseas by 2005. The
new estimate compares with about 600,000 projected by Forrester in
November 2002. Despite the increase, however, Forrester said the
overall outlook for offshoring is not substantially different from the
earlier report's forecast. The company had previously predicted a
total of 3.3 million jobs sent overseas by 2015; it now puts that
number at 3.4 million. Forrester analyst John McCarthy said that after
the 2002 report, many companies began looking into offshoring and that
providers of such services have expanded their offerings.
Wall Street Journal, 17 May 2004 (sub. req'd)
http://online.wsj.com/article/0,,SB108474869663912901,00.html

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