Privatization Chief Quits After Another Misstep In Big Greek Asset Sales

One of the ways Greece plans to dig itself out of debt is through the sale of state-owned assets. But that effort has been besieged by missteps.

The latest involved Stelios Stavridis, the chairman of the government privatization agency, who had overseen one of the country’s first big asset sales — a one-third stake in the state gambling company, OPAP, for 652 million euros. But then he hitched a ride to a vacation spot on the private jet of a Greek oil magnate involved in the deal.

Government officials insisted that Mr. Stavridis’s ouster from the privatization agency, Taiped, was “for ethical reasons” and would not upset the country’s state sell-off effort. But the privatization program has suffered from political upheaval and delays and has fallen far short of the revenue targets set by Greece’s so-called troika of foreign creditors, the European Commission, the European Central Bank and the International Monetary Fund.

The Greek finance minister, Yannis Stournaras, on Sunday sought Mr. Stavridis’s resignation from Taiped after a newspaper quoted the chairman as saying he had traveled last week on the Lear jet of the oil and shipping oligarch Dimitris Melissanidis, a major stakeholder in the Greek-Czech consortium Emma Delta, which agreed to buy the OPAP stake in May.

The contract was signed Aug. 12 after much wrangling over the details. A few hours later, Mr. Stavridis, a 65-year-old Swiss-trained engineer, joined the oil magnate on his plane, which dropped Mr. Stavridis on Cephalonia, an island in the Ionian Sea where he spends his summer vacations. “Melissanidis, who was traveling to France, offered to take me with him to accommodate me,” Mr. Stavridis was quoted as telling the Proto Thema newspaper, which published a photograph of him, smiling, sitting next to a flight attendant.

Speaking to the Greek private television channel Skai after his firing on Monday, Mr. Stavridis defended his decision to fly on Mr. Melissanidis’s jet, noting that the trip had come long after the OPAP deal was completed. He referred to “hypocrisy” in Greek society which, he said, was interested in “the facade rather than the essence.”

“I am not a monk and I won’t hide,” said Mr. Stavridis, who founded Piscines Ideales, one of Europe’s largest manufacturers of swimming pools in 1991. More recently, he was head of the Athens water board, Eydap, which is also in the country’s privatizations portfolio.

Less than six months ago, Mr. Stavridis’s predecessor, Takis Athanasopoulos, was accused of a breach of faith during a previous stint at the head of the state electricity board. Prosecutors accused him of commissioning a power station in central Greece even though he knew it could not operate profitably.

The main left-wing opposition party, Syriza, which has vowed to reverse all privatizations if it comes to power, said Taiped was “a tool of the troika” whose goal was “the biggest sell-off of state wealth that Europe has seen since the era of East Germany.” In a statement on Monday, Syriza described the Stavridis affair as “the first clear admission of the dirty relationship between the government of the memorandum and business interests,” referring to the Greek deals for foreign loans.

The troika has urged Athens to speed up state sell-offs and to step up tax collection to raise much-needed money. But revenue targets have been revised downward several times. The original target of 50 billion euros by 2016 was later changed to 19 billion euros, then to 15 billion euros. Since last year, the troika has focused on annual targets. But Taiped is expected to fall 1 billion euros short of its 2.5 billion euro target for 2013.

H.P.’s Misstep Shows Risk in the Push for Big Ideas

The ill-fated marriage of the companies is a lesson for H.P. and other older technology giants as they throw billions at supposedly game-changing acquisitions, trying to gain a foothold in the future.

In that future, smartphones and tablets, connected to cloud-computing data centers, are the essential tools of work and play. Companies rent software over the air, rather than buying it with expensive maintenance contracts.

And vast streams of data are continually analyzed to find new patterns and make predictions about consumer behavior and product design. Autonomy, for instance, makes software that can analyze marketing patterns and advise a company on matters like where it should increase marketing resources.

These forces threaten older businesses, like H.P.’s traditional personal computer and data storage products. Other companies, like Oracle, Microsoft and Cisco, also face pressure. They are all trying to buy the future — and have the cash to do it.

In July, Microsoft decided to pay $1.2 billion for Yammer, which makes a Facebook-like social media product for the office. Oracle recently paid over $3.4 billion for two small cloud computing companies that provide software for human resources and sales management. Last Sunday, the computer networking giant Cisco agreed to pay $1.2 billion in cash for Meraki, a company that manages the free wireless service at Starbucks and other businesses.

There are lots more such deals, from these companies as well as I.B.M., SAP and others.

The pace of change is so fast that Google, so recently seen as an upstart and a giant killer, in 2011 paid $12.5 billion for Motorola Mobility to supercharge its Android smartphone business, which competes with Apple. Earlier this year, Facebook spent $750 million on Instagram so it wouldn’t miss the next thing in social media.

But identifying the next big thing can be difficult, said Jeffrey Sonnenfeld, a professor of management at Yale University. Likely as not, he said, deals like the one for Autonomy have “maybe a 40 percent success, 60 percent failure rate.”

He added, “The odds are against you succeeding, but the odds are also worth taking.”

The real hazard, he said, is in the way companies describe these acquisitions as “natural, inevitable victories.” They should be seen, he said, as “an investment, like in research and development.”

The pace of acquisitions hardly matches the level seen during the late ’90s Internet bubble, when Cisco paid $9.6 billion for three networking companies that former officials said yielded almost no benefit. In 2002, AOL Time Warner wrote down $54 billion in good will related to its troubled merger. Several telecommunications equipment makers and service providers also had multibillion-dollar write-downs.

But there are also notable successes.

EMC, a maker of data storage equipment, paid $625 million in 2003 for VMWare, which makes some of the critical technology in cloud computing. Today, after taking some of the company public, EMC’s stake is worth about $30 billion. VMWare recently took a gamble of its own, buying a next-generation networking company, Nicira, that had virtually no revenue, for $1.26 billion.

Microsoft, which also paid $8.5 billion for Skype in 2011, said Yammer was being integrated into SharePoint, Microsoft’s successful collaboration software, and will be included in its premium version of Office communications and productivity software at no cost. It did not say whether, or how, Yammer would be profitable on its own, however.

The real issue with Autonomy may be less its questionable sales than its core technology, said Leslie Owens, who follows data analysis software at Forrester Research.

“H.P. thought it was an entirely new platform, but Autonomy’s clients said it wasn’t as good as Google’s corporate search product,” she said.

Autonomy, which was founded 16 years ago, “was based on using powerful algorithms,” she said, but the software was not attuned “to new kinds of search signals, like what your friends are doing, what people like you are doing, what other data you might draw off on.” Over time those new methods attracted customers.

In a demonstration of the Autonomy product last month, H.P. appeared to have addressed some of those issues, but others remained. An application to help figure out what to pay for Web ads initially failed to work, then delivered results that appeared similar to those of several other search products.

“We remain 100 percent committed to Autonomy and its industry-leading technology,” H.P. said in a statement. “The company’s products are cutting-edge and provide many customers with unique solutions.”

In an interview Tuesday, Meg Whitman, the chief executive of H.P., indicated that the company also had strong hopes for its security software, most of which it got from other acquisitions.

H.P. has accused Autonomy of improperly accounting for much of its sales in the years before H.P. bought the company last year. It took a $5 billion noncash charge related to the purchase price.

Ms. Whitman gave Autonomy tepid support.

“It’s very disappointing,” she said of the write-down. “We’ve integrated the technology into a couple of places; we will integrate it into more.”

Apple Apologizes for Misstep on Maps

Nine days after the maps’ release, the Washington Monument was still on the wrong side of the street. But something else changed.

Timothy D. Cook, Apple’s chief executive, released an apologetic letter to customers on Friday, making the remarkable suggestion that they try alternative map services from rivals like Microsoft and Google while Apple improves its own maps. “We are extremely sorry for the frustration this has caused our customers, and we are doing everything we can to make Maps better,” Mr. Cook wrote.

The map problems were an embarrassing misstep for a company that strives for perfection in its products and, in the eyes of consumers, often gets pretty close to the mark. Its track record in delivering quality is one reason Apple is now the most valuable public company in the world.

Apple executives have tried to explain their move into maps by saying that the company could no longer afford to rely on Google, its former map provider and growing rival, for such a crucial function. Many analysts and technology executives agree that this was the right move for the long term. But Apple appears to have rushed its map service out prematurely, even though it could have continued to rely on Google until next year.

The outcry shows how map services, which Apple treated as an afterthought when it built the first iPhone, have become critical tools for millions of people. And the company’s stumble fits in with its pattern of bungling services that rely heavily on the Internet.

Apple has a reputation for obsessive attention to detail in its hardware and software products, down to the beveled edges of the iPhone 5 and the shade of the icons on its screen. But it has stubbed its toe again and again when it comes to releasing reliable, well-designed Internet services. Its less proud moments include Ping, a social network for music that never took off; MobileMe, an error-plagued service for synchronizing data between devices; and, more recently, Siri, the voice-activated virtual assistant that is often hard of hearing.

The company’s weakness in this area could become a bigger problem over time as smartphones become more intimately tied to information and software on the Internet — a field where Google, which makes the competing Android phone software, has the home-turf advantage.

“I always felt if you had to name an Achilles’ heel at Apple, it’s Internet services,” said Andrew Borovsky, a former Apple product designer who worked on MobileMe and now runs his own design firm in New York. “It’s clearly an issue.”

An Apple spokeswoman, Natalie Kerris, declined to comment.

Some have sought to pin the blame for the maps debacle on a relaxing of standards under Mr. Cook, who was elevated from the No. 2 position at Apple just over a year ago. He took over shortly before the death of Steven P. Jobs, a notorious perfectionist known to shelve products that did not pass muster.

But numerous interviews with former Apple employees in the wake of the maps controversy made it clear that Mr. Jobs and other executives rarely paid as much attention to Internet services as they did to the devices for which Apple is best known. Nor did they show the kind of consistent foresight in this area that has served the company so well in designing hardware and software.

Including a maps app on the first iPhone was not even part of the company’s original plan as the phone’s unveiling approached in January 2007. Just weeks before the event, Mr. Jobs ordered a mapping app to show off the capabilities of the touch-screen device.

Two engineers put together a maps app for the presentation in three weeks, said a former Apple engineer who worked on iPhone software, and who declined to be named because he did not want to speak publicly about his previous employer. The company hastily cut a deal with Google to use its map data.

At the time, relying on Google, which had introduced its map service a couple of years earlier, made sense. Apple and Google had generally friendly relations, and Google’s chief executive at the time, Eric E. Schmidt, served on Apple’s board.

Claire Cain Miller contributed reporting.