Dutch arrest man over suspected spying at Siemens

The man arrested by Dutch police on suspicion of industrial espionage. (File photo: Reuters)
Updated 07 April 2017

Dutch arrest man over suspected spying at Siemens

AMSTERDAM: Siemens said on Friday that an employee had been arrested in the Netherlands in a case which the country’s financial crimes prosecutor said involved suspected espionage for a Chinese competitor.
“I can confirm that a Siemens Netherlands employee was arrested by police yesterday for questioning,” Siemens spokesman Leo Freriks said.
He said the investigation was directed “at the employee and not Siemens as a company.” He did not disclose which department the employee worked for or whether it was known if secrets had been leaked.
Headquartered in Germany, Siemens is a leading European manufacturer involved in sectors including automation, building technologies, drive technology, health care, mobility, energy and consumer products.
The man, whom they identified as a 65-year-old living in the province of Twente, is suspected of having leaked patent and other company secrets, the Netherlands’ national financial crimes prosecutor said in a statement.
Investigators said the man was detained on a train station platform as he was about to travel to China.
In addition to searching his baggage, they raided his home and workplace, seizing several digital memory devices.
Corporate espionage cases rarely come to light in the Netherlands.
The best known is that of scientist Abul Qadeer Khan, widely seen as the father of Pakistan’s nuclear program, who worked at Urenco’s enrichment plant in Almelo, Twente, in the mid-1970s.
Khan helped design parts of Urenco’s centrifuge technology and had full access to its blueprints and its list of suppliers, which he made use of when he abruptly returned to Pakistan in 1976.
Khan was sentenced for attempted espionage in a Dutch court in 1983, but that verdict was overturned on a technicality on appeal.

Uber buys rival Careem in $3.1bn deal to dominate ride-hailing in Middle East

Updated 47 sec ago

Uber buys rival Careem in $3.1bn deal to dominate ride-hailing in Middle East

  • The $3.1 billion cash-and-stock purchase buys out all outside Careem investors
  • The agreement is subject to regulatory approval, including by antitrust officials in the countries where Careem operates

SAN FRANCISCO: Global ride-hailing firm Uber Technologies will spend $3.1 billion to acquire Middle East rival Careem, buying dominance in a competitive region ahead of a hotly anticipated initial public offering.

Uber said late Monday night it would pay $1.4 billion in cash and $1.7 billion in convertible notes in a deal that gives it full ownership of Careem. The long-expected agreement ends more than nine months of start-and-stop negotiations between the two companies and hands Uber a much-needed victory after a series of overseas divestments.

The notes will be convertible into Uber shares at a price equal to $55 apiece, Uber said, marking about a nearly 13 percent increase over Uber’s share price in its last financing round, led by SoftBank Group Corp. more than a year ago.

The acquisition makes Careem a wholly owned subsidiary of Uber and will keep the Careem brand and app intact, at least initially. Careem co-founders Mudassir Sheikha, Magnus Olsson and Abdulla Elyas are staying on with Careem following the acquisition, the companies said.

However, Careem’s board will be overhauled, with three seats going to Uber representatives and two belonging to Careem. Sheikha, who is Careem’s CEO, and Olsson will have board seats. An Uber spokesman declined to say whom Uber would appoint to the board.

The $3.1 billion cash-and-stock purchase buys out all outside Careem investors, the companies said, and Careem stock will be converted into Uber equity. Careem had raised less than $800 million from investors and as of October had a $2 billion valuation. Its backers include German car maker Daimler, Chinese ride-hailing company Didi Chuxing, Japanese Internet company Rakuten Inc. and Saudi investor Kingdom Holding.

The deal is expected to close in the first quarter of 2020, the companies said, meaning it will not be reflected in Uber’s first couple of quarterly earnings releases as a public company, although it will likely be disclosed in a public IPO filing. Uber will kick of its IPO next month and is expected to receive a valuation of at least $100 billion.

The agreement is subject to regulatory approval, including by antitrust officials in the countries where Careem operates, which could prevent the deal from moving forward or compel the companies to modify the terms.

The deal is particularly important for Uber, whose ability to be a competitive global ride-hailing player had come into question after it sold its operations in China, Russia and Southeast Asia to local rivals after sustaining heavy losses.

Uber Chief Executive Dara Khosrowshahi in a statement called the deal with Careem “an important moment for Uber.”

Uber has been eager to reach an agreement before the company begins its “roadshow,” when it will meet with public market investors prior to listing shares on the New York Stock Exchange. The deal enables Uber to claim dominance in a growing region for ride-hailing outside of the United States.

Uber operates in more than 70 countries, but faces strong rivals in Latin America and India, and tough regulations in Europe.

Talks between the companies had dragged on since at least last summer, sources told Reuters, although they did not get serious until the end of the year. The companies had for years battled in a competition for drivers and riders that had required discounts and subsidies and pushed prices artificially low.

Careem over the course of last year grew its business rapidly, including adding a delivery service, and went on to nearly double its valuation, pressuring Uber to increase its bidding price.

Toward the end of last year, Careem was entertaining interest from investors for another financing round when Uber moved aggressively to buy the company outright, sources said.

Careem, founded in 2012, has a larger presence than Uber in the Middle East, North Africa, Pakistan, and Turkey, operating in 98 cities there compared with Uber’s roughly 23 locations.

“An Uber-Careem merger underscores the huge potential of car-hailing in the Middle East,” said Sam Blatteis, CEO at the MENA Catalysts, a Middle East public policy advisory and research firm.

The merger also follows the $580 million acquisition of Dubai-based ecommerce company Souq Group by Amazon.com Inc. in 2017, according to a US Securities and Exchange Commission filing, spotlighting the Middle East’s budding technology scene. “It’s the first ‘unicorn’ exit in the Middle East, and it’s representative of things to come out of the Middle East,” said David Chao, co-founder and general partner at venture firm DCM and a Careem investor, referring to start-ups valued at $1 billion or more.

Uber said its revenue last year was $11.3 billion, while its gross bookings from rides were $50 billion. But the company lost a staggering $3.3 billion, excluding gains from the sale of its overseas business units in Russia and Southeast Asia.

Careem does not disclose its earnings.