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BUEDELSDORF, Germany - German Internet and telecommunications provider Freenet AG said Sunday that it has agreed to acquire mobile telephone operator Debitel for about 1.63 billion euros ($2.54 billion).

Debitel Netherlands Holding BV, controlled by Permira Advisers LLP, will receive 32 million new Freenet shares to give Permira a 24.99 percent stake in the company. Freenet also will receive a long-term 132.5 million euro ($206.5 million) loan from the vendor.

On a cash-free basis, Debitel will be acquired with financial liabilities of about 1.135 billion euros. Completion of the transaction is subject to antitrust approval by the German cartel authority and establishment of the conditions necessary for listing the new shares.

Permira has agreed to a lock-up for 100 percent of the new shares until the end of Freenet’s 2008 annual general meeting, and for 60 percent of the new shares until the end of 2009 meeting, in any event not longer than Aug, 31, 2009.

As a consequence of the transaction, Buedelsdorf-based Freenet doesn’t intend to pay a dividend in 2008.

CHICAGO - Sarah Brown is unusually cautious when it comes to social networking. The college sophomore doesn’t have a MySpace page and, while she’s on Facebook, she does everything she can to keep her page as private as she can.

“I don’t want to have to worry about all the different online scandals and problems,” says Brown, an education major at St. Joseph College in Connecticut. She’d like to control her personal information and keep it out of the hands of identity thieves or snooping future employers. “It’s just common sense.”

It sounds like her info is locked down and airtight. But is it?

Turns out, even the privacy-conscious Sarah Browns of the world freely hand over personal information to perfect strangers. They do so every time they download and install what’s known as an “application,” one of thousands of mini-programs on a growing number of social networking sites that are designed by third-party developers for anything from games and sports teams to trivia quizzes and virtual gifts.

Brown, for instance, has installed applications on her Facebook page for Boston Bruins fans and another that allows her to post “bumper stickers” on her own page and those of her friends. It’s a core way to communicate on social networking sites, which allow friends to create pages about themselves and post photos and details about their lives and interests.

People often think Facebook profiles and sometimes MySpace pages, if they’re set as private, are only available to friends or specific groups, such as a university, workplace, or even a city.

But that’s not true if they use applications. On Facebook, for instance, applications can only be downloaded if a user checks a box allowing its developers to “know who I am and access my information,” which means everything on a profile, except contact info. Given little thought, agreeing to the terms has become a matter of routine for the nearly 70 million Facebook users worldwide who use applications to spruce up their pages and to flirt, play and bond with friends online.

News Corp.’s MySpace, which has about 117 million unique visitors each month, recently added an applications platform, giving developers access to the profiles of anyone who downloads them. Unlike Facebook, though, MySpace users don’t have to include their names on their profiles.

So what do these third-parties do with the information? Sometimes, they use it to connect users with similar interests. Sometimes, they use it to target ads, based on demographics such as gender and age (something Facebook and MySpace also do).

Facebook and MySpace say they hold application developers to strict standards — and boot them if they don’t comply. They also point out that some information, such as e-mail addresses and phone numbers, aren’t made available.

But experts who track online security issues think there’s too much personal information flying around out there, with few guarantees that it’s safe. They also think social networkers have little understanding where their information goes and how it’s used — and as a result, have a false sense of security.

“I suspect that there’s a whole lot of clicking without a lot of thinking,” says Mary Madden, a senior research specialist at the Pew Internet & American Life Project who studies privacy issues. “So much of this sharing happens in a way that users don’t see the consequences. It’s kind of a big, black hole.”

Part of the risk stems from Facebook applications being created by anyone, some of them tech-related companies and others individuals with know-how. And they could be anywhere in the world, as is Jayant Agarwalla, co-founder of Facebook’s popular Scrabulous application, a takeoff on the game Scrabble.

Reached by e-mail, he says Scrabulous does use demographic information to target ads that show up as a person plays the game. But Agarwalla, who’s based in India, stresses that that information is provided in “real time” and not stored. “In my humble opinion, users have nothing to worry about,” he says.

Some would argue that it’s much like trusting an online vendor with your credit card information.

Still, it’s an honor system, says Adrienne Felt, a computer science major at the University of Virginia. A Facebook user herself, she decided to research the site’s applications and even created her own so she could see how it worked.

Most of the developers Felt polled said they either didn’t need or use the information available to them and, if they did, accessed it only for advertising purposes.

But, in the end, Felt says there’s really nothing stopping them from matching profile information with public records. It also could be sold or stolen. And all of that could lead to serious matters such as identity theft.

“People seem to have this idea that, when you put something on the Internet, there should be some privacy model out there — that there’s somebody out there that’s enforcing good manners. But that’s not true,” Felt says.

Last year, Facebook users revolted when the company started using a tool called Beacon, which tracked its users’ purchases and actions at dozens of Web sites and then broadcast the data on the pages of the users’ friends.

Beacon has since been scaled back.

By comparison, the issue of personal information going to application developers, both on Facebook and now MySpace, has remained relatively quiet.

Jonathan Gaugler, a 26-year-old New Yorker, is one who finds targeted ads on his Facebook page a bit too invasive.

“Getting married? Do your registry here!” read one recent ad that showed up. Another on his fiancee’s page was advertising for egg donors for fertility clinics.

“Creepy,” Gaugler says.

He keeps his Facebook activity to a minimum as a result — and rarely downloads an application because he doesn’t want to be further targeted.

But many others are much less cautious, seeing the risk of social networking “as low and the reward as high,” says Patricia Sanchez Abril, an assistant professor at the University of Miami’s business school who studies privacy law.

“It is the chosen mode of communication of everyone they know. So if you’re not in it, you’re just not in the loop,” she says. “There’s a lot of peer pressure.”

What they don’t realize, she adds, is that there is little legal backup if their information is used in a way they didn’t intend.

“This is an area that’s completely unregulated. Yes, there are contracts. But if the receiving end doesn’t abide by the contract, you’re still out of luck,” Abril says.

And applications, she notes, are only one worry when it comes to online threats.

A social networker’s friends can, for instance, give access to personal information or photos in a profile. That happened to the call girl involved in the recent sex scandal with former New York Gov. Eliot Spitzer.

Researchers at Indiana University also published a study last year showing how they “scraped” information from students’ social network profiles. Posing as people’s friends, they then used the information to fool the students into providing their university ID and password on a bogus external Web site.

Whether the profile is private or not, users should limit the information they post, said Tom Jagatic, one of the researchers and now a senior information technology consultant at the Massachusetts Institute of Technology.

It’s good advice, says Jeremy Miller, a fraud investigator based in Nashville, Tenn., but he wonders how many will heed it. He uses MySpace and sees people who routinely list everything from their income to phone numbers on their profiles — and don’t even bother to make their profiles private.

“It’s kind of a status symbol, so privacy takes a back seat,” says Miller, who works for Kroll Inc., a risk management consulting firm. “It’s much like people saying you shouldn’t carry your Social Security card around in your wallet.

“But a lot of people still do it.”

___

Martha Irvine is an AP national writer. She can be reached at mirvine(at)ap.org

HAVANA - Only a month has passed since ordinary Cubans won the right to own computers, and the government still keeps a rigid grip on Internet access.

But that hasn’t stopped thousands from finding their way into cyberspace. And a daring few post candid blogs about life in the communist-run country that have garnered international audiences.

Yoani Sanchez writes the “Generacion Y” blog and gets more than a million hits a month, mostly from abroad — though she has begun to strike a chord in Cuba. On her site and others, anonymous Cubans offer stinging criticisms of their government.

But it isn’t simple. To post her blog, Sanchez dresses like a tourist and slips into Havana hotels with Web access for foreigners. It costs about $6 an hour and she can’t afford to stay long given the price and the possibility someone might catch her connecting without permission.

It’s a testament to the ingenuity and black-market prowess Cubans have developed living on salaries averaging $20 a month, with constant restrictions and shortages.

The connections Cuban bloggers are making with the outside world via the Internet are irreversible, said Sanchez, who this month won the Ortega y Gasset Prize for digital journalism, a top Spanish media award.

“With each step we take in that direction, it’s harder for the government to push us back,” she said.

On an island where many censor themselves to avoid trouble, Sanchez says Generacion Y holds nothing back.

“It’s about how I live,” she said. “I think that technically, there are no limits. I have talked about things like Fidel Castro, and you know how taboo that can be.”

But she added that “there are some ethical limits. I would never call for violence, for instance.”

Since taking over from his ailing brother Fidel in February, Raul Castro has lifted bans on Cubans buying consumer electronics, having cell phones and staying in luxury tourist hotels.

While the changes have bolstered the new president’s popularity, most simply legalized what was common practice. In a typically frank recent posting, Sanchez noted that many Cubans already had PCs, cell phones and DVD players bought on the black market.

“Legally recognizing what were already facts prospering in the shadows is not the same as allowing or approving something,” she wrote. Cuba’s leaders are responding to the inevitable, “but they won’t soothe our hunger for change.”

Authorities have made no sustained effort to stop Sanchez’s year-old blog, though pro-government sites accuse her of taking money from opposition groups.

Only foreigners and some government employees and academics are allowed Internet accounts and these are administered by the state.

Ordinary Cubans can join an island-wide network that allows them to send and receive international e-mail. Lines are long at youth clubs, post offices and the few Internet cafes that provide access, but the rest of the Web is blocked — a control far stricter than even China’s or Saudi Arabia’s.

Still, thousands of Cubans pay about $40 a month for black market dial-up Internet accounts bought through third parties overseas or stolen from foreign providers. Or they use passwords from authorized Cuban government accounts that hackers swipe or buy from corrupt officials.

Sanchez said so many Cubans read her blog that fans stop her on the street.

Generacion Y takes its title from a Cuban passion for names beginning in Y. It offers witty and biting accounts of Cubans’ everyday struggles against government restrictions at every turn.

Some of the bloggers hew to the belief that openness is the best answer to official surveillance.

“By signing your name, giving your opinions out loud and not hiding anything, we disarm their efforts to watch us,” Sanchez wrote on her blog.

On a blog called “Sin EVAsion” (”Without Evasion”), Eva Hernandez dared to mock “Granma,” the official Communist Party newspaper, for taking its name from the American yacht that brought Castro and his rebels back to Cuba from Mexico to launch their armed rebellion in 1956.

“Cuba is the only country in the world whose principal newspaper, the official organ of the Communist Party and the official voice of the government, has the ridiculous name ‘granny,’” she wrote. Piling on the heat, she added that the name “perpetuates the memory of that yacht that brought us so much that is bad.”

Generacion Y is maintained by a server in Germany, and Sanchez says the Cuban government periodically attempts to block her site within Cuba, though the problem is always cleared up within hours.

Administrators of the “Petrosalvaje” site also claim to struggle with government-imposed limits. A recent post called uncensored Internet access a “virtual raft” — a reference to the rafts on which Cubans flee to the United States.

The government is also into blogging — maintaining dozens of sites dedicated to promoting the island’s image overseas.

“Raul needs time,” reads a post on Kaosenlared.net, a forum based in Spain. “We are confident, calm and staying united in favor of the direction of our revolution.” It is signed Rogelio Sarforat and was apparently posted from Cuba.

Reynaldo Escobar, Sanchez’ husband and a former journalist for official media, now uses his own blog to criticize the government. He said Cuba pays supporters to flood the Internet with positive opinions.

He says he knows of nobody who would spend money to go on the Web and defend the system. “Everyone who argues in favor of the government is paid to do so, or does so because they have been asked to,” he said.

___

On the Net:

Generacion Y: http://www.desdecuba.com/generaciony/

My Island at Midday: http://isla12pm.blogspot.com)

Potro Salvaje: http://www.desdecuba.com/potro/

NEW YORK (Reuters) - While Isabella Rossellini enjoyed her foray into new media with her short films about insect sex, she is not sure they could turn a profit, given that so much content is available on the Internet for free.

While a strike by screenwriters recently brought television and movie production to a halt over the issue of Internet royalties, actors and directors are also concerned about what they should earn for work distributed online, Rossellini told a panel discussion at New York's Tribeca Film Festival.

“It is unclear how the money comes back,” said Rossellini, 55, who wrote, directed and featured in a series of short films about the sex life of insects called “Green Porno” that were made for the screens of cell phones, iPods and laptops.

Rossellini, who after years of acting and modeling is one of the world's most recognizable faces, said it was easy for her to be experimental with the backing of Robert Redford and the Sundance Channel, but added she was still trying to work out how to make money in new media.

Her 20 minutes worth of short films cost $70,000 to make, out of which she paid herself $3,000.

“My agent won't like me saying this, but I have a lot of time on my hands and I have money saved from my modeling days, so I can work for very little money, I have that possibility,” she said. “But I do feel sorry for people who try to make a living out of this because the money's not there.”

Rossellini said she was particularly protective of artists given that her mother, Ingrid Bergman, was paid a modest salary while working on the hit “Casablanca” movie and never saw a penny in royalties.

After the damaging 100-day strike by screenwriters ended in February, major Hollywood studios and the main actors' union are now in contract talks that also feature the issue of Internet royalties.

LACK OF CONSTRAINTS

Rossellini enjoyed making Green Porno so much that she is working on a new series about the animals we eat.

“I'll be eating clam and then, when I'm about to eat it, I say 'What if I were a clam' and then there will be me in a clam costume,” she said.

One thing she likes about new media film-making, she said, is the lack of constraints on length or format.

“The reason I made them very short, though, is because you are going to be watching them in a context that is more distracting than if you are watching TV on your couch at home, or a movie in a movie theater,” she said.

She also found the interactive aspect of new media interesting.

“The films triggered a dialogue with the audience, which I hadn't foreseen,” Rossellini said.

“Saying that, I am a little scared of the direct conversation with the audience. Sometimes they write things that are really nasty — already critics were hard enough!”

And, of course, on the Internet the key is to find a subject that travels around the world.

“That's why I chose sex,” Rossellini said with a laugh.

(Editing by John O'Callaghan)

HONJO, Japan (Reuters) - Thinking of throwing out your old cell phone? Think again. Maybe you should mine it first for gold, silver, copper and a host of other metals embedded in the electronics — many of which are enjoying near-record prices.

It's called “urban mining,” scavenging through the scrap metal in old electronic products in search of such gems as iridium and gold, and it is a growth industry around the world as metal prices skyrocket.

The materials recovered are reused in new electronics parts and the gold and other precious metals are melted down and sold as ingots to jewelers and investors as well as back to manufacturers who use gold in the circuit boards of mobile phones because gold conducts electricity even better than copper.

“It can be precious or minor metals, we want to recycle whatever we can,” said Tadahiko Sekigawa, president of Eco-System Recycling Co which is owned by Dowa Holdings Co Ltd.

A tonne of ore from a gold mine produces just 5 grams (0.18 ounce) of gold on average, whereas a tonne of discarded mobile phones can yield 150 grams (5.3 ounce) or more, according to a study by Yokohama Metal Co Ltd, another recycling firm.

The same volume of discarded mobile phones also contains around 100 kg (220 lb) of copper and 3 kg (6.6 lb) of silver, among other metals.

Recycling has gained in importance as metals prices hit record highs. Gold is trading at around $890 an ounce, after hitting a historic high of $1,030.80 in March.

Copper and tin are also around record highs and silver prices are well above long term averages.

RECYCLING METALS

Recycling electronics makes sense for Japan which has few natural resources to feed its billion dollar electronics industry but does have tens of millions of old cell phones and other obsolete consumer electronic gadgets thrown away every year.

“To some it's just a mountain of garbage, but for others it's a gold mine,” said Nozomu Yamanaka, manager of the Eco-Systems recycling plant where mounds of discarded cell phones and other electronics gadgets are taken apart for their metal value.

At the factory in Honjo, 80 km (50 miles) southwest of Tokyo, 34-year-old Susumu Arai harvests some of that bounty.

A ribbon of molten gold flows into a mould where it sizzles and spits fire for a few minutes before solidifying into a dull yellow slab, on its way to becoming a 3 kg (6.6 lb) gold bar, worth around $90,000 at current prices.

Wearing plastic goggles to protect his eyes while he works, Arai said he was awestruck when he started his job two years ago.

“Now I find it fun being able to recover not just gold, but all sorts of metals,” he said.

The scrap electronics and other industrial waste is first sorted and dismantled by hand. It is then immersed in chemicals to dissolve unwanted materials and the remaining metal is refined.

Eco-System, established 20 years ago near Tokyo, typically produces about 200-300 kg (440-660 lb) of gold bars a month with a 99.99 percent purity, worth about $5.9 million to $8.8 million.

That's about the same output as a small gold mine.

Eco-System also recovers metals from old memory chips, cables and even black ink which contain silver and palladium.

RECYCLING CELL PHONES

But despite growing interest in the environment and recycling, the industry struggles to get enough old mobile phones to feed its recycling plants.

Japan's 128 million population uses their cell phones for an average of two years and eight months.

That's a lot of cell phone phones discarded every year, yet only 10-20 percent are recycled as people often opt to store them in their cupboards due to concerns about the personal data on their phones, said Yoshinori Yajima, a director at Japan's Ministry of Economy, Trade and Industry.

Just 558 tonnes of old phones were collected for recycling in the year to March 2007, down a third from three years earlier, industry figures show.

As metals prices rise, the Japanese industry faces growing competition for scrap, which is pushing up prices.

“We are seeing more competition from Chinese firms, and naturally the goods go where the money is,” Dowa's Takashi Morise said.

In response, Japanese firms are importing used circuit boards from Singapore and Indonesia, as they also contain valuable minor metals that Japan is particularly eager to recover.

These minor metals such as indium, a vital component in the production of flat panel televisions and computer screens, antimony and bismuth are indispensable for producing many high-tech products.

However, they are often not easy to acquire as China has tightened export controls, making it harder for Japanese manufacturers to buy these metals.

That's where the “urban miners” step in.

“Our wish is to be able to help Japanese manufacturers that need these metals,” Eco-System President Sekigawa said.

(Editing by Nick Trevethan and Megan Goldin)

($1=101.96 Yen)

SAN FRANCISCO (AFP) - A Microsoft deadline for Internet service company Yahoo to accept its 44.6-billion-dollar (28.5-billion-euro) acquisition offer expired at midnight Saturday, setting the stage for a hostile takeover bid by the software giant.

Neither of the two sides made any comment as the Sunday 0700 GMT deadline came and went.

The deadlock was likely to pave the way for an ugly proxy battle — a fight by Microsoft for a vote by Yahoo shareholders to place pro-Microsoft officials on its board of directors.

In an open letter to the Yahoo board of directors on April 5, Microsoft chief executiveSteve Ballmer gave the Internet pioneer three weeks to accept the 31 dollars-a-share takeover offer or face a proxy fight.

Ballmer also warned that any further delays could result in a less attractive offer for Yahoo.

But Yahoo's board of directors has said the offer “substantially undervalues” the California firm, insisting the company is worth at least 40 dollars a share.

SAN FRANCISCO (AFP) - A deadline set by Microsoft for Internet service company Yahoo to accept its 44.6-billion-dollar acquisition offer was about to expire at midnight Saturday, setting the stage for a hostile takeover bid by the software giant.

The expiry of the Sunday 0700 GMT deadline was likely to pave the way for an ugly proxy battle — a fight by Microsoft for a vote by Yahoo shareholders to place pro-Microsoft officials on its board of directors.

In an open letter to the Yahoo board of directors on April 5, Microsoft chief executiveSteve Ballmer gave the Internet pioneer three weeks to accept the 31 dollars-a-share takeover offer or face a proxy fight.

Ballmer also warned that any further delays could result in a less attractive offer for Yahoo.

But Yahoo's board of directors has said the offer “substantially undervalues” the California firm, insisting the company is worth at least 40 dollars a share.

Microsoft is eager to merge the two companies' resources to take on Google, which dominates the lucrative Internet search advertising market which is expected to grow to 80 billion dollars annually worldwide in the next two years

Founded by Jerry Yang and David Filo in 1994, Yahoo is a distant second in that market to Google, which would still hold an impressive lead over a combined Microsoft-Yahoo entity.

Microsoft chief financial officer Chris Liddell said Thursday that the US software giant is standing by the April 26 deadline.

“With respect to Yahoo we have been clear: speed is of the essence,” Liddell said.

“The idea we should increase our bid just because we can afford to is not one that I favor. Unless we make progress with the Yahoo board by this weekend, we will explore our alternatives.”

Liddell's comments echo those made by Microsoft chief executive Steve Ballmer earlier in the week.

“We have a strategy for the Internet that we are very excited about,” Ballmer said. “We think we can accelerate our strategy by buying Yahoo and we will pay what makes sense for us to pay for our shareholders.”

Microsoft's options also include withdrawing its offer, a move that could outrage Yahoo shareholders who have seen Microsoft's offer sharply push up Yahoo's share price.

Some have threatened to sue Yahoo's board for failing in its duty to maximize the value of their investment.

To avoid Microsoft's clutches, Yahoo has sought a strategic tie-up with a “white knight,” reportedly examining possible alliances with social networking website MySpace, owned by Rupert Murdoch's News Corp., and with Time Warner's faded Internet star America Online.

Yahoo even tested letting Google handle placing online advertising on Yahoo's own search pages to determine whether it generates more money than Yahoo's new Panama online ad platform.

Analysts believe that Google only benefits while Yahoo and Microsoft are distracted by the takeover quest.

“Yahoo has a hard decision to make,” Silicon Valley analyst Rob Enderle told AFP. “They have to call Microsoft's bluff and if Microsoft isn't bluffing and this goes hostile, it is going to be expensive for both companies.”

Yahoo posted unimpressive earnings in the first three months of this year, indicating to Enderle and other analysts that Microsoft's offer of 31 dollars per share is too high and that Ballmer might simply walk away from a deal.

But other analysts believe Microsoft will increase its bid slightly, though nothing near the 40 dollars per share desired by Yahoo's board, late in the game.