Leader: When friends in need are friends in deed

Grindstones are fickle tools, particularly if you have your nose pressed against one. They can be used to pretend you are concentrating on the task at hand, or they can be a way of ignoring the realities of life by concentrating on peripherals. In my experience, people with their noses close to spinning objects are more likely to be mesmerised than clear-headed.

Which brings me to Apple CEO Gil Amelio, who last week appeared to ignore the threat from Oracle CEO Larry Ellison, who is poised to mount a $1.25 billion hostile takeover bid for Apple. Now, this just may be bravado, but if that is the case it is not well judged and the market will duly respond ? as it did when Apple?s stock went up on the day Ellison announced his bid.

Apple is by no means doomed as a manufacturer. It has the potential to rise from the present management fiasco and become a great player again, but not under the present administration. It comes closer every day to resembling a Papua New Guinea dictatorship, bringing in increasing numbers of mercenaries to quell a rebellion.

And while the Apple management of Steve Jobs and Amelio attempt to down play the Ellison bid, all the confidence that has at begun to reappear in corporates has now been wiped out. Amelio has been criticised for taking a short-term view with Apple, but will Jobs be any better at turning the company?s fortunes around? Jobs may be a visionary but he is no manager, and an Ellison-run Apple would need a good chief executive. Jobs has not got a good track record when it comes to working with strong managers. Former Apple CEO John Sculley ended up firing him and Ellen Hancock, arguably one of the potential saviours of the company, has been demoted. This is a criminal waste of talent.

The Ellison bid will probably be successful, and the Oracle chief will learn a few hard lessons in a short period of time. He may be Job?s best friend, but working with him may pose some fundamental problems. And building up staff morale after the recent staff layoffs will be a huge task which depends on the success of Rhapsody, the next generation of Apple software, and belief in the team at the top.