A probe by Comverse Technologies has found more accounting problems. A special committee of the company’s board of directors into the company’s stock option practices said that additional errors had come to light.

The United States-Israeli software communications firm said it was unable to estimate the time it would take to complete the necessary restatements.

Jacob “Kobi” Alexander, the company’s former board chairman and founder, is wanted by U.S. authorities in connection with money laundering and fraud charges related to the backdating of options. He was released on bail last month in Namibia pending an extradition hearing (see Hearing Set for Comverse Ex-CEO).

Google Makes First Israeli Acquisition

Internet search engine giant Google has reportedly made its first Israeli acquisition. According to local press reports Google has acquired iRows, an online spreadsheet founded by Yoav Ben-David and Itai Raz. Neither company would comment on the reports.

Last month Google announced plans to operate two R&D centers in Israel. The company is now in the midst of a massive recruiting campaign for the two centers.

The Industry, Trade and Labor Ministry has issued a tender for international companies to submit bids to open an R&D center in northern Israel. The move is part of the government’s strategy to strengthen the region following the war in Lebanon.

Among the bidders in the tender is Motorola, which has proposed hiring 100 engineers and R&D staff, with a further 400 jobs to be added at a later date.

Record Round of Financing

Israeli biotech start up Chiasma has raised $44 million in a third round of financing, the largest amount this year by a local company in the bio-med field.

The round was led by MPM Capital, a Boston and San Francisco-based venture fund that specializes in life sciences. Other investors included Arch Venture Partners, Ofer Hi Tech, and F2 Ventures.

Jerusalem-based Chiasma has developed a new technology for oral delivery of macromolecules and other impermeable drugs into the bloodstream.

Digital positioning company Epos Technologies raised $10.5 million in a third round of financing. Intel Capital and Walden Israel led the round and previous investor Jerusalem Venture Partners also participated.

This brings to $27 million the amount raised by the company. Epos develops digitized acoustic signals for positioning, which is used primarily in the consumer electronics market.

Intel Launches Haifa-Developed Quad Core

Intel has introduced its first quad-core processor (see Intel Quad-Core Systems Debut). The company’s Haifa R&D center led the development of the new processor technology. The new processors will be used in enterprise servers.

Intel said the new processors offer up to a 50 percent improvement in performance over the dual-core processors launched just six months ago.

Giza Links Up With Japanese Fund

Israel’s Giza Venture Capital has announced a cooperation agreement with Japan Asia Investment Company (JAIC). Under the agreement, JAIC will become Giza’s partner in Japan for joint investments in portfolio companies.

Giza and JAIC will also set up a joint fund aimed at introducing Israeli companies to strategic partners and investors in Japan’s semiconductor, telecommunications, and IT industries.