Love him or hate him, Groupon's Mason makes a splash (Reuters)

SAN FRANCISCO (Reuters) – Goofball, visionary, opportunist, maverick: Andrew Mason invites all manner of description but the one thing all agree on is that the Groupon CEO is one shrewd customer.

The music-studies major who says he started Groupon to get his business partners off his back is now the central figure in a $540 million IPO that has drawn scrutiny from regulators, harsh criticism from Silicon Valley, and occasional derision from the investment community.

Even scaled-back, it remains one of the biggest Internet IPOs in years. It could draw some interest as the first of the so-called daily deals websites to go public, but questions remain over the long-term profitability of an easily replicated model and its valuation.

The 30-year-old entrepreneur embarks next week on a roadshow to try and convey his long-term vision for the company, which after a rosy spell when it was touted as the fastest-growing company in history now grapples with no shortage of critics and cynics on Wall Street.

Expect fireworks.

"He has this image of a happy-go-lucky person, but he's a very shrewd businessman," said a senior industry executive who worked with Mason before leaving. "When people question Groupon, he takes it very personally and deeply. He's poured his life into the company."

The executive with a fondness for quirky antics -- such as posing for photos with a cat atop his head -- in past months has shown signs of being under severe strain.

He has had to contend with a growing list of new entrants to the daily deals space from Google to AT&T, in addition to nemesis LivingSocial, backed by Amazon.com Inc.

The Securities and Exchange Commission's poking into its financials forced Groupon to scrap controversial accounting metrics and recognize the costs of marketing and revenue-sharing with merchants more.

In September, Groupon lost COO Margo Georgiadis to Google Inc -- months after losing predecessor Rob Solomon.

A month before that, Mason lashed out against "insane" critics in a lengthy, rambling leaked memo that some said displayed more than a tinge of hubris.

Mason himself put it best. In a letter to potential investors that accompanied the first IPO filing, he made no bones about missteps.

"As with any business in a 30-month-old industry, the path to success will have twists and turns, moments of brilliance and other moments of sheer stupidity," he wrote.

'ENTERTAINMENT VALUE'

Mason tries hard to break stereotypes -- and isn't shy about advertising that fact.

The CEO appeared in the company's IPO roadshow video on Friday in a suit and tie, with hair parted neatly to the side - unusual garb for someone who prefers t-shirts.

His straight-laced talk was interspersed with occasional quirky moments. At one point, Mason compared Groupon to a cyborg -- a combination of human and technology.

Later, he said Groupon can't be boring because it sends deal emails to subscribers everyday and has to avoid people getting tired of the communications.

"Entertainment value is high with him," said Ryan Jacob, manager of the Jacob Internet Fund, who watched the roadshow video on Friday. "Within the Internet space we're used to a wide variety of executives, so I wouldn't disqualify him because he's a little unorthodox."

NO TYPICAL JOURNEY

Mason's meteoric rise to head of a multi-billion dollar company was no typical journey.

Instead of majoring in business or economics, Mason studied music at Northwestern University, graduating in 2003. Instead of moving to California to start his tech company, he stuck around in Chicago.

Groupon evolved from a venture called the Point, a site to improve online organizing and fund-raising. Mason dropped out of graduate school in public policy at the University of Chicago to work on that business. Before that, as a teenager, he started a business to home-deliver bagels on weekends.

Today, two-year-old Groupon boasts 30 million customers and deals with nearly 60,000 local merchants in 45 of countries, representing about 90 percent of the world's GDP, according to Chief Financial Officer Jason Child.

But Mason continues to ham it up. At this year's AllThingsD conference, he insisted organizers work with his drivers' license picture -- showing mouth agape and face contorted -- when it came time to put together event materials.

In the biographical information provided by Groupon at that conference, Mason claimed to be working on a book: "Unleash the Power Within: Self Help for Self Helpers."

His offbeat sense of humor can also land him in hot water. When Groupon ran ads that seemed to mock issues such as Chinese oppression in Tibet and the threat to rainforests, the subsequent public outcry forced it to pull the campaign.

But Mason can be deadly serious about his personal life. When Reuters reported his impending marriage to musician Jenny Gillespie and outlined a marriage gift registry calling for everything from a casserole pan to cream saucer for cats, Mason pulled the registry and -- uncharacteristically -- uttered nary a comment.

Sources had told Reuters that Mason put his nuptials first and tried to schedule the IPO around it -- a telling act for the helmsman of what may soon become a public company employing more than 10,000 people.

"There's a reluctance to be a CEO of a public company. To have regulators and investors tell you what to do," said the senior executive. "He's stubborn, but smart enough to be right most of the time."

(Editing by Bernard Orr)

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Giffords makes return to Washington for ceremony (AP)

WASHINGTON – Looking thrilled to be among friends and colleagues, Democratic Rep. Gabrielle Giffords returned to Washington on Thursday to attend a Navy retirement ceremony for her husband, former astronaut Mark Kelly.

The visit marks the Arizona congresswoman's second trip to the nation's capital since she was shot in the head last January while meeting with constituents in Tucson. About 30 people, including Democratic leader Nancy Pelosi, greeted her and Kelly with a standing ovation as they entered the Secretary of War suite at the Eisenhower Executive Building next to the White House. Giffords walked slowly and with a noticeable limp, wearing running shoes with her suit, but she looked overjoyed to see some of her fellow lawmakers again.

Vice President Joe Biden emceed the ceremony, which included awarding Kelly two of the military's highest awards. Biden had a little trouble pinning the Legion of Merit on Kelly and blamed it on the dim lighting, but Giffords stepped up and had no trouble whatsoever pinning the Distinguished Flying Cross on her husband.

"Gabby did it better than I did," Biden said as the audience laughed and applauded.

Biden made note of Giffords appearance and her near-constant smile, telling her, "You look good, Gabby."

"You've been an inspiration, an inspiration to thousands of people who suffer from traumatic head injuries," Biden said. "... People look at you and say, `I can make it. I can do this.'"

As the ceremony ended, reporters were quickly escorted from the room so there was no chance to ask Giffords questions or for her to make any statements. She did not have extended conversations with colleagues at the beginning of the reception, but she turned to them and waved or blew them kisses when they were introduced. She also wore a heavy brace on her right hand.

Aides said Giffords planned to conduct no congressional business and would return to Houston shortly after the ceremony, where she undergoes rehabilitation therapy.

Giffords has made few public appearances since the shooting. She has not yet made a decision about her political future, but colleagues are raising campaign money on her behalf in case she decides she does want to continue serving in Congress.

Kelly paid tribute to his family and his wife in his retirement speech, telling Giffords, "You make me jealous with your true grit and determination."

Kelly became a NASA astronaut in 1996 and made four trips into space aboard the space shuttle. He commanded three of those missions.

NASA Administrator Charles Bolden Jr., said it was unusual for the vice president to oversee a Navy captain's retirement ceremony, but he said it was appropriate in Kelly's case given his work at NASA and Giffords' service in Congress. Bolden said he was particularly grateful that Kelly agreed to lead the space shuttle Endeavour's final mission in May.

"That, in my estimation, was a courageous move on both their parts considering what she was going through and how necessary he was for her," Bolden said. "But he managed to balance both his professional life and his personal life in helping her through rehabilitation while still helping his crew, which was counting on him for leadership."

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Euro zone makes fresh bid to tackle Greek crisis (Reuters)

BRUSSELS/BERLIN (Reuters) – Euro zone countries continued to grapple with the thorny issue of involving the private sector in tackling Greece's debt pile as they prepared for a meeting to decide support for the country next week.

"The principle of having a euro chiefs' meeting is accepted by the main players, including Germany," said one EU diplomat, adding that it was likely to happen next week despite earlier signals from Berlin that there was no rush to finalize a second package of aid.

First, however, countries have to agree how to involve private sector investors in tackling Greece's debt burden, a key demand of Germany before it signs off more support for Athens and a step the International Monetary Fund said on Wednesday must be taken.

"Comprehensive private sector involvement is appropriate, given the scale of financing needs and the desirability of burden sharing," the IMF said in its latest review of the debt-choked country.

"Greece's debt service capacity may also need to be bolstered by combining appropriate PSI and official support," IMF officials wrote, referring to private-sector involvement.

Ratings agency Fitch cited continued uncertainty about private-sector participation and foot-dragging on giving more aid to Greece, when it downgraded the country further into junk territory.

Euro zone leaders' agreement to meet followed warnings they needed to act quickly after markets were rattled by the failure of finance ministers to reach agreement earlier this week.

Italian central bank chief Mario Draghi, soon to take the helm of the European Central Bank, and Ireland's premier both said a definitive plan was needed and quickly -- echoing a strongly-worded attack from Greece's prime minister earlier in the week.

The spotlight was taken off the euro zone, at least temporarily, after the Federal Reserve Chairman Ben Bernanke said the central bank could resort to more monetary stimulus if a sluggish U.S. economy weakens further.

Ratings agency Fitch had also countered the bleak outlook in Europe following an earlier downgrade of Ireland to junk status by Moody's when it said Italy could keep its credit status by sticking to fiscal targets.

But many remained on edge after a market attack on Italy and concerns that it too could need assistance, something that would overwhelm the euro zone's existing rescue funds.

"Moody's problem is not with Ireland, Ireland's problem is with Europe," Prime Minister Enda Kenny told parliament, as the cost of insuring Irish debt climbed.

"There is no point in having a meeting that won't bring about a conclusion in a comprehensive sense to something that is not going to go away unless it is dealt with."

WRANGLING

Should the leaders meet, they will need to pin down how private owners of Greek government bonds can be persuaded to shoulder a portion of the cost of a new package for Greece, a key demand of Germany.

They will weigh up the potential impact on markets if securing such involvement is declared a debt default by ratings agencies, as expected.

But countries had appeared to be subsiding into a bout of internal wrangling and risk creating a no-win situation.

"Markets reacted very badly after euro zone finance ministers could not reach an agreement," an EU diplomat said, referring to a finance ministers' meeting on Monday. "If they cannot agree, we take the fight to the highest level."

Herman Van Rompuy, the presides over meetings of EU leaders, had originally informed ambassadors he wanted to hold a summit on Friday evening.

But Europe's biggest economic power, Germany, which one EU official said was angry about being "backed into a corner", was reluctant, pushing the date of the gathering into next week.

STRESS TESTS

Another concern of leaders are the results of stress tests of European banks.

That could have a further impact on Italy, where bank stocks and the bond market have been hit by growing concerns that the euro zone's third-largest economy could be next in line after Greece, Ireland and Portugal to suffer debt contagion.

Draghi said Italian banks would comfortably pass the tests but echoed Kenny's call for a comprehensive EU response to the spreading debt crisis.

"We have to recognize that management of the financial crisis has not gone smoothly with partial and temporary interventions," he said in a speech.

"We must now bring certainty to the process by which sovereign debt crises are managed, by clearly defining political objectives, the design of instruments and the amount of resources," he said.

There are two main proposals on the table for securing the private sector's involvement in reducing Greece's debt burden.

One would be to buy back Greek bonds at a discount. Another is to swap Greek debt for longer-dated securities with a lower coupon.

However, it remains unclear how a buy-back of Greek bonds would be financed. It could involve using the 440 billion euro European Financial Stability Facility (EFSF).

The ECB remains vehemently opposed to any Greek plan that ratings agencies would be likely to see as a default.

ECB policymaker Jens Weidmann said the EFSF should not be used to buy bonds in the secondary market and it would be unacceptable for the ECB to accept Greek debt as collateral if the country were in default.

"The money of the (EFSF) bailout should not be used for the purchase of government bonds in the secondary market," he told Die Zeit newspaper. "Containment of the crisis should not mean that we undermine our principles. We must draw a red line."

But Germany's finance ministry said funds from the euro zone's rescue mechanism could in theory be used by members of the bloc to buy back their own bonds, suggesting a shift in Berlin's stance.

(Additional reporting by Julien Toyer and Luke Baker in Brussels, and by Noah Barkin and Gernot Heller in Berlin; editing/writing by Mike Peacock)

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