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No plan to sell stake in Great Offshore: VideoconVideocon does not have any plan to sell its 3% stake in Great Offshore. ABG Shipyard and Bharati Shipyard have been involved in a heated battle to take over control of Great Offshore and if Videocon decides to sell its stake to either party, it could be crucial for them.Source: Moneycontrol Top Headlines | 11 Sep 2009 | 8:02 am Bloomberg considering bid for BusinessWeek: ReportGlobal news service provider Bloomberg is considering a bid for American magazine BusinessWeek, says a media report.Source: Hindustan Times News Feeds 'Business' | 11 Sep 2009 | 6:22 am PSL says US\' import duty on pipes a positivePSL Limiteds order book is up by Rs 1,000 crore in last few weeks, said Ashok Punj adding that the current global order book is at Rs 4,000 crore.Source: Moneycontrol Top Headlines | 11 Sep 2009 | 6:20 am US duty on Chinese pipes to benefit Indian cos: RatnamaniThe company\'s topline in FY10 is likely to slightly lower than FY09, says Prakash Sanghvi, CMD, Ratnamani Metals Tubes.Source: Moneycontrol Top Headlines | 11 Sep 2009 | 5:00 am Jet stalemate ends, pilots to resume workAfter 3 days of turbulence and uncertainty, the jet impasse has finally ended with the pilots agreeing to resume work and the management agreeing to reinstate the sacked pilots. The decision was taken today at the meeting held between the Jet management and the pilots' union in the presence of the chief labour commissioner in New Delhi.Source: Hindustan Times News Feeds 'Business' | 11 Sep 2009 | 4:52 am WB says India weathered global crisis 'extraordinarily well'"India has done extraordinarily well in weathering a global crisis which was the most severe in 70 years," WB Country director Roberto Zagha said.Source: Daily News & Analysis: Money News | 11 Sep 2009 | 4:23 am Sensex ends higher, led by banks, IT; gains 5.5% in 6 daysMumbai: Indian shares provisionally rose 0.35% in choppy trade on Friday, climbing for the sixth straight session on signs of an economic upturn with factory output rising for a seventh month in July. The 30-share BSE index provisionally ended 57.46 points higher at 16,274.32, with only 12 stocks rising. The 50-share NSE index provisionally closed up 0.33% at 4,835.10. Source: Home - Livemint.com | 11 Sep 2009 | 4:06 am OECD July indicator points to stronger recoveryPARIS (Reuters) - The economic outlook improved in most countries in the 30-nation OECD area and clear signs of recovery can be seen in the major seven economies, an OECD survey said on Friday.Source: Reuters: Money News | 11 Sep 2009 | 4:01 am Germany does not expect EU to upend Opel deal - Reuters
Source: Business - Google News | 11 Sep 2009 | 4:01 am Jet, pilots reach pact to break deadlock - India Infoline.com
Source: Business - Google News | 11 Sep 2009 | 4:00 am Jet Airways pilot strike highlights fragile labour relationsNEW DELHI (Reuters) - A standoff between pilots and management at India's top private carrier, Jet Airways, entered its fourth day on Friday, underlining fragile labour relations in India, where rigid employment laws have been blamed for a spate of recent strikes.Source: Reuters: Money News | 11 Sep 2009 | 3:57 am Exports may fall to USD 155 bn in 2009-10: FIEO - Press Trust of India
Source: Business - Google News | 11 Sep 2009 | 3:54 am Dempo mines \'stop work\' issue to be resolved soon: Sesa GoaPK Mukherjee, MD, Sesa Goa said that it was only a matter of time before its Dempo mines issues were resolved, adding that the matter related to the interpretation of law.Source: Moneycontrol Top Headlines | 11 Sep 2009 | 3:45 am India tackled global crisis adeptly, says World BankBangalore: The World Bank on Friday said India has done “extraordinarily well” in tackling the global economic crisis with sound fiscal and monetary policies. “India has done extraordinarily well in weathering a global crisis which was the most severe in 70 years,” said World Bank country director Roberto Zagha. “India is fortunate to have had a macro economic management that it has,” he said. Noting the global crisis was of unprecedented proportions and nature, he said India handled it remarkably well on fiscal and monetary fronts as also on issues relating to contraction in credit. “WB (World Bank) is very much appreciative of how India tackled the global crisis. We are very impressed. (Indian) Government has a situation very well in hand in the short term and the 11th Plan gives a very good perspective for the medium term,” Zagha said. On World Bank’s short-term goals for the country, he said essentially it would be on how best it can support the country’s priorities as set out in the 11th Plan. Zagha said if India continued to grow the way it’s been growing, it would be an industrialised country (in terms of per capita income level) in about 25 years which (also) “means that need for the bank (to extend loan to India) will no longer be there”. World Bank had (already) become a small but valued partner in India, Zagha said adding while India had grown to become a trillion dollar economy, “We (World Bank) have not grown that fast”. On the global recession, Zagha said it had already bottomed out but would take sometime before “we get out of the bottom”. “It will be what you can say the ‘U´ recovery”, he added. A former senior adviser to World Bank vice-president, Zagha also said the bank was making a claim with its shareholders to increase its capital, adding, “India is supportive of that.” Source: Home - Livemint.com | 11 Sep 2009 | 3:40 am BHEL secures Rs 1300-cr order from NTPC JV - Business Standard
Source: Business - Google News | 11 Sep 2009 | 3:24 am Sensex choppy; tech, aluminium, pharma, banks up - Moneycontrol.com
Source: Business - Google News | 11 Sep 2009 | 3:23 am HCL Tech raises Rs500 cr via debenture issueMumbai: IT major HCL Technologies Friday said it has raised Rs500 crore by way of debt through allotment of debentures. In a filing to the Bombay Stock Exchange, HCL Tech said it has allotted 5,000 Non-Convertible Debentures (NCD) of face value Rs10 lakh each, aggregating to Rs500 crore. The NCDs would have a quarterly cut-off coupon rate of 8.80%. The debentures have a maturity period of five years and would be listed on the Wholesale Debt Market segment of the National Stock Exchange, it added. NCDs are debt instruments which are not convertible into equity shares. Shares of HCL Technologies were trading at Rs313 on the BSE, up 1.26% over previous close. Source: LatestNews-Home - Livemint.com | 11 Sep 2009 | 3:22 am India chana drops on weak spot demand, rains - Reuters India
Source: Business - Google News | 11 Sep 2009 | 3:21 am ANALYSIS - Risks for Asian stocks smoulder after six-month rallyBy Kevin Plumberg, Asia Asset Allocation CorrespondentSource: Reuters: Money News | 11 Sep 2009 | 3:13 am Eight years on, Obama to lead 9/11 tributesWashington: President Barack Obama on Friday will lead tributes to the nearly 3,000 people killed on 11 September 2001 on the eighth anniversary of the devastating attacks. Events were again scheduled across the United States to remember the day when Americans watched in horror as four airliners hijacked by Al-Qaeda were flown into the World Trade Center towers in New York, the Defense Department headquarters near Washington and a Pennsylvania field. Obama will pay tribute to the victims in a speech at the Pentagon, then meet with relatives of those killed in the attacks. Vice President Joseph Biden will attend commemorative events in New York, the White House said. The day of tributes begins in New York, where two jet airliners slammed into the Twin Towers, killing 2,752 people and prompting President George W. Bush to declare a “war on terror”. At the site where the towers once stood relatives of those killed will join volunteers from across New York city to read the names of the victims. The public reading, now an annual ritual, will be paused four times to mark the moments when American Airlines Flight 11 and United Airlines Flight 175 hit the buildings, and when the two towers collapsed. At nightfall, two beams of light will shoot skyward from the site. Obama is to lead the tributes in Arlington, Virginia, where a third hijacked plane, American Airlines Flight 77, crashed into the Pentagon building. The president, accompanied by defense secretary Robert Gates and chairman of the Joint Chiefs of Staff Admiral Michael Mullen, is to observe a moment of silence, deliver a speech and lay a wreath. He will then meet with relatives of the victims and tour a memorial to the 184 people killed on the ground and aboard Flight 77. The Pentagon memorial is the only major official monument to the victims of the 11 September attacks, with plans for similar sites in New York and Pennsylvania held up in part by financial and legal wrangling. At the World Trade Center site, progress has been slow on the foundation of “Freedom Tower” — part of a planned complex of five new skyscrapers, with a park and memorial in the middle. With plans hampered by the financial crisis and the real estate downturn, the site just looks like a large hole, although work on foundations of several key elements is underway and the frame for the future tower is rising. According to a poll last week by Quinnipiac University, 25% of New Yorkers said the slow pace on constructing a memorial made them “ashamed,” the highest number to give that answer since it was first asked in 2006. In Shanksville, Pennsylvania, where United Airlines Flight 93 crashed in an open field after passengers overwhelmed the hijackers, tributes begin Friday with a reading of victims’ names. Many believe the hijackers intended to crash the plane into the Congress building in Washington. Prayer services and interfaith remembrances are scheduled throughout the day, with a candlelight “peace vigil” closing out the commemorations. Plans for a Flight 93 memorial have been hampered by controversy over the shape of the monument, and arguments over whether the government can seize private land for the site. A final design, featuring a wall with the names of the victims, is scheduled to be completed by September 11, 2011. On Capitol Hill, lawmakers on Wednesday unveiled a bronze plaque paying tribute to “the passengers and crew of Flight 93, whose brave sacrifice... not only saved countless lives but may have saved the US Capitol from destruction.” For many Americans, the anniversary of the attacks is a time to remember US troops serving abroad, including those sent to Iraq and Afghanistan after the “war on terror” declaration. White House spokesman Robert Gibbs acknowledged Thursday that Obama has consciously tried to avoid using the “war on terror” phrase, but stressed that the president will remember those serving abroad on Friday, as he does on a daily basis. Source: LatestNews-Home - Livemint.com | 11 Sep 2009 | 3:07 am Indian rupee trims rise as stx drop; weak dollar helps - Reuters India
Source: Business - Google News | 11 Sep 2009 | 3:05 am Factory output rises in July for 7th monthNEW DELHI (Reuters) - India's industrial output grew for a seventh month in July, adding to signs of economic upturn and to the case for a gradual tightening of policy, although weak exports and the impact of a poor monsoon are risks to growth.Source: Reuters: Money News | 11 Sep 2009 | 3:04 am Reuters Summit - China, U.S. to dominate solar marketLOS ANGELES (Reuters) - The United States and China are in a head-to-head race to become the world's top market for solar power, and panel makers are wasting no time making plans to cash in on the growth promise of both markets despite the global recession.Source: Reuters: Money News | 11 Sep 2009 | 3:03 am Factory output rises in July for 7th monthNew Delhi: India’s industrial output grew for a seventh month in July, adding to signs of economic upturn and to the case for a gradual tightening of policy, although weak exports and the impact of a poor monsoon are risks to growth. Industrial output rose 6.8% in July from a year earlier, matching forecasts, and June’s annual growth was revised up to 8.2% from 7.8%, a 16-month high, Friday’s data showed. Manufacturing production rose 6.8% in July from a year earlier. “High growth and inflation are quite correlated and if this growth sustains, it actually pushes up inflation and builds the case for a rate hike,” said Abheek Barua, chief economist at HDFC Bank. Reserve Bank of India (RBI) governor Duvvuri Subbarao said on Thursday that while an exit from expansionary policy was needed, a balanced approach was necessary and the timing of a move was uncertain. Barua said the RBI would want to keep rates on hold till the first quarter of 2010. India’s factories expand faster than those in most Asian countries but still lag China’s scorching 10.8% growth during the same month and 12.3% in August. A series of interest rate cuts between October and April backed by tax cuts and government spending revived demand in Asia’s third-largest economy. “Industrial output growth is clearly on a recovery path and we expect this momentum to continue,” said Sonal Varma, an economist at Nomura “Better industrial output growth and rising input cost pressures are paving the way for the RBI’s gradual exit from the current loose monetary policy stance.” Rural-Urban Divide Demand from urban consumers is on the rise with car sales climbing by more than a fourth in August, rising for the seventh month on cheaper borrowing costs and new models. Output of consumer durable goods rose 19.8% from a year earlier, while capital goods production grew 2%. The expansion of the government’s rural job scheme and upcoming festival demand may offset an expected decline in rural demand after the worst dry spell in nearly four decades smothered crops and eroded farm income. The global slump continues to dent exports, which fell for the 10th month in July, hindering faster factory expansion. A survey of 500 companies showed manufacturing expanded at its slowest pace in five months in August as firms struggled to raise prices despite higher costs. Last week, the Planning Commission forecast a 7.8% expansion in factory output for 2009-10, but said economic growth could still be lower at 6.3% compared with 6.7% in the previous year. Source: Home - Livemint.com | 11 Sep 2009 | 3:03 am Slideshow: Heavy rains lash New DelhiSince Wednesday night, South-West monsoon rains have continued to lash New Delhi. The nation’s capital received 38.2 mm of rains from 12pm until 8.30am today . The India Meteorological Department reports that the country’s monsoon rains were 21 percent above average in the week up until Sept. 9. While the rain has brought temperatures down, it has also led to severe water logging and traffic jams. Mint’s slideshow offers a snapshot of how the city was affected. Click here to view slideshow. Source: LatestNews-Home - Livemint.com | 11 Sep 2009 | 3:03 am China economy surprisingly strong; policy intactBEIJING (Reuters) - Chinese industrial output and other economic data surprised on the upside in August, suggesting its recovery is on a solid course but not so strong that Beijing will need to hit the policy brakes anytime soon.Source: Reuters: Money News | 11 Sep 2009 | 3:01 am Industrial growth at 6.8% in July signals recoveryFactory productions expanded at a greater pace for the second month in a row growing by 6.8% in July against 6.4% a year ago, signalling an industrial recovery.Source: Daily News & Analysis: Money News | 11 Sep 2009 | 3:01 am Oberoi Constructions plans IPO, to raise Rs 100 croreReal estate firm, Oberoi Constructions, plans to raise Rs 100 crore through an initial public offer (IPO) by March next year.Source: Daily News & Analysis: Money News | 11 Sep 2009 | 2:50 am Godrej Properties IPO in three monthsGodrej Properties will hit the capital market with an initial public offer in the next three months, its chairman Adi Godrej said.Source: Daily News & Analysis: Money News | 11 Sep 2009 | 2:46 am Dr Reddy's says founders not planning stake saleBANGALORE (Reuters) - Dr Reddy's Laboratories Ltd said on Friday the founders of the Indian drug maker had no plans to sell their stake in the company, denying media and market talk about a possible deal with a global pharma major.Source: Reuters: Money News | 11 Sep 2009 | 2:44 am International pet product firms eye Indian marketSo its not only the growing Indian middle class that the foreign petcare companies are targetting to sell their merchandise.Source: Daily News & Analysis: Money News | 11 Sep 2009 | 2:44 am Sensex up 121 pts in opening trade on Asian cuesThe benchmark Sensex rose by 121 points in opening trade today on buying by foreign funds and retail investors driven by firming Asian markets.Source: Hindustan Times News Feeds 'Business' | 11 Sep 2009 | 2:42 am Firms see new economic edge in technical textilesMumbai: Textile companies are expanding their manufacturing facilities to industrial fabrics to tap new customers in the construction, automobiles and healthcare sectors, who are currently importing these products. Alok Industries, S Kumars Nationwide and SRF are keen to expand their footprint in this emerging field, while Jindal Cotex, which is selling shares for the first time, plans to use bulk of the proceeds on a similar facility. “Definitely this is a growth area for us going forward. We are doing specialized fabrics like anti bacterial finish, high visibility fabrics, mosquito repellants and water repellants,” said Sunil Khandelwal, chief financial officer of Alok. “We are gradually replacing European manufacturers in high end products. With India becoming a manufacturing hub for many global players, they would also bring in global practices regarding health and safety in India,” spurring demand for such products, he said. Companies buying technical textiles will save on a hefty import duty of about 23%, while manufacturers will boost their earnings by tapping a new revenue base. Ludhiana-based Jindal Cotex is investing Rs2.4 billion in two units in Himachal Pradesh to make medical and industrial textiles, Sandeep Jindal, managing director, said. The firm is aiming to raise up to Rs930 million via its IPO of which Rs800 million rupees will be utilised on technical textile projects. “Our plants in Himachal Pradesh will have excise duty exemption of 100%. So our objective is to compete with international markets which are exporting to India,” he said. Untapped Fields While the current earnings from industrial textiles may not be significant, the potential is immense, industry watchers say. “The segment is very important from the point of view of potential ...we are in the preparation mode, it’s an emerging field,” said D.K. Nair, secretary general of the Confederation of Indian Textile Industries. S Kumars Nationwide plans to invest 10 billion rupees over the next 5 years to set up new technical textiles facilities in India, said Nitin Kasliwal, managing director. Companies outside the textile business are also in the fray. Tyre cord maker SRF Ltd is setting up a plant for laminated fabrics in Kashipur in Uttarakhand. “These are fabrics that have another laminate layer and then converted into hoardings or banners. It’s a new product for us. Laminated products are mostly imported from China, South Korea and Taiwan. The facility is expected to be operational by next March,” SRF’s Chief Financial Officer Rajendra Prasad said. Consequently, revenues from technical textiles will increase to more than 50 percent of net sales, he said. Another textile maker Lakshmi Cotsyn Ltd, which makes a range of institutional fabrics from uniforms to ballistic wear to sleeping bags and tents in addition to traditional textiles, is looking to triple revenues from this segment by FY11 by expanding its product range. “If we have the basic production facilities in place, then costs can be halved and net profit margins can be doubled, M.P. Agarwal, chairman and managing director said. “But this would entail procuring raw materials such as carbon locally instead of importing and manufacturing our own technologies,” he said. Source: LatestNews-Home - Livemint.com | 11 Sep 2009 | 2:42 am Conciliation proceedings start to end Jet pilots’ agitationMumbai: Conciliation proceedings between agitating Jet Airways pilots and the management began on Friday before the chief labour commissioner here in a bid to end the four-day old stir which has severely disrupted the operations of the Airlines leaving thousands of passengers stranded. The meeting came against the backdrop of a reported agreement arrived between the two sides through the mediation of Congress MP Sanjay Nirupam and some others. Besides chief labour commissioner S.K. Upadhyay, the conciliation proceedings are being attended by Jet executive director Saroj Dutta, CEO Hafiz Ali and head of operation Capt. Mohan. The pilots’ body National Aviators Guild (NAG) is being represented by its president Capt. Girish Kaushik and Capt. Sam Thomas. Jet Airways and its pilots had last night hammered out a broad understanding to break the deadlock raising prospects of a quick return to normalcy. As per the understanding, all the four sacked pilots are to be reinstated and the chargesheets issued against some of the agitators will be withdrawn while the registrar of the trade unions will look into the fulfilment of criteria of registration of the NAG. On their part, the pilots will join their duties soon after the formal agreement is arrived at before the chief labour commissioner. Prime Minister Manmohan Singh had on Thursday enquired about the crisis at the Cabinet meeting where civil aviation minister Praful Patel gave an update. Late last night, Jet chairman Naresh Goyal met Nirupam following which the broad understanding was arrived at. The outlines of this understanding were later approved with some changes by agitating pilots in Mumbai. Source: Home - Livemint.com | 11 Sep 2009 | 2:41 am Apple adds video camera to iPodMr Steve Jobs returns. This could well be the name of Apples muchawaited event on Thursday.Source: Moneycontrol Top Headlines | 11 Sep 2009 | 2:40 am Housing finance cos stand to benefit on rate subsidySome of the housing finance stocks reacted positively to the Government decision to allow one percentage point interest subvention on housing loans up to Rs 10 lakh.Source: Moneycontrol Top Headlines | 11 Sep 2009 | 2:33 am Rupee trims gains as stocks dropMumbai: The Indian rupee trimmed gains in afternoon session on Friday as the domestic sharemarket fell after an early rise, but losses in the dollar versus major currencies supported the local unit. At 2:15pm, the partially convertible rupee was at Rs48.55/56 per dollar, off an early high of Rs48.38 but still stronger than its previous close of Rs48.63/64. On Thursday, the rupee had risen as high as Rs48.29, its strongest since 14 August. Indian shares dropped 0.3% in seesaw trade on Friday as investors booked profits ahead of the weekend after a five-day rally. The dollar fell to a one-year low against a basket of currencies on Friday, as continued concern over its long-term value further soured the near-term technical picture and meant there was no let-up in the selling. In the currency futures market, the most traded near-month contracts on the National Stock Exchange and MCX-SX were quoting at Rs48.59 and Rs48.5950 respectively, with the total traded volume on the two exchanges at about $718 million. Source: Home - Livemint.com | 11 Sep 2009 | 2:25 am Jet cancels 173 flights as stir continuesWith the Jet pilots' agitation continuing for the fourth consecutive day on Friday, the airline has cancelled 173 flights across the country including 15 from the national capital.Source: Hindustan Times News Feeds 'Business' | 11 Sep 2009 | 2:22 am FOCUS - Indian cos see new economy edge in technical textilesMUMBAI (Reuters) - Indian textile companies are expanding their manufacturing facilities to industrial fabrics to tap new customers in the construction, automobiles and healthcare sectors, who are currently importing these products.Source: Reuters: Money News | 11 Sep 2009 | 2:19 am RBI says economy not reverting to trend yetMUMBAI (Reuters) - The Indian economy is unlikely to revert to its trend growth rate soon as recession in advanced economies would eat into global growth and world trade, Reserve Bank of India (RBI) deputy governor Usha Thorat said on Friday.Source: Reuters: Money News | 11 Sep 2009 | 2:12 am India cbank says economy not reverting to trend yet - Reuters India
Source: Business - Google News | 11 Sep 2009 | 2:11 am Industrial growth trend to continue-India fin secy - Reuters India
Source: Business - Google News | 11 Sep 2009 | 2:09 am Oils, miners, banks drive FTSE back above 5,000London: Britain’s top share index gained 0.5% in early deals on Friday, moving back above the 5,000 level, led by strength in heavyweight oils, miners and banks, supported by gains on Wall Street and in Asia. By 0808 GMT, the FTSE 100 index was 26.73 points higher at 5,014.41, having closed 16.62 points, or 0.3% lower on Thursday at 4,987.68. The benchmark index closed above 5,000 for the first time since late September 2008 on Wednesday. “The rally that few people understand has continued today and it would take a brave investor to bet against the current momentum,” said Arifa Sheikh-Usmani, equity trader at Spreadex. The UK blue-chip index has risen about 44% since hitting a six-year trough in March, though is still down almost 8% from its level in mid-September 2008, before the collapse of Lehman Brothers. “The FTSE seems to be trading pretty comfortably around the 5,000 level and the continued dollar weakness is giving it extra support as commodities push higher,” Sheikh-Usmani added. Oil majors provided the main impetus for early blue-chip gains as crude prices held above $72, with BP, Royal Dutch Shell , BG Group, Cairn Energy, and Tullow Oil up between 0.1 and 1.9%. Miners were also higher after solid industrial output data from China boosted the outlook for demand for metals. Antofagasta, Xstrata, Rio Tinto, BHP Billiton, and Anglo American gained 1.6 to 1.9%. Banks were also higher as a sector, led by Lloyds Banking Group, up 2.1% as SG Securities assumed coverage of the bank with a “buy” rating and 160 pence target price. Lloyds Banking Group’s Irish unit, Bank of Scotland (Ireland), wants to participate in a potential merger to create a “third force” in Irish banking, the Irish Times reported on Friday. Royal Bank of Scotland gained 0.9% with SG Securities assuming coverage of it with a “hold” rating and 55 pence target price, while Barclays added 0.4%, but HSBC and Standard Chartered lost 0.3 and 0.6%, respectively. Hedge fund manager Man Group was the biggest FTSE 100 gainer, up 2.6%, boosted by an increase in equity valuations. Insurer Prudential took on 1.2% as the firm’s chief executive-elect, Tidjane Thiam, said it will look to Asia as a source of capital and could even seek to raise equity there, according to a Financial Times report. DEFENSIVES RETREAT Tobacco stocks were the biggest blue-chip fallers early on, giving up some gains made on Thursday following positive broker comments, with British American Tobacco and Imperial Tobacco losing 0.7 and 0.1%, respectively. Other stocks perceived as defensive also retreated as investors’ risk appetite returned. Drugs firm GlaxoSmithKline lost 0.3%, drinks group Diageo shed 0.6%, food producer Associated British Foods fell 0.3%, and mobile phones heavyweight Vodafone slipped 0.2% lower. On the economics front, UK wholesale inflation numbers are due for release at 0830 GMT. Expectations are for PPI output to rise 0.1% on the month, following a 0.3% rise in July, giving a 0.5% year-on-year decrease, which would follow a 1.3% decline the previous month. Later in the session investor attention will be drawn across the Atlantic, to the University of Michigan September consumer sentiment data, US import/export prices for August, wholesale inventories/sales for July, and the Federal budget for August. Source: LatestNews-Home - Livemint.com | 11 Sep 2009 | 2:09 am Nuclear Power Corp in pact for new unitsWith private companies barred from the country's atomic energy generation industry, the state-run Nuclear Power Corp is signing pacts with two other government firms to fund its new projects, a top company official said Friday.Source: IndiaeNews.com: Business News | 11 Sep 2009 | 2:03 am Kerala golf course to open by DecemberThe first phase of a Rs.480 million golf course being built by the Cochin International Airport Ltd (CIAL) here would be complete by the end of this year, a senior company official said Friday.Source: IndiaeNews.com: Business News | 11 Sep 2009 | 2:03 am Toshiba’s Westinghouse close to UK nuclear dealLondon: Westinghouse, the US subsidiary of Japan’s Toshiba, said on Thursday it is in advanced discussions to take over the long-term management of a British nuclear fuel manufacturing site. It said if it gets the contract for the Springfields site, near Preston in the North West of England, it would look at making a “significant investment” in the facility, fuelled by its belief in the growth of Britain’s nuclear industry. Chief executive Aris Candris told reporters that following the investment the facility could help the company fulfil demand from Europe as well as the UK. “Especially in Europe ... we have started to be production capability restrained, so Springfields is an ideal ... arrangement,” he said. Westinghouse already has a short-term contract to operate the site which ends on 31 March 2010, and it is hoping to finalise the long-term arrangements with Britain’s Nuclear Decommissioning Authority over the coming months. Source: Home - Livemint.com | 11 Sep 2009 | 2:01 am Toshiba’s Westinghouse close to UK nuclear dealLondon: Westinghouse, the US subsidiary of Japan’s Toshiba, said on Thursday it is in advanced discussions to take over the long-term management of a British nuclear fuel manufacturing site. It said if it gets the contract for the Springfields site, near Preston in the North West of England, it would look at making a “significant investment” in the facility, fuelled by its belief in the growth of Britain’s nuclear industry. Chief executive Aris Candris told reporters that following the investment the facility could help the company fulfil demand from Europe as well as the UK. “Especially in Europe ... we have started to be production capability restrained, so Springfields is an ideal ... arrangement,” he said. Westinghouse already has a short-term contract to operate the site which ends on 31 March 2010, and it is hoping to finalise the long-term arrangements with Britain’s Nuclear Decommissioning Authority over the coming months. Source: World Business - Livemint.com | 11 Sep 2009 | 2:01 am Pilots, management meet begins; impasse likely to end todayConciliation proceedings between agitating Jet Airways pilots and the management began today before the Chief Labour Commissioner in New Delhi in a bid to end the four-day old stir which has severely disrupted the operations of the airlines leaving thousands of passengers stranded.Source: Hindustan Times News Feeds 'Business' | 11 Sep 2009 | 1:52 am Sterlite drops 5% after Asarco bid revision - Business Standard
Source: Business - Google News | 11 Sep 2009 | 1:28 am Jet Airways cancels 173 flights as stir continuesWith the Jet pilots' agitation continuing, the airline has cancelled 173 flights across the country including 15 from the national capital.Source: Daily News & Analysis: Money News | 11 Sep 2009 | 1:17 am LG to invest $1bn in India on marketing and R&DNew Delhi: Betting big on the Indian growth story, South Korean consumer durables major LG on Friday said it will invest about a billion dollars here for marketing and research over the next five years. “We will be investing about Rs5,000 crore in the next five years on R&D and marketing,” LG Electronics India managing director Moon Bum Shin said. For the past couple of years, the Korean major has been investing around $130 million a year on R&D and marketing. Now, LG has chalked out plans to pump in more money in these areas to push sales and expand research activities. “Going forward, we are going to increase it (investments) ... to around $200 million every year ... India is the fastest growing market for us and is the focus area,” Shin said, adding that the Indian operations were averaging a growth of 30% annually. LG’s India chief said that R&D and marketing investment would be apart from what the group would pump in for creating new capacities and expansion to meet the growing market needs. The company has already invested around Rs1,200 crore in setting up manufacturing plants in India. It has two manufacturing units here, one each in Pune and Noida. The company is primarily banking on the sale of LCDs and mobile handsets to drive growth in India and is also looking at setting up a production unit for LCDs in the country. ”Currently we are importing LCDs but going forward, in the next five years, we have to look for an option to manufacture LCDs here also. We may start with assembling them here,“ Shin said. “Our future growth engine would be LCDs and GSM mobile handsets which will attract maximum investment ... We have to put a new production line for front loaded washing machines.” Asked whether the company is planning to invest more money in manufacturing to make India its export hub, he said, “If we maintain the same pace of growth, what we are enjoying, in the next five years our assumption is that the Pune plant by 2011, will run on full capacity.” “By 2012, it will face some capacity constraints and we may have to find another location in southern part of the country,” Shin added. He said the company was working on plans and once the headquarter approves them a feasibility study will be carried out. “Once the plan is approved, we may invest more money in setting up new plant and expanding production line. Source: Home - Livemint.com | 11 Sep 2009 | 1:15 am OMCs may lose Rs45,000 cr for selling fuels below costNew Delhi: State-run retailers IOC, BPCL and HPCL may lose about Rs45,000 crore on selling auto and cooking fuels below cost this fiscal, two-third of which will be compensated by the government by issuing bonds. “Out of these under-recovery (revenue loss), about Rs17,000 crore would be on kerosene alone. Another Rs12,000 to Rs13,000 crore would be on domestic LPG and the remaining Rs15,000 to Rs16,000 crore would be on account of auto fuels petrol and diesel,” petroleum secretary R.S. Pandey said. Indian Oil (IOC), Hindustan Petroleum (HPCL) and Bharat Petroleum (BPCL) lose Rs 4.69 per litre on petrol and Rs3.09 a litre on diesel. They sell LPG at a loss of Rs 158.55 per 14.2-kg cylinder and kerosene at Rs 17.15 per litre loss. The three firms lose about Rs 170 crore per day and may end the 2009-10 fiscal with Rs 44,274 crore revenue loss if international crude oil prices were to stay at the current level of around USD 70 per barrel. Pandey said the entire revenue loss on domestic LPG and kerosene would be met by the government possibly through issue of oil bonds. The same on petrol and diesel would be compensated by upstream firms like ONGC by way of discounts on crude oil and LPG they sell to the three retailers. “Oil marketing companies (IOC, BPCL and HPCL) may have to bear a part of the under-recovery on auto fuels,” he said, adding the proportion has not yet been decided. Source: Home - Livemint.com | 11 Sep 2009 | 1:01 am Bharti sweetens MTN offer as deal deadline loomsLONDON/SINGAPORE (Reuters) - Mobile operator Bharti Airtel's move to sweeten a $24 billion deal with South Africa's MTN is a key step in reaching an agreement as a deadline nears, analysts and sources said on Friday.Source: Reuters: Money News | 11 Sep 2009 | 12:56 am Pak not acting against 26/11 attackers : ChidambaramWashington: Voicing India’s disappointment over Pakistan not prosecuting perpetrators of the Mumbai attacks, home minister P. Chidambaram today made it known to to Secretary of State Hillary Clinton that it expects tangible action on the terror issue. Wrapping up his four-day visit, Chidambaram who met Clinton and other top officials, said he had told them about Hafeez Sayeed, the founder of Lashkar-e-Taiba and mastermind of the 26/11 attacks, roaming free despite evidence provided by India which has handed over six dossiers. “I think, the US understands the difference between the way India’s approach to post 26-11 situation and the way Pakistan approached post-26/11 situation. It is enough to draw attention to the difference and leave it there,” he said when asked if the US is exerting enough pressure on Pakistan to take action against terrorists targeting India from its soil. The Home Minister said he had not asked specifically to “push for this and to push for that” during his interaction with the Indian media here to a question if he had sought US assistance to ensure that Pakistan takes action against perpetrators of the Mumbai attacks. “I did brief them on the State of the trial of Ajmal Kasab (the lone surviving Mumbai attack terrorist) in India and I also did mention about no progress in Pakistan in respect of the five or six people they have arrested. And Hafeez Sayeed (LeT founder) remains a free man. I think that is enough. They know to draw the lessons from that statement,” he said. Source: LatestNews-Home - Livemint.com | 11 Sep 2009 | 12:44 am Bharti sweetens MTN offer as deal deadline loomsLondon / Singapore: Indian mobile operator Bharti Airtel’s move to sweeten a $24 billion deal with South Africa’s MTN is a key step in reaching an agreement as a deadline nears, analysts and sources said on Friday. Bharti has increased the cash component of its offer for a 49% stake in MTN to $10 billion from a proposed $7.6 billion, two people familiar with the matter said. On top of that, Bharti would pay $4 billion in stock for a total package of $14 billion, 7% more than the earlier $13 billion proposed deal. “We believe a deal under the aforementioned terms would be positive for Bharti given only a marginal increase in overall payout,” RBS analysts wrote in a research note. The deal is subject to an end-September deadline. The firms have extended talks twice. “Management of both companies has been working hard and I’m optimistic we’ll get an agreed offer to put to shareholders before the end of the month,” according to one source, who could not be named as he was not authorised to speak publicly about the negotiations. “I don’t believe Bharti will have to sweeten its offer any further.” Reuters reported last month that Bharti might sweeten its offer for the MTN stake by 5-10%, quoting a source familiar with the negotiations. Regulatory issues were the last hurdle to be crossed ahead of an announcement, one of the sources said, adding he did not see any major obstacles. Banking sources told Reuters that Bharti’s advisers, Standard Chartered and Barclays have yet to approach syndicate bankers for an increase in the loan size from an initial estimate of over $4 billion. “The loan size is still the same, $4-$5 billion,” one of the syndicate bankers told Reuters. Analysts said the key factor in the success of the deal would be the response of MTN shareholders. In a client note, HSBC said both companies’ management were working to sort out regulatory issues before approaching MTN shareholders, 75% of whom have to approve the deal. The note said the approval, in principle, from South Africa’s department of communications and labour unions over the last month support its argument that the deal could go through. “Given this, we believe there is a fair chance of Bharti and MTN reaching an agreement, but approval of 75% of MTN shareholders will be key,” HSBC said. Source: World Business - Livemint.com | 11 Sep 2009 | 12:43 am Bharti sweetens MTN offer as deal deadline loomsLondon / Singapore: Indian mobile operator Bharti Airtel’s move to sweeten a $24 billion deal with South Africa’s MTN is a key step in reaching an agreement as a deadline nears, analysts and sources said on Friday. Bharti has increased the cash component of its offer for a 49% stake in MTN to $10 billion from a proposed $7.6 billion, two people familiar with the matter said. On top of that, Bharti would pay $4 billion in stock for a total package of $14 billion, 7% more than the earlier $13 billion proposed deal. “We believe a deal under the aforementioned terms would be positive for Bharti given only a marginal increase in overall payout,” RBS analysts wrote in a research note. The deal is subject to an end-September deadline. The firms have extended talks twice. “Management of both companies has been working hard and I’m optimistic we’ll get an agreed offer to put to shareholders before the end of the month,” according to one source, who could not be named as he was not authorised to speak publicly about the negotiations. “I don’t believe Bharti will have to sweeten its offer any further.” Reuters reported last month that Bharti might sweeten its offer for the MTN stake by 5-10%, quoting a source familiar with the negotiations. Regulatory issues were the last hurdle to be crossed ahead of an announcement, one of the sources said, adding he did not see any major obstacles. Banking sources told Reuters that Bharti’s advisers, Standard Chartered and Barclays have yet to approach syndicate bankers for an increase in the loan size from an initial estimate of over $4 billion. “The loan size is still the same, $4-$5 billion,” one of the syndicate bankers told Reuters. Analysts said the key factor in the success of the deal would be the response of MTN shareholders. In a client note, HSBC said both companies’ management were working to sort out regulatory issues before approaching MTN shareholders, 75% of whom have to approve the deal. The note said the approval, in principle, from South Africa’s department of communications and labour unions over the last month support its argument that the deal could go through. “Given this, we believe there is a fair chance of Bharti and MTN reaching an agreement, but approval of 75% of MTN shareholders will be key,” HSBC said. Source: Home - Livemint.com | 11 Sep 2009 | 12:43 am Godrej Properties to launch IPO in 3 monthsMumbai: Godrej Properties, a unit of Godrej Industries, will launch its initial public offering (IPO) in the next three months with fresh issue of 10% shares, group chairman Adi Godrej told reporters. “About 3.5% shares will be available for pre-placement,” Godrej said on the sidelines of an industry summit on Friday, adding no promoter holding will be sold. The pre-IPO placement of shares will be completed a “little before” the public issue, Godrej said, adding the firm would tap more than one investor for the placement. The IPO proceeds will be utilised for new projects, he said. When asked how much the firm plans to raise, Godrej did not give an estimate as the pricing was not decided. Godrej said there has been a partial recovery in the real estate sector, especially in the affordable housing segment. “Post-correction residential demand has improved but commercial demand is yet to pick up,” Godrej said. But there was “tremendous demand” in affordable housing segment and Godrej Properties will have its projects in this segment, he said. Godrej Properties, which has announced projects in Ahmedabad, Kolkata and suburban Mumbai, is owned 80.3% by Godrej Industries. Kotak Mahindra and ICICI Securities are the bankers for the proposed IPO. Source: LatestNews-Home - Livemint.com | 11 Sep 2009 | 12:32 am Shimla goes without drinking waterThe 'Queen of Hills', as Shimla was fondly called by the British, has been experiencing an acute drinking water shortage despite heavy rains.Source: IndiaeNews.com: Business News | 11 Sep 2009 | 12:31 am Sterlite raises offer price for AsarcoMumbai: Indian metals maker Sterlite Industries Ltd said on Friday it had raised its open offer price for bankrupt US copper miner Asarco by a fifth to $2.565 billion. Sterlite, a unit of India-focused mining company Vedanta Resources, has been facing off with Mexican miner Grupo Mexico for the assets of Asarco, which has been under bankruptcy protection since 2005. “After extensive discussions and review, in order to provide full cash payment to asbestos creditors ... Sterlite increased its offer from $2.135 billion to $2.565 billion cash,” the company said in a statement. The increase was to cover late and subordinated claims and to ensure surplus cash for smooth operations of Asarco, it said. Shares in Sterlite, which has a market value of $11.2 billion, were trading down nearly 3% at Rs744.30 by 11:11am while the main index was up 0.1%. Grupo Mexico acquired Asarco in 1999, but lacks board control due to the bankruptcy. Last month a US court had recommended that Grupo Mexico be allowed to take control of Asarco as it was more likely to pay Asarco’s creditors in full. On Thursday Asarco and Sterlite filed objections to the judge’s recommendations that Grupo Mexico regain control of Asarco. Source: Home - Livemint.com | 11 Sep 2009 | 12:29 am New York’s 9/11 museum to display hijacker perspectiveNew York: A museum dedicated to the 9/11 attacks will display written quotations drawn from “martyrdom” videos made by the hijackers, along with witness testimonials that will be screened to prevent sympathizers from praising the perpetrators, museum officials said on Thursday. Previous attempts to put into context the motivation of the men who used hijacked passenger planes to attack the United States on 11 September, 2001, have been met with emotional public opposition, with politicians canceling plans for an “International Freedom Center” in 2005.  In this photo taken 2 Sep, 2009, work continues on the National September 11 Memorial & Museum, lower left, at the World Trade Center in New York. AP The memorial and museum are planned for the World Trade Center site undergoing reconstruction in lower Manhattan. The underground museum should open by 2013. Museum president Joe Daniels told reporters the exhibit would present the facts, focusing on “what happened on that day, why it happened, what does it mean to live in a 9/11 world.” “Let the perpetrators speak for themselves,” Daniels said. The museum has possession of videotapes the hijackers made in preparation for the suicide attacks and Reuters previously reported that visitors could play back the tapes, citing Daniels. “That’s a powerful and important thing that visitors to this museum need to hear -- bearing witness to the actual testimonials of those who committed the atrocities,” Daniels told a news conference. However, Daniels later told Reuters by telephone that the exhibit would be limited to photos and written text from the martyrdom tapes. The museum is inviting people around the world to send in pictures and recorded recollections about the attacks that will be displayed on its website after being screened for sentiments lionizing the hijackers. “No one will come to this museum and leave with a feeling of heroism for the people who committed the crimes that we bear witness to today,” Daniels told reporters. Museum officials are treading carefully. Initial plans for rebuilding the World Trade Center included the International Freedom Center, which would have covered subjects unrelated to the 2001 attacks and discussed themes such as tolerance and diversity. But Former New York governor George Pataki cancelled the Freedom Center after critics, including survivors and relatives of the nearly 3,000 who died, said the museum should instead be dedicated exclusively to the day known as 9/11 and the 1993 truck bombing of the World Trade Center. As an example of what will be included, Daniels said the 1979 invasion of the Soviet Union by Afghanistan was vital in understanding “the roots of Al Qaeda.” The most horrific pictures, such as those of people who jumped from the top floors of the Twin Towers to escape the heat and flames, will be segregated. Source: LatestNews-Home - Livemint.com | 11 Sep 2009 | 12:03 am RBI not for single market regulatorMumbai, Sept. 10 The Reserve Bank of India has reservations about the unified market regulator approach recommended by the Raghuram Rajan Committee report on Financial Sector Reforms.Source: Business Line - Home Page | 11 Sep 2009 | 12:00 am Storage level in major reservoirs improvesChennai, Sept. 10 With many parts of the country receiving heavy rains under the influence of a tropical storm that emanated from the Bay of Bengal, the major reservoirs received bounteous inflow ofSource: Business Line - Home Page | 11 Sep 2009 | 12:00 am Fresh inflows into equity MFs fall 37%BL Research Bureau Fresh inflows into equity mutual funds have taken a beating in the first month after the abolition of entrySource: Business Line - Home Page | 11 Sep 2009 | 12:00 am Power sector faces Rs 5-lakh cr funding gap: MinisterNew Delhi, Sept. 10 The Government estimates a funding gap of Rs 5 lakh crore for financing power projects in theSource: Business Line - Home Page | 11 Sep 2009 | 12:00 am Mahindra launches 2 gearless scooters; motorcycles coming in 18 monthsMumbai, Sept. 10 The Mahindra group is revving up its presence in the gearless scooter segment consequent to the acquisition of Kinetic’s two-wheeler business in JulySource: Business Line - Home Page | 11 Sep 2009 | 12:00 am Adani Enterprises (NSE: Rs 638.7): SellWe recommend a sell in Adani Enterprises from a short-term perspective. It is evident from the charts of the stock that after taking support at Rs 238 in March it had been on an intermediate-term uptrend till it encountered resistance at Rs 850Source: Business Line - Home Page | 11 Sep 2009 | 12:00 am KG gas at original tender price will help NTPC consumers save Rs 32,000 cr over 17 yrsNew Delhi, Sept. 10 State-owned power major NTPC Ltd said on Thursday that supply of KG Basin gas by Mukesh Ambani-led Reliance Industries Ltd (RIL) at the original tender price would lower its customers save electricity bills up to Rs 32,000Source: Business Line - Home Page | 11 Sep 2009 | 12:00 am Home loans up to Rs 10 lakh get 1% interest rate subsidyNew Delhi, Sept. 10 Affordable housing, especially in non-metros, could get a much-needed boost with the Government on Thursday approving the one per cent interest subvention scheme for housing loans up to Rs 10 lakh. The Centre has allocated RsSource: Business Line - Home Page | 11 Sep 2009 | 12:00 am Day Trading GuideWe re-affirm our sell recommendation in DLF. As long as ICICI Bank trades above Rs 804, the outlook remains positive. We recommend a buy with tight stop at Rs 804. We recommend a buy in InfosysSource: Business Line - Home Page | 11 Sep 2009 | 12:00 am DGCA tells airlines to charge last week’s faresNew Delhi, Sept 10 The Directorate-General of Civil Aviation has written to airlines asking them to charge fares at last week’s level.Source: Business Line - Home Page | 11 Sep 2009 | 12:00 am Watch/Listen: Mint in Multimedia, Sep 11Video story: Still Grounded While Jet Airways continues to cancel its flights because its pilots are on strike, other airlines are hiking their fares to meet the rush of passengers Audio story: How can India reclaim money from tax havens? We examine exactly how India would set about tackling the issue of reclaiming money from tax havens, how easy it will be, and what its history with such attempts has been in the past Video story: Testing Dilemma Class X board exams will be replaced by continuous evaluation. But students of both government and private schools say they want the standardized test to stay Slideshow: Art Calendar: The shows you shouldn’t miss click here to view slideshow It’s a busy week in the art world. We pick five exhibitions that stand out for their content as well as technique Video story: The Mint report Pfizer plans to get into market for generics; inflation falls for the 13th straight week, the National Innovation project could lose its World Bank funding Source: LatestNews-Home - Livemint.com | 10 Sep 2009 | 11:26 pm Sensex up 121 pts in opening trade on Asian cuesThe Sensex rose by 121 points in opening trade today on buying by foreign funds and retail investors driven by firming Asian markets.Source: Daily News & Analysis: Money News | 10 Sep 2009 | 11:16 pm IDFC unit buying BP’s wind energy assets: paperMumbai: The private equity arm of Infrastructure Development Finance Co is buying energy giant BP’s wind power assets in India for Rs650 crore ($134 million), the Economic Times reported on Friday. This signals BP’s exit from the renewable energy market and underscores its focus on the US market, the newspaper said, citing an unnamed person close to the development. BP, the biggest oil producer in the US, owns 100 megawatt of wind energy capacity in India from two plants. IDFC Private Equity will pay for the assets in two tranches of Rs350 crore and Rs300 crore, the paper said. Officials at the private equity declined to comment on the deal, it said, and Reuters could not immediately reach them. “The focus of BP’s wind energy business is in the US, where it has an opportunity to develop a portfolio of 20,000 MW,” the paper quoted BP India spokesman Anshul Mathur as saying. “In India, we are not exploring any new wind development options, and are in the process of reviewing existing development positions. There are many potential options for the Indian wind business, one of which includes divestment,” he told the paper. IDFC PE was set up in 2002 and manages a corpus of $1.3 billion, its website showed. Source: LatestNews-Home - Livemint.com | 10 Sep 2009 | 11:02 pm 150 Jet Airways flights cancelled as strike continuesAs many as 150 Jet Airways flights, including 15 international, remained cancelled Friday, the fourth day of the ongoing strike by the airline pilots.Source: IndiaeNews.com: Business News | 10 Sep 2009 | 10:31 pm Jet pilots, management to meet FridayStriking pilots of Jet Airways are hopeful as talks with the chief labour commissioner and the management will begin here at 11 a.m. Friday.Source: IndiaeNews.com: Business News | 10 Sep 2009 | 10:00 pm Our reforms, their reformsIn the IFC's Doing Business list for 2010, Rwanda, still in the midst of a border conflict with Congo, emerged as the top reformer. Aman Sethi reports.Source: Hindustan Times News Feeds 'Business' | 10 Sep 2009 | 5:45 pm Business and BarbsWartime rivals India and China are now close business allies. But allegations are flying as cheap Chinese goods flood markets such as this Delhi arcade. Gaurav Choudhury reports. See GraphicsSource: Hindustan Times News Feeds 'Business' | 10 Sep 2009 | 5:38 pm Google willing to share digital books with rivalsGoogle will let other online companies sell its digital copies of out-of-print books if a class-action settlement with U.S. authors and publishers wins court approval.Source: Hindustan Times News Feeds 'Business' | 10 Sep 2009 | 4:19 pm NTPC to sign pact with RIL by Sept-end for govt-allotted gasMukesh Ambani-led RIL accused NTPC of delaying signing a deal to buy government allotted gas, even as the PSU said it would not forego the allocation 'at any cost.'Source: Hindustan Times News Feeds 'Business' | 10 Sep 2009 | 3:58 pm How critical is a critical illness cover?It is best taken in conjunction with a proper medical insurance policy as this is a focused plan.Source: Daily News & Analysis: Money News | 10 Sep 2009 | 3:26 pm Oglemilast is not dead, not yet, says Glenmark chiefGlenmark Pharmaceuticals is unwilling to let go of the first molecule discovered by it despite receiving setbacks in the trial phase and thumbs-down from the market.Source: Daily News & Analysis: Money News | 10 Sep 2009 | 3:25 pm English business-news battle heats upThe English business-news space is getting ready for one hell of a slugfest for eyeballs and television rating points.Source: Daily News & Analysis: Money News | 10 Sep 2009 | 3:23 pm Generation next takes charge at GodrejThe nextgen is taking charge at one of India\'s oldest business groups Godrej. Tanya Dubash, who is currently executive director in charge of marketing, was credited with the mega makeover that Godrej underwent last year. CNBCTV18s Shereen Bhan caught up with DubashSource: Moneycontrol Top Headlines | 10 Sep 2009 | 3:04 pm Tata Sky to focus on raising ARPU in DTH game“The DTH market is not a volume game-it's about getting higher ARPUs (average revenue per user), which in turn helps to cover the subscriber acquisition costs as fast as possible”, said Vikram Kaushik, managing director and CEO, Tata Sky, one of the early players in the DTH (direct to home) market.Source: Hindustan Times News Feeds 'Business' | 10 Sep 2009 | 2:42 pm Indian firms prove reluctant to trade their carbon creditsAlthough India is the second largest generator of environment-friendly projects, domestic firms, public and private, are shying away from maximising the monetary benefits derived from such carbon emission reductions.Source: Business Standard | Front Page Headlines | 10 Sep 2009 | 1:06 pm Customs clearance takes the super-fast trackA silent revolution is taking place in the countrys airports and ports one that will alter India's notoriously troublesome Customs clearance procedures, both at entry and exit points.Source: Business Standard | Front Page Headlines | 10 Sep 2009 | 1:05 pm Jet Airways pilots' strike may end todayThe Jet Airways management and National Aviators Guild (NAG) made a breakthrough tonight with a tentative draft which indicated the airline is likely to reinstate all the five pilots it had terminated, with some riders. However, a Jet spokesperson said: Currently, we are not aware of any such move.Source: Business Standard | Front Page Headlines | 10 Sep 2009 | 1:03 pm Mumbai's eastern suburbs take centrestageKurla is dotted with narrow, dingy bylanes and isnt exactly considered a tony address in the commercial capital of the country. But that could change soon.Source: Business Standard | Front Page Headlines | 10 Sep 2009 | 1:02 pm Escorts chalks out plan to increase mkt share, up marginsEscorts is looking to up its market share and enhance its margins. In an interview to CNBCTV18, Rohtash Mal, the companys Executive Director CEO Agri Machinery Group, said Escorts had drawn out about seveneight independent missions to rationalize costsSource: Moneycontrol Top Headlines | 10 Sep 2009 | 12:36 pm Meltdown flashback Fuld’s failure: A file photo of Lehman Brothers Holdings Inc. chief executive officer Richard Fuld in Washington, DC. Carol T. Powers Chief executive Richard Fuld outlines the moves a day after investors learn that a state-run South Korean bank walked away from talks to invest in Lehman. The new plan is to raise money by selling pieces of the firm, including its investment management unit and its commercial real estate assets. Fuld also says Lehman will examine all other options, including a sale of the entire firm. The goal: Avoid the fate of Bear Stearns Companies Inc., whose losses from mortgage-related assets led to last spring’s US government-brokered sale of the firm to JPMorgan Chase and Co.Lehman has now lost $6.5 billion over six months on bad trading bets and its mortgage-related assets. Investors and stock analysts fear the company, which traces its history to before the Civil War, is running out of time. They also complain that the latest plan is short on specifics. Lehman shares fall 7%, to $7.25, after falling 45% a day earlier. They traded at $67.73 a year earlier. Market moves: The Dow Jones Industrial Average gains 40 points to close at 11,268.92. But financial shares are mixed on worries about Lehman’s well-being. The Nasdaq and Standard and Poor’s 500 both rise less than 1%. “This is agonizing for shareholders. Fuld was supposed to have a war room started in March, when Bear Stearns nearly collapsed, to solve these problems, and at this point he has failed miserably,” said Mark Williams, professor of finance at Boston University School of Management. Source: World Business - Livemint.com | 10 Sep 2009 | 12:34 pm Pfizer plans major push into genericsMumbai: Pfizer Ltd, the Indian subsidiary of the world’s largest drug maker Pfizer Inc., is making an aggressive play in the Indian generics or off-patent drugs market.  Competitive steps: A file photo of Pfizer Inc.’s headquarters in New York. The Indian arm of the world’s top drug firm hopes the generic portfolio will boost its revenue once it succeeds in semi-urban and rural markets. Robert Caplin/Bloomberg Pfizer Ltd, which has been in India for at least five decades and is the 12th largest pharma company in the country by sales revenue, has expanded its field force by 220 people over the past few months for this business and identified several top-selling Indian generic drugs of which it will launch versions, the executive mentioned earlier said. He did not want to be identified as the company has not yet made a public announcement. A Pfizer (India) spokesperson confirmed the development and said that the plan was in line “with the global strategy”. “Pfizer India is actively looking at leveraging this (growing Indian market) opportunity by offering quality branded value offerings at a competitive price,” she said in an email response, adding that the drugs in the project would address both chronic and infectious diseases. Telmisartan is currently marketed by at least 20 domestic drug makers, including Glenmark Pharmaceuticals Ltd, Sun Pharmaceutical Industries Ltd, Cipla Ltd, and Ranbaxy Laboratories Ltd. The project, internally named branded value offerings, will see the company challenging local rivals such as Ranbaxy, Cipla, Sun Pharma, Piramal Healthcare Ltd, among others, whose primary business comes from generics. It is also a radical shift for Pfizer from its traditional business model of being an original and speciality pharmaceuticals manufacturer. Generics represent one of the fastest growth segments in the global pharmaceuticals market. This is particularly true in emerging markets where costs and access are primary drivers of growth. The Indian pharma market, driven largely by generics, has been growing at 14-15% over the past four years. Pfizer grew by 12% in 2008 and ended the year with revenue of Rs704 crore. The company follows a December-November fiscal year. Earlier this year, Pfizer Ltd had to cede control of at least four over-the-counter drugs, which are sold without a doctor’s prescription, to the local arm of Johnson and Johnson Inc. after an agreement between the parents of the two companies. Pfizer’s thinking is that the generic drug portfolio will help it boost revenue once it manages to succeed in semi-urban and rural markets with its competitive pricing.  Analysts and industry officials are more guarded in their reactions. A senior executive at a leading domestic generics manufacturer said: “It’s too early to get into a conclusion whether Pfizer’s move (will) make significant difference in the market, though any new brand in the generic market is a threat to the existing players.” He did not want to be identified as he is a senior manager with a firm that will now compete directly with Pfizer’s generics business. Kirit Gogri, a Mumbai-based analyst with brokerage Quant Capital, said that Pfizer’s generic push will “not make a significant impact on the competitors immediately because it may take longer for new products to get established”. Another Mumbai-based industry analyst with a foreign brokerage said Pfizer’s “doctor and trade detailing model” to push these products would definitely pose a threat to small and medium players. This analyst didn’t want to be identified. “Doctor and trade detailing” is a strategy in which firms such as Pfizer promote their products through endorsements by doctors, achieved through scientific detailing. The same approach is followed in the sales channel, unlike many generic drug makers who push sales through incentives such as price discounts. Pfizer Inc. in May had announced a licensing agreements with two Indian pharma ingredient manufacturers— Aurobindo Pharma Ltd and Claris Life Sciences Pvt. Ltd— strengthening its position in emerging markets and expanding its portfolio of products through a new business division, named established products business unit. The Indian company will also likely benefit from these deals. “We believe that the key factors that are required to succeed and grow share in this market are: strong brands; well trained field force; reaching customers effectively and a track record for quality products. We have a clear plan to leverage these strengths and gain competitive advantage,” the Pfizer spokesperson added. Source: World Business - Livemint.com | 10 Sep 2009 | 12:26 pm Buying Cadbury a complementary strategy for Kraft: 1HQCadburys is a brand led company, so they are not just buying capability in terms of a production or just a category, Kraft is buying a brand building capability which I think they need.Source: Moneycontrol Top Headlines | 10 Sep 2009 | 12:07 pm Indian tea exports to increase: GoodrickeIndian tea exports have not attracted the best prices but thanks to recent government initiatives, they would increase, Arun Singh, MD and CEO, Goodricke Group, said.Source: Moneycontrol Top Headlines | 10 Sep 2009 | 12:05 pm Government may offload 5 percent stake in NTPCState-run power utility NTPC Thursday said the government may sell up to 5 percent in the company before March.Source: IndiaeNews.com: Business News | 10 Sep 2009 | 12:02 pm Jet pilots hopeful of 'positive decision' soonStriking pilots of the Jet Airways late Thursday hoped of an early and 'positive decision' as they continued their talks with the management.Source: IndiaeNews.com: Business News | 10 Sep 2009 | 12:01 pm Kerala's IT sector to have 200,000 jobs in 5 years: officialKerala's IT sector will generate as many as 200,000 jobs in the next five years, state Chief Secretary Neela Gangadharan said Thursday.Source: IndiaeNews.com: Business News | 10 Sep 2009 | 11:33 am Airlines asked not to overcharge passengersCivil aviation authorities Thursday asked all airlines to restrain from raising fares when the Jet Airlines pilots are on strike.Source: IndiaeNews.com: Business News | 10 Sep 2009 | 11:32 am India's GSM subscriber base up 9.31 mnIndia's GSM customer base rose by 9.31 million in August, taking the total tally to 335.5 million, data released here Thursday said.Source: IndiaeNews.com: Business News | 10 Sep 2009 | 11:06 am Asia wealth managers grow as crisis crimps rivals in businessSingapore: Asia-Pacific banks are stepping up hiring private bankers and seeking acquisitions to grab market share in an industry so far dominated by foreign players such as UBS and Citigroup Inc. The bold moves signal a shift in the balance of power away from Western banks, suffering from massive credit losses and accusations that they sold toxic investments to rich clients. Banks in Singapore, Australia, China and Japan are also boosting wealth offerings to benefit from an increasing trend among the rich to invest in their home markets and in simpler financial products. The domestic banks are initially focusing on “high networth” individuals with $1-10 million (Rs4.8-48.4 crore) in assets, with an eye on the super rich as they expand in the fast growing markets of China, India and Indonesia. “There is a good window of opportunity for these guys to take market share,” said Bhalaji Raghavan, a senior adviser on banking in Asia at consultancy Capgemini. “If they continue to do well and execute well, I am sure they will gain momentum and become reasonably good banks.” The industry shake-up comes at a time when the rich, burned by bad investments, want better advice, transparency on what they are investing in and real-time data on their trading positions. A PricewaterhouseCoopers survey showed that for 53% of the rich their primary source of financial advice was their own research and knowledge, reflecting a “significant” lack of trust in private bankers. Assets of “high networth individuals” in Asia dropped 22% to $7.4 trillion in 2008, according to Merrill Lynch/Capgemini’s World Wealth Report 2009. Foreign banks, which have traditionally relied on offshore centres Singapore and Hong Kong to tap rich clients, are also under pressure to move their businesses onshore as a global fight against tax cheats forces countries around the world to ease strict banking secrecy laws. The weakness in the offshore model was thrust into the limelight after Switzerland agreed to reveal names of 4,450 wealthy American clients of UBS in a tax dispute settlement that pierces traditional Swiss banking secrecy. Asian banks are also looking at acquisition opportunities for growth as foreign private banks such as ING, hit by credit woes and a lack of scale, exit the region. ING, which did not even rank among the top 10 players in Asia’s private banking league table last year, is selling its Asian and Swiss units. Singapore’s DBS Group is one of the bidders, sources said. Even in larger economies like India, competition is heating up between foreign banks like Morgan Stanley and Deutsche Bank and home-grown wealth managers. “As the pie grows, Indian players will gain greater market share because this is a business where clients have to feel comfortable about a brand and knowing that the brand will exist in India for a further period of time,” said C. Jayaram, head of the wealth management arm of Kotak Mahindra Bank. Asian banks are trying to gain ground at a time when the rich may be looking to put more money into Asia. Foreign banks like UBS and Citigroup, meanwhile, are also not backing away from Asia, where they led the private banking league table last year. “The scale and depth of our business will enable us, simultaneously, to satisfy the demands of an increasingly stringent regulatory environment and the ever-changing needs of our clients as the region returns to growth,” said Christine Ong, head of UBS Wealth Management in Singapore. Source: World Business - Livemint.com | 10 Sep 2009 | 9:40 am General Motors picks Magna as buyer for European unitBerlin: A jubilant German Chancellor Angela Merkel said on Thursday that General Motors had agreed to sell its European unit Opel to her buyer of choice, two months after the US auto giant emerged from bankruptcy. “I would like to inform you that the head of the chancellery was informed a short time ago by (GM chief Fritz) Henderson that GM’s board has decided to sell Opel to (Canadian auto parts maker) Magna under the terms we had negotiated,” she told reporters. “I am exceptionally happy about this decision, which is along the lines of what the government wanted,” a visibly relieved Merkel, who is running for re-election this month, told reporters. The US automaker said in a statement that Magna and its partner, state-owned Russian bank Sberbank, would purchase a 55% stake in what it called “New Opel,” with the Detroit giant retaining 35%. Employees would hold 10%. Merkel took a healthy share of the credit for stitching up the deal to rescue Opel, which employs 50,000 people in Europe, half of them in Germany. The agreement gives the chancellor, who is already leading in the polls ahead of the 27 September election, a powerful political boost. “It has been demonstrated that the patience and determination of the government have paid off,” she said. “This was not easy. It is now possible for Opel and GM Europe to start afresh.” She added, however, that this “new beginning will not be easy.” Merkel had been pressing GM since May to sell the operations to Magna and the Kremlin-controlled Sberbank. To up the pressure, Berlin went as far as to offer a €4.5-billion ($6.5-billion) financing package—sweeteners that were not available to a rival bidder, Brussels-based investment group RHJ International. RHJ, which has major holdings in the automotive sector, was created in 2004 by the founder of US investment fund Ripplewood, Timothy Collins. Both Magna and RHJ had said they wanted to cut 10,000 jobs at Opel, which includes Vauxhall in Britain, but the German government believed that fewer cuts would happen under the Canadian-Russian bid. GM has owned Opel since 1929. Thursday’s deal involves all of GM’s European operations except Swedish unit Saab, which is being sold to Swedish sports car maker Koenigsegg and Beijing Automotive Industry Holding Co Ltd (BAIC). The US auto maker said there were still “several key issues” to be finalised over the coming weeks, but Merkel expressed confidence that the sale would go through. The board of GM—majority owned by the US government since the company emerged from bankruptcy in July—was also thought to have been considering keeping hold of Opel. The powerful head of Opel’s works council, Franz Klaus, had warned of a “cost-cutting orgy” if that came to pass, threatening protests if German factories were closed. “The question has often been asked whether it was right for the government to choose an investor so soon. I believe that it was completely right,” Merkel said. “I am confident, and I know that Opel still has a difficult road ahead of it, but I also know that the unbelievably well-motivated workers will now seize this with both hands.” Analysts said Merkel would reap the benefits of sticking her neck out in favour of Magna. Political scientist Nils Diederich from Berlin’s Free University told AFP, “It’s above all Mrs Merkel who will benefit from this success, because from a psychological point of view, the success of the government is always attributed to the head of government.” Source: World Business - Livemint.com | 10 Sep 2009 | 9:05 am GM has decided in principle to sell Opel: sourcesFrankfurt: General Motors has decided in principle to sell its European carmaker Opel, two people familiar with the negotiations told Reuters on Thursday. “They will sell it under conditions,” one of the sources said. GM is set to end months of suspense over the fate of its Opel unit and announce whether it plans to sell the European carmaker to one of two rival bidders, Canadian automotive supplier Magna or financial investor RHJ. GM Europe had no comment. GM said in a statement its board had taken a decision on Opel after a two-day meeting. A Sky News report, citing unnamed sources, said GM had taken a decision to keep the operation. Sources familiar with the proceedings told Reuters GM had dispatched its chief Opel negotiator John Smith to Berlin, where he was expected to brief the trust supervising Opel and German government officials before a news conference scheduled around 4:00pm. “General Motors’ board of directors approved a course of action for its Opel subsidiary and will be communicating its recommendation to the German government, other European governments, both bidders, employees and the Opel trust board over the next 24 hours,” GM said. It was not immediately clear what action the GM board had chosen after spending the past month weighing the merits of selling its European unit against the cost of keeping it. The decision is being closely watched in Germany, where Opel employ roughly half of its 50,000 European workers at four plants. It also has major sites in Belgium, Britain, Poland and Spain. Chancellor Angela Merkel, facing an election on 27 September, has thrown her weight behind Canadian auto parts group Magna’s bid for Opel, promising €4.5 billion ($6.6 billion) in government guarantees if GM opts for the Russian-backed offer. But GM management has said a rival bid by Brussels-listed RHJ International, which Berlin is refusing to help finance, would be easier to implement. Some elements within the GM board are known to have favoured keeping Opel. GM faced a dilemma with Opel because all of its choices carry risks. The carmaker is struggling to turn itself around under the majority ownership of the US government. Selling to Magna, as urged by the German government, was frowned upon by some GM executives because they feared it risked losing key small car technology and an edge in the fast-growing Russian auto market, people familiar with the deliberations have said. The Magna plan involves an equity stake in Opel for Russia’s Sberbank and a partnership with the Russian automaker GAZ Group. Source: World Business - Livemint.com | 10 Sep 2009 | 5:24 am Asia wealth players grow as crisis crimps rivalsSingapore: Asia-Pacific banks are stepping up hiring private bankers and seeking acquisitions to grab market share in an industry so far dominated by foreign players such as UBSand Citigroup. The bold moves signal a shift in the balance of power away from Western banks, who are suffering from massive credit losses and accusations they sold toxic investments to rich clients. Banks in Singapore, Australia, China and Japan are also boosting wealth offerings to benefit from an increasing trend among the rich to invest in their home markets and in simpler financial products. The domestic banks are initially focusing on “high net worth” individuals with $1-$10 million in assets, with an eye on the super rich as they expand in the fast growing markets of China, India and Indonesia. “There is a good window of opportunity for these guys to take market share,” said Bhalaji Raghavan, a senior adviser on banking in Asia at consultancy Capgemini. “If they continue to do well and execute well, I am sure they will gain momentum and become reasonably good banks.” The industry shake-up comes at a time when the rich, burned by bad investments, want better advice, transparency on what they are investing in and real-time data on their trading positions. A PricewaterhouseCoopers survey showed that for 53% of the rich their primary source of financial advice was their own research and knowledge, reflecting a “significant” lack of trust in private bankers. Assets of “high net worth individuals” in Asia dropped 22% to $7.4 trillion in 2008, according to Merrill Lynch/Capgemini’s World Wealth Report 2009. Foreign banks, who have traditionally relied on offshore centres Singapore and Hong Kong to tap rich clients, are also under pressure to move their businesses onshore as a global fight against tax cheats forces countries around the world to ease strict banking secrecy laws. The weakness in the offshore model was thrust into the limelight after Switzerland agreed to reveal names of 4,450 wealthy American clients of UBS in a tax dispute settlement that pierces traditional Swiss banking secrecy. Bold Moves Asian banks are also looking at acquisition opportunities for growth as foreign private banks such as ING, hit by credit woes and a lack of scale, exit the region. ING, which did not even rank among the top 10 players in Asia’s private banking league table last year, is selling its Asian and Swiss units. Singapore’s DBS Group, ranked the sixth biggest private bank in Asia by Calamander Capital in 2008, is one of the bidders, sources have told Reuters. In Australia, the “big four” banks are increasing their dominant share of the wealth business and some, like Australia and New Zealand Banking Group, are building a private banking business overseas. ANZ recently announced plans to hire more than 100 private bankers in Asia over the next 18 months, a small reversal to last year’s job losses that followed a hiring binge between 2004 to mid-2007 when job-hopping and poaching were widespread. Bigger rival National Australia Bank bought Aviva’s wealth management business in Australia, and in July agreed to buy 80.1% of Goldman Sachs JBWere’s private wealth business in Australia and New Zealand. China’s major banks have all launched private banking operations over the past three years, with Bank of China taking the lead in March 2007. The lender is keen to expand in Asia to target Chinese and ethnic Chinese clients. Even in larger economies like India, competition is heating up between foreign banks like Morgan Stanley and Deutsche and home-grown wealth managers. Consultant Celent estimates informal wealth managers such as small brokers and investment advisers control 1.5 times the assets managed by bigger institutions like the private banks. “As the pie grows, Indian players will gain greater market share because this is a business where clients have to feel comfortable about a brand and knowing that the brand will exist in India for a further period of time,” said C. Jayaram, head of the wealth management arm of Kotak Mahindra Bank. Asian banks are trying to gain ground at a time when the rich may be looking to put more money into Asia. The Merrill Lynch/Capgemini report said 68% of overall investment by the rich in Asia-Pacific was in their home markets last year, a level second only to North America’s 81%. “We are excited about the possibility of becoming a bigger player in Asia as it grows in stature in the global market,” said Kwong Kin Mun, DBS head of private banking for Southeast Asia. “In line with DBS’ regional strategy, we also see tremendous wealth creation in countries ranging from China to Indonesia and are keen to make further inroads there.” Foreign banks like UBS and Citigroup, meanwhile, are also not backing away from Asia, where they led the private banking league table last year. “The scale and depth of our business will enable us, simultaneously, to satisfy the demands of an increasingly stringent regulatory environment and the ever-changing needs of our clients as the region returns to growth,” said Christine Ong, head of UBS Wealth Management in Singapore. Source: World Business - Livemint.com | 10 Sep 2009 | 3:47 am Chevron signs $60 bn Australia LNG export dealPerth: US oil firm Chevron has sealed an estimated A$70 billion ($60 billion) worth of gas deals with three North Asian buyers for its massive Gorgon project in Australia, paving the way for a final investment decision in coming weeks. The $42-billion Gorgon project, awaiting final approval from Chevron and its partners, is expected to be given the go ahead by the middle of this month with the sealing of the gas deals. Chevron said on Thursday it would sell Osaka Gas 1.375 million tonnes of LNG per annum (mtpa) over 25 years, and Tokyo Gas 1.1 million tonnes. GS Caltex in South Korea will buy 0.5 million tonnes for up to 20 years. Chevron, which has an unfinalised sales agreement with Chubu Electric for 1.5 mtpa, still has about 3 mtpa of uncontracted gas from Gorgon and said it expects further LNG sales from the project in coming months. “China will probably have appetite for more LNG and South Korea’s Kogas has also expressed interests in buying gas and taking equity in projects, so that’s probably where the rest of Chevron’s gas could go,” said Stuart Baker, an energy analyst at Morgan Stanley. Under the agreement, Chevron will also sell an equity share of 1.25% in the Gorgon project to Osaka Gas and another 1% to Tokyo Gas, reducing Chevron’s stake to 47.75%. Chevron did not disclose the financial details of the LNG and equity sales, but Australian Prime Minister Kevin Rudd said separately that Chevron’s sales agreement would be worth more than A$70 billion ($60 billion) of exports over 25 years. “This is a massive project that will deliver economic growth, income, jobs, prosperity for the nation for decades to come,” Australia Prime Minister Kevin Rudd said. Chevron’s latest gas sales from Gorgon, which finalises agreements first reached in 2005, comes on the heels of a A$50 billion export deal inked by partner ExxonMobil Corp with Chinese state-owned PetroChina last month, and brings total gas sales from the project to an estimated A$200 billion. The proposed 15 million tonnes per annum (mtpa) Gorgon project, which has seen years of delay amid environmental concerns, comprises three production trains and a gas plant for the domestic market. ExxonMobil and Royal Dutch Shell each hold a 25 percent stake in the project. With the Asia-Pacific region seeing around a dozen proposed LNG projects, many of which are racing to come onstream in the 2014-2015 timeframe, some analysts say the global LNG market was unlikely to be able to accommodate all these new capacities. They said projects that failed to secure buyers would be quickly deferred. “A lot of operators have been very optimistic about an explosion of demand, but we hold a more conservative view that demand growth would be slower than expected,” said an analyst who declined to be identified. “If even four of five of the proposed projects around Australia get developed, that would bring more than enough supplies to meet demand,” he said. Gorgon, which will be underpinned by 40 trillion cubic feet of gas resources off western Australia, would be Australia’s largest-ever resources development and is expected to create about 6,000 jobs at its peak and inject about A$33 billion ($28 billion) into the economy. Chevron has not announced an estimated cost for the project, but Australian government officials have put it at about A$50 billion. Source: World Business - Livemint.com | 10 Sep 2009 | 2:50 am GM board shakes up management, moves on OpelDetroit /Frankfurt: General Motors Co shook up its management and dispatched a negotiator on the sale of its Opel unit to Berlin after a watershed two-day board meeting under the direction of Chairman Ed Whitacre, people familiar with the proceedings said. GM’s 13-member board endorsed the departure of GM’s chief financial officer, a new marketing campaign aimed at winning back skeptical US consumers and a still-sealed decision on Opel that will be conveyed to German officials on Thursday, the sources said. As part of the board review, CFO Ray Young, will leave the automaker after an 18-month stint that included a failed effort to avoid bankruptcy, according to the sources, who were not authorized to discuss the situation. Meanwhile, John Smith, the GM executive who has headed months of negotiations with the German government and two potential bidders for GM’s Opel unit, was on his way to Berlin, the sources said. Smith will brief the German trust supervising Opel and German government officials before news conferences scheduled for Thursday in Germany, the sources said. It was not immediately clear what action the GM board had taken on Opel after spending the past month weighing the merits of selling the European unit against the cost of keeping it. A group led by Canadian auto group Magna International has a promise for the financial backing of the German government to take control of Opel. Brussels-listed RHJ International has a rival bid that GM management has said would be easier to implement. On Monday, financial adviser KPMG presented a report to GM’s board that said the automaker’s management had used “overly optimistic” assumptions when it prepared an earlier estimate of the cost of keeping Opel. German labor and government officials ratcheted up the pressure on GM to take some action at this week’s board meeting after the board deferred a decision last month. Magna Chairman Frank Stronach said earlier on Wednesday that he expected a GM decision on Opel within the next few days or weeks. Magna remains interested in Opel and would not try to buy other automakers if its bid fell through, Stronach said. The German government said earlier in the day that it expected GM to repay a £1.5 billion ($2.2 billion) state loan if the automaker called off the sale of its Opel unit. KPMG said GM would need up to $6.1 billion in cash to keep Opel, more than the $4.65 billion it had estimated as late as June, according to a copy of the report presented to the board at the meeting in Detroit. Opel’s fate has become a hot-button political issue in Germany ahead of elections looming at the end of the month since some 25,000 jobs in Germany depend on the GM unit. No Easy Choices Analysts say GM faced a dilemma with Opel since any of the choices carried risks for an automaker struggling to turn itself around under the majority ownership of the U.S. government. Selling to Magna, as urged by the German government, was seen by some GM executives as risking key small car technology and an edge in the fast-growing Russian auto market, people familiar with the deliberations have said. The Magna plan involves an equity stake in Opel for Russia’s Sberbank and a partnership with the Russian automaker GAZ Group. On the other hand, GM’s European operations lost $2.8 billion in 2008 and the long-running debate over Opel’s fate in Europe has cost the U.S. automaker goodwill with organized labor and other stakeholders, analysts said. The Magna deal is also the only one of the Opel options that could be quickly implemented, people familiar with the board deliberations said. The meeting of GM’s board was just the second time directors have met after the automaker emerged from bankruptcy with $50 billion in US government financing in July. GM’s corporate culture, recent financial missteps and the oversight of its previous board had all come in for sharp criticism during the US government bailout of the automaker. Chief executive Fritz Henderson, who took his post in late March when his predecessor Rick Wagoner was ousted by the Obama administration, has pledged to make the company less bureaucratic and faster-moving. Young, a 23-year GM veteran, had ascended the ranks at the automaker as a financial manager and was part of a small team under Henderson charged with key decisions on strategy. Bob Lutz, 77, a GM vice-chairman, is also a member of that committee after taking up the assignment of revamping the automaker’s marketing efforts. Lutz has said GM would take direct aim at rivals in upcoming ads for its Chevy, Buick, Cadillac and GMC brands in order to challenge consumer perceptions that its vehicles lag on quality or fuel economy. Part of the GM board meeting this week was devoted to reviewing those plans for the new harder-edged marketing campaign, one person briefed on the discussions said. GM’s US sales have plunged 35% through August and it failed to gain as much as rivals from the US government’s “Cash for Clunkers” incentive program. Source: World Business - Livemint.com | 10 Sep 2009 | 2:44 am
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