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Inside story: Sources reveal why BhartiMTN deal failedCNBCTV18 learns from sources that the SA Treasury wrote to MTN on September 11 insisting that for the deal to go through, the potential merged company should remain domiciled in South Africa and must be listed in both companies, something that was not a possibility under existing Indian laws.Source: Moneycontrol Top Headlines | 1 Oct 2009 | 8:29 am LT Foods looks to dilute 14% equity via pref share issueAshwani Arora, Joint MD of LT Foods earlier known as LT Overseas, exporter of Basmati Rice Cereals, Grains and Flours said that company was planning preference share issue of 38.4 lakh shares, that would be a 14% dilution.Source: Moneycontrol Top Headlines | 1 Oct 2009 | 7:32 am Tanker rates rise, but still lower than last yr: Varun ShipTanker rates have improved slightly in the last fortnight, says Yudhishthir Khatau, MD, Varun Shipping. However, they are still 6570% below last years levels, he adds.Source: Moneycontrol Top Headlines | 1 Oct 2009 | 7:08 am Mixed feelings on MTN-Bharti deal end!Parting of ways by Indian cellular major Bharti Airtel and South African mobile giant MTN on Tuesday after 18-month long merger talks has elicited mixed feelings among investment advisors here.Source: Zee News : Business | 1 Oct 2009 | 6:03 am US superrich lose 300 bn dlrs in a year: Forbes!The wealthiest Americans are getting poorer, losing 300 billion dollars of their net worth over the past 12 months, according to an annual Forbes magazine ranking released.Source: Zee News : Business | 1 Oct 2009 | 6:03 am Nifty crosses 5,100-mark, Sensex extends gain!national stock exchange index Nifty crossed the crucial 5,100-points level in early morning trade while the BSE benchmark Sensex rose over 68 points on sustained buying by funds.Source: Zee News : Business | 1 Oct 2009 | 6:03 am Japan`s business confidence grows: BoJ!Japanese business confidence has improved for a second straight quarter, according to the Bank of Japan.Source: Zee News : Business | 1 Oct 2009 | 6:03 am Manufacturing growth picks up in Sept: PMI!The pace of India`s manufacturing activity rose in September, recovering from a drop to a five-month low in August, as domestic demand and robust factory orders picked up, a survey showed.Source: Zee News : Business | 1 Oct 2009 | 6:03 am More than 18,000 H-1B visas yet to be grabbed!Reflecting the dire straits of the job market and strict regulations imposed by the US Congress, more than one-fourth of the H-1B, once the most sought after visas, is yet to be grabbed.Source: Zee News : Business | 1 Oct 2009 | 6:03 am Maruti sales up 17.3% in September!Car maker Maruti Suzuki India on Thursday reported 17.3 percent jump in sales for September at 83,306 units.Source: Zee News : Business | 1 Oct 2009 | 6:03 am MTN thanks India, South African govt for support!Telecom major MTN on Wednesday thanked the Indian and the South African governments for "co-operation and supportive approach" for the proposed merger with Bharti Airtel, which could not take off.Source: Zee News : Business | 1 Oct 2009 | 6:03 am BofA CEO out by year`s end, search on for successor!Bank of America Corp CEO Kenneth Lewis announced he was retiring, after months of being dogged by a series of government investigations into the company`s acquisition of Merrill Lynch last year.Source: Zee News : Business | 1 Oct 2009 | 6:03 am Normalcy restored in AI, 18 flights take off!Operations of Air India returned to normal Thursday with 18 of its flights taking off from Delhi.Source: Zee News : Business | 1 Oct 2009 | 6:03 am Festive season booms: Dena Bk cuts housing int rates to 8%Dena Bank too is offering reduction in housing loan rates. \"We have reduced the rates to 8% for the first two years,\" says the companys Chairman DL Rawal.Source: Moneycontrol Top Headlines | 1 Oct 2009 | 5:56 am Maruti Suzuki hopes to sell 30,000 AStars in FY10Maruti Suzuki is currently working at maximum capacity, RC Bhargava said adding that it hopes to sell 30,000 AStars in FY10.Source: Moneycontrol Top Headlines | 1 Oct 2009 | 5:38 am Aircel to lease towers from BSNL - Reuters India
Source: Business - Google News | 1 Oct 2009 | 4:22 am Web18 Holdings to raise USD 10 mnWeb 18, the internet arm of TV18 is raising USD 10 million, as strategic growth capital from NGP II Mauritius. TV18 will obtain necessary approvals, if any, in relation to the aforesaid strategic investment.Source: Moneycontrol Top Headlines | 1 Oct 2009 | 4:19 am BSE Sensex provisionally falls 0.06 pct, Bharti gainsMUMBAI (Reuters) - The BSE Sensex provisionally fell 0.06 percent on Thursday, as weak U.S. manufacturing data raised concerns about the global economy and dragged down markets worldwide.Source: Reuters: Money News | 1 Oct 2009 | 4:15 am Capital markets feel economic squeeze - RBC reportTORONTO (Reuters) - Activity in global capital markets may be flat or even lower next year as the world economy struggles to pull out of recession, according to a survey released Thursday by RBC Capital Markets.Source: Reuters: Money News | 1 Oct 2009 | 4:14 am Aircel to lease towers from BSNLNEW DELHI (Reuters) - Aircel, India's seventh-ranked mobile operator, on Thursday said it had signed a 10-year agreement with Bharat Sanchar Nigam Ltd to use the state-run firm's around 45,000 mobile towers.Source: Reuters: Money News | 1 Oct 2009 | 4:13 am Indian rupee near 2-mth high on export flows - Reuters India
Source: Business - Google News | 1 Oct 2009 | 4:10 am Gulf Oil enters into agreement with Biocon to sell pharma biz - Business Standard
Source: Business - Google News | 1 Oct 2009 | 4:09 am India's Ambuja Cements Sept shipments slip - Reuters India
Source: Business - Google News | 1 Oct 2009 | 4:09 am SBI cuts deposit rates by 25 bpsMUMBAI (Reuters) - State Bank of India, the country's top lender, said on Thursday it would cut deposit rates by 25 basis points across maturities from Oct. 5.Source: Reuters: Money News | 1 Oct 2009 | 4:03 am Rupee near 2-mth high on export flowsMUMBAI (Reuters) - The rupee held at a near two-month high on Thursday afternoon, after exporters sold dollars on expectations of a near-term rise in the local unit and traders eyed local equities for cues on capital inflows.Source: Reuters: Money News | 1 Oct 2009 | 4:02 am Bharti, MTN shares jump after deal called offJohannesburg: Shares in South African mobile firm MTN and India’s Bharti Airtel rose on Thursday, a day after political and regulatory concerns caused the groups’ potential $24 billion tie-up to collapse. MTN shares rallied on relief that the transaction, which would have created the world’s third-biggest mobile operator, was called off, as many investors had wanted a higher valuation for MTN than Bharti had offered. “We are quite positive (about) the deal (being) called off. We thought that the deal in its initial format, the price (for MTN) was not high enough,” said Pallavi Ambekar, a fund manager at Coronation Fund Managers. Also Read | Bharti-MTN: Missed call (Timeline) Bharti shareholders would now be able to refocus on the firm’s business profile, which one player said looked healthy. Macquarie analysts led by Shubham Majumder said in a research note: “With the MTN deal overhang removed the market will return its focus to Bharti business fundamentals, which we see as compelling,” Bharti shares were up 4.2% to Rs436.5 by 2:36 pm, down from a high at Rs467. The 30-share BSE index was 0.1% higher. MTN was 4.6% higher at 127.84 rand, outpacing a firmer JSE Top-40 index of blue chips. MTN requested the Johannesburg Stock Exchange to suspend trading in its shares on Wednesday afternoon after news of the collapse in talks pushed its stock down as much as 3.5% to 119 rand. Talks between Bharti and MTN collapsed for the second time in just over a year on Wednesday over South Africa’s reluctance to allow a flagship company to lose its national character. The tie-up, which faced close scrutiny from regulators and politicians, could have led to a full-blown merger. MTN shares opened 1.84% higher and rallied as much as 3.86% in the first 90 minutes of trade on Thursday. Around 7.1 million shares were traded — 116% of the stock’s 30-day daily average trading volume. Source: Home - Livemint.com | 1 Oct 2009 | 3:51 am 27% fewer applicants for CAT, deadline extended - Economic Times
Source: Business - Google News | 1 Oct 2009 | 3:42 am Sensex see-saws; Oil & gas, pharma, auto down - Moneycontrol.com
Source: Business - Google News | 1 Oct 2009 | 3:39 am ABG Shipyard gears up to match Bharati’s open offerNew Delhi: Ship building firm ABG Shipyard is getting ready to counter the offer price of rival Bharati Shipyard to acquire offshore drilling company Great Offshore. “ABG Shipyard will definitely come up with a counter offer but with the SEBI approval for its open offer expected soon, they are holding their cards close to the chest as far as the pricing is concerned,” a source close to the development said. On September 16, Bharati Shipyard acquired 3.01% stake in Great Offshore from the open market with the highest share price at Rs560, as a result of which the open offer price for acquiring Great Offshore has been revised to Rs560 per share. The transaction was carried out through its sister concern Dhanshree Properties Pvt Ltd. With the latest acquisition, Bharati Shipyard along with its group firm now holds 22.48% stake in Great Offshore. The stock market regulator is likely to approve open offer by both ABG and Bharati to acquire Great Offshore soon. Source: LatestNews-Home - Livemint.com | 1 Oct 2009 | 3:36 am Rupee near 2-month high on export flowsMumbai: The Indian rupee held at a near two-month high on Thursday afternoon, after exporters sold dollars on expectations of a near-term rise in the local unit and traders eyed local equities for cues on capital inflows. At 3:20pm, the rupee was at Rs47.72/73 per dollar, stronger than Tuesday’s close of Rs48.10/11. The market was closed on Wednesday for fiscal half-year book closing. It rose to as high as Rs47.70 in intraday trade, its highest since 10 August. Indian shares seesawed after opening stronger, but shares in Bharti Airtel rallied after the mobile operator’s talks on a planned tie-up with South Africa’s MTN collapsed. In the currency futures market the most traded near-month contracts were at Rs47.8075 on the National Stock Exchange and MCX-SX, from Friday’s Rs48.10. Source: Home - Livemint.com | 1 Oct 2009 | 3:36 am Markets stay volatile, Sensex marginally upTrading at Indian equities markets continued to be volatile Thursday, with a key index marginally up about an hour before the closing bell.Source: IndiaeNews.com: Business News | 1 Oct 2009 | 3:31 am Mixed feelings on MTN-Bharti deal endJohannesburg: Parting of ways by Indian cellular major Bharti Airtel and South African mobile giant MTN on Tuesday after over 4-month (reportedly) long merger talks has elicited mixed feelings among investment advisors here. While, the announcement that the telcos had mutually agreed to end discussions on a possible merger that would have created the world’s third largest mobile company did not surprise Investec Asset Management advisor Chris Stewart, who predicted it a week ago. Vestec MD Paul Therombie, a strong supporter of the deal, expressed disappointment that discussions had ended. “I think we’ve been vindicated seven days further on,” Stewart said in a discussion on the issue here on radio. “We were always sceptical of the deal taking place,” he said, adding “getting the regulatory approvals and getting the deal structure right was only the first hurdle. The other would have been convincing MTN shareholders that the price was appropriate and that hurdle had not even been approached yet”. Stewart said in a deal of this nature, there was always a desire to compensate South African shareholders with scrip which tended to be listed offshore. Unless one can arrange some sort of dual listing programme, than those shares typically count for an individual’s offshore allowance and given exchange control regulations it’s quite difficult sometimes for South African shareholders to accept those terms, said Stewart. Source: LatestNews-Home - Livemint.com | 1 Oct 2009 | 3:25 am Bharti, MTN shares jump after deal called offJOHANNESBURG (Reuters) - Shares in South African mobile firm MTN and Bharti Airtel rose on Thursday, a day after political and regulatory concerns caused the groups' potential $24 billion tie-up to collapse.Source: Reuters: Money News | 1 Oct 2009 | 3:17 am Prakash Ind to issue overseas convertible bonds; stk down - Moneycontrol.com
Source: Business - Google News | 1 Oct 2009 | 3:15 am Sector update: Pharma SummitWe expect the US market to remain the largest market for generics. Indian companies are looking at products with high technological barriers and limited competition to generate steady cash-flows. On the domestic front, we expect companies with higher proportion of chronic and lifestyle product sales, better supply chain management and higher Revenue per sales force to lead the pack. Click to read complete report We continue to favour the CRAMS Segment. Currently, however, the Segment is witnessing near-term hiccups by way of inventory de-stocking at the Innovator’s end, which is expected to last for few more quarters. Over the longer term, we expect this space to witness secular growth. CROs with presence in multiple geographies and providing a full range of services will be the key differentiators. We expect Out-licensing and Collaborative Research to be adopted by the Indian companies engaged in NCE Research given the substantial financial requirement and low success rate. In the Biopharma space, though EU, Japan and other developed markets have approved legislation for biosimilars, regulatory clarity in the US market would be a major catalyst for further investments in the Segment. Our preferred picks in the Pharma Sector are Cadila Healthcare, Lupin, Piramal Healthcare and Ipca Labs. Source: LatestNews-Home - Livemint.com | 1 Oct 2009 | 3:14 am DLF reshuffles top managementNew Delhi: Aiming to strengthen the top-brass of the company, realty major DLF has reshuffled its managerial team and has appointed Ashok Tyagi as the Group CFO effective from on Thursday. “To ensure that we are geared to exploit several growth opportunities while retaining strong focus on risk minimization, the following organisational changes come into effect from today,” DLF said in a statement. Tyagi, besides being the Group CFO, would also head the commercial functions of the development vertical. The major organisational changes include A.S. Minocha, who would now be the non-executive chairman of rental business and the Chairman of DLF Pramerica along with being the director of DLF Metro JV, chairman of DLF Golf Resorts and lead DLF Hotels. Meanwhile, Ramesh Sanka has been promoted as managing director of the office business and would also be responsible for support functions, including finance and IT. DLF further said Saurabh Chawla would continue to lead the investor relations and structured treasury functions. Sriram Khattar would co-ordinate the VC’s office and would be responsible for the legal compliances, financial risk management and key M&A initiatives across the group. “The above changes reinforce our faith in the company’s core strength... with the leadership provided by the above team, we would be able to successfully meet the challenges that lie ahead of us,” the company added. Source: Home - Livemint.com | 1 Oct 2009 | 3:10 am IMF sees stronger Middle East growth in 2010 - Reuters India
Source: Business - Google News | 1 Oct 2009 | 3:08 am India's exports dip between April and AugustIndia's exports in the five months since April have dipped 31 percent in dollar terms and 20.4 percent in rupee terms, government data released Thursday said.Source: IndiaeNews.com: Business News | 1 Oct 2009 | 3:00 am Gold demand abates as prices jumpMumbai: India gold demand abated on Thursday on an overnight jump in prices, after picking up for a few previous sessions, dealers said. “The sudden jump in prices is alarming traders. They don’t want to get stuck with stocks priced above $1,000 (an ounce),” said a dealer with a private bank in Mumbai. International spot gold traded at $1,005.40/1,006.40 as against $1,006.70/1,008.70 at 2:31pm, after gaining 1.6% in the previous session, when a weak dollar overseas supported the yellow metal. Dealers said traders were still hunting for bargains to replenish stocks for the upcoming festivals and weddings. “There are orders at $995 (an ounce). They all want to buy for festivals,” said another dealer with a state-run bullion dealing bank. India, the world’s largest consumer, is in the midst of the festival and wedding season, with Diwali and Dhanteras due next month, which is expected to revive sagging gold sales. India’s gold imports in September were provisionally around 35-40 tonnes, up from August but down by more than a quarter from 54 tonnes a year ago, the head of the Bombay Bullion Association (BBA) said. Source: Home - Livemint.com | 1 Oct 2009 | 2:57 am Inflation rises to 0.83%; FM concerned - Moneycontrol.com
Source: Business - Google News | 1 Oct 2009 | 2:56 am Second quake shakes Indonesia, kills 529Padang, Indonesia: A second powerful earthquake rocked western Indonesia on Thursday as rescuers struggled to reach survivors of the previous day’s quake, which killed more than 500 people and left thousands trapped under collapsed buildings. The death toll from Wednesday’s 7.6-magnitude earthquake off Sumatra island was expected to rise as rescuers dig through the rubble, sometimes by hand, in heavily populated cities. The latest, 6.8-magnitude quake damaged hundreds of additional buildings, and communications remained cut in some areas. “Let’s not underestimate (the disaster). Let’s be prepared for the worst. We will do everything we can to help the victims,” President Susilo Bambang Yudhoyono said in Jakarta before flying to Padang. A total of 529 people were confirmed dead and 440 were seriously injured, the Social Affairs Ministry’s crisis center said. It said 376 deaths occurred in Padang, a coastal city of 900,000 and capital of West Sumatra province. The rest were in four surrounding districts. Thousands were believed trapped, said Rustam Pakaya, head of the Health Ministry’s crisis center. A foot could be seen sticking from one pile of rubble. The president ordered the military to deploy all its crisis centers in Jakarta, West Sumatra and North Sumatra provinces and said the military will provide earth-moving equipment to clear the rubble. Padang became the immediate focus of rescue efforts. At least 500 buildings in the city collapsed or were badly damaged in Wednesday evening’s quake, which also set off fires, said Disaster Management Agency spokesman Priyadi Kardono. Terrified residents who spent a restless night, many sleeping outdoors, were jolted by the new quake Thursday morning. The US Geological Survey said the quake hit about 150 miles (240 kilometers) south of Padang. It damaged 1,100 buildings, including mosques and homes, in Jambi, according to Mayor Hasfiah, who uses only one name like many Indonesians. He said there were no deaths but dozens of people were injured. In Padang, collapsed or seriously damaged buildings included hospitals, mosques, a mall and a school. TVOne network footage showed heavy equipment breaking through layers of cement in search of more than 30 students it said were missing from the school, where they were taking after-school classes. Parents of missing students stayed up all night, waiting for signs of life. “My daughter’s face keeps appearing in my eyes ... my mind. I cannot sleep, I’m waiting here to see her again,” a woman who identified herself only as Imelda told TVOne, tears rolling down her face. She said her 12-year-old daughter Yolanda was in the school for science lessons. “She is a good daughter and very smart. I really love her. Please, God help her,” she said. At least 80 people were missing at the 5-story Ambacang hotel in downtown Padang, said Indra, a paramedic. Rescuers, working in heavy rain, found two survivors and nine bodies in the rubble. Thousands fled Wednesday’s quake in panic, fearing a tsunami. The shaking was so intense that people crouched or sat on the street. Children screamed as thousands of frantic residents fled in cars and motorbikes, honking horns. The quake caused buildings to sway hundreds of miles (kilometers) away in Malaysia and Singapore. The quake severed roads and cut off power and communications to Padang, and the extent of damage in surrounding areas was still unclear. Indonesia, a poor, sprawling nation, sits on a major geological fault zone and is frequently hit by earthquakes. The latest quakes were along the same fault line that spawned the 2004 Asian tsunami that killed 230,000 people in a dozen nations. Geologists said the Indonesia quakes were not related to another deadly quake Tuesday that hit islands in the South Pacific. Padang’s mayor appealed for assistance on Indonesian radio station el-Shinta. “We are overwhelmed with victims and ... lack of clean water, electricity and telecommunications,” mayor Fauzi Bahar said. “We really need help. We call on people to come to Padang to evacuate bodies and help the injured.” Finance minister Sri Mulyani said the government has allocated $25 million for a two-month emergency response. She said the earthquake will seriously affect Indonesia’s economic growth, because West Sumatra is a main producer of crude palm oil. “This region has been damaged seriously, including its infrastructure,” Mulyani said. Associated Press writers Ali Kotarumalos and Niniek Karmini in Jakarta contributed to this report. Source: LatestNews-Home - Livemint.com | 1 Oct 2009 | 2:50 am Inflation rises to 0.83 per cent on higher food pricesProcessed food items rose further from last week. Their prices were up 13.13 per cent on yearly basis as sugar turned dearer by 44.47 per cent.Source: Daily News & Analysis: Money News | 1 Oct 2009 | 2:45 am Bharti-MTN: Missed callTie-up talks to create a global giant in mobile communications ended in failure on Wednesday. Bharti Airtel, India’s largest mobile operator, and MTN, Africa’s biggest telecom firm, called off four months of talks the day the exclusive nature of the negotiations lapsed. The exclusive talks had been extended twice since they started on 25 May, a year after the two phone firms gave up their first merger attempt. Both companies are now likely to look for alternative partners.  Bharti Airtel’s chairman Sunil Mittal. (File photo) In May 2008, Bharti and MTN broke off discussions over the issue of control. This time the dual listing condition proved to be the deal-breaker. Read below a timeline of negotiations since May 2008 30 Sept 2009: South Africa rejects merger; big setback to Sunil Mittal firm’s ambition of becoming global telecom force. Read story Quick Edit | One reason to be happy 29 Sept 2009: The extended deadline for exclusivity of negotiations between the telecom groups ends 30 September. Read story 29 Sept 2009: The deal is now believed to be in the hands of politicians, who are broadly supportive of the proposal; if it falls through, the parties may well look at other potential partners. Read story Also See | The Bharti-MTN Saga (PDF) 27 Sept 2009: India’s market regulator should play more of a proactive role than a reactive one and should address issues not using a multiplicity of regulations but with a simplified set of norms. Read story 22 Sept 2009: Amendment of takeover rules by market regulator may determine prospects for proposed telecom deal. Read story 21 Sept 2009: The tangle does point to a problem: Indian companies are trying to globalize at a faster pace than the underlying legal structure, such as capital controls, allows them to. Read story 17 Sept 2009: The Bharti-MTN transaction, which would create the world’s third largest mobile group by subscribers, is subject to an end-September deadline. Read story 16 Sept 2009: Proposed Companies Amendment Bill, Fema need to be changed; deal would also require full rupee convertibility. Read story Sept 14 2009: Independent Communications Authority of South Africa says it needs to be notified before the transaction is concluded. Read story 13 Sept 2009: Bharti and MTN are in exclusive talks till 30 September for a potential $23-billion deal that would create a combined entity having more than 200 million subscribers. Read story 11 Sept 2009: Cash part up by a third to $10 billion, say sources; Overall package up by 7%; ‘Fair chance’ of getting 75% MTN s’ holder OK: HSBC. Read story 20 August 2009: Exclusivity period extended to 30 Sep; the firms may have given themselves more time to structure the deal. Read story 14 August 2009: Bharti Airtel will have to restructure its operations in India once it signs the deal to eventually merge with MTN so as to separate its Indian operations from the global entity. Read story 3 August 2009: Bharti could increase its cash offer per share to make the deal more attractive. Read story 3 August 2009: Bharti Airtel chairman Sunil Mittal’s willingness to own a lesser stake in a larger company rather than a much larger stake in a much smaller company sets him apart from several other entrepreneurs. Read story 30 July 2009: Four possible scenarios in deal for world’s third largest telecom services provider with at least 200 mn customers. Read story 30 June 2009: The chief executive of MTN’s biggest shareholder, state pension fund Public Investment Corporation said that the fund supported the talks but there was “room for improvement” on the price. Read story 2 June 2009: PIC CEO says supports deal in principle; room for improvement on price, expects further discussion. Read story 26 May 2009: The Bharti Airtel-MTN merger deal is proof of the emerging market multinational, which could avoid the struggles multinationals from the US, Japan and Europe face in emerging markets. Read story 26 May 2009: Bharti says not yet determined how to raise funds; Bharti, MTN shares fall on dilution fears; Pranab Mukherjee welcomes proposed deal. Read story 26 May 2009: If concluded, an RCom-MTN merger — the valuations of the two firms are a combined $66 billion — would be the largest cross-border deal in Indian corporate history. Read story 25 May 2009: Indian telco chalks out complex cash-equity $23 billion deal with African co; target: No. 3 spot in global market. Read story 24 May 2009: Bharti Airtel has pulled out of negotiation for acquiring an estimated $45-50 billion MTN, saying the South African telecom entity deviated from agreed terms. Read story 18 July 2008: Mutual agreement to end exclusive talks comes in face of legal and regulatory hurdles; older Ambani’s claim. Read story 9 July 2008: RCom, MTN had first announced start of a 45-day exclusivity period on 26 May. Read story 13 May 2008: The attempts by Bharti Airtel to reassure investors come on the heels of the company’s valuation dropping $3.33 billion between 5 May and Monday. Read story Quick Edit | The Made in India model 5 May 2008: Rival suitors may push up acquisition price; may take up to an year before any progress is made in negotiations. Read story Source: World Business - Livemint.com | 1 Oct 2009 | 2:43 am Bharti-MTN: Missed callTie-up talks to create a global giant in mobile communications ended in failure on Wednesday. Bharti Airtel, India’s largest mobile operator, and MTN, Africa’s biggest telecom firm, called off four months of talks the day the exclusive nature of the negotiations lapsed. The exclusive talks had been extended twice since they started on 25 May, a year after the two phone firms gave up their first merger attempt. Both companies are now likely to look for alternative partners. Bharti Airtel’s chairman Sunil Mittal. (File photo) In May 2008, Bharti and MTN broke off discussions over the issue of control. This time the dual listing condition proved to be the deal-breaker. Read below a timeline of negotiations since May 2008 30 Sept 2009: South Africa rejects merger; big setback to Sunil Mittal firm’s ambition of becoming global telecom force. Read story Quick Edit | One reason to be happy 29 Sept 2009: The extended deadline for exclusivity of negotiations between the telecom groups ends 30 September. Read story 29 Sept 2009: The deal is now believed to be in the hands of politicians, who are broadly supportive of the proposal; if it falls through, the parties may well look at other potential partners. Read story Also See | The Bharti-MTN Saga (PDF) 27 Sept 2009: India’s market regulator should play more of a proactive role than a reactive one and should address issues not using a multiplicity of regulations but with a simplified set of norms. Read story 22 Sept 2009: Amendment of takeover rules by market regulator may determine prospects for proposed telecom deal. Read story 21 Sept 2009: The tangle does point to a problem: Indian companies are trying to globalize at a faster pace than the underlying legal structure, such as capital controls, allows them to. Read story 17 Sept 2009: The Bharti-MTN transaction, which would create the world’s third largest mobile group by subscribers, is subject to an end-September deadline. Read story 16 Sept 2009: Proposed Companies Amendment Bill, Fema need to be changed; deal would also require full rupee convertibility. Read story Sept 14 2009: Independent Communications Authority of South Africa says it needs to be notified before the transaction is concluded. Read story 13 Sept 2009: Bharti and MTN are in exclusive talks till 30 September for a potential $23-billion deal that would create a combined entity having more than 200 million subscribers. Read story 11 Sept 2009: Cash part up by a third to $10 billion, say sources; Overall package up by 7%; ‘Fair chance’ of getting 75% MTN s’ holder OK: HSBC. Read story 20 August 2009: Exclusivity period extended to 30 Sep; the firms may have given themselves more time to structure the deal. Read story 14 August 2009: Bharti Airtel will have to restructure its operations in India once it signs the deal to eventually merge with MTN so as to separate its Indian operations from the global entity. Read story 3 August 2009: Bharti could increase its cash offer per share to make the deal more attractive. Read story 3 August 2009: Bharti Airtel chairman Sunil Mittal’s willingness to own a lesser stake in a larger company rather than a much larger stake in a much smaller company sets him apart from several other entrepreneurs. Read story 30 July 2009: Four possible scenarios in deal for world’s third largest telecom services provider with at least 200 mn customers. Read story 30 June 2009: The chief executive of MTN’s biggest shareholder, state pension fund Public Investment Corporation said that the fund supported the talks but there was “room for improvement” on the price. Read story 2 June 2009: PIC CEO says supports deal in principle; room for improvement on price, expects further discussion. Read story 26 May 2009: The Bharti Airtel-MTN merger deal is proof of the emerging market multinational, which could avoid the struggles multinationals from the US, Japan and Europe face in emerging markets. Read story 26 May 2009: Bharti says not yet determined how to raise funds; Bharti, MTN shares fall on dilution fears; Pranab Mukherjee welcomes proposed deal. Read story 26 May 2009: If concluded, an RCom-MTN merger — the valuations of the two firms are a combined $66 billion — would be the largest cross-border deal in Indian corporate history. Read story 25 May 2009: Indian telco chalks out complex cash-equity $23 billion deal with African co; target: No. 3 spot in global market. Read story 24 May 2009: Bharti Airtel has pulled out of negotiation for acquiring an estimated $45-50 billion MTN, saying the South African telecom entity deviated from agreed terms. Read story 18 July 2008: Mutual agreement to end exclusive talks comes in face of legal and regulatory hurdles; older Ambani’s claim. Read story 9 July 2008: RCom, MTN had first announced start of a 45-day exclusivity period on 26 May. Read story 13 May 2008: The attempts by Bharti Airtel to reassure investors come on the heels of the company’s valuation dropping $3.33 billion between 5 May and Monday. Read story Quick Edit | The Made in India model 5 May 2008: Rival suitors may push up acquisition price; may take up to an year before any progress is made in negotiations. Read story Source: LatestNews-Home - Livemint.com | 1 Oct 2009 | 2:43 am Bharti-MTN: Missed callTie-up talks to create a global giant in mobile communications ended in failure on Wednesday. Bharti Airtel, India’s largest mobile operator, and MTN, Africa’s biggest telecom firm, called off four months of talks the day the exclusive nature of the negotiations lapsed. The exclusive talks had been extended twice since they started on 25 May, a year after the two phone firms gave up their first merger attempt. Both companies are now likely to look for alternative partners. Bharti Airtel’s chairman Sunil Mittal. (File photo) In May 2008, Bharti and MTN broke off discussions over the issue of control. This time the dual listing condition proved to be the deal-breaker. Read below a timeline of negotiations since May 2008 30 Sept 2009: South Africa rejects merger; big setback to Sunil Mittal firm’s ambition of becoming global telecom force. Read story Quick Edit | One reason to be happy 29 Sept 2009: The extended deadline for exclusivity of negotiations between the telecom groups ends 30 September. Read story 29 Sept 2009: The deal is now believed to be in the hands of politicians, who are broadly supportive of the proposal; if it falls through, the parties may well look at other potential partners. Read story Also See | The Bharti-MTN Saga (PDF) 27 Sept 2009: India’s market regulator should play more of a proactive role than a reactive one and should address issues not using a multiplicity of regulations but with a simplified set of norms. Read story 22 Sept 2009: Amendment of takeover rules by market regulator may determine prospects for proposed telecom deal. Read story 21 Sept 2009: The tangle does point to a problem: Indian companies are trying to globalize at a faster pace than the underlying legal structure, such as capital controls, allows them to. Read story 17 Sept 2009: The Bharti-MTN transaction, which would create the world’s third largest mobile group by subscribers, is subject to an end-September deadline. Read story 16 Sept 2009: Proposed Companies Amendment Bill, Fema need to be changed; deal would also require full rupee convertibility. Read story Sept 14 2009: Independent Communications Authority of South Africa says it needs to be notified before the transaction is concluded. Read story 13 Sept 2009: Bharti and MTN are in exclusive talks till 30 September for a potential $23-billion deal that would create a combined entity having more than 200 million subscribers. Read story 11 Sept 2009: Cash part up by a third to $10 billion, say sources; Overall package up by 7%; ‘Fair chance’ of getting 75% MTN s’ holder OK: HSBC. Read story 20 August 2009: Exclusivity period extended to 30 Sep; the firms may have given themselves more time to structure the deal. Read story 14 August 2009: Bharti Airtel will have to restructure its operations in India once it signs the deal to eventually merge with MTN so as to separate its Indian operations from the global entity. Read story 3 August 2009: Bharti could increase its cash offer per share to make the deal more attractive. Read story 3 August 2009: Bharti Airtel chairman Sunil Mittal’s willingness to own a lesser stake in a larger company rather than a much larger stake in a much smaller company sets him apart from several other entrepreneurs. Read story 30 July 2009: Four possible scenarios in deal for world’s third largest telecom services provider with at least 200 mn customers. Read story 30 June 2009: The chief executive of MTN’s biggest shareholder, state pension fund Public Investment Corporation said that the fund supported the talks but there was “room for improvement” on the price. Read story 2 June 2009: PIC CEO says supports deal in principle; room for improvement on price, expects further discussion. Read story 26 May 2009: The Bharti Airtel-MTN merger deal is proof of the emerging market multinational, which could avoid the struggles multinationals from the US, Japan and Europe face in emerging markets. Read story 26 May 2009: Bharti says not yet determined how to raise funds; Bharti, MTN shares fall on dilution fears; Pranab Mukherjee welcomes proposed deal. Read story 26 May 2009: If concluded, an RCom-MTN merger — the valuations of the two firms are a combined $66 billion — would be the largest cross-border deal in Indian corporate history. Read story 25 May 2009: Indian telco chalks out complex cash-equity $23 billion deal with African co; target: No. 3 spot in global market. Read story 24 May 2009: Bharti Airtel has pulled out of negotiation for acquiring an estimated $45-50 billion MTN, saying the South African telecom entity deviated from agreed terms. Read story 18 July 2008: Mutual agreement to end exclusive talks comes in face of legal and regulatory hurdles; older Ambani’s claim. Read story 9 July 2008: RCom, MTN had first announced start of a 45-day exclusivity period on 26 May. Read story 13 May 2008: The attempts by Bharti Airtel to reassure investors come on the heels of the company’s valuation dropping $3.33 billion between 5 May and Monday. Read story Quick Edit | The Made in India model 5 May 2008: Rival suitors may push up acquisition price; may take up to an year before any progress is made in negotiations. Read story Source: Home - Livemint.com | 1 Oct 2009 | 2:43 am Deal update: BhartiUnder-performance for 2009 may now partly reverse: Bharti Airtel (Bharti) had significantly under-performed the market (YTD 60%, over last 12 months by 25%) due to uncertainty over Bharti-MTN deal and industry-specific issues. With the Bharti-MTN deal now called-off due to non-acceptance of the deal structure by the South African government, we expect Bharti’s under-performance to partly reverse. Lack of clarity on the deal’s final structure and further sweetening of the offer by Bharti have been the prime reasons for its flat performance since the announcement of the deal on 25 May, 2009 as against the 23% return for the broader market since then. Clickto read complete Religare report Bharti and MTN have left the doors open for a possible revival of the deal by resolving the regulatory hurdles and restarting talks. In our opinion, however, the likelihood of deal going through in the visible future looks dismal, post the failure of both companies to arrive at an amicable arrangement for the second time within a year. Regulatory and political decisions of the Indian and South African government would also be a decisive factor for the deal to go through in the future. The Bharti-MTN deal, if materialized, would have been a strong strategic fit and a win-win arrangement for both companies, as the merged entity would have emerged as the world’s third largest telecom company. This would have provided leeway for better economies of scale in equipment procurement, network, IT, and handset sourcing, attracting global talent and securing exclusivity deals. Finding a strategic fit like MTN in a high-growth African market looks difficult and is a setback for Bharti. The possibility of Bharti grabbing Zain looks grim as there are many contenders for the same. Also, calling off of Bharti-MTN deal would provide pricing / negotiation power to Zain. Valuation Bharti is among our top picks and we remain bullish on the company due to its leadership position, balance sheet strength, superior execution skills, best-in-class cost management, and reasonable valuations. We reiterate our Buy rating on the stock with a target price of Rs478. At our target price, the stock would trade at an implied EV/EBITDA and P/E multiple of 9x and 14.2x FY11E. Competition remains a major plague for the industry and the market leader Bharti. However, we believe 3G would provide Bharti a leeway to dent the competition to some extent. Source: LatestNews-Home - Livemint.com | 1 Oct 2009 | 2:35 am United Spirits to use part of funds raised for capexUnited Spirits Ltd (USL), a UB Group company, plans to capitalise its debt in a bid to contain interest costs.Source: Moneycontrol Top Headlines | 1 Oct 2009 | 2:29 am Domino’s Pizza to beat FY market view, shares hit highLondon: Britain’s biggest pizza delivery chain, Domino’s Pizza UK & IRL, said it was on track to beat full-year expectations after strong trading in the third quarter, sending its shares to an all-time high on Thursday. Chief executive Chris Moore said marketing campaigns had played a major role in its success during the period. The company has completed the second year of a three-year sponsorship deal for TV phenomenon ‘Britain’s Got Talent´ and has also advertised during the hugely popular ‘X-Factor’. That has coincided with a period in which customers have increasingly opted to stay in and order takeaways rather than eating out to save money during the recession. Domino’s shares, which have outperformed the FTSE All Share Leisure & Travel index by 46% over the past 12 months, were up 2.2% to 298 pence at 0748 GMT, having earlier been as high as 307 pence, valuing the business at £480 million ($765 million). The company, which operates the British and Irish franchises of the global home delivery brand, said like-for-like sales increased 10.8% in the third quarter, covering the 13 weeks to 27 September. For the 39 weeks to 27 September, comparable sales were up 8.3%. Altium Securities upgraded its 2009 pretax profit forecast to £28 million from 27.2 million previously, reiterated its ‘buy´ recommendation and lifted its price target on the stock to 350 pence from 340 previously. “Domino’s has one of the most compelling growth stories within our stock universe. The likelihood of further upgrades to estimates over the forecast period remains high,” said Altium analyst Greg Feehely. Numis, which reiterated its ‘buy’ recommendation and lifted its price target to 360 pence from 330 pence, upgraded its pretax profit forecast for the current year to £27.8 million from 27 million. Source: World Business - Livemint.com | 1 Oct 2009 | 2:29 am Domino’s Pizza to beat FY market view, shares hit highLondon: Britain’s biggest pizza delivery chain, Domino’s Pizza UK & IRL, said it was on track to beat full-year expectations after strong trading in the third quarter, sending its shares to an all-time high on Thursday. Chief executive Chris Moore said marketing campaigns had played a major role in its success during the period. The company has completed the second year of a three-year sponsorship deal for TV phenomenon ‘Britain’s Got Talent´ and has also advertised during the hugely popular ‘X-Factor’. That has coincided with a period in which customers have increasingly opted to stay in and order takeaways rather than eating out to save money during the recession. Domino’s shares, which have outperformed the FTSE All Share Leisure & Travel index by 46% over the past 12 months, were up 2.2% to 298 pence at 0748 GMT, having earlier been as high as 307 pence, valuing the business at £480 million ($765 million). The company, which operates the British and Irish franchises of the global home delivery brand, said like-for-like sales increased 10.8% in the third quarter, covering the 13 weeks to 27 September. For the 39 weeks to 27 September, comparable sales were up 8.3%. Altium Securities upgraded its 2009 pretax profit forecast to £28 million from 27.2 million previously, reiterated its ‘buy´ recommendation and lifted its price target on the stock to 350 pence from 340 previously. “Domino’s has one of the most compelling growth stories within our stock universe. The likelihood of further upgrades to estimates over the forecast period remains high,” said Altium analyst Greg Feehely. Numis, which reiterated its ‘buy’ recommendation and lifted its price target to 360 pence from 330 pence, upgraded its pretax profit forecast for the current year to £27.8 million from 27 million. Source: Home - Livemint.com | 1 Oct 2009 | 2:29 am Tata Tele to share BSNL towersTata Teleservices has inked a deal to share the mobile towers of Staterun Bharat Sanchar Nigam for 15 years.Source: Moneycontrol Top Headlines | 1 Oct 2009 | 2:25 am Data points to policy tightening next yearMUMBAI/NEW DELHI (Reuters) - India's factory output rose in September and inflation accelerated on robust domestic demand, a trend analysts said could prompt the Reserve Bank to tighten policy early next year.Source: Reuters: Money News | 1 Oct 2009 | 2:15 am Cisco to buy Tandberg for $3 billionOSLO (Reuters) - U.S. network equipment maker Cisco System is to buy Norway's video-conferencing equipment maker Tandberg ASA for an agreed 17.2 billion crowns ($3.0 billion) in cash, the companies said on Thursday, lifting Tandberg shares.Source: Reuters: Money News | 1 Oct 2009 | 2:05 am Hyundai's domestic sales grow 25 percent in SeptemberIndia's second largest car manufacturer Hyundai Motor Thursday said domestic sales grew 24.6 percent to 27,803 units in September from 22,311 units it sold in the corresponding month last year.Source: IndiaeNews.com: Business News | 1 Oct 2009 | 2:00 am India Export Decline Eases as Global Economy Improves - Bloomberg
Source: Business - Google News | 1 Oct 2009 | 1:39 am Manufacturing growth picks up in Sep: PMIMumbai: The pace of India’s manufacturing activity rose in September, recovering from a drop to a five-month low in August, as domestic demand and robust factory orders picked up, a survey showed. The HSBC Markit Purchasing Managers’ Index (PMI), based on a survey of 500 companies, rose to 55 in September from from 53.2 in August. The index has been above 50, which separates expansion from contraction, for six months. Before that, it shrank for five consecutive months through March, hitting a trough of 44.4 in December 2008. “It is encouraging to see the PMI index move up again in September after last month’s decline, allaying fears that the industrial cycle has peaked,” said Robert Prior-Wandesforde, senior Asia economist at HSBC. “Given that the full effects of the monetary and fiscal stimulus have still to be felt, while oil and gas output is set to rise and the regional, world trade cycle should improve, we are confident that industrial growth will not just remain firm but trend higher from here,” he added. The new orders index rose to 58.3, from August’s 56.2, which was its lowest in four months. Wandersforde said the positive drivers for industrial growth should more than offset the negative effects of the drought. “With overall orders improving sharply to 58.3, the implication is that domestic demand strengthened considerably in September,” he said. “On the activity side, the most disappointing aspect of the release was the small fall in the export orders balance to 50.9,” he added. Source: Home - Livemint.com | 1 Oct 2009 | 1:31 am Foreigners in Kerala boat tragedy are safe: MPForeign tourists in the boat that capsized in the Thekkady lake at the Periyar wildlife sanctuary are safe, Kerala MP P.T. Thomas said Thursday.Source: IndiaeNews.com: Business News | 1 Oct 2009 | 1:30 am IMF forecasts 2010 India GDP +6.4 pctISTANBUL (Reuters) - Major Asian economies achieved a remarkable rebound from the global financial crisis, but it is not certain the recovery can be sustained, the International Monetary fund said on Thursday.Source: Reuters: Money News | 1 Oct 2009 | 1:25 am Hyundai posts highest ever monthly sales in Sep; up 16%New Delhi: Hyundai Motor India (HMIL) on Thursday reported 16.41% growth in its total sales in September at 53,804 units, the highest ever monthly sales since the company first rolled out its car in India 11 years ago. HMIL had sold a total of 46,218 units in the same month last year. Domestic sales stood at 27,803 units against 22,311 units, up 24.61%. Exports were at 26,001 units compared with 23,907 units in September last year, up 8.75%, HMIL said in a statement. “We not only recorded the highest figures in our 11 years of operations but also this year the festive season has been encouraging as customers returned to the showroom,” HMIL senior vice-president Arvind Saxena said. He hoped this will be the turning point for the automotive industry and if sales remained strong during the coming Diwali, “we can look at double digit growth figures for the current year”. In its A2 segment (Santro, i10, i20 and Getz Prime) the company sold 49,482 units, while in the A3 segment (Accent and Verna) sales were at 4,269 units. In the A5 segment (Sonata Transform) 52 units were sold while one unit of SUV Tucson was sold during the month. Source: Home - Livemint.com | 1 Oct 2009 | 1:17 am Watch/listen: Mint in multimedia, October 1Video story: Cutting losses Rasul Bailey says that after Subhiksha Trading collapsed, Vishal Retail’s lenders have decided their best option is to help the troubled firm restructure its debts. Audio story: Air India, flight of fancy? Mint correspondent, P.R. Sanjai gives a detailed analysis of the strike, the decision of Air India’s management to please the executive pilots and how the airline will now have to resort to a turnaround policy for other effective cost-cutting measures Photo essay: New Delhi’s brand of roving justice click here for essay Mobile courts for tyring beggars, part of city’s image revamp efforts, face a legal test of their own in the form of a PIL Video story: Muddied waters Rather than making life simpler for investors, the government’s new FDI guidelines have only created more confusion. Mint’s Asit Ranjan Mishra reports. Slideshow: Turn the tables click here for slideshow The architecture and interior design of Tote on the Turf, Mumbai’s latest eatery and bar, and the Blue Frog club take the guest experience beyond the primary focus of dining and entertainment Source: Home - Livemint.com | 1 Oct 2009 | 1:10 am Red Fort picks up another 4 percent in Parsvnath projectRealty major Parsvnath Developers has sold an additional four percent stake in a luxury residential project in Delhi to private equity fund Red Fort Capital for Rs.25 crore.Source: IndiaeNews.com: Business News | 1 Oct 2009 | 1:01 am Inflation rate up, now at 0.83 percentIndia's annual rate of inflation crawled up marginally to 0.83 percent for the week ended Sep 19 from 0.37 percent the week before, according to official data released Thursday.Source: IndiaeNews.com: Business News | 1 Oct 2009 | 1:01 am Bharti shares continue to trade strongBharti Airtel shares, which opened on a firm note Thursday, continued to trade in positive terrain after the firm had to terminate the proposed $24-billion equity-swap-cum strategic tie-up with South Africa's telecom major MTN.Source: IndiaeNews.com: Business News | 1 Oct 2009 | 1:01 am BA Mumbai-London flight makes emergency landingA British Airways Mumbai-London flight with 207 passengers on board made an emergency landing here early Thursday following a fire warning in the cockpit, an official said.Source: IndiaeNews.com: Business News | 1 Oct 2009 | 1:00 am Diamonds being mined illegally in Chhattisgarh: CongressHundreds of local residents were illegally mining diamonds at a site in Chhattisgarh since July, when securitymen guarding it were removed, the state's main opposition party Congress alleged here Thursday.Source: IndiaeNews.com: Business News | 1 Oct 2009 | 1:00 am Reliance dispute may hit investor mood - govtNEW DELHI (Reuters) - Foreign firms considering oil and gas exploration in India may be less enthusiastic this year because of global financial problems and the public spat between the Ambani brothers, upstream regulator V.K. Sibal said.Source: Reuters: Money News | 1 Oct 2009 | 12:54 am Asian shares fall, weak dollar dents exporterTokyo: Asian shares fell on Thursday after negative news on US jobs and manufacturing pointed to a patchy recovery in the world’s largest economy, and as dollar weakness sparked concerns for exporters around the region. In Europe, futures pointed to a flat open for shares at the start of the final quarter of 2009, after posting their biggest quarterly gain for nearly 10 years in the previous three months. The MSCI index of Asian shares excluding Japan, which rose 22% last quarter, slid 0.5%. It has retreated from a recent 13-month high despite signs across Asia that the region’s manufacturing activity is gathering strength on slowimg improving demand. Japan’s Nikkei average dropped 1.5% to two-month closing low with exporters such as Kyocera Corp hurt by yen strength and banks, and as investor sentiment was dampened by uncertainty over policies of the new government. Many Japanese exporters have set their exchange rate assumptions for the dollar at around ¥90-95 for the fiscal year to March but the greenback hit an eight-month low at ¥88.23 this week and stood at 90 on Thursday, fuelling concerns about damage to overseas profits. “While the dollar rose above 90 yen the other day, it looks as if the trend for yen strength might still be in place,” said Hiroaki Osakabe, a fund manager at Chibagin Asset Management. Among exporters, chip-tester maker Advantest fell 5.8%, Bank shares, including Mitsubishi UFJ Financial Group , lost ground over the financial services minister’s interest in introducing a moratorium on repayment of principal on mortgages and bank loans to help small businesses. An unexpected contraction in factory activity in the US Midwest and larger private-sector layoffs than had been forecast sounded a dour note for the end of the third quarter, sending shares on Wall Street lower on Wednesday. The Dow Jones industrial average fell 0.31%, the Standard & Poor’s 500 Index slid 0.33%, and the Nasdaq Composite Index eased 0.08%, although they all gained about 15% over the quarter. Ahead of Friday’s non-farm payrolls, which are important for US consumers’ confidence and the strength of economic recovery, personal income, spending, home sales and manufacturing data are all due along with weekly jobless claims. South Korean shares were led lower by tech firms and automakers such as Hyundai Motor after the won hit a one-year high against the dollar and fuelled concerns about exporters’ competitiveness. “The stronger won has prompted worries about exporters. Investors are growing more cautious about the fourth quarter and next year’s outlook,” said James Song, an analyst at Daewoo Securities. Hyundai fell more than 9 percent. The Korea Composite Stock Price Index shed 1.7%, outstripping a fall of 0.9% in Australian stocks, where miners such as BHP Billiton Ltd dropped 1.4%. Markets in Shanghai and Hong Kong were shut for China’s National Day holidays. The dollar was on the defensive early, having fallen in the previous session as investors shifted funds out of the greenback and chased growth-linked currencies. The Australian dollar seen as a proxy for global growth in the currency market, briefly hit a 14-month high at $1.8860, buoyed by expectations that domestic interest rates will rise faster than other developed economies. But the greenback later got a lift against the euro, which fell after European economic and monetary affairs commissioner Joaquin Almunia said the Eurogroup would discuss the single currency’s appreciation to prepare its position for the G-7. And it recovered ground against the won and Taiwan dollar after dealers said authorities had sold the Asian currencies. The dollar index, a measure of its performance against six major currencies, rose 0.5% lifting further above a 13-month low set last month. It has lost 5% since the start of the year. US crude futures fell below $70 a barrel, after a jump of more than 5% the previous day on a drop in US gasoline inventories that hinted at rising demand in the world’s top oil consumer. Gold steadied after the weaker dollar helped push the precious metal above $1,000 an ounce the previous day. Spot gold was at $1,004.20 an ounce, little changed from late US levels. Source: Home - Livemint.com | 1 Oct 2009 | 12:52 am TV18’s arm to raise $10 mn by allotting sharesMumbai: Television Eighteen India on Thursday said it will raise $10 million (nearly Rs47.7 crore) by allotting preferred stock of its subsidiary to global investor Nokia Growth Partners (NGP) II Mauritius. The company has approved to issue preferred stock of Web18 Holdings to NGP II Mauritius, Television Eighteen (TV18) said in a filing to the Bombay Stock Exchange. Preferred shareholders have priority over common stockholders on earnings and assets in the event of liquidation and they have a fixed dividend. Web18, the Internet arm of TV18 is raising $10 million as strategic growth capital from NGP II Mauritius, the filing added. TV18 would obtain necessary approvals regarding the strategic investment, it said. Nokia Growth Partners focuses its direct investment activities on information and communication technology companies serving mobile industry, it added. Shares of Television Eighteen India were trading at Rs97.30 on the BSE, up 0.62% from previous close. Source: LatestNews-Home - Livemint.com | 1 Oct 2009 | 12:43 am Sensex turns volatile, slips into redA key index of the Indian equities markets turned volatile Thursday morning, slipped into the red shortly before noon.Source: IndiaeNews.com: Business News | 1 Oct 2009 | 12:30 am Money market updateG-sec Market: The 10-year G-sec 6.90% GOI 2019 opened at a yield of 7.22% compared to previous close at 7.19%. The 10-year US Treasury yield is at the same level at 3.31%. The 3-month Interest Rate Future is trading at a level of 7.97%. The 10-year G-sec 6.90% GOI 2019 is likely to be volatile and trade between 7.15% to 7.22%. Money market: The Call Rate and CBLO rate opened at 3.30% and 2.80%. The money market rates are expected to remain range-bound. Swap Market: The 5Y OIS swap rate is trading in the range of 6.57% - 6.62%, compared to previous closing levels of 6.60%. The OIS swap rates are expected to trade rangebound tracking G-sec yields. Forex Market: The INR opened at Rs47.85 against the USD compared to previous closing level of Rs48.11. Rupee is expected to trade in the range of 47.60 – 48.10. Source: LatestNews-Home - Livemint.com | 1 Oct 2009 | 12:14 am Impasse with Iran over basmati leaves farmers in a fixIndia will have to handle the current impasse with Iran over export of basmati rice with the kind of dexterity that Malaysia employs vis-À-vis its palm oil shipments toSource: Business Line - Home Page | 1 Oct 2009 | 12:00 am Air India to be back in air gradually as pilots call off stirMumbai/New Delhi, Sept 30 Even as the Air India pilots ended their four-day stir on Wednesday, it will take a while before the airline resumes normal operations.Source: Business Line - Home Page | 1 Oct 2009 | 12:00 am Govt will shield common man from volatile crude oil pricesNew Delhi, Sept. 30 The Petroleum Minister, Mr Murli Deora, has said that “every effort is made by the Government to insulate the ‘aam aadmi’ from the volatility of global crude oil prices.Source: Business Line - Home Page | 1 Oct 2009 | 12:00 am Sensex at 17K: Takes just 16 days to gain 1000 pointsIt has been an extremely rapid 1,000-point move by the Sensex over the last three weeks.Source: Business Line - Home Page | 1 Oct 2009 | 12:00 am NRI deposits surge $1.8 billion in Q1Mumbai, Sept. 30 Thanks to the upward revision in the interest rate ceiling nearly a year ago, overseas Indians continue to set great store by deposits with banks in India. Non-resident Indian (NRI) deposits with banks surged by $1.8 billion inSource: Business Line - Home Page | 1 Oct 2009 | 12:00 am Day Trading GuideFresh long-position can be initiated only if DLF penetrates Rs 447, with tight stop-loss. The near-term outlook stays positive as long as ICICI Bank trades above Rs 890 and SBI trades aboveSource: Business Line - Home Page | 1 Oct 2009 | 12:00 am Atul (Rs 85.7): BuyWe recommend a buy in the stock of Atul from a short-term perspective. It is evident from the charts that it took support around Rs 35 in March and began to trend up. Since then, it has been on an intermediate-term uptrend, shaping higher peaksSource: Business Line - Home Page | 1 Oct 2009 | 12:00 am MTN hangs up on Bharti as dual listing proves deal breakerNew Delhi, Sept. 30 Mr Sunil Mittal’s dream to take his company Bharti Airtel beyond India’s borders in a big way has been put on hold again.Source: Business Line - Home Page | 1 Oct 2009 | 12:00 am Hind Construction ties up with UK co AMECNew Delhi, Sept. 30 Hindustan Construction Company (HCC) on Wednesday announced a tie-up for its nuclear business with Britain-based firm AMEC.Source: Business Line - Home Page | 1 Oct 2009 | 12:00 am Sensex breaches 17,000 on heavy FII inflowsThe Sensex broke the 17,000-mark on Wednesday — a level first reached two years ago in September 2007 and last seen 16 months ago in May last year — as FII inflows continued to flood the market.Source: Business Line - Home Page | 1 Oct 2009 | 12:00 am Union Bank adds Rs2,500 crore new farm loans in two monthsThe public lender recovered Rs125 crore of farm loans, which had received relief from the government, and expects to recover another Rs150 crore worth loans in the remaining part the year.Source: Daily News & Analysis: Money News | 30 Sep 2009 | 11:36 pm Sector update: Information technologyManagement of front-line information technology (IT) companies have commented positively on the demand environment. Tata Consultancy Services (TCS)’ management has hinted towards some signs of recovery in outsourcing demand especially from the banking, financial services and insurance (BFSI) vertical. It said that the banking and finance industry across the globe is beginning to have a re-look at discretionary spend that was frozen completely after the financial meltdown. This would benefit players such as TCS (43.9%) and Infosys Technologies (Infosys; 33%) that have relatively higher exposure to the BFSI vertical. Improved demand environment has led to improved decision-making cycle and deal closures have started taking place. In fact, front-line IT companies have been benefiting from vendor consolidation scheme. Based on deals reported in the press there has been deal flow of $2.2 billion for IT vendors in Q2FY2010. Improved decision-making cycle coupled with the pent-up demand bodes well for CY2010 IT budgets. The same also improves the revenue visibility of front-line IT companies. Additionally, there has been increased news flow for wage hike review by front-line IT companies. While, the wage hike review provides confidence for improving the business environment, this can have negative impact on the margins of front-line IT firms. However, we believe, players such as Infosys and TCS with lower utilisation rate will be in better position to manage their margins going forward. In Q2FY2010, front-line IT companies are also expected to benefit from favourable cross currency movement. This is likely to have positive a impact of 1.5-2% on the dollar-term revenues of front-line IT companies in Q2FY2010 enabling the companies to beat their dollar-term revenue guidance. Valuation We have fine-tuned our FY2010 and FY2011 earnings estimates marginally for front-line IT companies. Given the improvement in demand environment and increasing deal conversion providing revenue visibility, we are now expanding our target multiple for front-line IT companies. We are upgrading TCS to Buy recommendation on the back of better earnings compounded annual growth rate (CAGR) during FY2009-11 than its peers, the recovery in BFSI vertical, lower utilization rate providing layer for margin management and healthy deal pipeline. We maintain our HOLD recommendation on other front-line IT stocks due to limited upside at current levels. Source: LatestNews-Home - Livemint.com | 30 Sep 2009 | 11:26 pm Nifty crosses 5,100-mark, Sensex extends gainThe BSE-30 share benchmark Sensex, which had gained 273.93 in previous day's trading, added further 68.77 points at 17,195.61 points in first the five minutes of trading.Source: Daily News & Analysis: Money News | 30 Sep 2009 | 11:15 pm Stock update: Ratnamani Metals and TubesRatnamani Metals & Tubes (RMTL) has bagged Rs152 crore gas transmission and distribution order from Gas Authority of India. We believe this to be positive for RMTL particularly when viewed against the backdrop of slower inflow since couple of quarters. While the order inflow is positive, the same has been slower than our estimates. In a recent conference call, RMTL’s management highlighted improving order intake from power sector, however orders from oil & gas space are likely to pick up only gradually. The order backlog stands at ~Rs400 crore. Further, RMTL has bid for an order from Bhatinda Refinery. In Q2FY2010, we expect RMTL’s top line to report a de-growth of 20% to Rs203.1 crore. The margins are expected to improve on year-on-year basis on the back of decline in raw material cost. On the back of fall in revenues, we expect the adjusted profits to decline by 8.6% year on year. Incorporating the numbers from annual accounts and slower order intake in July-September quarter, we have revised our revenue and profit estimates. We are revising down our earnings per share (EPS) estimates to Rs17.4 and Rs22.2 for FY2010 and FY2011 respectively. While we are revising down our estimates, we are revising up our price target, as we roll forward our target multiple on the stock. Our price target stands revised to Rs133 (6x FY2011E). The company has been witnessing gradual improvement in its business environment. RMTL’s specialty products consumed in high-growth sectors like power would drive the volumes going forward. Further, meaningful revival in orders from the refinery sector could add to incremental orders. At the current market the stock trades at 4.8x its FY2011 estimates, which we feel is attractive and thereby reiterate a BUY on the stock. Source: LatestNews-Home - Livemint.com | 30 Sep 2009 | 10:38 pm BhartiMTN deal collapse: Legal fraternity\'s takeThe muchanticipated deal between India\'s Bharti and South Africa\'s MTN has botched yet again and has left nothing much on the table for the legal experts to discuss.Source: Moneycontrol Top Headlines | 30 Sep 2009 | 4:40 pm India Inc disappointed by BhartiMTN deal failureThe muchanticipated deal between India\'s Bharti and South Africa\'s MTN that aimed to merge the two telecom giant has failed yet again. The contentious issue of dual listing proved to be the deal breaker, learns CNBCTV18. India Inc was a disappointed lot as far as the termination of the deal is concerned.Source: Moneycontrol Top Headlines | 30 Sep 2009 | 4:32 pm Aptech heads to Latin AmericaMumbai-headquartered Aptech Ltd is trotting the globe to make giant strides in the IT education space.Source: Daily News & Analysis: Money News | 30 Sep 2009 | 3:49 pm HCC ties up with Amec, sees Rs 30,000 crore N-bonanzaSigns MoU with UK firm to explore consulting and EPC services for nuclear power plants.Source: Daily News & Analysis: Money News | 30 Sep 2009 | 3:45 pm Freight co Stone aligns with US firmStone Intermodal, a 100% subsidiary of G P Goenka group company Stone India, has entered into a technical agreement with RailRunner of the US.Source: Daily News & Analysis: Money News | 30 Sep 2009 | 3:42 pm Beaming it rightZee Entertainment Enterprises is expected to perform well in the days to come, led by higher-than-expected cost savings.Source: Daily News & Analysis: Money News | 30 Sep 2009 | 3:32 pm Rabo PE fund buys 26% of Geepee AgriRabo Equity Advisors (REA) is understood to be in the final stages of closing three more investments in the Indian food and agribusiness space.Source: Daily News & Analysis: Money News | 30 Sep 2009 | 3:30 pm Rumours of pharma M&As have their own reasonWith MNCs keen to tap the local market, there's no saying who'll draw blood next.Source: Daily News & Analysis: Money News | 30 Sep 2009 | 3:30 pm Colours intactThe analyst community is positive on Asian Paints' stock, which currently trades at Rs 1,405.60 per share.Source: Daily News & Analysis: Money News | 30 Sep 2009 | 3:30 pm Gift tax turns more draconianFrom October 1, taxpayers will have to pay a tax for accepting any gift worth Rs 50,000 or above. This means any gift-in-kind, the value of which exceeds Rs 50,000, will become taxable in the hands of the person who gets it. So far, only gifts in cash of the same value were taxable.Source: Business Standard | Front Page Headlines | 30 Sep 2009 | 1:29 pm AI pilots call off stirManagement agrees to defer pay cuts, sets up committee to discuss issue.Source: Business Standard | Front Page Headlines | 30 Sep 2009 | 1:28 pm Results hopes push Sensex past 17,000 pointsThe Bombay Stock Exchange Sensitive Index surged past 17,000 points after 16 months on hopes that quarterly earnings due from next week would be better than the Streets initial expectations as advance tax payments indicated robust profits.Source: Business Standard | Front Page Headlines | 30 Sep 2009 | 1:26 pm Bharti, MTN disconnect a second timeSouth African government could not accept the deal in current form.Source: Business Standard | Front Page Headlines | 30 Sep 2009 | 1:24 pm MphasiS sees no ease in price pressureBangalore: India’s MphasiS is winning large outsourcing deals due to its relationship with Hewlett-Packard Co but pricing pressure is unlikely to ease in the near term, top officials said on Wednesday. MphasiS, a mid-sized IT services firm in which HP owns a majority stake, is also not seeing an increase in the IT budget of its clients despite some improvement in the global economic environment. “The sentiment has improved but whether the IT budgets have been lifted, the answer is no because there will be clearly a lag between sentiment and increase of IT budgets,” chief executive Ganesh Ayyar told Reuters in an interview. “If the IT budgets have not gone up, I don’t see suddenly any sense of euphoria,” he said. “Pricing pressure I don’t think will ease.” Indian outsourcers such as MphasiS and bigger local rivals Tata Consultancy Services and Infosys Technologies have won some deals in recent months, but clients have sought price cuts to cope with the downturn. Ayyar said decision-making continued to be slow in large outsourcing deals, as clients were cautious in their spending. “People are going to be extra cautious in increasing their cost base because they were caught completely unaware during this crisis,” he said. “So, for right reasons people are cautious.” MphasiS, which gets about 70% of its total revenue by providing services to HP and clients of the global tech major, reported a more than doubling of its May-July net profit. The company changed its fiscal year to November-October, from April-March, with effect from November 2008 to align with HP. MphasiS’ revenue is seen rising more than three-quarters to Rs4,261 crore ($886 million) in this fiscal from a year ago and net income should more than triple to 8.81 billion, according to Thomson Reuters I/B/E/S. Last month, MphasiS said it would buy the India-based IT services arm of American International Group to boost its offerings for the banking and financial services sector, which brings in 40 percent of its revenue. Chief financial officer Ganesh Murthy said revenue from AIG’s IT unit would be consolidated with MphasiS from next month. Murthy said he wanted to maintain operating profit margins, which rose to 21.8% in the May-July quarter from 13.3% a year earlier, by winning deals and cutting costs. Shares in MphasiS, which has a market value of nearly $3 billion, ended little changed on Wednesday at Rs665.75 in the main Mumbai market that rose 1.6% to 16-month highs. The stock has more than quadrupled so far this year, compared to a 78% jump in the main index. Source: Tech News - Livemint.com | 30 Sep 2009 | 5:26 am ABN Amro files to split off RBS-owned assetsAmsterdam: Nationalised Dutch bank ABN Amro said on Wednesday it had filed paperwork to legally separate the units owned by the state from those owned by Royal Bank of Scotland after a 2007 takeover. ABN Amro said it and shareholders had plans in place to ensure that after the split each bank “is adequately capitalized and has a sound liquidity position”. ABN said it currently exceeded the minimum Tier I capital ratio of 9% set for it by the Dutch central bank. In a report issued this week on bank stress tests, the finance ministry said it could not guarantee that ABN Amro and the also nationalised Fortis Bank Nederland would not need more state aid. The government has also warned in the past that the RBS split could leave ABN with a capital shortfall. An ABN Amro spokesman said the filing was only the first step in the process and that it hoped to have the legal separation complete by the end of the year. The Dutch central bank will have to formally approve the split. A group that included RBS, Fortis and Santander bought ABN Amro Group in 2007 to split it between them. When the Dutch government nationalized Fortis’s local operations in October 2008, what it took control of included businesses that legally belonged to RBS. The paperwork filed Wednesday essentially lets the government split the existing ABN Amro Bank NV into two. The existing unit will be renamed Royal Bank of Scotland NV and the separated assets will revert to ABN Amro Bank. The Dutch government’s ultimate plan is to merge ABN Amro Bank with Fortis Bank Nederland into a new entity under the ABN Amro name, then take it public in 2011 or later. Before that can happen, though, the government has to satisfy a 2007 European Commission order on competition in the Dutch small and medium enterprise market by selling assets. Sources familiar with the discussions have told Reuters that the Dutch state has approached France’s BNP Paribas about buying Fortis Bank Nederland’s commercial banking unit. The state has to report its plans to the EU by this Friday. Source: World Business - Livemint.com | 30 Sep 2009 | 4:51 am Toyota plans US recall for dangerous floormatsDetroit/ Washington: Toyota Motor Corp said it will recall some 3.8 million vehicles in the United States because of the risk that a loose floormat could force down the accelerator, a problem suspected of causing crashes that have killed five people. The recall includes the hot-selling Prius hybrid and would be the largest ever for Toyota, which has built a reputation for safety and quality that helped it surpass General Motors as the world’s top automaker last year. The recall also comes at a critical time for Toyota as it scrambles to squeeze spending to bounce back from record losses forecast this year amid a broad-based slump in car sales. “This is an urgent matter,” said US transportation secretary Ray LaHood. The US government said it has received reports of 100 related incidents that include 17 crashes and five fatalities involving Toyota vehicles. Toyota said it was too early to provide a cost estimate for the move. Deutsche Securities auto analyst Kurt Sanger estimated the cost at a modest 5-10 billion yen ($50-$100 million), saying the bigger worry was its image. “Monetarily I wouldn’t expect it to be a major issue for Toyota,” he said, noting that labour costs, which typically make up the bulk of recalls, would likely be minimal. “The bigger concern is reputational.” In Tokyo on Wednesday, Toyota shares were down 1.1% underperforming a 0.2% fall in the main Nikkei average and a rise in rival Japanese car stocks. “Car Reached 120 MPH” Toyota spokesman Yuta Kaga in Tokyo said on Wednesday that the floormats subject to the recall are used only in vehicles sold in the United States. The company is also checking whether the problem originates in the floormats or the process of placing them in the vehicles, he said, without naming the floormat supplier. Toyota and US safety regulators warned owners to remove all driver-side floormats from eight Toyota and Lexus models manufactured in the last six years as an immediate safety precaution. Last month, an off-duty California state trooper and three members of his family were killed in the San Diego area in a crash of a 2009 Lexus ES350. Before the crash, a passenger in the car had called 911 and told dispatchers that the accelerator was stuck and the car had reached 120 miles per hour (193 km per hour). The recall will cover the Camry and Avalon sedans, the Prius hybrid, the Tacoma and Tundra pickup trucks and luxury Lexus models, the IS250, the IS350 and the ES350. Toyota’s largest previous recall was in 2005 for a problem with steering rods, covering about 900,000 vehicles. The pending recall will be equivalent to about double Toyota’s annual sales in the US market. “This is a negative issue and is going to cost (Toyota) very much. (It’s) not good for advertising,” said Yuuki Sakurai, CEO of Fukoku Capital Management in Japan. “But I’m not worried much about this problem and whether it will remain a negative factor for Toyota in the long term. They can overcome it,” he said. Investigation Continues Toyota’s sweeping recall stems from a safety issue that has been under review for the past several years. The National Highway Traffic safety administration closed an investigation into floormats in Toyota vehicles that began in 2007 and resulted in a recall of more than 50,000 cars. That investigation, which focused on the Lexus ES350, concluded that grooves in the floormat could trap the accelerator if the mat was not secured with retaining hooks. Federal investigators also found many owners were not aware that it takes three seconds to turn off the electronic ignition button that comes standard on that model and the Prius. Many owners also complained that it was not obvious how to put a runaway vehicle in neutral because of the design of the Toyota gear panel. One Toyota owner petitioned NHTSA in April of this year to begin a wider investigation, saying that anecdotal reports of unintended acceleration suggested the problem could not be explained only by the floormat problem. NHTSA has not ruled on that request. One auto safety advocate said he also suspected that reported problems could have causes other than slipping floormats. “Their response is that this is all floormats,” Sean Kane, president of Safety Research & Strategies, a consulting and advocacy firm based in Rehoboth, Massachusetts, said of Toyota. “That’s not terribly surprising. They would like it to be floormats because that is an easily identifiable mechanical issue.” The San Diego Sheriff’s Department has not completed its investigation into the off-duty trooper’s crash. Federal safety investigators are also looking into the accident. Toyota said it was waiting for a final report on the accident but wanted to act because of indications that a floormat may have been involved. “Obviously the tragic accident in San Diego was certainly an eye opener for all of us and we’ve paid very, very diligent attention to moving forward to try to make sure none of us will be reliving that kind of a very tragic situation,” Toyota spokesman Irv Miller said. Toyota said it would issue specific recall notices as soon as it had a plan to address each of the models affected. Source: World Business - Livemint.com | 30 Sep 2009 | 4:49 am Wal-Mart warns of lethargic economic recoveryKuala Lumpur: The chairman of Wal-Mart Stores Inc. warned Wednesday the global economic recovery will likely be lethargic, even as the retailing behemoth sees great growth potential in China and India. “The world recovery is going to be led by Asia although it’s going to be very challenging. I think this recovery is going to be a slow one,” Robson Walton told a global CEO business conference here. Walton said “sales have been tough” for Wal-Mart, the world’s biggest retailer, even though it was benefiting from the economic downturn as more people shop at discounters for bargains including over-the-counter drugs and eat-at-home food. The Wal Mart chief’s comments echoed remarks Tuesday in Singapore by General Electric Co. chief executive Jeffrey Immelt. He warned that high unemployment and slower lending will drag on US economic growth, likely resulting in the weakest recovery in decades. Walton said international operations accounted for one-third of Wal-Mart’s global sales, and the proportion was expected to increase as the group focuses on larger markets in Asia. “China is a big opportunity for us. We are just getting started in India, where there’s great opportunity for us,” he said. “There is change and opportunity in the crisis. If we want to be successful, we got to change. We are working very hard to get our cost down and developing high-efficiency smaller stores to go into urban areas,” he said. He didn’t elaborate and couldn’t be reached for further comments. Wal-Mart has more than 250 stores in China but only ventured into India in May to tap the country’s $430 billion retail market. Bharti Wal-Mart Private Ltd., a joint venture between India’s Bharti Enterprises and Wal-Mart, opened its first wholesale outlet called “Best Price Modern Wholesale” in Amritsar in India’s northern state of Punjab The company has plans to invest $100 million over the next three years to open 10 to 15 more wholesale outlets, which would employ 5,000 people across India. But for now, it can only sell its 6,000 food and nonfood items to other businesses because Indian law prohibits foreign companies from selling direct to customers in multi-brand retail outlets to protect smaller domestic retailers. Wal-Mart has benefited from shoppers focusing on necessities during the recession and it has drawn more affluent shoppers away from rivals with its new focus on better brands, better service and cleaner stores. The chain has tightened its inventory controls and improved its earnings in the second quarter. However, the key barometer of same-stores sales in the US — or sales at stores open at least a year — slipped 1.2% during the period — a worrisome confirmation of broad weakness in consumer spending. It has said the US economy will remain challenging in coming months and force shoppers to keep seeking low prices and small packages. Source: World Business - Livemint.com | 30 Sep 2009 | 3:03 am
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