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Verizon gets final approval on line sale to FrontierVerizon Communications Inc won final US regulatory approval on Friday to sell 4.8 million rural phone lines to Frontier Communications Corp for about USD 5.25 billion in stock.Source: Moneycontrol Top Headlines | 22 May 2010 | 4:43 am Talks still alive on Disney\'s sale of MiramaxNegotiations are still going on over the proposed sale of Walt Disney Co\'s Miramax Films division to Hollywood producers Bob and Harvey Weinstein and billionaire Ron Burkle\'s Yucaipa Cos, two sources said on Friday.Source: Moneycontrol Top Headlines | 22 May 2010 | 4:43 am Google gets US antitrust approval on AdMob buyUS antitrust regulators gave Google Inc approval to buy mobile advertising rival AdMob, after months of delay and rumor that Google was headed for a court fight with government officials over the transaction.Source: Moneycontrol Top Headlines | 22 May 2010 | 4:39 am Swap ratio for ICICI-BoR merger should be minimum 1:3 - Economic Times
Source: Business - Google News | 22 May 2010 | 4:03 am Tata Motors To Start Inspection Of Mini Car Nano From Monday - Wall Street Journal
Source: Business - Google News | 22 May 2010 | 3:29 am Hinduja buys KBC's private bank for $1.69 - Moneycontrol.com
Source: Business - Google News | 22 May 2010 | 3:20 am Miraculous escape for 7 as AI aircraft goes up in flamesMangalore: Charred bodies, strewn luggage and mangled remains of the Air India aircraft, which overshot the runway at the airport here and caught fire, bore a grim testimony to the tragedy which unfolded early on Saturday. Thick smoke billowed from the Boeing 737-800 aircraft flying from Dubai to Mangalore carrying on board 160 passengers including four infants and six crew members as it hit the fence and went beyond the boundary wall of the airport near Kenjar village. “The plane shook with vibrations before it split into two. As soon as it hit the ground, I managed to get out and jump into a pit. There was smoke all over as the plane caught fire. After ten minutes, there was an explosion,” said Pradeep, one of the seven survivors. “I can’t believe I survived the crash,” he said reliving the moments minutes before the aircraft went up in flames. Pradeep and six others managed to jump from the aircraft which broke into two pieces in the hilly area with thick grass and trees. He said the plane’s initial touchdown appeared smooth at first but trouble started within 15-20 seconds. “First there was a small fire but it spread quickly,” he said. Abdul Puthur, another survivor, said he along with two others, managed to get out of the mangled remains of the aircraft from an opening on the left side. With his head wrapped in bandages, another passenger Umar Farooq, who also suffered burn injuries on his hands and legs said, “The plane overshot the runway only to stop inside a forest area and then it burst into flames.” About 150 CISF personnel, airport officials and fire service personnel along with civilians and local police were quickly pressed into service to pull out any survivors out of the burning plane. But they faced difficulty reaching the spot because of the narrow roads, hilly train and rain. The entire area around Kenjar village near the crash site and the airport has been cordoned off. The bodies of passengers were strewn near Kenjar Gudda, a hillock. “There were rains in the morning in this forest area and it affected the rescue operations,” Sumit Ameen, an eyewitness said. Chandrasekar, another local, said they could not rescue many passengers as by the time they reached the spot, many were dead. Puthur, a shop manager in Dubai who was returning home after a gap of five months said, “One of my co-passenger fell into the fire while one escaped with me through the opening that was made after the plane broke into two. I found another person. Together we walked for about 20 minutes through the jungle before locals came and helped us.” For 24-year-old Saudi-based businessman Sameer A Shaikh going to attend the last rites of his grandmother, the plane crash was a double blow as he lost 16 relatives in it. Many of the dead were still strapped into their seats, their bodies charred beyond recognition, rescue workers said. Two rescuers who struggled through the slushy steep slopes to reach the aircraft were seen carrying a seven-year-old girl with burn injuries to a waiting ambulance. She is being treated at the Mangalore hospital. Relatives of the victims who were at the airport to receive them wept inconsolably near the wreckage. The fire fighters used had used DCP (Dicalcium Phosphate Powder) and foam to douse the flames. The airport at Bajpe, around 20 km north-east of the city centre has several daily flights connecting Mangalore with most major cities in southern and western India as well as many major cities in west Asia. Source: Home - Livemint.com | 22 May 2010 | 2:41 am Geithner says sovereign debt crisis not biggest threat - reportSHANGHAI (Reuters) - U.S. Treasury Secretary Timothy Geithner said he did not agree with the current opinion that sovereign debt crisis had become the biggest threat to the world economy, China's Xinhua news agency said on Saturday.Source: Reuters: Money News | 22 May 2010 | 2:39 am At least 158 dead in Mangalore plane crashMangalore: An Air India Express passenger plane from Dubai crashed outside an airport in Mangalore on Saturday, killing at least 158 people when it burst into flames after overshooting the runway and ploughing into a forest. There may have been five or six survivors, local media said. (Courtesy: The Hindu) “It all happened in a sudden. The pilot said we are landing and in no moment we heard a loud thud. Soon, there were flames. We jumped out from the back entrance,” Abdul Puttur, a survivour , said. Helpline numbers for information on crash: Mangalore - 0824-222-0422, 0824-222-0424 Delhi - 011-2565-6196, 011-2560-3101  Onlookers and firefighters stand at the site of the crashed Air India Express passenger plane in Mangalore on May 22. Reuters Photo One eyewitness said the plane skidded off the runway in rain at the airport in Karnataka. Air India said the plane was a Boeing 737-800, with 166 people on board, including six crew members. Air India Express is the budget arm of state-run carrier Air India. “At least 160 passengers have died in the crash,” V S Acharya, home minister Karnataka, told reporters. ”At least five to six people have been taken to hospital, their condition is not known.” Also Read Safe Skies First indications are that the crash was an accident, officials say. Click here to watch BBC footage of air crash site. Television channels said the plane crashed around 6:30 a.m. TV images showed it struck a forested area. Flames were seen blazing from of some of the wreckage as rescue workers fought to bring the fire under control. “The plane had broken into two. I jumped out of the plane after it crashed. I saw two other people also come out,” Abdullah, a survivor from the plane, told local channel TV9 from hospital. “There was tyre-burst kind of noise. I tried to get out of the front but saw that there was a big fire. So I went back again and jumped out from there.” The Mangalore airport on the West coast is located on a top of a hill and leads to a steep dive a few metres after the runway ends. It is the second airport in the state to operate international flights, largely taking workers to gulf nations. One television channel showed a fireman carrying in his arms what seemed to be the remains of a child. Charred bodies and an engine lay in the forested terrain. ”The flight had already landed. There was slight rain. The flight skidded off,” eyewitness Mohiuddin Bava told CNN-IBN channel. ”After that it caught fire. Villagers, everyone there, came to rescue. The plane wings are right in front of me now.” Air India Express is the low cost arm of Air India. The budget airline started about five years ago. This is the first crash involving an Air India Express plane, according to an Air India spokesman. Air India is a state-run loss making carrier. The government has been trying to infuse funds to revive the airline against stiff competition from private carriers. raghu.k@livemint.com livemint.com is not responsible for the content of external websites Source: Home - Livemint.com | 22 May 2010 | 2:39 am Mangalore crash, focus back on expat pilotsMangalore: The crash of the Air India Express plane piloted by a Serbian national today has put the focus back on whether foreign pilots with various Indian air carriers are able to operate in a country with a diverse topography. There are around 560 expat pilots currently employed with various airlines in India and they account for 10% of the total strength of 5,500 civilian pilots. Air India Express, the low-cost arm of the national carrier, has 125 expat pilots and they reportedly face a number of problems while operating a flight in the country when they are in the cockpit. In all, Air India has 250 expat pilots. “Expat pilots should be removed because they are not familiar with the diverse topography in India,” a retired Indian Airlines pilot, who did not wish to be identified, said. The common problems that expat pilots face are related to communication and lack of knowledge of topography of Indian terrain, a senior pilot association official said. According to ATC sources, air traffic controllers find it hard to communicate with expat pilots. “Many a times, foreign pilots are unable to follow the instructions because of the difference in our accent. Also we find it hard to understand what an expat pilot is saying in his hard accent,” an ATC source said. The Indian Commercial Pilots Association of erstwhile Indian Airlines has been often demanding that expat pilots must be asked to go home as there is no shortage of pilots in the country. “We have been asking the DGCA for their removal and induction of Indian pilots. But every time, the deadline for their removal is extended due to some pressure of the airline companies,” an ICA official said. The government recently extended the time-frame for phasing out foreign pilots employed by Indian carriers by one year up to 31 July 2011. The move came in the wake of demands by Air India and other airlines that the time be extended beyond 31 July 2010. The existing policy for validation of foreign (pilots) licences is valid up to 31 July 2010. Directorate General of Civil Aviation (DGCA) had requested airline operators to submit their plan for phasing out expatriate pilots along with net requirement of these pilots beyond that date, according to civil aviation minister Praful Patel. Patel said that since 2008, the number of foreign pilots has come down considerably and gradually Indian pilots, who have mostly been co-pilots, would soon be elevated to the status of commanding pilots. Overseas pilots were allowed to fly Indian aircraft initially as during 2004-05, there was stagnation in the aviation sector. However, after the sector started looking up, in order to maintain the momentum, foreign pilots continued to be inducted. The DGCA has started a programme for phased reduction of the expat pilots. According to Patel, Indian pilots are capable of flying under any condition and their training and qualification can be compared to the best in the world. Source: Home - Livemint.com | 22 May 2010 | 2:37 am India pavilion at Shanghai expo gets huge footfallThe India pavilion has become one of the hottest spots at the Shanghai World Expo with average 25,000 visitors every day thronging the stalls of Indian handicrafts and cuisine and jiving on Bollywood songs and dance.Source: HindustanTimes.com - Top Business News Headlines | 22 May 2010 | 2:21 am Plane crashes in Mangalore, 158 killedMANGALORE (Reuters) - An Air India Express passenger plane from Dubai crashed outside the Mangalore airport in southern India on Saturday, killing 158 people when it burst into flames after overshooting a table-top runway and plunging into forest below.Source: Reuters: Money News | 22 May 2010 | 1:59 am Germany fears US rejection of transaction taxThe US may not join international efforts to tax financial transactions, leaving Europe to go it alone, German finance minister Wolfgang Schaeuble said.Source: Daily News & Analysis: Money News | 22 May 2010 | 1:43 am Meet Mr. Right Timing: Ajay Piramal - Economic Times
Source: Business - Google News | 22 May 2010 | 1:19 am Abbott to pay $3.7 bln for unit of Piramal HealthcareMUMBAI (Reuters) - Abbott Laboratories Inc will pay $3.72 billion to acquire the branded generics business of Piramal Healthcare, as global drugmakers look to boost their presence in emerging markets.Source: Reuters: Money News | 22 May 2010 | 12:54 am Oil falls on high US crude stockpilesCrude prices have fallen in eight of the last nine trading days, and have plunged from a 2010 high near $90 a barrel in early May.Source: Daily News & Analysis: Money News | 22 May 2010 | 12:14 am Google gets US antitrust okay on AdMob buyThe Federal Trade Commission (FTC) said that it was concerned that two top mobile advertising networks were combining, but said Apple Inc's entry into the market would mitigate the effects of the GoogleAdMob powerhouse.Source: Daily News & Analysis: Money News | 22 May 2010 | 12:13 am Talks going slow on Disney's Miramax sale: SourcesA source with knowledge of the situation said that the exclusive window has been extended as talks continued and that it was due to expire at the end of this week.Source: Daily News & Analysis: Money News | 22 May 2010 | 12:08 am Exporters shy away from new EU ordersApprehensive of the Euro zone debt crisis, exporters of engineering goods are declining fresh orders from buyers in the European Union. They fear default and lower returns as the curency depreciates. Industry sources said it is the same case inSource: Business Line - Home Page | 22 May 2010 | 12:00 am Abbott buys Piramal health unit for $3.72 bAfter much speculation, it was dark horse Abbott Laboratories that emerged suitor for Piramal Healthcare's Rs 1,823-crore domestic formulations business.Source: Business Line - Home Page | 22 May 2010 | 12:00 am UK abuzz with Infosys-Logica dealRumours that Indian outsourcers will be looking for bargains within the UK IT services sector – thanks to the weak pound - heightened on Friday as press reports in Britain suggested that Infosys was eyeing Logica, one of the country'sSource: Business Line - Home Page | 22 May 2010 | 12:00 am Agri-business boosts ITC net 27% in Q4Backed by a robust growth in agri-business and non-cigarette fast moving consumer goods (FMCG) business, ITC Ltd posted 27 per cent rise in net profit at Rs 1,028 crore for the quarter ended March 31, 2010, against Rs 809 crore during theSource: Business Line - Home Page | 22 May 2010 | 12:00 am Europe crisis is opportunity for other travel destinationsIf the weakening euro attracted you to Europe, or Bangkok was your idea of a shopping destination this summer – let not the volcanic ash and riots in Thailand dampen your decision to holidaySource: Business Line - Home Page | 22 May 2010 | 12:00 am Hindujas to buy Belgium co KBC's private banking armThe Hinduja Group has agreed to acquire the Belgium-based KBC Group's private banking subsidiary, KBL epb, for €1.350 billion (approximately Rs 7,900Source: Business Line - Home Page | 22 May 2010 | 12:00 am States reject GST compensation offerThe States have more or less refused to accept the 13th Finance Commission's compensation package for implementation of the Goods and ServicesSource: Business Line - Home Page | 22 May 2010 | 12:00 am Seed price controls may impact Bt cotton availabilitySeed companies have expressed concern over imposition of price controls on Bt cotton hybrids by State Governments, which, they say, will impact availability and plantings bySource: Business Line - Home Page | 22 May 2010 | 12:00 am IT/BPO sector shows highest growth in jobs in Jan-March quarterEmployment in the IT/BPO sector has showed the highest increase at 6.9 lakh duringSource: Business Line - Home Page | 22 May 2010 | 12:00 am Swiss bank moots sustainability criteria for India investmentsSwiss private bank Sarasin, majority owned by Dutch Rabobank, has done a sustainability assessment among 360 emerging market stocks and created an investible universe, which includes Infosys, TCS, Suzlon, Bharati and JainSource: Business Line - Home Page | 22 May 2010 | 12:00 am Dell doesn't want to be No. 1 in smart phonesDell's consumer business chief, Stephen Felice, says the new Aero phone is aimed at professionals, especially those who work at the big corporations that contribute the bulk of the Round Rock, Texas-based company's sales.Source: Daily News & Analysis: Money News | 21 May 2010 | 11:30 pm BP struggles to curb oil spill; criticism mountsVENICE, La. (Reuters) - Energy giant BP Plc scrambled to contain a month-old seabed well leak billowing crude oil into the Gulf of Mexico on Saturday as anger mounted among affected residents and political leaders in Washington.Source: Reuters: Money News | 21 May 2010 | 11:12 pm Germany fears U.S. rejection of transaction taxBERLIN (Reuters) - The U.S. may not join international efforts to tax financial transactions, leaving Europe to go it alone, German Finance Minister Wolfgang Schaeuble said in an interview released on Saturday.Source: Reuters: Money News | 21 May 2010 | 10:54 pm Google tries where others failed: Shaking up TV businessGoogle Inc's plan would have consumers buy a Google TV device that can then be connected to an existing set-top box, allowing users to surf the Web or watch videos on their TV sets.Source: Daily News & Analysis: Money News | 21 May 2010 | 10:53 pm U.S. FDIC, WaMu reach agreement on bankruptcy planWASHINGTON (Reuters) - Washington Mutual Inc and the Federal Deposit Insurance Corp have reached a global settlement that will return $7 billion to the bank's creditors, a critical step in the bankruptcy involving the biggest bank failure in U.S. history.Source: Reuters: Money News | 21 May 2010 | 10:53 pm BWA auctions to kick off May 24 - Economic Times
Source: Business - Google News | 21 May 2010 | 8:18 pm Google gets U.S. antitrust OK on AdMob buyWASHINGTON (Reuters) - Google Inc has won U.S. approval to buy mobile advertising rival AdMob, after months of delay and rumour that the No. 1 Internet search engine was headed for a court fight with government officials over the $750 million transaction.Source: Reuters: Money News | 21 May 2010 | 6:51 pm Kurland to serve 27 months for Galleon case roleNEW YORK (Reuters) - The first Wall Street executive to be sentenced in the sprawling Galleon hedge fund illegal insider trading case was ordered to serve two years and three months in prison on Friday.Source: Reuters: Money News | 21 May 2010 | 5:01 pm Glaxo, Merck vaccines fine despite pig virus, says EURotavirus vaccines made by GlaxoSmithKline and Merck and Co are safe to use despite being contaminated with a pig virus, Europe\'s drugs watchdog said on Friday.Source: Moneycontrol Top Headlines | 21 May 2010 | 5:00 pm Wall St Week Ahead - Euro zone woes to make for erratic marketNEW YORK (Reuters) - Volatility will be the name of the game on Wall Street next week as uncertainty over the euro-zone debt crisis remains and investors will need nerves of steel to make bets on risky assets like stocks.Source: Reuters: Money News | 21 May 2010 | 5:00 pm BSNL board approves snap tender for 6m GSM lines: SourcesStaterun telecom firm Bharat Sanchar Nigam Ltd (BSNL) board has approved snap tender for six million GSM lines, which is likely to be concluded in 60 days, reports CNBCTV18 quoting sources. Nearly all six million lines is expected to be for 2G network.Source: Moneycontrol Top Headlines | 21 May 2010 | 4:51 pm May 2224: Events to watch out forMay 2224: Events to watch out forSource: Moneycontrol Top Headlines | 21 May 2010 | 4:30 pm Wipro may expand its Kochi base - The Hindu
Source: Business - Google News | 21 May 2010 | 4:15 pm Transport Corporation set to demerge realty businessThe board of directors of the company had approved the demerger of its real estate operations in March.Source: Daily News & Analysis: Money News | 21 May 2010 | 4:04 pm GMR to tie up funds for road next monthGMR bagged the National Highways Authority of India (NHAI) project in February along with New Delhi-based Oriental Structural Engineers.Source: Daily News & Analysis: Money News | 21 May 2010 | 4:03 pm Dell eyes India for cloud application data centreThe PC maker, which also earns significant revenues from servers, storage and software services, currently, offers only SaaS under cloud computing service.Source: Daily News & Analysis: Money News | 21 May 2010 | 4:03 pm Road ministry fumes over plan panel cutsTransport minister Kamal Nath says Planning Commission has no business setting targets for his ministry.Source: Daily News & Analysis: Money News | 21 May 2010 | 3:56 pm PepsiCo to invest $2.5 bn more in ChinaPepsiCo Inc plans to invest USD 2.5 billion in China over the next three years to expand its presence in a major, growing market where its drinks lag behind rival CocaCola Co.Source: Moneycontrol Top Headlines | 21 May 2010 | 3:51 pm 3G winners to make bid payment by May 31: GovtThe government on Friday asked the winners of the allIndia thirdgeneration (3G) spectrum bidding in the recently concluded auction to pay by May 31, failure of which would lead to deposit forfeit.Source: Moneycontrol Top Headlines | 21 May 2010 | 3:51 pm Growth formula: Experts analyse the AbbottPiramal dealAbbott laboratories will buy Piramal Healthcare\'s domestic formulations business for a whopping USD 3.7 billion. In an interview with CNBCTV18, Sujay Shetty, Leader Pharma (India), PwC and Vikas Dandekar of Pharmasianews.com, gave their perspectives on the deal.Source: Moneycontrol Top Headlines | 21 May 2010 | 2:56 pm German lawmakers back euro aid; U.S. stocks reviveBERLIN/BRUSSELS (Reuters) - Germany's parliament approved on Friday a $1 trillion safety net to stabilise the euro as fears swirled that Europe's debt crisis and tougher financial regulation may choke economic recovery.Source: Reuters: Money News | 21 May 2010 | 2:47 pm Reliance resumes output as cyclone fades: SourcesReliance Industries resumed oil and gas production on Friday from its MA1 field on the east coast as cyclone Laila weakened, a company source said.Source: Moneycontrol Top Headlines | 21 May 2010 | 1:51 pm BWA auction set to start on MondayThe government on Friday approved the provisional results for the 3G spectrum sale that fetched it a staggering Rs 67,719-crore bonanza, paving the way for starting the auction of the broadband wireless access (BWA) airwaves from May 24.Source: India Business News | Business News - Times of India | 21 May 2010 | 1:44 pm 'Plan panel just juggles figures, we build roads'Highways minister Kamal Nath marked the completion of his one year in the infrastructure ministry by claiming a significant acceleration in the construction of highways, and by taking issue with the Planning Commission for not thinking big enough.Source: India Business News | Business News - Times of India | 21 May 2010 | 1:40 pm Dainik Bhaskar expansion plan hits a roadblockDainik Bhaskar's expansion plans in Bihar and Jharkhand appear to have hit a roadblock with the co-owner of the Bhaskar title, Sanjay Agarwal, raising objections raised to the use of the Bhaskar brand name.Source: India Business News | Business News - Times of India | 21 May 2010 | 1:37 pm Deal is game changer for Indian market, says AbbottSanofi and Pfizer had reportedly offered $1.7 billion each, while Glaxo is said to have offered $1.5 billion.Source: India Business News | Business News - Times of India | 21 May 2010 | 1:34 pm Abbott buys Piramal's pharma arm for $3.7bnThis is the 2nd-largest deal ever in the Indian pharma industry, just behind Daiichi Sankyo's takeover of Ranbaxy in 2008.Source: India Business News | Business News - Times of India | 21 May 2010 | 1:30 pm Hinduja buys Luxembourg bank for $1.7bnThe Hinduja Group on Friday said that it has entered into an agreement to buy KBC Groep NV's private bank for 1.35 billion euros ($1.69 billion or Rs 8,770 crore) to expand its wealth-management business in Europe.Source: India Business News | Business News - Times of India | 21 May 2010 | 1:29 pm More for less: Tax searches down, but seizures shoot upThe Income Tax (I-T) department seems to have mastered the art of getting more for less. No strong-arm tactics here; it is just that the department has improved what it calls the effectiveness of its search operations through better targeting.Source: Business Standard | Front Page Headlines | 21 May 2010 | 1:27 pm 'Indian pharma cos must be more creative'Ten years ago, Biocon was a manufacturer of organic catalysts known as enzymes that were used in a variety of industries, most notably the textile industry.Source: India Business News | Business News - Times of India | 21 May 2010 | 1:27 pm FM vows payout boost in renewed GST push - Economic Times
Source: Business - Google News | 21 May 2010 | 1:24 pm Drug prices to rise as MNCs increase India playAbbott's buy of Piramal's formulation business has not only taken valuations to giddy heights but will also push up drug prices in the near term as more multinationals make a play to corner the Indian pharmaceutical market.Source: India Business News | Business News - Times of India | 21 May 2010 | 1:22 pm FM hints at more taxes next year to check fiscal deficitFinance Minister Pranab Mukherjee said today the lesson India must learn from the Greek crisis is that it cannot stray from the path of fiscal discipline. Greece paid the price for being fiscally profligate and India could not afford to keep its deficit unchecked, he said.Source: Business Standard | Front Page Headlines | 21 May 2010 | 1:22 pm Hindujas to buy Belgian banking arm for euro 1.35 bnTheHindujaGroup has acquiredKBLepb,the private banking arm of Belgian banking and insurance groupKBC,for euro 1.35 billion (Rs 7,918 crore) in an all-cash deal. With this acquisition, theHindujabrothers plan to grow KBL's private banking business in India, West Asia and the rest of Asia.Source: Business Standard | Front Page Headlines | 21 May 2010 | 1:18 pm Fire fallout: Tata to check every NanoTata will inspect each of the 33,875 Nanos on the road after two of them caught fire. Tata officials, however, said the car is safe and has no design and manufacturing defects. The company will begin inspection of the cars from Monday to "allay any concerns by owners" and where necessary, will add additional protection to ensure the car's safety. Sumant Banerji reports.Source: HindustanTimes.com - Top Business News Headlines | 21 May 2010 | 1:16 pm Abbott snaps up Piramal's formulations biz for $3.7 bnSecond-largest deal in Indian pharma space to make the US firm largest player.Source: Business Standard | Front Page Headlines | 21 May 2010 | 1:16 pm 'Deal in best interest of shareholders'For starting his business way back in 1988, Ajay Piramal had drawn inspiration from a story 'Foot prints on the sands of time'.Source: India Business News | Business News - Times of India | 21 May 2010 | 1:15 pm ITC Q4 profit jumps 27%, to pay spcl dividend - Economic Times
Source: Business - Google News | 21 May 2010 | 1:11 pm Abbott buys Piramal unit, tops tableMumbai: India’s fifth largest drug maker by sales, Piramal Healthcare Ltd, has sold its domestic formulations division, the most valuable part of the company’s pharmaceuticals business, to US drugs and nutrition multinational Abbott Laboratories for a valuation of $3.72 billion (Rs17,484 crore). The deal will make Abbott India’s leading pharmaceutical company with a 7% share of the Rs40,000 crore drug formulations market, Michael J. Warmuth, senior vice-president at the established products division of Abbott, told Mint on Friday. “Abbott has a very long-term plan for India,” he said.  The deal comprises an upfront payment of $2.12 billion and $400 million a year for four years. Announcing the deal on Friday, Ajay Piramal, chairman of Piramal Healthcare, reiterated his commitment to stay invested in the pharmaceuticals business, albeit in the OTC (over-the-counter) segment, drug discovery, critical care and diagnostics space. Piramal started the pharma business in 1988 and has expanded it through organic and inorganic growth. The deal has been put together in such a way that Piramal Healthcare’s promoters will retain their stake in the Indian company while divesting its key business. It marked the second largest merger and acquisition deal by valuation in the Indian pharmaceuticals sector after the $4.6 billion acquisition of the 38% promoters’ stake in Ranbaxy Laboratories Ltd by Japan’s Daiichi Sankyo Co. Ltd. Ranbaxy is currently the country’s largest drug maker by sales. The Abbott deal is the fourth biggest acquisition of an Indian drug business by a foreign drug maker in the last three years. Hospira Inc. acquired the key business of Chennai-based Orchid Chemicals and Pharmaceuticals Ltd and French drug multinational Sanofi-Aventis SA bought a majority stake in the Hyderabad-based vaccine company Shantha Biotechnics Ltd. Piramal justified the sale by saying that future value from the branded generics business would come from business growth outside India. “It is not a distress sale,” he said. Also Read Ajay Piramal | We will use this money to create new businesses The stock markets reacted negatively to the deal. Piramal Healthcare, which surged 9% on Thursday, fell after the deal’s details were released, shedding 11.81% to close at Rs502.35 on the Bombay Stock Exchange even as the benchmark Sensex index lost 0.45% to close at 16,445.61 points. An analyst with a foreign brokerage said investors were concerned about the narrow growth potential in the firm now as it has lost the key business, which contributed around 70% of revenue, and was growing at 25% annually. “The stock could fall further,” said the analyst, who did not want to be identified. Another expert—who attended an analyst meet after the deal announcement—alluded to the transaction being tax inefficient, as the company would have to pay 22% capital gains tax and also a dividend distribution tax for the special dividend that will be paid after Abbott pays the first tranche. The Abbott acquisition includes the entire portfolio of about 350 generic drug brands, 5,500 employees working in the division and a manufacturing plant at Baddi in Himachal Pradesh. Piramal’s portfolio of branded generic drugs cover multiple therapeutic areas such as antibiotics and neuroscience, besides respiratory and cardiovascular diseases. All the cash from the deal will go into Piramal Healthcare and will be invested in existing business segments such as consumer healthcare or the OTC unit, the critical care segment and drug research, chairman Piramal said. “There will even be new areas of business beyond pharma that the company may enter in future,” he said without elaborating. Analysts say the Indian firm will take time to incubate new businesses and even longer for returns to accrue. Piramal, however, expressed confidence that existing businesses such as patented products will make gains in the domestic market in two-three years. “We’re still in the over-the-counter space and we’re still committed towards drug discovery,” he said. The deal valued Piramal Healthcare’s domestic formulation business, also known as the healthcare solutions business, at nine times sales. The company’s sales from this segment was Rs2,000 crore in the year ended March. Large foreign drug makers, including Abbott, Pfizer Inc., GlaxoSmithKline Plc. and Sanofi-Aventis, have been looking for acquisition targets in India as the country is one of the fastest growing drug markets among emerging regions. Emerging markets represent one of the greatest growth opportunities in healthcare, with pharmaceutical sales expected to grow at three times the rate of developed markets and account for 70% of the industry’s growth over the next several years, said an Abbott release on Friday. Abbott estimates the growth of its India pharmaceutical business with the addition of the Piramal division to approach 20% annually, with expected sales of more than $2.5 billion by 2020. The combined Abbott and Piramal sales force will be the largest in India, Warmuth said, adding that the price that it paid for the Indian business was just right. The upfront payment is scheduled to be made by September, with the annual payments starting in 2011. Abbott collaborated with Ahmedabad-based Cadila Healthcare Ltd recently to expand its generic drugs portfolio for global markets. The US firm’s nutrition arm last year signed an acquisition deal in India with troubled drug maker Wockhardt Ltd, but it later withdrew from the transaction due to issues linked to the Mumbai-based drug maker’s debt repayment litigations. ch.unni@livemint.com Source: Home - Livemint.com | 21 May 2010 | 12:58 pm Karl Slym | We’ve stopped using GM, it’s all ChevroletNew Delhi: UK-born Karl Slym, president and managing director of General Motors India, (GM) is happy to remind everyone he meets about England’s recent win in the T20 World Cup—“the first time the team has ever won a World Cup”, he grins. Slym’s own experience in India has been a fairly hard grind in the past two years.  Local footprint: Slym says Chevrolet has enough brand recognition locally, but its commercial vehicles will need a separate network, customer base and so on. Pradeep Gaur/Mint General Motors has had a good year with the Beat doing well. Are you closer to your goal of achieving 10% market share? I may have mentioned to you before that if everybody gets 10%, the market will be 170%! So you’ve not heard me talk market share as much as you’ve heard me talk volume. When we talk about launching new cars, we look at the share of the market we can get. We know we’re coming into new segments like commercial vehicles, which opens up a whole new market for us. I’m going to double my volume this year from the 69,000 sold last calendar year. We plan to triple this volume by 2012. When do we see the first Wuling trucks on the road? You won’t see them as Wuling, of course… Will they have GM branding? Let me talk about the process first. It will be similar to that of Beat or Cruze. We take a global car and bring it to Bangalore. We have 18 months to change the suspension, raise the ground clearance and modify the calibrations to make it ‘OK’ for India. The same will happen with the commercial vehicles. Our partner has them (the commercial vehicles) already. Now we’re working on their Indianization and then we’ll brand it something locally. I’d like to keep it under Chevrolet as I think the brand has enough recognition locally. But it will need a separate network, customer base and so on. What’s it like working with the Chinese? There are now some Chinese board members in GM India. These people who’re helping us now as partners were very prominent when I was dealing with China. So they are not new faces or partners to me. As far as dealing with JVs (joint ventures) is concerned, I was heading the Suzuki-GM JV in Canada for three years. I worked in Korea, which is GM DAT (Daewoo Auto and Technology Co.) and I was head of quality for Asia-Pacific, which included China. With all good joint ventures, there has to be something that each partner sees as benefit. If I think I’m bringing in everything, then that’s not a good partnership. What role does GM play in the JV? Their role hasn’t changed really. The only thing that’s changed is the amount of ownership. The previous parent provided us with the products and the empowerment to run Indian operations. Now 50% empowerment to run the operation comes from the earlier parent. The new parent provides us with similar empowerment. From an operations point of view, I hope you don’t see any difference. Where do you see GM in India in five years? Currently we play in only 60% of the market. Now we have the other 40% opening up with our light commercial vehicles. We have the capacity built into our business. We want to continue growing our local footprint. We have a research and development centre in Bangalore, we’ve got a creative design centre. We’ve got supplier development. We’ve now got a stamping plant. We have also got our own power train plant. Our dealer network has grown to 203 and will be at 300 by the end of the year. General Motors has an aggressive plan to source components from India. How close is it to its $1 billion (around Rs4,700 crore) target? I reviewed this on Friday (14 May). So I know that we’re at $550 million contracts issued till date to Indian suppliers for business for GM outside India. External markets are not exactly booming, so from a timeline viewpoint there could be some lag (on the $1 billion figure), but from the intent there’s no lag. The focus on the Chevrolet brand has helped GM in India. Will you introduce more brands in India or stick to Chevrolet? Earlier we were GM, Chevrolet, Optra, Opel, Daewoo. You would have noticed we’ve stopped using GM. You don’t hear us talk about GM. If you see our advertising it doesn’t talk about GM. If you go to our dealer, he doesn’t talk about GM. We’ve made an effort to stop the confusion. It’s all Chevrolet. It’s been over two years since you moved to India. What’s it been like? It’s been enjoyable. There have been some moments, of course. Last year was a roller- coaster ride. Some of the decisions we made—we can look back on them and smile that they were good things to do and they turned out to be the right thing. But at that time they were stressful things. When we thought how do we go out (when GM declared bankruptcy), I said I would be the face. We decided we can’t have Saif Ali Khan telling them don’t worry about Chevrolet. It had to be me. What car do you drive? I have a Captiva and an Optra. The Captiva is great for commuting for me. In the back seat I can plug in my laptop and work. It’s very comfortable and nice for long-distance travel. That’s when I would use the Captiva. The Optra is more for my wife. You also play the drums. Have you played them professionally? No. They’re electronic drums so I can put headphones on and avoid disturbing my wife. But I have all sorts of drums. I have a Korean drum, I have a drum kit, I have tablas. For the tablas I need lessons (pretends to play the tabla on the table). I can make some noise, but I can’t play them. I used to play the trumpet a long while ago, I used to play football a long while ago. I’ve played cricket since I got here. samar.s@livemint.com Source: Home - Livemint.com | 21 May 2010 | 12:51 pm Another handset minus the frillsSpice Mobile has introduced interesting phones at cheap prices. Let’s take the recently-released Spice QT-44. The QT-44 is great as a low-end QWERTY phone. You will miss a camera, but at Rs 2,599 (approx) do you even want to expect one?Source: HindustanTimes.com - Top Business News Headlines | 21 May 2010 | 12:27 pm Quick Edit | India needs a 3G revolutionIt is sometimes said that the mobile phone has done to India what the automobile did to the US, changing societies and lives for the better. India’s astonishing telecom revolution in the first decade of this century is now looking tired. A lot now depends on whether 3G telecom services can expand into our daily lives with the same sort of ubiquity. Immense possibilities of further social transformation could lie in the years ahead. If 2G allowed Kerala fishermen to access information that helped them sell their catch in the market at the highest prices, 3G could be about a primary rural health centre linking to a metropolitan hospital so that a poor farm worker could get medical advice from the best doctors. Or think of the innovations now possible in areas such as retail finance, entertainment and even governance. The question, then, is whether telcos can make 3G services available to ordinary Indians. Going by what has happened in the past 10 years, a lot will depend on new business models, cheap handsets and among the lowest call rates in the world. Source: LatestNews-Home - Livemint.com | 21 May 2010 | 12:23 pm Centre blinks, chances of GST deal improveNew Delhi: In a confidence-building move, the Centre has signalled its willingness to increase the compensation it will pay states during the transition to a single goods and services tax (GST), beyond the Rs50,000 crore recommended by the 13th Finance Commission (TFC). The Centre, in its discussions with state finance ministers in New Delhi on Friday, also indicated it was open to the possibility of compensating states this fiscal for revenue lost because of a low Central sales tax (CST).  One step forward: A file photo of West Bengal finance minister Asim Dasgupta (left) with Union finance minister Pranab Mukherjee. Arvind Yadav / HT The decision could bridge part of the trust deficit after the last round of meetings between the two sides in January. “A very positive suggestion,” said Asim Dasgupta, chairman of the grouping of states, on the Centre’s move. The states hope to meet finance minister Pranab Mukherjee within a fortnight to work out details of the compensation on CST, Dasgupta said. Some state finance ministers cautiously welcomed the Centre’s move to rebuild trust, but said divisions could surface once the talks get into details. A tricky moment in negotiations could come when GST compensation is discussed. Dasgupta said the Centre was prepared to go beyond the Rs50,000 crore figure over a five-year period suggested by TFC. TFC’s compensation is linked to the roll-out of GST system with minimal distortions. The system suggested by states in November 2009 is relatively complex. “By and large, states differ with the views of TFC,” Dasgupta said, highlighting a potential source of friction. However, the Centre’s conciliatory approach on Friday has improved the prospects of a tax-reform deal. On Friday, the Centre’s representatives pointed out they had not crystallized their position, thereby creating space for negotiations on GST architecture in the coming months. GST seeks to stitch together a common market to replace the existing fragmented indirect tax structure. Its roll-out is expected to lower business costs and eventually push down prices, and for the first time economically unify the country. sanjiv.s@livemint.com Source: LatestNews-Home - Livemint.com | 21 May 2010 | 12:23 pm US shares jump, led by banks, euro risesNew York: The euro jumped against the dollar on Friday after the head of the European Central Bank said the single currency was not in danger and US stocks pushed higher, led by bank shares a day after the US Senate passed the most sweeping overhaul of financial regulation since the 1930s. But worries about euro zone sovereign debt crisis continued to take a toll on investors’ appetite for risk, US treasuries debt prices rose through most of the morning as fears that global fiscal tightening would crimp an economic recovery drove a bid for safety, but turned as stocks rose. European shares hit a more than eight-month low but pared losses after the comments on the euro by the ECB president, Jean-Claude Trichet. German lawmakers on Friday backed the $1 trillion rescue plan for the euro zone. Skittish trading on a day when many US equity options and some options on stock indexes expire contributed to market volatility. The price of spot gold, which hit a record high one week ago, was down for a fifth consecutive day, while crude oil pared earlier losses, a day after touching a seven-month low. The euro traded up 0.70% at $1.2552, on pace for its first weekly gain against the greenback in six weeks. Bearish sentiment against the currency had become so extreme in the midst of the Greek-led debt crisis that investors started to buy the euro zone currency in case of intervention. European finance ministers were to meet later on Friday to discuss changes to budget rules to prevent another Greek-style debt crisis. “The vote in Germany doesn’t solve all the problems in the euro zone, but it demonstrates political will and is an effective near-term Band-Aid,” said Matt Kaufler, equity analyst at Clover Capital Management in Rochester, New York. Investors decided “the sell-off on both sides of the Atlantic was overdone,” he said. On Wall Street, stocks reversed early losses that had seen the Dow Jones industrial average dip below the psychologically significant 10,000 point level. The Dow rose 74.36 points, or 0.74%, at 10,142.37. The Standard & Poor’s 500 Index gained 12.92 points, or 1.21%, at 1,084.51. The Nasdaq Composite Index climbed 29.09 points, or 1.32%, at 2,233.10. The S&P Financial index 2.92% from Thursday’s three-month low, when the index fell nearly 5%. Shares of Goldman Sachs Group Inc. jumped 5.2% to $143.17 after analysts cited rumors of a possible settlement with US regulators of civil fraud charges. European shares finished lower. The FTS Euro first 300 index of top European shares closed down 0.5% at 970.00 points. A late rally in banks pulled the pan-European index off earlier lows, but declines in oil and gas producers helped keep the market in negative territory. BP fell 4.2% after US politicians accused the company of covering up the true extent of the oil spill in the Gulf of Mexico. MSCI’s All-Country equity index rose 0.67% while MSCI’s emerging market share index rose 0.39%. Both indexes were sharply lower earlier in the global trading day. In Japan the Nikkei closed down 2.5% and lost 6.5% on the week, its biggest weekly drop in more than a year. Safety? As global share prices cut losses, there was some paring back of money going into European government debt. The June Bund future shed around half a point from a record high of 128.97. By 1452 GMT, the contract was at 128.56, up 25 ticks on the day. “The stock market is rallying and so they’re selling back Bunds, we’re just in that mentality at the moment,” said a trader in London. The premium investors demand to hold Spanish, Italian and Greek sovereign bonds rather than German benchmarks fell. The 10-year Spanish/German government bond yield spread narrowed by 5 basis points from the day’s peak to 143 bps. US Treasuries dipped narrowly into minus territory after stock market gains tempered the safety bid for US government debt that has dominated trade all week. The price on benchmark 10-year notes slipped 1/32 of a point. The 10-year note yield rose to 3.22% from 3.21% on Thursday. Spot gold prices dropped 0.32% or $3.80 an ounce to $1,178.30. US light sweet crude oil fell 55 cents, or 0.78%, to $70.25 per barrel. Source: LatestNews-Home - Livemint.com | 21 May 2010 | 12:20 pm Economy & Politics | Jobs in eight sectors rise: labour ministryNew Delhi: The ministry of labour and employment Friday released a quarterly survey reports on effect of recession on employment in selected sectors in India. The changes in employment that took place during the last quarter falling in the financial year 2009-10 (January-March 2010 over the corresponding period of 2009) indicates that the overall employment in the eight selected sectors has increased by 10.66 lakh during this period. In IT/BPO sector the increase in the employment is maximum (6.9 lakh) during the year, a ministry statement quoting the survey said. The selected sectors are textiles, leather, metals, automobiles, gems and jewellery, transport, IT/BPO and handloom. At overall level, the employment has increased by 0.61 lakh in quarter ending March 2010 over the one ending December 2009. However, in textile sector, the employment has declined by 1.19 lakh during the above corresponding period. ****** Meet on medical education next week New Delhi: The controversy over who should control medical education in India may be resolved next week when the secretaries of higher education and health meet. The discussions may also have implications for regula tion of other branches of h igher education, human resource development (HRD) ministry officials said. “There’s no conflict between the two ministries. But after the Medical Council of India (MCI) fraud case, the health ministry is on weak ground. Right now, the focus is not on who will control what, but (on) giving autonomy to universities and institutions, and not to bodies like AICTE (All India Council For Technical Education), MCI or UGC (University Grants Commission),” an HRD ministry official said on condition of anonymity. “The meeting is expected to discuss this issue as well other than addressing a few queries put forth by the health ministry.” As per the draft proposal for a National Commission for Higher Education and Research (NCHER), the HRD ministry wants to put all higher education, including medicine, under one umbrella. The ministry official said that the NCHER concept emerged from the Yash Palpanel report on higher education that mooted a super-regulator to provide autonomy to universities and top higher educational institutes while overseeing them. The National Knowledge Commission also endorsed the idea of doing away with regulators such as AICTE and UGC. Another HRD ministry official said NCHER may be established as an independent regulator such as the Securities and Exchange Board of India. “It may not be under the HRD ministry, and education under several ministries may be part of it. Technical education, conventional education and medical education may be three branches, but all under one overseeing authority, which will give educational institutes a longer rope and better autonomy to function without an ‘inspector raj’ culture,” the official added. The official said that when experts working to finalize NCHER went around the country, they got feedback from some medical education providers that “they are not happy with MCI and will appreciate working under an overarching body ”. Source: LatestNews-Home - Livemint.com | 21 May 2010 | 12:14 pm Summer jobs bring cheerAs industry rebounds and both services and manufacturing look up, students and young graduates can look at better prospects, report Vivek Sinha & Himani Chandna.Source: HindustanTimes.com - Top Business News Headlines | 21 May 2010 | 12:11 pm Abbott gets Piramal crown jewel for Rs 17,000 croreUS-based Abbott Laboratories is set to acquire the domestic formulations business of Piramal Healthcare Ltd for Rs 17,000 crore in one of Corporate India’s biggest acquisition deals, reports HT Correspondent.Source: HindustanTimes.com - Top Business News Headlines | 21 May 2010 | 12:06 pm Hinduja buys Belgian pvt bank for $1.7 billionDiversified international conglomerate Hinduja group will buy Luxembourg-based banking and insurance company KBC’s private banking arm for Euro 1.35 billion ($1.69 billion, Rs 7,858.5 cr), both parties said on Friday. Source: HindustanTimes.com - Top Business News Headlines | 21 May 2010 | 12:04 pm Ajay Piramal | We will use this money to create new businessesMumbai: Ajay Piramal spoke to Mint a few hours after he announced the sale of his branded generics business to Abbott Laboratories Inc. Edited excerpts. The stock markets have taken it badly. Is there something that you haven’t told us? There is nothing that is unsaid in terms of material information. In the long term, the market will understand the deal. Is it a smart move to pay 22% capital gains tax? It would have been much less if you had sold the stake in the stock market?  Better foothold: Piramal Healthcare chairman Ajay Piramal. When we acquired the drug business 22 years ago, the valuation of the entire company was Rs6 crore. Today, the value of a part that we sold is Rs17,000 crore. We have created a compounded annual growth rate of 44%. In my knowledge, there must be a handful of companies who have created such value over a consistent period. The market is not appreciating the fact that so much money is coming in. You have allied businesses in pharma such as original drug research, over-the-counter, etc. These businesses need funds to grow. Was that the motive? We will use this money not only to invest in our existing businesses but create new businesses. We are not going to sit idle with all this money. There are different ways to grow this business, but I am not in a position to tell you which are the new areas that we will enter. We don’t need money to grow these businesses as we have invested in them and they are on a stage of growth on their own. Our debt equity (ratio) is not high. In fact, if you see the history of this company, we have raised money twice in 22 years and that too only around Rs250 crore. We did this (the Abbott deal) because of the valuation. To get 9 times valuation in a branded generics market is very good. They (Abbott) can grow beyond India, which we would not be in a position to do. So, it is multinational corporation (MNC) might that forced your exit. It is not a distress sale. There is a difference from what others did and what we have done... They (Ranbaxy’s Indian owners) sold their entire stake and they are no longer in that business. We have not sold our stake. The MNCs have their might, but the Indian companies too have held their own. From being fourth in ranking in the domestic market in the beginning of the year, we became No. 3 by the end of the first quarter beating GSK (GlaxoSmithkline). How did this happen? People were approaching us. The biggest challenge was that it is a good business and not a distress business, and so why should we exit this? The second issue, what should we do with so much money. How will we use it for the company and all the shareholders? Then there was a moral issue. With so much money, will we get spoilt? Frankly, by the grace of the Lord, even before this event we had enough money. After a certain point, you can’t eat more and can’t have a bigger home than the one where you are living now. You have built this business in one generation. Feeling emotional? The emotion is the same as somebody marrying off his daughter. There is a combination of joy and sorrow. You are happy that it is going to a good home. There is sorrow because you have built it, you are attached to it and any parting in life is sad. After divesting, will acquisitions be on your radar? And will they be in the existing lines of business? We have never gone slow on strategic acquisitions for lack of funds. But now we can look at larger deals. Frankly, it could be beyond pharma. ch.unni@livemint.com Source: Home - Livemint.com | 21 May 2010 | 12:04 pm Senate passes massive Wall St regulation billProdded by national anger at Wall Street, the US Senate on Thursday passed the most far-reaching restraints on big banks since the Great Depression. In its broad sweep, the massive bill would touch Wall Street CEOs and first-time homebuyers, high-flying traders and small town lenders. Source: HindustanTimes.com - Top Business News Headlines | 21 May 2010 | 12:02 pm CBI turns up the heat, widens MCI probeNew Delhi: The Central Bureau of Investigation (CBI) is widening the scope of its investigations of the Medical Council of India (MCI) and is accordingly probing all files related to inspections conducted over the last two years of nearly 40 medical colleges. The investigators are examining whether any of these colleges offered monetary or other favours to Ketan Desai, former chief of the suspended medical body, who is presently in the judicial custody of CBI. “We have seized over 170 inspections files from Desai’s office. The files belong to nearly 40 medical colleges spread across the country. In 2009, MCI inspectors had conducted around 130 inspections and at least 60 inspections took place in 2010,” said a senior CBI officer associated with the investigations, who did not want to be identified. “We’re going through every single file to find those medical colleges that favoured him (Desai) for getting approvals, despite inadequate facilities and lack of required infrastructure,” the officer said The officer said that during initial investigations, evidence indicated that Desai used his influence to grant approval to 10 colleges after accepting “hefty” favours from them. “He accepted favours from the Laxmi Narayan Medical College of Chennai for running courses. We have recommended to our Chennai branch to register a fresh case against Desai and the college administration. They have been asked to investigate the matter further,” the officer said. Siddarth Luthra, advocate for Desai, hadn’t responded to Mint’s queries at press time. Apart from Laxmi Narayan Medical College, some of the colleges under CBI lens are Adesh Institute of Medical Science and Research in Punjab; Vikarabad Medical College, Santhiram Medical College, and Rajiv Gandhi Institute of Medical Sciences in Andhra Pradesh; Rajendra Institute of Medical Sciences in Jharkhand; Sagar Medical College in Madhya Pradesh; Sree Balaji Medical College and Hospital, Annapoorana Medical College and Hospital, DD Medical College and Hospital, and Thiruvarur Medical College in Tamil Nadu; Baba Saheb Bhim Rao Ambedkar Medical College and Manyavar Kashi Ram Jee Allopathic Medical College in Uttar Pradesh. MCI inspectors had made negative recommendations for most of these colleges in 2009, though the applications of several were later cleared. “We are checking into each and every college. Our teams will be visiting these colleges to verify facts. And if they are found guilty of irregularities and corruption, we will take legal action against them,” the officer said. Except Santhiram Medical College, none of the other collegs responded to Mint’s emails and phone calls. “In 2009, we were given approval by MCI. Our college is five year(s) old, we got MCI approval in 2005, 2006, 2007, but in 2008 we were denied approval. We even contested in court. In 2009, we got the approval. But on the sixth of this month (May), we were inspected again by MCI. Our degree for this year has been accredited and approved by them,” S. Nagaraj, principal of Santhiram Medical College, said. The CBI officer said Desai was also threatening to take over the management of some colleges. “We’re gathering evidence on this regard.” However, the official said it is a difficult case as both the parties (the colleges and Desai) indulged in acts of corruption, “so there is no complainant”. Desai was arrested last month. CBI said he was guilty of a conspiracy to fraudulently give recognition to Gian Sagar Medical College in Punjab, to enable it to run courses and take more students even though it did not meet MCI criteria. Desai had allegedly demanded a bribe of Rs2 crore. According to CBI’s first information report, Desai was to be paid the bribe by J.P. Singh, an intermediary, and Kawaljeet Singh of Gian Sagar Medical College. Kawaljeet Singh carried money to Delhi on behalf of Sukhwinder Singh, vice-chairman of Gian Sagar Charitable Trust and one of the trustees of the college. They’ve all been arrested. MCI was dismantled on 15 May and replaced by a six-member panel of doctors led by gastroenterologist S.K. Sarin. On 21 May, CBI registered a disproportionate assets case against Desai. “As of today, we have found assets to the tune of Rs24 crore in his and his family’s name,” CBI director Ashwani Kumar told reporters. CBI recovered huge amount of cash, gold and property in the name of Desai and his family. In Ahmedabad alone, it recovered documents on investment of Rs20 lakh in Hindustan Home Finance, a property in Sun Building Pvt. Ltd and a plot in Sun Village Project in Sanand. Desai and his wife are directors in Zems Infrastructure Pvt. Ltd. CBI recovered gold worth Rs39 lakh in two lockers, and gold and diamonds worth Rs38 lakh in another two lockers. Three bank accounts in Bank of Baroda’s Ahmedabad branch in the name of his family members had a balance of Rs1.8 crore. CBI recovered documents showing possession of properties in Andheri (Mumbai), a shop and an office space. Desai and his family own five vehicles, including a ToyataCamry, a HondaCity and a HyundaiSonata. “We’re also looking his interest in real estate companies of Ahmedabad and Mumbai,” the officer said. sahil.m@livemint.com Source: LatestNews-Home - Livemint.com | 21 May 2010 | 12:00 pm Web weds TV, arrangements by GoogleWeb search king Google on Thursday showed off a risky attempt to marry the Web to television and reach the $70 billion TV advertising market, chasing a dream that has eluded even arch-rival Apple.Source: HindustanTimes.com - Top Business News Headlines | 21 May 2010 | 11:59 am Germany backs euro aid, stocks tumbleGerman lawmakers approved on Friday a $1 trillion safety net to stabilise the euro as world stocks slid further on fears Europe’s debt crisis and tougher financial regulation will choke recovery. Source: HindustanTimes.com - Top Business News Headlines | 21 May 2010 | 11:56 am Auction for BWA to begin on MondayThe auction of airwaves for broadband wireless access (BWA) services, which was scheduled to start on Saturday, will now begin on Monday, an official from the Department of Telecommunications (DoT) said Friday.Source: HindustanTimes.com - Top Business News Headlines | 21 May 2010 | 11:55 am Rupee posts biggest weekly loss since July 1996 - Economic Times
Source: Business - Google News | 21 May 2010 | 11:53 am Banks plan Kingfisher debt recast outside CDRMumbai: The country’s biggest lender, State Bank of India (SBI), has approached the banking regulator, Reserve Bank of India (RBI), with a proposal to restructure a loan of around Rs2,000 crore given to Kingfisher Airlines Ltd, adding to the funding woes of the debt-ridden carrier. The loan was given by a consortium of banks led by SBI. The other banks in the consortium are Bank of India, Bank of Baroda and Punjab National Bank. Troubled loans are usually referred to the corporate debt restructuring (CDR) cell of the lenders after a majority of them approve a recast, which could entail a lower interest rate, a longer repayment period, or the conversion of overdue interest into the loan principal. This is done after a loan turns bad. SBI wants to recast the Kingfisher loan outside the CDR platform because if it is classified as a bad loan or non-performing asset, then the airline will find it difficult to raise money through its proposed global equity offering.  Graphic: Yogesh Kumar / Mint Kingfisher Airlines plans to raise up to $350 million (Rs1,645 crore) through global depository receipts (GDR) and a rights issue in July-September this year. “The bank has approached RBI with a proposal and we don’t know as yet whether the regulator will give its approval,” said a senior banker in the know of the development. According to him, this is the “best solution” at this point as it will enable the airline to go ahead with its GDR plan. He also said that the banking industry was unlikely to take any further exposure to Kingfisher Airlines. The banker did not want to be identified considering the sensitivity of the issue. A senior executive of United Breweries Ltd, which owns Kingfisher Airlines, said that the carrier has appointed SBI Capital Markets Ltd, SBI’s investment banking arm, to advise on the proposed loan restructuring. A Kingfisher Airlines spokesperson declined comment. The ailing carrier, which had a Rs7,413 crore debt at the end of December, has been trying to raise up to $350 million of fresh equity capital for the past year. Of its total debt, Rs2,099 crore is short-term and the rest a long-term loan. Rival airline Jet Airways (India) Ltd—which is the largest in the country by passenger traffic and has a 25.9% market share—has a debt of Rs13,759.50 crore. A senior Union Bank of India executive said banks are hesitant about lending to airlines as almost all of them are loss-making entities because of low capacity utilization, high fuel cost and poor sales due to the economic slowdown. “Our exposure to the airline sector is very little,” the bank official said. For the quarter ended December, Kingfisher Airlines posted a net loss despite reporting an operating profit as it cut costs. Net loss for the quarter marginally rose to Rs419.96 crore, from Rs413.39 crore in the corresponding period in fiscal 2009. In the first nine months of the year, it posted a net loss of Rs1,075 crore. The airline will announce its annual results on 28 May. Kingfisher Airlines—which is owned by liquor baron Vijay Mallya—acquired loss-making Deccan Aviation Ltd in 2007, but even before the integration was complete, it ran into the global economic slowdown. More recently, the volcanic ash cloud over Europe as well as the fallout of the European debt crises have hit the Indian carriers hard and hindered their efforts to raise at least $1 billion. Earlier this month, The Economic Times wrote that IDBI Bank Ltd has asked Kingfisher Airlines to repay a separate short-term loan of Rs900 crore as it had missed some instalments. The airline has furnished guarantees from its holding firm United Breweries Holdings Ltd. Meanwhile, Kingfisher Airlines is going ahead with expansion on international routes, a segment that has seen losses in the past. Source: Home - Livemint.com | 21 May 2010 | 11:50 am The Week in Review for 21 May 2010The contest is over and the biggest winner is the government of India. After 34 days and 183 rounds of bidding, the auction for 3G spectrum finally came to an end on Wednesday. No company won a nation-wide license, but the government didn’t complain. It’s going to make about Rs70,000 crore, twice what it initially expected. Three telecom companies managed to bag thirteen telecom circles each, which is the maximum number allowed. Bharti agreed to pay Rs12,300 crore for its 13 circles. Aircel’s tab was at Rs6,500 crore. Reliance Communications’ will cough up Rs8,600 crore. Meanwhile, two other companies, Tata Teleservices and Vodafone Essar, got spectrum in nine circles. The government divides India into a total of 22 telecom circles for which operators have to bid separately. After months of bad news, the troubled Bank of Rajasthan finally located a buyer this week. On Tuesday it announced it would merge with ICICI Bank in a deal that analysts estimate is worth Rs3,000 crore. As part of the agreement, Bank of Rajasthan’s shareholders will get 25 ICICI shares for every 188 shares they hold. Most analysts Mint spoke to say the deal is favourable to Bank of Rajasthan. But while it may have landed a great deal, Bank of Rajasthan’s troubles are not over. A merger with ICICI Bank will require approval not just from the RBI, but also from the government. That’s because ICICI is now classified as a foreign bank and needs a green light from the Foreign Investment Promotion Board. In pharmaceuticals, On Friday Piramal Healthcare agreed to sell its local formulations business to US multinational Abbott. The deal is worth $3.32 billion. Abbott will get around 350 of Piramal’s generic drugs along with more than 5,000 employees and a factory in Himachal Pradesh. Chairman Ajay Piramal says cash from the sale will be pumped into research and into existing businesses like those for over the counter drugs. Source: LatestNews-Home - Livemint.com | 21 May 2010 | 11:46 am Everest made easyEverest made easy  Child’s play: Das’ treks promise to get even novices to trekker country. Photo: Sujoy Das “All the treks are rated easy to moderate,” says Das, “and accessible to children in the 8-12 age group. The days are divided so that there are no drastic altitude changes. Kids are more likely to get bored than tired, so we have ingenious ways of keeping them entertained and engaged.” With ample time to get into shape, this is the best time to sign up for one of his trips. Visit www.southcol.com for details. All costs per person, on Kathmandu-Kathmandu basis. Shoot a tiger  Photo: Nikhil Devasar The well-prepped sightseer  Source: LatestNews-Home - Livemint.com | 21 May 2010 | 11:26 am Spotlight | Not on the dotREVIEWER: SONAL DABRAL In his advertising career of over 20 years, Sonal Dabral, chairman, Bates 141 India, has won awards at most major international and regional shows, including Cannes, Clio, D&AD, Adfest and Spikes. CAMPAIGN: The new Indigo airlines’ ad focuses on saying the carrier is always on time because everyone involved in the process—chefs, air hostesses, ground staff, pilots—are always on time. What did you think of the ad? If you’ve seen Kuntzel and Deygas’ quirky title sequence for the Spielberg film Catch Me if You Can, you know where the inspiration for this TVC (TV commercial) comes from! Nevertheless, full marks to W+K and the client team for trying this new and very different genre to break through the clutter of our same-to-same TV environment. It gives the brand a zippy, contemporary feel—and the single-minded message of “on time” gets established well. That said, I have problems with the execution and crafting. Both lack a certain finesse. Look at the faces, the costumes and the awkward manner in which the models try to stand like trained dancers. It’s little slip-ups like these that, unfortunately, make the ad feel “fake”. A script and idea of this nature should’ve been mounted correctly, with a good budget and good “time” on hand. That would have really made it take off. Besides the overall not-exactly-there finish of the commercial, another concern is with the casting. Whether they’re the chefs, the pilots or the passengers, they all look the same—bland and faceless good-looking models. Since the genre is a musical and the look is exaggerated, I’m sure this was intentional, but it would’ve been much better to take some memorable, differentiated—and importantly, believable—faces. Some could even have been trained dancers to strike the right moves. This, done right, would’ve added immensely to the look and the authenticity of the commercial. What should marketeers keep in mind while advertising a brand in a highly competitive category such as airlines? In today’s busy media environment, it’s important to keep the message simple and single-minded—and be entertaining at the same time. This new Indigo ad does a great job at being single-minded and that’s the reason the message sticks long after you’ve finished watching it. Which airline brand has put out good work consistently? My favourite airline ads are for Aerolineas Argentina. They have consistently produced some memorable and relevant ads. The one where the old lady of the village reads out a letter from her pilot son and the village gathers to see the son’s plane fly overhead, or the one where a young boy and girl capture the plane’s shadow in their little box are both wonderful pieces of storytelling. Not just great ideas but great executions too. And that’s what makes all the difference. gouri.s@livemint.com Source: LatestNews-Home - Livemint.com | 21 May 2010 | 11:25 am Rainbows on my mindPramod Guruji told me this story while I was interviewing him for my book, The Art of Bollywood. The painter G. Kamble, it seems, was once working on a banner for V. Shantaram’s Do Ankhen Barah Haath at Rajkamal Studios. Perched high up on rickety scaffolding, he sat with a cloth across his crossed legs, painting a rainbow. Shantaram came by to check on his progress and was startled to see the rainbow; there was no such image in his film. “Kamble, kambal jhaad!” he shouted irately to the painter, telling him to shake down the blanket so that he could check the painter’s reference images. Kamble complied, but, of course, there was no rainbow concealed in the blanket’s folds. “Where did you get that rainbow?” was Shantaram’s next question, to which the painter replied, “I have seen them in my home-town, Kolhapur. They come up in the sky after it rains.” I didn’t know what to make of this story when I first heard it. Guruji was a second-generation painter and art director who had grown up looking at the work of the great banner painters of the 1950s. He had lost his memory some years ago, I was told, but mysteriously, he had recovered from his amnesia. So now the stories of his youth tumbled out in a mad rush, one barely started before the other swerved giddily to another time, another place. If I protested that I wanted dates and facts, the stuff researchers thrive on, he would grin under his white beard and say, “Story mein hi toh story hai (the story lies in stories).” All he could offer was this tantalizingly incomplete and unreliable oral history that hinted at the complex genealogies of Bollywood painters, and recorded vivid details of brush strokes placed on canvas decades ago. The rest was really up to me. That story about Kamble? Perhaps Guruji meant to tell me in his characteristically sly manner that sometimes it’s futile to look for patterns, trace influences and trends, construct tidy histories. Some people have rainbows on their minds and it’s best to leave it at that. I remembered Guruji’s unspoken advice often while writing my book, even though I may have done what he disparaged, in attempting a design history that maps Hindi cinema’s tradition of hand-painted images. In over 80 years of prolific creation, Bollywood has produced a staggering number of these images, on a scale that has transformed the urban environment in India, turning entire cities into art galleries. It has evolved a visual language which accommodates a variety of styles and regional variations while influencing the popular culture of the subcontinent. As I discovered in my research, much of this diversity has been lost in the digital age, and much can never be recovered. In my book I have tried to paint the big picture, going beyond posters to cover other aspects of Bollywood art as well, from magazine advertisements to billboards and cinema displays. Most of all, I have heeded Guruji’s words about the story that lies within stories, and traced the careers of the rainbow men who created this tradition, acknowledging the individual contributions of those who have long been dismissed as anonymous manufacturers of kitsch. Rajesh Devraj is a Mumbai-based writer. Write to lounge@livemint.com Source: LatestNews-Home - Livemint.com | 21 May 2010 | 11:21 am UPA should implement inclusive policies now Zoya Hasan is professor of political science at the Jawaharlal Nehru University, New Delhi This question assumes significance because the Congress-led UPA-II sees the renewal of its mandate in 2009 as a vindication of the architecture of inclusion it built up during its first term in office. The redistributive policies of UPA-I government contributed to Congress’ electoral success and people expect the UPA-II to follow the same policies. From the Telangana fiasco to the uncertainty over the Women’s Reservation Bill (WRB), UPA-II appears to be losing the momentum it had generated immediately after the election; the disarray in the principal opposition party, the Bharatiya Janata Party (BJP), only further enhanced the initial gains. There is a pervasive feeling that UPA-II lacks direction and a clear policy framework, as a result, the Centre does not hold. Congress’ own lack of cohesion and ideology exacerbates the problem as it appears torn between differing strategies on key policy issues. UPA-I had its share of troubles, but the Common Minimum Programme provided an agreed road map and the coordination committee zealously guarded against any deviation from it. For this reason, the progressive sections within the Congress together with the support of Left parties in Parliament and non-governmental organizations and civil society groups outside it were able to push through ground-breaking legislations such as the Mahatma Gandhi National Rural Employment Guarantee Act and RTI. Even though Congress had fewer than 150 seats, Sonia Gandhi had a hegemonic position in UPA-I and her decisive pro-poor stance was the hallmark of the government. She doesn’t seem to be playing a similarly decisive role in setting the policy agenda this time even as UPA-II gives the impression of floundering from one crisis to another.  Sitaram Yechury Click here to view a slideshow highlighting the UPA’s major failures and achievements Also See | Shifting allies, controversies Indeed, UPA-II government’s first big floor test came within a year of taking office. Even after proving its majority on Opposition moved cut motions in the just concluded Budget session, it is not assured of a trouble-free term for the remaining four years since it is dependent upon the likes of Mayawati and Mulayam Singh Yadav to keep it in power. The price for maintaining these truant numbers is keeping WRB on hold or else understanding between the Congress, the Samajwadi Party, the Bahujan Samaj Party and the Rashtriya Janata Dal can come unstuck. It is no surprise then that UPA-II is turning out to be quite different from UPA-I, which was driven by a pro-poor policy consensus and some deft political management, in which Gandhi and the Left parties played a key role. Both dimensions are missing in the politics of UPA-II. It has not been able to bring testy allies on board and is pursuing policies that essentially please the middle- and upper-middle classes to enlist their support for the Congress. The government has reduced direct taxes besides giving tax-breaks to the rich, while leaving the poor to cope with 18% food inflation. Instead of a sharp focus on social, health and education sectors, UPA-II is keen on public-private partnerships in education, facilitating the entry of foreign universities, cuts in subsidies, etc. That is surprising coming from a government that returned to power riding on the back of the aam aadmi. But sooner than later UPA-II has to recognize that high growth alone will not reduce social inequalities and find ways to minimise the latter without hampering the former. Presumably, the top leadership of the Congress has the political savvy to appreciate that there is an urgent need to carry people, particularly the deprived, with them or at least be perceived to be doing so. The reconstitution of the National Advisory Council under Gandhi suggests an attempt at course correction. It is indicative of a shift in the government—party balance to regain political cohesion. The most encouraging sign that UPA-II is seized of the problem of inequalities comes from a growing recognition of the need for a more universal approach to social protection. Such an approach appears to be under consideration with regard to the proposed right to food legislation as against arbitrarily limiting the number of beneficiaries, either by fiat, or, indirectly, through speciously low poverty estimates. The road ahead is shaky unless the Congress leadership takes some bold decisions to implement its inclusive policies and programmes. UPA-II must grasp the opportunity to build social democracy, albeit an Indian social democracy, to recoup the political capital that UPA-I had earned in the election. Respond to this column at feedback@livemint.com Source: LatestNews-Home - Livemint.com | 21 May 2010 | 11:20 am ITC net surges 27%; bonus issue likelyKolkata: Net profit at ITC Ltd jumped 27% to Rs1,028.22 crore in the three months to 31 March, driven by robust growth in cigarettes and farm commodity businesses. Net revenue rose 28% during the quarter to Rs5,053.80 crore, compared with the same period last year, largely due to an 18.5% growth in cigarette sales and an 87.9% increase in earnings from farm goods such as tobacco leaves. ITC said on Friday its board would meet on 18 June to consider issuing bonus shares and that it would pay a centenary dividend of Rs5.50 a share, taking the total dividend payout for the fiscal to Rs10. ITC, which turns 100 in August, had last issued bonus shares in 2005.  For the year, ITC’s net revenue at Rs18,153.2 crore was 16.3% higher than FY09, while net profit at Rs4,061 crore was 24.4% higher. “The results are largely in line with expectations, but the 34% growth in revenue from consumer goods (other than cigarettes) in the January-March quarter was most impressive,” said Anand Shah, senior research analyst at Angel Broking Ltd. Net revenue from ITC’s non-cigarette consumer goods business in the January-March quarter was at Rs1,122 crore. Loss in the segment during the quarter declined to Rs78.70 crore from Rs117.30 crore in the same period last year. In the quarter to December, ITC posted a loss of Rs86 crore in this business. Cigarette sales during the year expanded 19.8% to Rs9,321.15 crore, which is a little more than half of ITC’s total revenue. Cigarettes contributed Rs4,938.12 crore, or 82% of ITC’s Rs6,015.31 crore pre-tax profit for the year. Notwithstanding price hikes, ITC’s cigarette sales might have grown 8-9% by volume in the quarter ended 31 March, Shah said, but “the April-June quarter is crucial” because there were substantial price hikes in the past two months. In FY10, several states increased value-added tax on cigarettes from the consensus rate of 12.5%, ITC said in a statement, adding “some states (had also) levied entry tax...and some others increased the entry tax rate”. ITC’s hotel business didn’t do well in FY10; its net revenue during the year declined 9% from the previous year to Rs910.8 crore. Pre-tax profit for the full year was 31.5% lower at Rs216.64 crore. Though revenue from farm products grew 87.9% in January-March to Rs988.1 crore, sales during the full year remained flat from FY09 at Rs3,862.14 crore because of “rationalization of the agri-commodity portfolio (in view of) policy interventions and volatility in the commodity markets”, ITC said. aniek.p@livemint.com Source: Home - Livemint.com | 21 May 2010 | 11:14 am Stocks fall on global cues; Sterlite, Wipro declineMumbai: India’s benchmark stock index fell on Friday, on course for its worst month since January, as Europe’s sovereign debt crisis and rising US jobless claims prompted investors to withdraw funds from riskier assets. Sterlite Industries (India) Ltd, the largest copper producer, dropped 1.6% as metal prices tumbled. Wipro Ltd, India’s third largest software services provider, declined to the lowest in two weeks. The nation’s largest software exporters get more than one-fifth of their sales in Europe.  Economic uncertainty: The Bombay Stock Exchange building in Mumbai. Growth rates are coming under threat globally due to the European debt crisis and this has triggered an erosion of investor confidence. Rupak De Chowdhuri/Reuters The Bombay Stock Exchange’s (BSE) sensitive index, or Sensex, fell 74.07, or 0.5%, to 16,445.61, taking its loss this week to 3.2%. The gauge is poised for its worst monthly performance since January’s 6.3% slide. The S&P CNX Nifty index on the National Stock Exchange lost 0.3% to 4,931.15. The BSE 200 index retreated 0.6% to 2,089.54. Prices tumble Sterlite declined 1.6% to Rs641.65. The stock has slid 22% since the end of April and is poised for its worst monthly performance since October 2008. Commodities, measured by the Reuters/Jefferies CRB index of 19 raw materials, slumped to an eight-month low on Thursday. Wipro dropped 1.9% to Rs641.70. Tata Consultancy Services Ltd, the largest software services exporter, slid 1.6% to Rs718.70, its lowest close in atleast four months. The rupee fell past 47 per dollar for the first time this year, set for the worst week since 1995. Economic growth rates are coming under threat globally due to the European debt crisis and this has triggered an erosion of investor confidence, said R.V.S. Sridhar, senior vice-president at Axis Bank Ltd in Mumbai. Overseas investors sold a net Rs1,470 crore of Indian equities on Thursday, reducing their total purchases of the stocks this year to Rs24,590 crore, according to the nation’s market regulator. Inflows from overseas reached a record Rs83,420 crore in 2009, exceeding the high set two years earlier in domestic currency terms, as the biggest rally in 18 years lured foreign funds. They sold a record Rs52,990 crore of shares in 2008, triggering a record annual decline. Bloomberg Anil Varma contributed to this story. feedback@livemint.com Source: Home - Livemint.com | 21 May 2010 | 10:56 am Dr Reddy’s launches drug to treat organ rejection in USHyderabad: India’s second largest drugmaker by sales, Dr Reddy’s Laboratories Ltd, has launched in the US a generic version of a drug used to prevent or treat the rejection of livers, kidneys and hearts after transplants. The patent for the tacrolimus capsules is held by Japanese drugmaker Astellas Pharma Inc. under the brand name Prograf. The medicine had a market of around $955 million (Rs4,489 crore) in the US in the year ended 31 March, Dr Reddy’s said in a statement on Friday.  New market: A Dr Reddy’s facility in Hyderabad. The firm can expect an additional $25 million in sales in fiscal 2011 from the drug. Bloomberg Dr Reddy’s can expect an additional $25 million in sales in fiscal 2011 from the tacrolimus capsules, Bakhru added. The other big launch expected this quarter by the Hyderabad-based drug maker is the anti-allergic drug Allegra, which has a market size of $180 million in the US. Dr Reddy’s fiscal 2010 results had disappointed analysts after it posted a mere 1% sales growth over the previous year, hit by the expiry of the sales-exclusivity period in the US for its anti-migraine drug Sumatriptan. The company also faced multiple product recalls in late 2009, as a result of which its customers shifted suppliers. Analysts are keenly watching for further exclusivity opportunities for Dr Reddy’s, which is critical for the company to be able to touch its 2013 sales target of $3 billion. The company is also increasingly focusing on the domestic industry, clocking a 20% growth in India sales last year. Source: Home - Livemint.com | 21 May 2010 | 10:54 am Nano absolutely safe: Tata MotorsTata Motors on Friday claimed that its people's car was "absolutely safe", saying a probe into fires that gutted a couple of brand new 'Nanos' by an expert team found 'no manufacturing defects'.Source: India Business News | Business News - Times of India | 21 May 2010 | 7:14 am Fitch: India's 3G auction adds to telecom sector credit woes - Economic Times
Source: Business - Google News | 21 May 2010 | 2:56 am
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