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What attracts Vivek Saraogi to sugar sector?Vivek Saraogi, MD, Balrampur Chini Mills, the third largest sugar producer in the country, also the President of the Indian Sugar Manufacturers Association, speaks about the Indian sugar industry and gives his outlook going forward.Source: Moneycontrol Top Headlines | 5 Jun 2010 | 8:13 am Is there an Indian way of doing business?Is there an Indian way of doing business? Does mythology hold the answer? Noted mythologist Devdutt Pattanaik and CNBCTV18s Menaka Doshi discuss the purpose of a corporation, leadership qualities, Dharma Sankat and modern day business conflicts and other issues pertaining to Leadership and Governance.Source: Moneycontrol Top Headlines | 5 Jun 2010 | 7:45 am What will listed cos make of new shareholding norms?The government has increased the minimum required public shareholding for listed companies to 25%. In an interview with CNBCTV18, Cyril Shroff, Managing Partner at Amarchand Mangaldas, spoke about what he made of the announcement and the implications of this notification.Source: Moneycontrol Top Headlines | 5 Jun 2010 | 4:56 am Buyout size increasing, not \'mega\' yet: ExecutivesPrivate equity bosses are expecting deal sizes to gradually increase in size but said on Friday they aren\'t forecasting an immediate return to megabuyouts, like the USD 15 billion size recently discussed.Source: Moneycontrol Top Headlines | 5 Jun 2010 | 4:30 am India sets hearing for $2.56bn Vodafone tax caseUK\'s Vodafone is fighting a tax bill in India from its 2007 purchase of Hutchison Whampoa Ltd\'s mobile business there, said authorities, had set a June 14 hearing to discuss the size of the tax bill.Source: Moneycontrol Top Headlines | 5 Jun 2010 | 4:08 am Govt to talk to telcos on network securityThe government said on Friday it would hold talks with telecoms sector players including service providers within a week to help address security threats in networks.Source: Moneycontrol Top Headlines | 5 Jun 2010 | 4:08 am BP begins capturing some oil from Gulf gusherBP began capturing some oil spewing from a 46day gusher on Friday after installing a containment cap atop a ruptured Gulf of Mexico well, as tar balls began washing ashore on the Florida coast.Source: Moneycontrol Top Headlines | 5 Jun 2010 | 4:08 am British Airways cabin crew start new 5day strikeBritish Airways (BA) cabin crew started their latest fiveday strike on Saturday in a longrunning dispute which has so far cost the airline about 120 million pounds ($176 million).Source: Moneycontrol Top Headlines | 5 Jun 2010 | 4:08 am Broadband bids cross $2 bn on 10th dayBids for one set of nationwide wireless broadband spectrum licences reached Rs 95.22 billion (USD 2.03 billion) on Friday in an ongoing auction, government data showed.Source: Moneycontrol Top Headlines | 5 Jun 2010 | 4:08 am G-20 finance chiefs concur on curbing deficitsFinance ministers and central bankers from the world's leading economies agreed today on the need to cooperate in fending off financial market turmoil and keeping the world economic recovery on track.Source: HindustanTimes.com - Top Business News Headlines | 5 Jun 2010 | 3:16 am Global rebalancing policies need coordination - IMFBUSAN, South Korea (Reuters) - The International Monetary Fund believes global growth will be hurt if the Group of 20 rich and developing economies fail to coordinate efforts to rebalance global demand, an IMF official said on Saturday.Source: Reuters: Money News | 5 Jun 2010 | 3:14 am Ranbaxy UK unit recalls painkiller - paperMUMBAI (Reuters) - The British unit of Indian drugmaker Ranbaxy is recalling all unused stock of a batch of a nerve pain treatment after failing to update mandatory safety information, the DNA Money newspaper reported on Saturday.Source: Reuters: Money News | 5 Jun 2010 | 3:12 am Sensex regains 17K level - Hindu Business Line
Source: Business - Google News | 5 Jun 2010 | 3:07 am BP hopes to quell Gulf disasterWith its containment cap clamped over the ruptured wellhead in the Gulf of Mexico, BP Plc executives say they hope to be siphoning off the bulk of newly spilled oil from the deep-sea gusher within days.Source: HindustanTimes.com - Top Business News Headlines | 5 Jun 2010 | 2:59 am US employment report sparks global recovery fearsWashington: A weaker-than-expected report on US job creation has shown employers are still reluctant to hire new workers, and has heightened fears of a faltering economic recovery. In figures that fell well short of expectations -- sending markets across the world plummeting -- the Labor Department said 431,000 posts were created in May, most of them temporary government jobs for this year’s census. Private-sector jobs rose by just 41,000, less than a fifth of the amount predicted by analysts. Much of that gain came from temporary service-sector jobs. President Barack Obama’s hopes of slashing US unemployment had been expected to get a substantial boost, amid predictions that 500,000 or more jobs would be created. But Obama shrugged off the report, saying a slight drop in the unemployment rate showed the economy was getting stronger. The US unemployment rate dipped to 9.7% from April’s 9.9% as around 322,000 people stopped looking for work. “This report is a sign that our economy is getting stronger by the day,” Obama told a crowd gathered at a truck dealership in suburban Maryland. “There are going to be some months where people start worrying that, you know, maybe we’re not out of the hole yet. “But if we remain determined, if we stick to it, if we stay the course of investing in our people and businesses... then I’m absolutely positive we can succeed.” But his comments did little to shake fears of a jobless recovery. “There is no sugarcoating this report as it was disappointing,” said Joel Naroff of Naroff Economic Advisors. “Forget the headline number, the private sector is not out there hiring like crazy.” That response was echoed on Wall Street where the Dow Jones Industrial Average fell 325 points -- or more than three percent -- shortly before the closing bell. The picture was equally bleak in Europe. London’s FTSE 100 index shed 1.6% while in Paris the CAC 40 fell 2.9% and in Frankfurt the DAX lost 1.9%. Analysts said the skittishness was caused by fears that the private sector will not be able to prop up the economy as the government gradually withdraws stimulus spending. “The softer performance in US private-sector payrolls... raises concern that the recovery is faltering,” Stephen Gallagher and Aneta Markowska of Societe Generale said. That would spell bad news for the nearly one in 10 American workers who are unemployed and continue to stream into government offices asking for help. The Labor Department says almost 4.7 million Americans now claim unemployment benefits, with 453,000 new claims in the last week of May alone. Instead of rehiring staff many firms are asking workers to put in longer hours or are creating only part-time jobs, according to data also released Friday. The Labor Department said the average workweek has increased by around 20 minutes from a year ago to just over 34 hours. But some analysts said the employment figures are not yet cause for panic. “In our view, it would be premature to conclude that the recovery is stalling or even giving way to a renewed recession,” said Jan Hatzius of Goldman Sachs. “Employment is growing, but so far it is only growing at a 100,000 to 150,000 pace. This is sufficient to keep the unemployment rate stable and absorb most of the new entrants into the labor force, but it is nowhere near the 300,000+ pace which would be required to push the unemployment rate down rapidly.” Source: LatestNews-Home - Livemint.com | 5 Jun 2010 | 2:57 am FACTBOX - What the IMF is telling G20 on bank levy, economyBUSAN, South Korea (Reuters) - The International Monetary Fund is providing reports to Group of 20 finance ministers and central bankers to aid their debates on bank levies, rebalancing global growth and the economic outlook.Source: Reuters: Money News | 5 Jun 2010 | 2:46 am G20 says volatile markets pose policy challengesBUSAN, South Korea (Reuters) - Governments must put their public finances in order to calm global financial markets rattled by a spreading debt crisis in Europe, finance ministers of the Group of 20 leading economies said on Saturday.Source: Reuters: Money News | 5 Jun 2010 | 2:36 am Busan G-20: Mukherjee calls for strong, sustainable, balanced growth - Sify
Source: Business - Google News | 5 Jun 2010 | 2:33 am TEXT - G20 communique after meeting in South KoreaBUSAN, South Korea (Reuters) - Following is the statement issued by the Group of 20 after a meeting of its finance ministers and central bank chiefs on June 4-5.Source: Reuters: Money News | 5 Jun 2010 | 2:33 am Delhi’s ‘tongas’ forced to ride into the sunsetNew Delhi: India’s rapid modernisation is set to claim another victim with the expulsion of the horse-drawn carriages, or tongas, that have plied the streets of Delhi since the days of the Mughal emperors. The favoured mode of transport for the city’s elite at the height of the British Raj, the status of the iconic tongas has now officially been downgraded to “public nuisance”. Barely 250 tongas remain in the capital, but the municipal government has ruled that -- in a city of five million cars -- getting rid of the carriages will somehow help ease Delhi’s chronic traffic congestion. The decision is being challenged with a last-ditch appeal to the high court and by a public outcry over what many see as an unnecessary effort to erase a part of the capital’s cultural heritage. Delhi Mayor Prithvi Sawhney is unmoved. “With traffic congestion increasing, a tonga ride is a waste of time and problematic for both passenger and driver,” Sawhney told AFP. “In the old days, tongas were used to carry passengers. Today they just carry luggage and a few tourists. Barely anyone uses them for daily travel,” he said, adding that the new metro system had “revolutionised” transport in the city. In the absence of any last-minute reprieve, Kishen Lal, a third-generation “tonga-wallah,” may hang up his saddle and reins on Sunday for the last time. The government has offered the drivers a path to alternative employment in the form of a vendor’s licence, but those like Lal, who is 73, say it is far too late to change trades. “We know no other profession except this,” said Lal, whose grandfather drove a tonga in Delhi back in the early 1940s, before independence. “If they want to stop the tongas, they should do it in phases and not all in one go,” he said. “It will give us all great sadness if we have to stop riding tongas. They are the pride and majesty of this city.” The decision to banish the tonga-wallahs coincides with the general facelift that Delhi is receiving ahead of the Commonwealth Games in October. The government is looking to the Games to showcase the “new India” -- an emerging economic powerhouse which aspires to the same sort of infrastructural transformation undertaken by its giant neighbour China. It’s a vision that has no place for the humble tonga -- a fact that distresses people like Delhi historian and writer Radha Kumar. “Growing up, I often used tongas to commute from Old to New Delhi. Feeding the horse was my biggest high,” recalled Kumar, while insisting that his objection to their disappearance wasn’t based on nostalgia alone. The argument that expelling several hundred horse-drawn carriages would improve traffic congestion in a city of more than 20 million souls is, Kumar argues, barely credible. “And the government has no right to make arguments or decisions on the economic viability of such a small group of people,” he said. “They are not causing any damage. You can maybe go after them on sanitation grounds -- the hygiene of the stables. But you can’t just evict them.” As well as offering a flavour of a bygone era when Delhi city devoid of flyovers and shopping malls, tongas are lauded by their fans as a clean transport alternative in a city choked by vehicle pollution. Supporters also point out that most of the carriages ply their trade around tourist spots and are particularly popular with out-of-town visitors. “I think they give you a feel of the real India,” said tourist Sadaf Hussain. The high court appeal will be heard on 14 July but the municipal government has insisted that the tongas get off the roads from Monday, having already given them a one-week stay. “We are praying for God to intervene,” said Lal. “But in the end we will also comply by the court’s ruling.” Source: LatestNews-Home - Livemint.com | 5 Jun 2010 | 1:54 am Ssangyong Motor picks 6 bidders for due diligence - SteelGuru
Source: Business - Google News | 5 Jun 2010 | 12:23 am Impact of minimum public shareholding norm: SMC Capitals - Moneycontrol.com
Source: Business - Google News | 5 Jun 2010 | 12:10 am No putting off interest rate increases, says PranabThe Finance Minister, Mr Pranab Mukherjee, has said that India would not put off interest rate hikes even in the wake of risks to global recovery from the European sovereign debtSource: Business Line - Home Page | 5 Jun 2010 | 12:00 am IT firms tread cautiously on acquisitions abroadInfosys Technologies, after having been outbid for Axon in 2008, has done a small-ticket acquisition of US-based McCamish Systems for a meagre $38-millionSource: Business Line - Home Page | 5 Jun 2010 | 12:00 am Sugar hits 9-month low on subdued tradeSugar prices on Friday dropped to a nine-month low but mills, especially in the co-operative sector, hope that it will recover nextSource: Business Line - Home Page | 5 Jun 2010 | 12:00 am Listed firms must have 25% public holdingIn a move that could unleash a flood of public offers and deepen the Indian stock market, the Government has amended the Securities Contracts (Regulation) Rules to increase the non-promoter holdings in Indian companies.Source: Business Line - Home Page | 5 Jun 2010 | 12:00 am Higher public holding will enhance liquidity: AnalystsThe decision by the Ministry of Finance to make it mandatory for all listed companies to have 25 per cent minimum public shareholding will add liquidity to the market and also to an extent reduce price manipulation, said analysts and merchantSource: Business Line - Home Page | 5 Jun 2010 | 12:00 am SBI to link base rate to cost of depositsState Bank of India has decided to link its base rate to the cost of deposits. The bank plans to announce the rate on JuneSource: Business Line - Home Page | 5 Jun 2010 | 12:00 am Loose policies are working without collateral damageShould we fear inflation or deflation? Should we fear deficits and governmentSource: Business Line - Home Page | 5 Jun 2010 | 12:00 am Heavy Industries Ministry finalises first land dealIn the face of land acquisition holding up projects, the Ministry of Heavy Industries has been able to move forward on a few proposals — one with the Steel Ministry and the other for its automotive testingSource: Business Line - Home Page | 5 Jun 2010 | 12:00 am Oil spill: Costs mount rapidly for BPBP's estimate of the costs of responding to the deepwater oil spill in the Gulf of Mexico has broken through the $1-billion barrier as the company agreed to pay for the construction of six sand barriers, off the coast of Louisiana at a cost ofSource: Business Line - Home Page | 5 Jun 2010 | 12:00 am Tighter security norms for satellite phone servicesAfter China-made telecom equipment, the Government is now bringing satellite-based mobile communication services under tighter securitySource: Business Line - Home Page | 5 Jun 2010 | 12:00 am British Airways cabin crew start new 5-day strikeBritish Airways is trying to reach a deal with Unite which will save £62.5 million a year to counter falling demand, volatile fuel prices and greater competition.Source: Daily News & Analysis: Money News | 4 Jun 2010 | 11:27 pm Monsoon expected to deliver normal rainfall this yr - Moneycontrol.com
Source: Business - Google News | 4 Jun 2010 | 11:00 pm Hackers plant viruses in Windows smartphone gamesHackers are increasingly targeting smartphone users as sales of the sophisticated mobile devices have soared with the success of Apple Inc's iPhone and Google Inc's Android operating system.Source: Daily News & Analysis: Money News | 4 Jun 2010 | 10:14 pm British Airways cabin crew start new 5-day strikeLONDON (Reuters) - British Airways cabin crew started their latest five-day strike on Saturday in a long-running dispute which has so far cost the airline about 120 million pounds ($176 million).Source: Reuters: Money News | 4 Jun 2010 | 8:55 pm Wall St Week Ahead: Europe, jobs keep stocks' anxiety highNEW YORK (Reuters) - U.S. stocks could face further pressure next week unless investors get some relief from worries about Europe, jobs and the toll they might take on the economic recovery.Source: Reuters: Money News | 4 Jun 2010 | 8:49 pm Adani-Welspun plans Cambay drillingAdani-Welspun Exploration will begin drilling at its onshore block in the Cambay basin close to Bharuch in the next 10 days, said Akhil Jindal, director, corporate affairs, Welspun Corp.Source: Daily News & Analysis: Money News | 4 Jun 2010 | 5:01 pm General Motors working on electric-vehicle technology for IndiaKarl Slym, president and managing director of General Motors India Pvt Ltd, tells DNA the US car major's pact with Reva Electric Car Company to jointly work on an electric variant of the Chevy Spark - e-Spark - went off the track as it was not a quick-to-market solution.Source: Daily News & Analysis: Money News | 4 Jun 2010 | 4:59 pm Online tatkal passport racket busted - Times of India
Source: Business - Google News | 4 Jun 2010 | 4:54 pm Philips Lighting mulls LED facilityThe company, along with marketing its conventional products, is gearing up to garner a major pie in the LED sector.Source: Daily News & Analysis: Money News | 4 Jun 2010 | 4:53 pm BWA auction may conclude next week: SourcesThe allIndia bid price at the close of day 10 of the broadband wireless auction (BWA) stands at Rs 9,522 crore, up 6% from yesterday\'s close. The government\'s revenue stands at Rs 28,566 crore.Source: Moneycontrol Top Headlines | 4 Jun 2010 | 4:52 pm Companies must have 25% public holdingCompanies which aren't there can reach the level through an annual addition of at least 5% stake.Source: Daily News & Analysis: Money News | 4 Jun 2010 | 4:51 pm Canon clicks on FMCG techniques for hinterlandApart from strengthening the distribution reach, the company is relying heavily on collaborating with brands that allow Canon promote photography products and photography as a habit.Source: Daily News & Analysis: Money News | 4 Jun 2010 | 4:50 pm SBI base rate by June 15, seen at around 8%Its public sector peers are expected to follow suit after that since they were all waiting for Big Brother to show hand.Source: Daily News & Analysis: Money News | 4 Jun 2010 | 4:47 pm Hindalco net profit rises eightfold on writebacksNet sales dropped by 8% to Rs 60,722 crore for the reporting fiscal as against Rs 65,963 for the fiscal 2009. The company said the net sales dropped mainly due to lower aluminium prices.Source: Daily News & Analysis: Money News | 4 Jun 2010 | 4:45 pm China's public debt 'a Damocles sword'TCW Asia strategist Jean-Charles Sambor says country's fiscal risks are underestimated.Source: Daily News & Analysis: Money News | 4 Jun 2010 | 4:42 pm Hindalco profit jumps to Rs 3925cr - Calcutta Telegraph
Source: Business - Google News | 4 Jun 2010 | 4:36 pm Go online for tickets now - Times of India
Source: Business - Google News | 4 Jun 2010 | 2:42 pm BWA to take spectrum revenue to Rs 1 lakh cr - Financial Express
Source: Business - Google News | 4 Jun 2010 | 2:25 pm Listed firms must have at least 25% public holdingGet ready for a slew of public offers by blue chips. In a major decision on Friday, the Union finance ministry stipulated that listed companies must have at least 25% public holding.Source: India Business News | Business News - Times of India | 4 Jun 2010 | 1:46 pm Stay focused on clients and unleash power of growthIt was around a month ago. Australia had just recorded a miraculous victory in the T20 world cup semi-final against Pakistan. And Gunit Chadha, managing director of Deutsche Bank, like millions of cricket lovers, was floored by how the Aussies pulled off the win.Source: India Business News | Business News - Times of India | 4 Jun 2010 | 1:38 pm Hungary has slim hope to avoid Greece-like crisisHungarys markets fell sharply on Friday after the prime ministers spokesman supported the view that his country had only a slim chance of avoiding a Greek-style debt crisis, although he said it would do so.Source: India Business News | Business News - Times of India | 4 Jun 2010 | 1:36 pm M&M, Ruias shortlisted for SsangYong bidMahindra & Mahindra and Pawan Kumar Ruia-led Ruia Group on Friday said they had been shortlisted to make the final bid for acquiring beleaguered South Korean automaker SsangYong Motor.Source: India Business News | Business News - Times of India | 4 Jun 2010 | 1:35 pm Private biggies all set to dilute stakesPromoters of a slew of top companies would now have to dilute their stake to raise public shareholdings in line with the new listing norms.Source: India Business News | Business News - Times of India | 4 Jun 2010 | 1:33 pm Move may suck out Rs 2.1L crThe governments move to make 25% public holding in listed companies compulsory could suck out up to Rs 2.1 lakh crore from the market as companies rush to bring down promoters' holding either by divestment or by issuing fresh equity.Source: India Business News | Business News - Times of India | 4 Jun 2010 | 1:32 pm Dont rush after every offer: ExpertsThe government's decision to impose a minimum 25% limit for public holding in all listed companies would definitely result in more public offerings, but retail investors shouldn't rush to subscribe to each and every issue, say experts.Source: India Business News | Business News - Times of India | 4 Jun 2010 | 1:30 pm RIL, Essar to get Cairn crude in JuneAfter the government allowed private refiners to buy crude from Cairns fields in Rajasthan, the biggest onland discovery in two decades, Essar Oil and Reliance Industries will start routine processing of the oil from month-end when they expect to start receiving oil through a heated pipeline.Source: India Business News | Business News - Times of India | 4 Jun 2010 | 1:26 pm Toyota mulls R&D centre in IndiaJapanese car maker Toyota is exploring the possibility of setting up a research and development facility and engine plant in India, the head of its joint venture said on Friday.Source: India Business News | Business News - Times of India | 4 Jun 2010 | 1:22 pm Essar Energy FTSE 50 boundEssar Energy is expected to find its way into FTSE 50 - Footsie, or the London Stock Exchange index - next week.Source: India Business News | Business News - Times of India | 4 Jun 2010 | 1:20 pm Wall St tumbles on jobs data, European worriesNew York: US stocks sank on Friday after a disappointing May jobs figure, while investors were spooked by the possibility of another debt crisis, this time in Hungary. Data showed the US economy added fewer-than-expected jobs last month, with a large portion of those being temporary hirings for the US Census. “There’s no other way to describe it except flat out disappointing,” said Mike O’Rourke, chief market strategist at BTIG LLC in New York. “Once you get beyond the Census numbers, it was abysmal.” The drop of more than 2% in stocks follows Wall Street’s first back-to-back advances since late April. Worries that Europe’s sovereign debt troubles could spread flared again after a Hungarian official said the country was at risk of a Greek-style crisis, driving the euro to a four-year low against the dollar. Financial stocks ranked among the worst performers, with both the KBW Banks index down 3.51%. JPMorgan Chase & Co shed 2.3% to $38.19, while Bank of America Corp slipped 2% to $15.50. The Dow Jones industrial average tumbled 259.67 points, or 2.53%, to 9,995.61. The Standard & Poor’s 500 index lost 29.67 points, or 2.69%, to 1,073.16. The Nasdaq Composite index dropped 64.89 points, or 2.82%, to 2,238.14. Further exacerbating the pressure on Wall Street were concerns from Europe about Societe Generale’s derivatives business. The company said it would not comment on market rumors. There have been nine days since 1998 when payrolls data was reported and the SPDR S&P 500 exchange-traded fund (ETF) opened down 1% or more, according to Bespoke Investment Group. On those days, the fund rose an average of 1.2% from open to close. The ETF was down 2.7% on Friday afternoon. Chris Burba, a short-term market technician at Standard & Poor’s in New York, cited a support level for the S&P 500 at 1,070, a recent low for the index. If the S&P closes below that level, he said, “The risk of sustaining a decline beneath the February low would increase.” BP Plc avoided a decision on whether to pay its next quarterly dividend as it faced heavy political pressure to put the payout on hold while it fights the oil spill in the Gulf of Mexico. BP’s US-listed shares fell 4.4% to $37.53. Dow component McDonald’s Corp slipped 1.5% to $66.83 after it recalled 12 million “Shrek”-themed drinking glasses. US officials warned consumers to stop using them because they contain the toxic metal cadmium. The Labor Department said the US economy added 431,000 jobs in May -- far short of the 513,000 that Wall Street had expected. Even so, analysts said it didn’t alter their view that the economy is stabilizing, with many expecting unemployment will remain high for some time. Decliners were carrying the day, outnumbering advancers on the New York Stock Exchange by a ratio of 8 to 1, while on the Nasdaq, about six stocks fell on the Nasdaq for every one that rose. The CBOE Volatility Index or VIX, Wall Street’s favorite barometer of investor fear, shot up 15.7% to 34.08 in mid-afternoon trading. Source: LatestNews-Home - Livemint.com | 4 Jun 2010 | 1:20 pm Making musicIt’s Friday night in New York City and young South Asians are looking forward to unwinding at The Bollywood Cruise that takes off from Pier 41 in Manhattan. Some 300 people show up. They’ve paid about $25 each for the pleasure of partying to the beats of DJ Ladla and DJ Karma – two DJs famous among Indian New Yorkers. Both DJ Ladla and DJ Karma belong to a handful of DJs who started spinning in the mid-90s, spotting a business to organize parties for the 20-30 something crowd who wanted to dance to sounds of Bollywood mixes. They became wildly successful, making albums and earning a good living, while forgoing traditional jobs. Source: LatestNews-Home - Livemint.com | 4 Jun 2010 | 1:19 pm European shares down on US jobs data, SocGenLondon: European shares snapped their four-day winning streak to end lower on Friday after US jobs data disappointed and banks fell, with Societe Generale down on concerns over its derivatives operations. The US Labor Department showed payrolls rose by 431,000 in May, well below a forecast of 513,000 in a Reuters poll. Banks were under pressure and snapped the previous sessions gains. Societe Generale fell 7.6% with traders citing concerns about its derivatives division, but a spokeswoman at SocGen said: “If we had something to say we would have said it.” The pan-European FTSEurofirst 300 index shares closed down 1.9% at 998.60 points, but ended the week up 0.1%. “Today is a day of bad news and there has not been any respite from it,” said Mike Lenhoff, chief strategist at Brewin Dolphin. “It is very disappointing the jobs numbers came in below what everyone had expected.” Markets were also spooked after the Hungarian prime minister’s spokesman supported the view that his country had only a slim chance of avoiding a Greek-style debt crisis. Banks with exposure to eastern European countries were under pressure. Raiffeisen International and Erste Group Bank fell 8.3% and 7.8% respectively. Most stocks of banks with a significant exposure to Eastern Europe feature among Europe’s biggest losers so far in 2010, with Societe Generale down about 35% and Raiffeisen down 21%. They have been underperforming the STOXX Europe 600 Banks, which is down 15.3% year-to-date. Friday’s sharp sell-off represented a market cap wipeout of about €1.9 billion ($2.32 billion) for SocGen. BP pares gains BP pared earlier gains and was up 0.3%. The company said it resisted political pressure to stop dividend payouts on Friday as oil continued to spill from one of its wells into the Gulf of Mexico. However, other energy stocks fell along with crude down 3.6% after the US jobs data tempered optimism over the strength of the economic recovery. BG Group, Royal Dutch Shell, Total and Cairn Energy were down 1% to 2.9%. Across Europe, the FTSE 100 index was down 1.6%, Germany’s DAX was 1.9% lower and France’s CAC 40 was down 2.9%. Spain’s IBEX fell 3.8%, Portugal’s PSI 20 lost 2.2% and Italy’s benchmark fell 3.8%. Source: LatestNews-Home - Livemint.com | 4 Jun 2010 | 1:07 pm Mahindra, Dunlop among the shortlisted bidders for SsangyongMumbai: Mahindra and Mahindra Ltd, the country’s largest utility vehicle maker and tyre maker Dunlop India Ltd have been shortlisted for the South Korean SUV maker Ssangyong Motor. In a statement issued on Firday, the South Korean automaker said it has shortlisted six out of seven firms. The firms had submitted letters of intent to buy the troubled carmaker, that has been under court-led restructuring since early 2009. A Mahindra spokesman confirmed the development. Mahindra & Mahindra has been invited by Ssangyong, Korea to participate in the bidding process,” he said. A spokesman of Dunlop India also confirmed his firm has been shortlisted. South Korea’s smallest carmaker is 6.2 percent owned by China’s SAIC Motor Corp among others. A Seoul court kicked off the sale process for the cash-strapped SUV maker last month, and is set to receive binding bids by 20 July to pick a preferred buyer in August Shally Seth Source: LatestNews-Home - Livemint.com | 4 Jun 2010 | 1:05 pm Mahindra, Dunlop among the shortlisted bidders for SsangyongMumbai: Mahindra and Mahindra Ltd, the country’s largest utility vehicle maker and tyre maker Dunlop India Ltd have been shortlisted for the South Korean SUV maker Ssangyong Motor. In a statement issued on Firday, the South Korean automaker said it has shortlisted six out of seven firms. The firms had submitted letters of intent to buy the troubled carmaker, that has been under court-led restructuring since early 2009. A Mahindra spokesman confirmed the development. Mahindra & Mahindra has been invited by Ssangyong, Korea to participate in the bidding process,” he said. A spokesman of Dunlop India also confirmed his firm has been shortlisted. South Korea’s smallest carmaker is 6.2 percent owned by China’s SAIC Motor Corp among others. A Seoul court kicked off the sale process for the cash-strapped SUV maker last month, and is set to receive binding bids by 20 July to pick a preferred buyer in August Shally Seth Source: World Business - Livemint.com | 4 Jun 2010 | 1:05 pm IMD sees monsoon revival over weekendNew Delhi: India’s top weather official on Friday said the monsoon, stalled over Kerala due to cyclone Phet, is likely to revive over the weekend and keep it’s date with Mumbai on the 10th of June. Ajit Tyagi, director general, India Meteorological Department, said that several monsoon-tracker models indicated a “complete revival” in the next two days and that he was confident of a normal monsoon in the weeks to come.” “As of today i see no reason to revise our earlier prediction of a normal monsoon in April. We will update our forecast on the 25th of this month,” he said in press briefing. The monsoon’s revival was pegged on whirlwind Phet toning down from a “severe” cyclone to a “cyclone” and its touchdown on the Oman coast on Friday. Tyagi, however, added that though the cyclone had reduced rainfall over Kerala and Karnataka it was “premature” to calculate a deficit. Source: LatestNews-Home - Livemint.com | 4 Jun 2010 | 1:03 pm Gujarat to set up aviation companyNew Delhi: Gujarat government on Friday announced setting up of an aviation company to meet the growing demand in the public and private sector, state spokesperson Jay Narayan Vyas said in a release. Gujarat State Aviation Company (GUJSAC) would be a public sector enterprise with a view to building infrastructure and providing trained human resources for the fast growing civil aviation sector. State tourism and civil aviation Secretary will be the Chairman-cum-Managing Director (CMD) of this company, and Gujarat Infrastructure Development Board (GIDB) Managing Director A.K. Sharma and Tourism Corporation of Gujarat Limited (TCGL) Managing Director Anup Shukla will be the Directors, Vyas added. Santosh K Joy Source: LatestNews-Home - Livemint.com | 4 Jun 2010 | 1:03 pm SBI may fix base rate at 8 per cent - Business Standard
Source: Business - Google News | 4 Jun 2010 | 1:01 pm Tejas boosts test programmeA small group of engineers stood tensely beside the runway on Thursday at Hindustan Aeronautics Ltd, Bangalore, peering at the sky. As two approaching dots rapidly enlarged into the menacing delta-wing shapes of the Tejas Light Combat Aircraft, an animated murmur arose. Test pilot, Wing Commander Suneet Krishna was bringing in a brand new Tejas fighter from its inaugural test flight.Source: Business Standard | Front Page Headlines | 4 Jun 2010 | 12:58 pm SBI may fix base rate at 8 per centBanks to seek further clarity from RBI.Source: Business Standard | Front Page Headlines | 4 Jun 2010 | 12:58 pm Global stocks slide on US jobs data, Hungary fearsA dour US jobs report, coupled with fears over European banks and talks of a Greek-style debt crisis in Hungary, drove down global stocks and sent the euro to a four-year low on Friday.Source: Business Standard | Front Page Headlines | 4 Jun 2010 | 12:56 pm I-T pegs Vodafone's liability at Rs 12,000 crBritish telecom major Vodafone Plc today received a new showcause notice from the income tax (I-T) department, quantifying its liability at Rs 12,000 crore on its 2007 acquisition of a majority stake in Hutchison Essar. The company is expected to approach the High Court here over the next few days to challenge the notice.Source: Business Standard | Front Page Headlines | 4 Jun 2010 | 12:46 pm Essar to transfer 11% Vodafone stake to armMumbai: The Ruias of the Essar Group will transfer their 11% stake in Vodafone Essar Ltd, the third largest mobile telephony operator by users, to listed group firm India Securities Ltd (ISL). This is to facilitate price discovery of its holding in the telecom company as the put option of the group’s 33.02% stake in Vodafone Essar expires in May 2011, an Essar Group official said on Friday. A 2007 contract gives the group the choice to offload its 33% share for $5 billion (Rs23,350 crore) within a year starting 8 May. A put option is a contract that gives the seller the right, but does not impose an obligation, to sell a specified quantity of securities at an agreed price within a specified time frame. Vodafone Essar is a venture of British Vodafone Plc and the Ruias. Vodafone in 2007 acquired about 67% owned by Hong Kong billionaire Li Ka-shing’s Hutchison Whampoa Ltd in what was then Hutchison Essar Ltd for $10 billion. At the time, the Ruias, who owned the remaining 33.02% of India’s second largest mobile phone company by revenue, wrested a concession from Vodafone to guarantee a floor price of $5 billion for their stake. The put option is exercisable from 8 May 2010 to 8 May 2011. The Ruias own the stake through two firms—11% held by Essar Telecommunications Holdings Pvt. Ltd (ETHPL) and the remaining 22.02% through Mauritius-based Essar Telecom India Ltd, another private company owned by promoters. ETHPL will be merged with ISL and this will allow ISL’s shareholders to particpate in Vodafone Essar through their shareholding in ISL, the official said. He did not want to be identified. The Ruias own 74.22% in ISL. ISL shares closed higher by 4.94% to Rs28.70 on the Bombay Stock Exchange (BSE) on Friday. The firm’s market capitalization is Rs572.85 crore. The current government guidelines allow foreign entities to own only up to 74% in a telecom firm. The 11% stake would be valued at a minimum $1.2 billion, the official said. The group has already monetized some part of the put option by offering part of its stake in Essar Telecom as collateral to bondholders to raise $900 million. The official was non-commital on the group’s plans on the put option. In a related restructuring exercise, ISL will sell its leasing and financial services business to another group firm Essar Securities Ltd (ESL), which will carry out all its financial services business, the official said. ISL will soon appoint investment bankers to ascertain the value of its leasing business. ESL shares rose 2.29% on BSE to close at Rs 62.55 on Friday. The promoters own 74.57% stake in ESL. The Essar Group has been building on its telecom assets and has made a few strategic acquisitions abroad. In November, it acquired a majority stake in Abu Dhabi Group Warid Telecom Pvt. Ltd’s operations in Uganda and the Republic of Congo, ramping up its presence in Africa. The group also has a 49% stake in Zimbabwean telecom firm Econet Wireless Pvt. Ltd, with which it also has a joint venture in Kenya called Yu, a cellular services firm. Lison Joseph contributed to this story. baiju.k@livemint.com Source: Home - Livemint.com | 4 Jun 2010 | 12:45 pm Better quality in the beautiful gameGlobalization and Goals: Does Soccer Show the Way? by Branko Milanovic, Carnegie Endowment for World Peace With the World Cup kicking off next week, the time is right for a look at some academic studies of football. Milanovic’s paper shows how globalization has immensely benefited soccer, not only for clubs but also for national sides. Football is easily the most globalized sport, especially after the removal of all limits on foreign players playing in European club football. With the total commercialization of club football, as Milanovic puts it, “the introduction of labour mobility under the conditions of uneven concentration of financial power of the clubs will have increased concentration of club quality.” In short, inequalities between clubs will become greater with the richest of them being able to buy the best players. Further, when the best players play together and are coached by the best coaches, their skill levels improve, thus leading not only to a higher quality of the game, but also to even wider inequalities between the first- and second-division clubs. The author looks, for example, at the Italian Serie A. He points out that “Italy is interesting not only because its championship is probably the toughest in the world, but also because it is economically divided between the rich North and the poorer South”. As the game has got more commercialized, the richer North should have increased its hold on the game. That is precisely what has happened, as Milanovic says: “The average number of Southern clubs used to be vary between three and four (out of 16-18 clubs in the Serie A) during the entire period from 1960s to the 1990s. Now, for the first time since World War II, in 2002 and 2003, there are no Southern teams at call in Serie A.” The author points out that a related benefit has been that the game has provided supporter bases for clubs far away from their traditional home base. Thus, Manchester United has a very strong following in Asia and more recently in North America, and English Premier league games are routinely watched all over Asia. At the same time, football also has national teams, where foreign players cannot play. Federation Internationale de Football Association (Fifa) rules severely limit the use of money and do not allow labour mobility, that is, players are not allowed to change national teams. These national teams are able to benefit from the enhanced skills of their players who have gone abroad to play in the European clubs. The net result: “After a period of strong dominance of the traditionally best soccer nations (Brazil, Germany, Argentina and Italy) in the 1970s and 1980s, the situation changed in the 1980s. In the four latest World Cups, there were always at least two newcomers among the top eight national teams.” In short, the inequality between national teams has reduced. Globalization of football, therefore, has not only benefited the quality of the game but made the competition among nations keener. The Benefits of Financial Markets: A Case Study of European Football Clubs, by Dirk G. Baur and Connor McKeating, Dublin City University Business School Surely, if commercialization has helped football so much, initial public offers (IPOs) of football clubs should benefit the game even more? The researchers analyse the performance of European football clubs on the field after they have gone in for IPOs. The authors find that, “The results show that football clubs do generally not benefit from a stock market listing. An IPO (listing) only has a positive impact for the success in the home league for football clubs playing in smaller leagues or lower-division football clubs that belong to large leagues. The effect is reversed for the success in the international competition (the UEFA Cup or the UEFA Champions League). Here, only clubs playing in the top division slightly benefit from a stock market listing. However, the effect is statistically insignificant.” What’s worse, the stock price of a football clubs reflects its latest performance on the field, so a listing doesn’t even help investors financially. Source: Home - Livemint.com | 4 Jun 2010 | 12:45 pm Govt issues 25% compulsory public float ruleNo exceptions; schedule for already listed firms affected; Rs 1.6 lakh crore equity dilution seen.Source: Business Standard | Front Page Headlines | 4 Jun 2010 | 12:44 pm Correct, but not rightFor a breed that isn’t perceived to be very particular about facts, the Indian politician is very exact about some things. It is this exactitude that has come back to bite the Pawar family. When asked about the family’s involvement in any of the consortia that bid for teams in the Indian Premier League, both Sharad Pawar and his daughter Supriya Sule replied in the negative. Which is true. It wouldn’t have hurt to mention that the CEO of a company in which the family has a significant stake had bid for a team, in his individual capacity. The first political casualty of IPL, Shashi Tharoor, too, made a similar mistake. Perhaps in the interests of exactitude he mentioned that he had nothing to do with the consortia that won the rights for the Kochi team, and chose not to add that his friend had a stake in the same consortia. Both denials were correct, but not right. Source: Home - Livemint.com | 4 Jun 2010 | 12:27 pm Flood of paper to hit stock marketNew Delhi / Mumbai: The government on Friday notified rules asking all listed companies to ensure minimum public shareholding of 25% to increase opportunities available to investors to benefit from economic growth and its impact on firms. The new rules, which followed a two-year process, could see companies such as Reliance Power Ltd, Wipro Ltd and NTPC Ltd hit the primary market within the next 12 months.  Graphic: Yogesh Kumar / Mint According to a report by rating firm Crisil Ltd, there are 179 companies that have a public shareholding of less than 25%. At end-May prices, this would mean that these companies need to dilute stakes worth Rs1.6 trillion, the research firm has calculated. The new rules said companies could meet the 25% norm in phases. At the least they would have to add 5% every year to public holdings till it reaches 25%. “The clock starts ticking now,” said a finance ministry official, who did not want to be named. This would mean the annual time slots to meet minimum public holding norms would start from 4 June, he added. In that case, the markets could see fresh paper supply over the next 12 months to the tune of Rs58,528 crore, just from BSE-500 firms, which make up some 90% of India’s total market capitalization. Marketmen believe that firms should not have any problems in raising this money if the pricing is right. An increase in the public holding of stocks typically increases liquidity and helps in better price discovery. “The government has a golden opportunity to create an equity revolution of sorts as it can bring a lot of good companies to the market,” said Raamdeo Agrawal, managing director of Motilal Oswal Financial Services Ltd. “But if they price it high like in some of the recent issues like NTPC and NMDC (Ltd), then it may put off investors and such issues benefit nobody.” Uniform listing requirements for all companies, including state-owned ones, could trigger a lot of activity in the primary market. In the current fiscal, the Union Budget estimated that Rs40,000 crore would be raised through disinvestment. Friday’s announcement might see that figure being eclipsed. However, some firms may prefer to get delisted. “There may be many companies that currently have, say, a 10% public shareholding. If these companies choose to get delisted rather than increasing their public shareholding further, the government should also specify the guidelines for delisting under such circumstances,” said Pradeep Dokania, head of global wealth management at DSP Merrill Lynch Ltd. The norms for minimum public shareholding would have to be followed when a company first lists its shares and have to be maintained as long as it’s listed. For a new listing, if post-issue capital of the firm when calculated at the offer price is more than Rs4,000 crore, it has the option to restrict public shareholding to 10% during the issue. Subsequently, the company would have to add public shareholding of at least 5% a year till it reaches 25%. In the event that public shareholding of a listed company falls below 25%, it needs to restore this to the minimum level within a year. Listing norms have been calibrated over the years to achieve the aims of the government of the day. Two decades ago, companies had to offer 60% of their issued capital to get listed on a stock exchange. In September 1993, this was reduced to 25% to encourage more companies to list during the early days of full-fledged economic liberalization. With Friday’s notification of the Securities Contracts (Regulation) (Amendment) Rules, 2010, at least three private sector firms that had initial public offerings last fiscal have to hit the market again this year. Mahindra Holidays and Resorts India Ltd, DB Corp Ltd and Godrej Properties Ltd all have promoter holdings of 80% or more and will have to go to the market again before March 2011. “The move is positive for the markets, even though many PSUs (public sector units), which floated public issues in 2009-10, would have to hit the capital markets again this year. I think there is enough appetite in the market to absorb these papers,” said Rajagopal A., managing director (investment banking) at UBS Securities India Pvt. Ltd. Public sector firms that have already raised money such as NHPC Ltd, Oil India Ltd, NTPC and NMDC will also fight for capital with their public sector peers who are already on the divestment list this year. Real estate firms dominated the list of companies that need to dilute, with the bigger ones such as Puravankara Projects Ltd, Omaxe Ltd and DLF Ltd looking to sell shares. sanjiv.s@livemint.com Ashwin Ramarathinam in Mumbai also contributed to this story. Source: Home - Livemint.com | 4 Jun 2010 | 12:26 pm The big pictureIn an exhibition titled Escape, British fine arts photographer Tim Hall has put together select images of landscapes that he took in the course of three separate projects categorized as mountains, seascapes and deserts.  Expanse: Merzouga Dunes, a work on display at the show In Escape, Hall attempts to blur the lines between art and photography. “I am influenced by painters such as Rothko and Turner, especially in the seascapes and mountain works. My work takes on a painterly aesthetic through the use of a muted film type and printing the images on to watercolour paper,” writes Hall over email, adding that collectors, especially those in the UK and US, are opening up to the idea of buying photographs as art. The perspective in Hall’s images is classic but there is a freshness about them that draws you. The monumentality of hills, dunes and sky stands out, lending majesty and a mix of dynamism and serenity. “The power and scale of these mountains was quite overwhelming. There is a wonderful silence high up in the hills and it (is), quite literally, breathtaking,” says Hall. “I wanted to try to capture this sense of power that I experienced as well as to convey the moments of quiet.” Tim Hall’s exhibition Escape is on show at Tasveer Gallery, Sua House, 26/1, Kasturba Cross Road, Bangalore, from 5-26 June. Prints are priced at Rs37,500 onwards. pavitra.j@livemint.com Source: LatestNews-Home - Livemint.com | 4 Jun 2010 | 12:02 pm Govt to talk to telcos on network securityMUMBAI (Reuters) - The government said on Friday it would hold talks with telecoms sector players including service providers within a week to help address security threats in networks.Source: Reuters: Money News | 4 Jun 2010 | 11:55 am Queens and robbersIt is seldom that Royalty gets into the news for anything apart from being Royalty. Unless, of course, it is for no longer being Royalty. Jordan’s Queen Rania is an exception to this rule. In recent weeks, she has been appearing in all the fashionable American shows—from Good Morning America to The Winfrey Show—for being a best-selling author. Early in May, Queen Rania’s The Sandwich Swap hit the best-seller list (for children’s literature) of the prestigious New York Times. It was launched in New York, at a ceremony attended, among others, by Bill Clinton and Ban Ki-moon, the UN secretary general. The story revolves around the Christian American girl, Lily, and the Muslim Arab girl, Salma, who decide to swap their lunch packets one day. This “intercultural” children’s book, Queen Raina has charmingly explained in interviews, is about tolerance and respect for human beings across differences. Queen Rania was born in 1970 in an exiled Palestinian family of doctors and completed a master’s in economics from Cairo. In 1993, she married Prince Abdullah ibn Hussein, who was later crowned King Abdullah II of Jordan. Apart from literature, Queen Rania is actively involved in various educational and welfare activities. Real-life Gabbars How can my generation ever forget Amjad Khan’s immortally villainous Gabbar Singh? Like so many others, I can still recall reams of dialogue from the film, and they are mostly lines spoken by Daku Gabbar Singh: “Kitne aadmi the?”  Bandit king: Zaidi writes on Gabbar Singh. Dinodia Nothing happens “For poetry makes nothing happen:…/ …it flows south / From ranches of isolation and the busy griefs, / Raw towns that we believe and die in; it survives / A way of happening, a mouth.” Thus wrote W.H. Auden in memory of W.B. Yeats, who was, despite the impotence of poetry, a much-feted Nobel laureate by the time he “disappeared in the dead of winter”. There are, however, poets who live in those raw towns and ranches of isolation from where poetry flows. They never win the Nobel Prize. But they keep publishing and, in the process, they keep poetry flowing. These are poets who run small poetry circles and edit little magazines. Sometimes, I am sent collections by such poets, and—despite the inevitable unevenness imposed by writing in isolation—I am inevitably struck by a phrase here, a poem there. I sit here today with three such books on my desk: The Timeless Epitaph by M.T. Ahmad (published by Skylark Press, a small house run by the Urdu-English poet Baldev Mirza, who encouraged my poetry when I was a boy writing from nowhere), Poetry Time Here by Amarendra Kumar (self-published in Bihar) and Tality Tales by Ian Lukins (from a small press in Denmark). There are different strengths in all three. But more than that, in their “way of happening”, such collections give poetry a “mouth”. Without them, the Muses would be gagged. Tabish Khair is the Denmark-based author of Filming. Write to him at readingroom@livemint.com Source: LatestNews-Home - Livemint.com | 4 Jun 2010 | 11:54 am Monsoon expected to deliver normal rainfallNEW DELHI (Reuters) – The monsoon will deliver normal rainfall this year after being hindered by two tropical cyclones in two weeks, the weather office said, raising hopes of increased farm output after last year's drought.Source: Reuters: Money News | 4 Jun 2010 | 11:45 am Zones of conflictThe map of India’s green conflict zones clearly shows development pitted against the environment. These hotspots include hydroelectric projects, mining projects, factories and infrastructure development as the intensifying search for resources consistently squares off against supporters of the environmental cause. Critically, most of India’s recoverable mineral reserves are in heavily forested land, which is located in the poorest, most backward districts. The battle then takes on political overtones as in the swathe of land encompassing the Maoist insurgency-affected states of Jharkhand and Chhattisgarh, manifesting itself as a constant struggle involving land for resources, subsistence livelihoods and environmental conservation. The list of long-running conflicts such as the ones over the Narmada dam, uranium mining in the North-East, mining in Kudremukh or the Tadoba tiger reserve are set to get worse as the clash intensifies for what lies beneath. Also See Conflict Zones (Graphic) Graphics by Ahmed Raza Khan / Mint Source: Home - Livemint.com | 4 Jun 2010 | 10:58 am Indians are ‘greenest’ consumersNew Delhi: A report by National Geographic-GlobeScan has ranked Indian consumers as the “greenest” in the world in its latest survey, covering 17,000 consumers across 17 nations. In the third year of this survey, not only has India retained the top spot it had won last year, but has also increased its “green index”—an overall score awarded by the survey using five environment-related parameters—by 2.1 points since 2009. The index looks at consumption habits and their environmental impact in the areas of goods, food, housing, transport and attitudes. India’s relatively low-car density and a large “small-car” segment market, its people’s diet, which includes a good deal of fruits and vegetables (with a large population eschewing meat altogether), consumers’ preference for local and self-grown foods over imported goods, have all contributed to the high score. “India has a good baseline. We are at a stage where our carbon footprint is low due to our sustainable transport practices— high usage of public transport and non-motorized transport,” said Anumita Roychowdhury, transport expert at the Centre for Science and Environment (CSE), New Delhi. According to the survey, Indians prefer bikes or scooters or use public transport (81% do so at least once a month), all of which lead to lower emissions. After the Chinese, Indians are the second most likely people in the world to choose to live close to their workplaces. “The habit of buying groceries from local sabzi mandis (wholesale vegetable market) is widespread in India,” said Kushal Yadav, food and toxins expert at CSE. “In the US, food travels 5,100 miles (8,211 km) on average from farm to fork.” Living habits also give Indians a green edge. For example, only 38% of Indians are likely to have hot running water in their homes, and most people use energy-saving “on-demand” water heaters. feedback@livemint.com Source: Home - Livemint.com | 4 Jun 2010 | 10:51 am Tata, Sasol JV to invest $10 bn in coal projectA joint venture between the Tata Group and South Africa’s Sasol plans to invest $10 billion (Rs 46,820 crore) in a coal-to-liquid project in Orissa by 2018, said Mark Schnell, president, Sasol India.Source: HindustanTimes.com - Top Business News Headlines | 4 Jun 2010 | 10:46 am Jaypee to buy Duncans’ Kanpur fertilizer plantKolkata: Tea producer Duncans Industries Ltd is set to sell its closed fertilizer plant near Kanpur to real estate and infrastructure developer Jaypee Group, which is looking to expand in agriculture, according to two persons familiar with the deal. If the deal goes through, the plant, which has a urea production capacity of 722,000 tonnes per annum, would be hived off into a separate company, and a 74% stake in it would be sold to the Jaypee Group for a token consideration of Re1. Duncans would have a put option on its 26% stake in the venture.  In an emailed statement, a Jaypee Group spokesperson denied such a plan. “The news…is a figment of someone’s imagination and as a corporate policy, we would not like to comment on market rumours,” she said. However, she confirmed that the group was “exploring various options in agri-business, including fertilizers”. Duncans chairman G.P. Goenka refused to comment on the possible deal, saying, “There is no material development at this moment that we could share with the media.” Duncans shares closed almost unchanged at Rs15.41 apiece on the Bombay Stock Exchange on Friday, while the exchange’s benchmark index, the Sensex, rose 95.36 points, or 0.56%, to 17,117.69. It is widely known that Duncans has been looking to sell its fertilizer unit for a while, having almost clinched a deal with a Hong Kong-based private equity firm two years ago. Duncans had acquired the naphtha-based fertilizer plant from the erstwhile ICI India Ltd—a British paint maker—in 1995, and mothballed it in 2002. ICI has since been acquired by Dutch chemicals firm Akzo Nobel NV. The fertilizer factory sits on a 250-acre plot on the outskirts of Kanpur. “Run at full capacity, the unit could generate Rs1,700-1,800 crore in annual revenue, and deliver a profit before tax of around Rs175 crore,” said a Duncans official, who did not want to be named. “However, we on our own couldn’t restart the plant because it was impossible for us to stump up Rs700 crore at one go.” The other problem that kept Duncans from restarting the plant was the now-withdrawn regulation that closed fertilizer units had to switch to natural gas to restart production. “That would have meant more investment,” the Duncans official said, adding that this regulation was largely responsible for scuppering the deal with the Hong Kong-based fund. The firm owes banks around Rs700 crore, but they have agreed to settle their dues for Rs280 crore, the official added. Most importantly, the deal would result in Duncans repaying some 64,000 people to whom it owes Rs75 crore, money it had raised through a fixed deposit scheme. “At present, we are able to repay only Rs40-50 lakh a month. We hope to repay all fixed deposit holders in full at one go on conclusion of this deal,” the official said. The deal will clean up the balance sheet of the G.P. Goenka group, which has interests in engineering, paper and cement, besides tea and fertilizer. All businesses of the group are currently profitable except fertilizers. Though the two firms have reached an agreement on the broad contours of the deal, one issue remains unresolved: Duncans is negotiating with the workers of the fertilizer plant for a new wage agreement, under which people are to work six days a week compared with five now, according to the official cited earlier. When the company acquired the plant, it had about 1,400 workers. It wanted to reduce the workforce by half, but couldn’t. “Currently, there are only 600 workers. Many people have left on their own, and there is no need for further reduction,” the official said. Negotiations with workers are currently on, and the Duncans management hopes to conclude a deal this week. “If things go according to plan, we should be able to sign the agreement with workers on Sunday, and close the deal with Jaypee Group next week,” the official said. Jaypee Group officials are expected to sign the agreement with workers as witnesses. The deal, however, needs the approval of the Board for Industrial and Financial Reconstruction, which provides protection from creditors to companies in poor financial condition. aniek.p@livemint.com Source: Home - Livemint.com | 4 Jun 2010 | 10:39 am No under-cutting to win deals: InfyWith the United States and Europe in a sluggish economic mood, the market may be a tough one, but infotech bellwether Infosys, trying to enter new areas as well as industry segments, says it is not in the business of undercutting to win projects.Source: HindustanTimes.com - Top Business News Headlines | 4 Jun 2010 | 10:35 am India will not pause rate hikes for now: Pranab MukherjeeThe Central government will keep unwinding economic stimulus deployed during the financial crisis and continue raising interest rates despite uncertainty linked to eurozone’s debt woes, Finance Minister Pranab Mukherjee said on the sidelines of a meeting of Group of 20 finance ministers and central bankers on Friday.Source: HindustanTimes.com - Top Business News Headlines | 4 Jun 2010 | 10:32 am India Inc smells green moneyIndian companies are going a long way in finding alternate sources of energy, and in the process, encashing a new opportunity in carbon credits. Gaurav Choudhury reports. Carbon tamed is greenback earnedSource: HindustanTimes.com - Top Business News Headlines | 4 Jun 2010 | 10:28 am Listed companies must have at least 25% public stakesAs many as 15 of India’s largest companies belonging to the BSE 100 —including Wipro, DLF and NTPC — will have to dilute their shareholding in order to take their public holding to a minimum of 25 per cent as the government amended the Securities Contracts (Regulation) Rules on Friday.Source: HindustanTimes.com - Top Business News Headlines | 4 Jun 2010 | 10:24 am Developers cool to record deal, stay cautiousThe country’s biggest land deal — Rs 4,000 crore for a parcel of land in Mumbai — last week is not going to be the trendsetter for the realty industry that’s still groggy after the 2009 slump, builders and analysts say.Source: HindustanTimes.com - Top Business News Headlines | 4 Jun 2010 | 10:20 am GM starts own VC companyGeneral Motors Co. has set up its own venture capital company with $100 million to invest in companies that are developing new auto-related technology.Source: HindustanTimes.com - Top Business News Headlines | 4 Jun 2010 | 10:16 am Sri Lanka a new hotspot for India IncIndia, which is already the largest source of imports (nearly 17.8 per cent), ranks among the top five investors in Sri Lanka. It was the second highest donor country — with $209.2 million (Rs 978 crore) in loans and grants — next only to Japan last year.Source: HindustanTimes.com - Top Business News Headlines | 4 Jun 2010 | 10:13 am Rupee weakens as euro stays pressuredMumbai: The rupee weakened on Friday as the euro’s weakness triggered a bout of dollar buying by importers, but a stronger closing for the stock markets limited the local currency’s losses. The partially convertible rupee ended at 46.84/85 per dollar, about 0.3% lower compared with 46.69/70 at close on Thursday. It moved in a range of 46.5650 and 46.87 during the session. The rupee fell more than a percent on the week. “The euro’s fall has raised risk aversion and the rupee has not escaped from the selling in emerging market currencies,” said a senior dealer with a foreign bank, adding he expects the rupee to trade in the 46.75 to 47.00 range on Monday. The euro traded close to a four-year low as the euro zone’s financial problems weighed on sentiment and the dollar rose because of expectations of a strong US employment report. A Reuters poll forecast 513,000 U.S. jobs were created in May but some in the market are anticipating an even stronger figure following upbeat data this week. The US labour department is scheduled to release the non-farm payroll data for May at 1230 GMT. The index of the dollar against six major currencies was 0.7% up. The rise in shares limited the rupee’s fall, traders said. The BSE benchmark Sensex clocked its second straight weekly gain, climbing 0.6% on Friday, helped by a rise in European markets. The rupee had fallen 4.3% in May on foreign fund outflows of $2 billion in the month. Foreigners are still net buyers of $4.5 billion worth of shares so far in 2010. Traders said the market did not react to comments from finance minister Pranab Mukherjee that there will be no pause in rate hikes. India will keep unwinding economic stimulus deployed during the financial crisis and continue raising interest rates despite uncertainty linked to the euro zone’s debt woes, Mukherjee told Reuters Insider Television on Friday. One-month offshore non-deliverable forward contracts were quoted at 46.99/47.09, weaker than the onshore spot rate. In the currency futures market, the most traded near-month dollar-rupee contracts on the National Stock Exchange and MCX-SX ended at 46.98 on both exchanges, with the total traded volume on the two exchanges at about $5.2 billion. Source: Home - Livemint.com | 4 Jun 2010 | 6:22 am Tata, Sasol JV to invest $10 bn in India projectNew Delhi: A joint venture between Tata Group and South Africa’s Sasol plans to invest $10 billion in a coal-to-liquid project in Orissa by 2018, Sasol’s India president said. Production of fuel from the Orissa coal block will begin in 2018 and will be ramped up to 80,000 barrels per day of oil product within a year, Sasol’s Mark Schnell said. The project is in its early stages and investment will be equally divided between the two partners, he said. While the joint venture had initially estimated spending of $10 billion, actual investment may be lower than that. The total capital investment will be made for acquisition of mines, land and setting up the plant and logistics. The production could be 75% ultra clean diesel and 25% chemical naphtha. Some amount of urea, ammonia and jet fuel may also be produced, he said. “Our initial focus will be on the domestic market. A sizeable quantity of clean diesel will be produced,” Schnell told reporters. “India is long in diesel, the market will decide on what fuel,” he said. He said the life of the field is 25 to 30 years. The block is expected to have 1.5 billion tonnes of geological reserves and at a peak rate the joint venture expects to produce 20 million tonnes a year of coal, in order to produce about 80,000 barrels per day of liquid oil product. India has the world’s fourth largest coal reserves and it imports about two-thirds of its crude oil requirements. Source: Home - Livemint.com | 4 Jun 2010 | 5:31 am Sensex gains for second week; outlook uncertainMumbai: Indian shares logged their second straight weekly gain as they climbed 0.6% on 4 June, helped by a rise in European markets, but market participants were not convinced if risk appetite had revived as yet. Financials led the gains on optimistic long-term outlook in an advancing economy. The 30-share BSE index closed 0.56%, or 95.36 points, higher at 17,117.69 points, and logged a 1.5% gain for the week. Nineteen of its components advanced. “Risk appetite has not yet returned. Europe issues are still far from resolved,” said Arun Kejriwal, director of research firm KRIS. “We may continue to see selling pressure from FIIs (foreign institutional investors).” The benchmark had dropped 3.5% in May, its first monthly decline after January, as foreign funds pulled out $2 billion from Indian equities. They have already sold around $123 million in the first two sessions of June. However, Indian markets have performed better than their peers. BSE Sensex has lost only 2% so far this year while MSCI’s measure of Asian shares other than Japan has dropped more than 8%. “Notwithstanding the recent outperformance by the Indian market, the global uncertainties or risk of an unforeseen event could keep the markets volatile in the near term,” brokerage Sharekhan said. Sensex trades at 15.8 times its 12-month price/earnings while rivals China’s Shanghai Composite Index and Brazi’s Bovespa trade at 13.9 times and 11.4 times, respectively, data from Thomson Reuters showed. Dealers awaited the annual monsoon for more cues. The monsoon, vital for farm output in India’s trillion-dollar economy, had hit the country’s southern coast on 31 May, a day ahead of its usual date of 1 June. However, the weather office said on Thursday the monsoon rains were 11% below normal in the week to 2 June. Leading lender State Bank of India rose 2.4% while private-sector lender ICICI Bank climbed 1.6%. Mortgage lender Housing Development Finance Corp rose 0.3%. Export-focused outsourcers gained on expectations that the euro zone debt crisis may not seriously hurt order flow from the region. B.G. Srinivas, head of Infosys Technologies’ Europe and manufacturing verticals told Edelweiss that the recent Europe sovereign debt crisis has not impacted the company’s current business and deal flow, the brokerage said in a note on 3 June. Infosys gained 1.2% while bigger rival Tata Consultancy Services rose 0.3%. Hindustan Unilever rose 1.7% after the top household products maker said on 3 June its board would consider a share buyback on 11 June 11. Weak base metal prices in Shanghai and London weighed on metals stocks. Tata Steel and Sterlite Industries dropped 0.2% and 0.3%, respectively. Aluminium producer Hindalco bucked the trend and rose 1.2% as it said its full-year 2009/10 net profit surged to Rs39.26 billion from Rs4.84 billion in the year before. In the broader market, advancing shares and declining ones were nearly equal in number on volume of nearly 300 million shares, lower than that on 3 June. The 50-share NSE index closed 0.5% higher at 5,135.50. Source: Home - Livemint.com | 4 Jun 2010 | 5:11 am
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