Himachal Futuristic for equity in WorldTel-Reliance
Mumbai: Himachal Futuristic Communications is planning to take a minority equity holding of up to 10 per cent in telecom infrastructure joint venture WorldTel-Reliance. At present, both WorldTel and Reliance hold 49 per cent equity each in the venture, while the balance is reserved for employees. Himachal Futuristic Communications will pick up the equity after WorldTel and Reliance divest part of their respective holdings. The company’s equity purchase is being seen as a reciprocatory measure for bagging the Rs. 500-crore worth contract of laying the communication backbone for the proposed Internet services planned by WorldTel-Reliance. It considers the investment as strategic as it is expecting similar projects. WorldTel-Reliance plans $1 billion worth of investment in providing Internet kiosks in seven states in the country.
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JK Corporation to sell paper division
New Delhi: The debt-ridden JK group is considering the option to sell group company Central Pulp and Paper Mills. The proposal has been put forward to  financial institutions as part of a restructuring plan for JK Corporation, which has about Rs 1,500 crore owed to the financial institutions. The plan includes merger of JK Udaipur Udyog and JK Corporation, which will mean the company will have cement as its only business. JK Corporation will have an annual installed capacity of three million tonnes. The sale of the paper business is expected to fetch Rs 700 to Rs 750 crore, which will be used to reduce the debts. The Industrial Development Bank of India has the highest exposure in the group’s debt.
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AB Electrolux acquiring Electrolux Voltas
Mumbai: AB Electrolux, a partner in joint venture Electrolux Voltas, is stated to have finalised a deal to acquire the 26 per cent stake of Voltas in the joint venture. This will make Electolux Voltas a wholly owned subsidiary of the Swedish giant.   The joint venture was formed following a decision by Voltas to exit the white goods business and rebuild its core businesses – air-conditioning and engineering. Consequently, AB Electrolux will bring in Rs 50 crore as fresh capital into Electrolux Voltas through subscription to a cumulative redeemable non-convertible preference share issue of the company.

The joint venture was formed in 1998 after Voltas had transferred its household appliances and compressors business to the new company. Electrolux Voltas makes household appliances, food service equipment and industrial laundry equipment.
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No takeovers planned: Infosys
Bangalore: Infosys Technologies does not have any immediate plans for acquisitions. The company’s chairman, N.R. Narayana Murthy, told shareholders at an extraordinary general meeting that the government’s recent relaxation of acquisition norms has given more flexibility for companies to acquire going concerns abroad, but Infosys does not have any immediate acquisition plans.

The extraordinary general meeting was convened to approve the two-for-one stock split of the company’s shares with par value of Rs 5 each. The shareholders also approved the two-for one split of the American depository shares of the company.
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Ricardo, Valtra to help Eicher
New Delhi: Eicher Tractors is roping in Ricardo of the UK, Valtra of Finland and Steyre of Austria to help make technologically advanced tractors in the 30 to 60 horse power range in India.

Eicher’s managing director R.C. Jain said the company will launch a 35-horse power tractor in March 2000 and a 60-horse power tractor in April-June 2000. Valtra and Ricardo are providing technical support to upgrade tractor engines, while Steyre is offering technology for making advanced gearboxes.

Eicher is also phasing out its 30-horse power tractor, "312" which will be replaced by a "312 Super D" model, developed with the help of Ricardo.
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Reliance not withdrawing from IPCL bid
Mumbai: Reliance Industries has clarified that it continues to be part of the bidding process for Indian Petrochemicals Corporation. The company, reacting to earlier media reports that it is withdrawing from the bid for the 25 per cent stake divestment in the company, said it has not indicated to any authority any desire to withdraw from the bidding process.
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Qualis getting readied
Bangalore: Toyota Kirloskar Motor is unveiling the Qualis, its much-awaited multi-purpose vehicle, at the Auto Expo in New Delhi set to open on 11 January 2000. The company said it will not follow any booking procedure and the vehicle will be available on a first-come-first-served basis. The Qualis has a boxy look and the company says the vehicle is ideally suited for family transportation. While the price of the vehicle has not been announced, sources indicated that it will be in the range of around Rs 5.5 lakh.
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LG Soft India for JV in US
Bangalore: LG Soft India, the global information technology arm of the $80 billion South Korean LG group,  is setting up an independent company in the US in partnership with Chicago-based Zenith Electronics Corporation. Zenith which makes high quality electronic entertainment products and develops high definition television technology was recently acquired by LG Electronics of South Koea.

The joint venture company will make and market datacasting products. It is being set up with a capital of $15 million. LG Soft India will hold 25 to 35 per cent equity in the joint venture, while venture capital firms in the US and employees will hold around 50 per cent. The balance will be held by Zenith.
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BIFR serves closure notice on Indo Maxwell
New Delhi: The Board for Industrial and Financial Reconstruction has issued winding up notice to Orissa-based Indo Maxwell. The board felt the sick company is not likely to become viable on a long-term basis. The board will hear objections to the notice on 22 February 2000 and it allowed the existing promoters in the meanwhile to prepare a viable rehabilitation proposal with means of finance and submit it to the operating agency, Industrial Development Bank of India. Indo Maxwell was declared a sick company in 1997.

Three companies, Associated Cement Companies, International Ferrites and West Bengal Electronics Industry Development Corporation, have shown interest in taking over Indo Maxwell’s assets.
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Rs 1,000 crore ICICI loan for NTPC
New Delhi: ICICI has sanctioned Rs 1,000 crore as loan to National Thermal Power Corporation to meet its funding requirements for the 2000-mega watt Talcher stage II project. This will be ICICI’s single largest loan. NTPC has projected a fund requirement of Rs 8,000 crore for the project. It has approached Industrial Development Bank of India for funds. Earlier, State Bank of India has sanctioned Rs 750 crore and HDFC Rs 330 crore for the project.

The ICICI loan is repayable in 20 quarterly instalments. The loan carries a fixed rate interest of 13.5 per cent for the first tranche of Rs 150 crore. For subsequent tranches, the rates will be on the basis of 50 basis points over the long-term prime rates of ICICI.
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Microsoft, Israeli ISP in JV
Los Angeles: Microsoft and Israel’s leading Internet service provider Internet Gold are joining to set up a Hebrew language portal, MSN Israel. The two are setting up a joint venture to manage the portal, which will be ready by January 2000. It will offer facilities like e-mail through Hotmail, instant messaging, search engine, business services and e-commerce services, all in Hebrew language. Internet Gold will have a 50.1 per cent holding in the new company and the balance will be held by Microsoft. The software major will provide the technology.
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Iridium losses at $114 million
Washington: Global mobile satellite phone company Iridium has recorded net losses of $114 million in November, based on a revenue of $1.27 million. The losses add to the problems of the company, which is into bankruptcy proceedings and whose investment vehicle, Iridium World Communications, has been delisted on the Nasdaq.
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TotalFina apologies for oil leak
Paris: Oil company TotalFina, criticised for the huge oil leak that blackened France’s beaches and destroyed marine life and created environmental pollution, offered an apology saying it is into cleaning up the mess. The spillage, from a chartered oil tanker along the west coast of the country, has been bringing tonnes of the thick sludge onto Atlantic shores. Nearly 8000 tonnes of oil has seeped out of the tanker after it sank on 12 December.
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