Mittals to merge all cellular operations
Kolkota: The Mittal family which controls Bharti Enterprises, today’s leaders in the Indian telecom scene, have decided to merge all group cellular companies into Bharti Cellular. This would mean that the operations of Bharti Mobile, Skycell and Bharti Telenet will be progressively merged into Bharti Cellular.

The group plans to make Bharti Cellular the group cellular flagship and AirTel the mother brand across all its networks. The strategic decision to bring all group cellular companies within the Bharti Cellular fold comes on the heels of Bharti's SpiceCell acquisition.

With the Bharti Group snapping up the operations of SpiceCell, the cellular service in Kolkota, the AirTel brand is planned to be launched in Kolkata by end-September.
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LIC caves in and sells stake to promoters
New Delhi: After a bitter battle for management control in Modi Rubber Limited, the Life Insurance Corporation of India seems to have caught all the other financial institutions on a wrong foot.

The financial institutions have been battling the Modi family for control over this flagship company of the Modi Group. Despite having held out for long and not giving in to the open offer floated by the Modi family, the LIC suddenly accepted the offer. As a result it has now returned, unknown to other financial institutions, the 12 per cent stake it held in the company to promoters, V K Modi and B K Modi, at Rs 90 -- the revised offer price.

Other financial institutions, who maintained that the institutions had not caved in, were taken by surprise at this move by LIC. When confronted, LIC chairman G N Bajpai reportedly claimed ignorance of the deal. Instead he has pointed his finger at the junior officer who clinched the deal.

While the financial institutions have begun a damage control exercise, and have written to the Modi family that experienced merchant bankers like HSBC should know that the transaction can be valid only on an authorisation letter from the LIC chairman, the entire incident threatens to attract a CBI probe.

He explained that LIC had not sold stake directly to him, but had participated in the public offer, returning the 12 per cent stake it held in the company at Rs 90 per share.
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NIIT enters into agreement with IFC for internet kiosks
New Delhi: India’s largest computer education company, NIIT and the US-based financial institution, IFC, have entered into an agreement under which they would jointly develop internet kiosks at 65 locations through India.

The main aim of this joint development of internet kiosk would be for providing minimally invasive education to children residing in rural and slum areas.

The project is likely to be implemented through a newly incorporated company in whyich both, NIIT and IFC, would hold equity.
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Uttam Steel to offload 25 per cent to Folio
New Delhi: US-based Folio Holdings – a leading investment group - has, in a rare acquisition in the steel industry, acquired a 25 per cent equity stake in the Miglanis-promoted Uttam Steel for an estimated Rs 100 crore.

It is also understood that the US investment group will also be pumping in another Rs 700 crore through the preference capital route into Uttam Steel. The fund infusion from Folio Holdings, coming as part of the deal struck early this month, is to be used by Uttam Steel for retiring the debt of financial institutions.

What is surprising is the fact that Folio Holdings will be paying a significant premium for a Uttam Steel share which is languishing at Rs 2.40-2.60 on the BSE. Despite being listed on the Bombay, Calcutta and Ahmedabad stock exchanges, there is hardly any trading in the stock.

Uttam Steel, a player in the secondary steel market for flat products, manufactures cold rolled coils, sheets, galvanised corrugated sheets and galvanised plates at Raigad in Maharashtra. It has recently entered the hot rolled coil segment with a 100,000 TPA plant.
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Comcast bid for AT&T broadband rejected
New York: The board of directors of AT&T rejected a $58 billion offer by Comcast for its cable division on the grounds that the bid did not reflect the full value of the unit. At the same time the company also announced that in view of the bid it is putting on hold its earlier mentioned plans of spinning of the unit into a separate entity.

Comcast's offer was to merge the two cable giants, which would, in the process, create the largest US cable operator - far greater than AOL-Time Warner - with 22 million subscribers, and would be the world's largest broadband company.
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Bangladesh gives Motorola $12 million contract
New Delhi: In a significant business development, Pacific Bangaldesh Telecom awarded a $12 million contract to Motorola’s Global Telecom Solutions Sector for expanding its code division multiple access 800 megahertz network.

Under the agreement, Motorola will install CDMA hardware and software equipment in Dhaka and Chittagong as well as along the highway between the two cities, a company statement said here.

The contract is to executed in two phases. The products for the first phase are currently being ordered and commercial deployment is scheduled for the fourth quarter of 2001. Phase two is scheduled to begin in the fourth quarter 2001 with commercial deployment scheduled by the second quarter of 2002.
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BAT not interested in buying stake in VST
Mumbai: After having failed to gain control through an open offer, British American Tobacco said it was not interested in increasing its stake in India's second-largest cigarette-maker VST Industries.

The fact that BAT would not make any attempt to buy the stake in VST Industries held by Bright Star Investments, a Mumbai-based investment company, was clarified today by the company.

BAT already owns 32 per cent of VST, whose brands account for 12 per cent of the Rs 11,000 crore ($2.3 billion) Indian cigarette market.

A Bright Star executive earlier said the company had contacted BAT to initiate talks, during which it may propose either collaborating with BAT or selling its stake in VST at an appropriate price.
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Kawasaki to use Bajaj Auto as hub
New Delhi: In a significant development for the world’s second largest two-wheeler company, Bajaj Auto, its partner for some time, Kawasaki Motor Cycles, has indicated that it would use Bajaj Auto as a hub for manufacturing sub150cc/200cc bikes.
This was stated by Mr. R L Ravichandran, vice-president, Bajaj Auto, who also said that the company had now penetrated the Latin American markets with the Boxer and Caliber range of bikes.

Bajaj and Kawasaki are currently "exploring the opportunities" for export, he added.

The company is also planning two "amazing" product introductions in the Indian scooter market shortly.
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Novartis acquires rights for Dr Reddy's drug
Mumbai: Swiss pharma giant, Novartis, today acquired exclusive rights for the US markets for a new diabetes drug being developed by Denmark’s Novo Nordisk under licence from Indian pharmaceutical major, Dr. Reddy’s Laboratories.

The drug, an original research product of the Hyderabad-based Dr Reddy's Labs, shows promise in simultaneously lowering lipids and sensitising the body's insulin receptors to the circulating hormone, analysts say.

Analysts in London said the product could have global sales in 2005 of around $150 million, of which 60 per cent were likely to be generated in the United States.

The terms of the agreement will allow Novartis to sell the drug in the US, Canada and Mexico. Novartis will make a one-time payment to Novo, followed by milestone payments, which are subject to the drug's progress past specific stages. It will pay royalties once the drug hits the market.

Dr Reddy's Labs had already licensed out another diabetes drug to Novartis at the end of May for $55 million in upfront and milestone payments, apart from royalties. Dr Reddy's shares ended up 6 per cent at Rs 1,666.30.
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General Motors launches new model
Mumbai: General Motors India today launched a new model in the country. Christened Opel Swing, this five-door wagon has engine options of 1.4 and 1.6 litres. Opel Swing is carved out of the Corsa platform and the would join the Corsa Royale and new Astra Club 2001.

The ex-showroom prices are Rs 6.55 lakh for the 1.4 litre while it will be Rs 6.76 lakh in case of 1.6 litre engine car, the company president and managing director Aditya Vij told newspersons here.
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Dabur CGU may foray into mutual funds
Mumbai: Leading FMCG major, Dabur India, alongwith its joint venture partner, the UK-based insurance major CGU, are said to be planning a major foray into the mutual fund and pension fund business over the next three months. It is estimated that the possible investment of this business, together with the proposed life insurance business, will be to the extent of Rs. 200 crore.

According to a senior official of the joint venture, the company is waiting for the Insurance Regulatory and Development Authority’s (IRDA) guidelines on pension sector to chalk out a detailed business plan.

The company is yet to file an application with Securities and Exchange Board of India (Sebi) for getting clearance for its mutual fund venture.
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AES may exit Orissa power distribution
New Delhi: In yet another case of dispute in the privatised power sector, AES has threatened to pull out of power distribution in Orissa and has also filed an arbitration petition to recover its dues from the state-owned transmission company Gridco.

According to a very senior official of AES, the company faced serious problems in both its generation and distribution business in Orissa. AES is now contemplating selling its51 per cent stake in Cesco, the distribution company, to any third party that is willing to purchase the stake.

AES has, however, stated that it would be willing to continue to manage the day-to-day operation of the company under a management contract for a reasonable transition period.
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Bharti’s acquisition of Mumbai license may derail roaming tie-up
Mumbai: The roaming alliance between BPL mobile and Bharti Enterprises, announced with much fanfare a few months ago, is likely to be the first victim of the latter getting the license to operate in the Mumbai metro circle.

Considered to be a strategic move the alliance sought to provide subscribers of BPL Mobile in Mumbai and Bharti in Delhi roaming facilities. As Bharti has bagged the Mumbai metro circle by emerging as the largest bidder in the Mumbai circle as a fourth cellular operator, the Mittals do not require assistance of a cellular operator in Mumbai for offering roaming between Mumbai and Delhi.

Similarly, BPL Communications does not see any value in the alliance as tis merger with Birla-AT&T-Tata is likely to see the merged entity bag the Delhi metro circle.
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Dr. Reddy’s wins court battle against Eli Lilly
Hyderabad: In a significant decision an appeals court in Washington DC stated that it would not review an earlier decision that found global pharma major Eli Lilly’s patent on its blockbuster anti-depressent drug Prozac, invalid.

This clears the decks for Dr Reddy’s Labs to launch its 40 mg Fluoxetine (the generic drug in Prozac) capsules in the US market through Pharmaceutical Resources Inc next month.

The ruling came pertaining to the case of Barr Laboratories Inc, the company that has been battling Eli Lilly over the Prozac patent since 1996.

The ruling applies to Dr Reddy’s too, since it was, in a separate court proceeding last week, successful in having the final outcome of its case tied to the final outcome of Barr litigation.

This s the first time that an Indian company will launch a product under 180 days exclusivity.
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Santro may offer LPG variant
Kolkata: Hyundai Motors is likely to soon roll out the LPG variant of its small car, Santro. The company is waiting for a government notification allowing LPG-driven cars in the country.

According to the company with the parent company already producing LPG cars in Korea, it should not be difficult for the Indian operations to bring in this variant. The company will import the LPG kits from Korea to meet its requirement in India.

As a new marketing tool the company planning to move into shopping malls to sell cars, as it has done successfully in the West.
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Mannesman to pull out of Tata Korf
Mumbai: Tata Korf, a 60-40 joint venture between Tata Steel and German giant, Mannesman, which is the business of supplying mini blast furnace technology, is likely to see the German giant exit from the venture.

According to a senior company official, Mannesman has decided to divest its stake in Tata Korf and Tata Steel is now now scouting for a new partner.

As part of its expansion plans, Tata Steel is looking at setting up a ferro-chrome unit in Australia and Africa.
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Losses force BPL to scale down paging operations
Mumbai:Huge losses have forced BPL to scale down its paging operations in some parts of the country. BPL Wireless Telecommunication, the group company offering these services, is planning to add more places to its list of 'non-viable locations' in states such as Kerala, Karnataka and Tamil Nadu.

With the company stating that government policies never supported the paging industry, the company has been exiting from non-profitable locations in these states. With this, BPL will be joining the bandwagon of major telecom companies who have already scaled down paging businesses.

The emergence of cellular operators with customer-friendly packages had forced paging operators to look at alternative business avenues.
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