VSNL calls off alliance with Rediff, MSN
MumbaiVSNL has called off talks to form an alliance
with three portals including Rediff.com and MSN.com
due to differences in terms and conditions.
KP Tiwari, officiating director operations VSNL, said
the talks had been called off due to differences in
commercial terms.
VSNL had been forging an alliance for its home page an
Internet business. However the company has kept its
options open for talks with other portals for its
Internet business on the completion of its proposed
disinvestments.
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Leela to sell 15 percent stake to partner
MumbaiThe Leela group of Hotels plans to divest 15
percent of its stake in its flagship, Hotel
Leelaventure Ltd to a strategic partner.
Vivek Nair chairman and managing director of the
hotels said the stake has been valued at Rs 140 crore.
He said the group is in serious talks with
international hospitality chains like Mandarin
Oriental, the Kempinski group and The Raffles group.
The Nairs hold 74 percent stake in Leelaventure while
Vijay Amritraj, another shareholder, holds a 5 percent
stake.
The Nairs propose to divest 15 percent of their stake
and bring it down to 59 percent. This will ensure two
things; the Nairs will retain management control and
also get an international partner who will not only
assist in management of the properties but will also
help in marketing the Leela brand of hotels abroad.
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Samsung Qualcomm to make CDMA phones in India
New DelhiConsumer electronics and household goods major Samung and wireless technology major Qualcomm
Inc are in talks on setting up a venture to
manufacture code-division multiple access CDMA
cellular handsets in India. The sets will be priced at
Rs 6,000.
The two are also in talks with other Indian telecom
companies that can provide a commitment to purchase a
number of sets every year.
Reliance has emerged as one of the companies who may
be a long-term buyer of CDMA based handsets. HoweverReliance will not have any equity participation in the project.
The phones are based on Qualcomms CDMA2000ix
technology, the phones will incorporate data, video
and voice facility that are more advanced than found
in existing phones. The new system enables mobile
phone users to text, chat, play off and online games,
listen to Internet radio and view streaming video.
Qualcomms CDMA technology competes with the global
system for mobile communications (GSM) promoted by
European firms and used widely in India.
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Depository trust arm Omgeo to launch operations in India
MumbaiOmgeo, a wholly owned subsidiary of the
Depository Trust and Clearing Corporation of the US
and Thomson Financial, has received clearance from the
Foreign Invetsment and Promotion Board to set up
operations in India.
Omgeo offers a full range of trade management
solutions including transactions, information and
performance services as well as an e-commerce
community. The company feels that the Indian markets
offer a great potential. Omgeo will help clients to
move from traditional trade processing methods to a
single global workflow solution for trade management
to improve and enable shortened settlement cycles to
the point where eventually most trades can be settled
the same day they occur.
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Sterling group to proceed with VSNL bidding
New DelhiThe government can heave a sigh of relief
over VSNL as all other partners of the
Sterling-BPL-Tycom-CenturyTel consortium have said
that they would continue to participate in the bidding
process.
Said C Sivasankaran, NRI businessman and chief of
Sterling. "We have decided to go ahead with the
bidding for VSNL even if BPL pulls out of the
consortium."
Sivasankaran also said that the company had valued
the 45 per cent stake of VSNL at $500 million which
will form the basis of their bidding.
This means that the consortium values the whole VSNL
at about $1.1 billion.
On Thursday, BPL announced that it was planning to
withdraw from the race for VSNL.
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DD taken to task for selling prime time slots
New Delhi--A parliamentary Committee has taken
Doordarshan to task for selling important time slots
on the Metro channel to foreign and private companies.
The committee says that prime time programming should
conform to the mandate of Prasar Bharati as a public
service broadcaster and not be guided by commercial
and market considerations.
Noting that time slots were made available for
telecasting the programmes produced by Channel Nine
Network, Australia for six hours at a consideration of
Rs 122 crore, the committee said that allotting such
daily slots was a serious matter involving far
reaching consequences.
The committee said it was not against private
participation but recommended that the corporation
adopt a clear and firm policy by taking views of
expert bodies and public representatives and lay down
suitable guidelines to ensure transparency and
telecast of suitable programmes consistent with the
objective of Prasar Bharati.
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EIHsitting duck?
MumbaiIn recent times, three investment companies 
Peninsular Investment Ltd, Megatop Financial Services
and Leasing Ltd and New Deal Finance and Investment
Ltd have acquired over 9 per cent equity stake in
EIH Ltd.
Market sources say, these three companies have been
continuously increasing their stake in EIH during the
last few months through open market purchases. Rumour has it that Peninsular Investment Ltd acting in
concert with two other firms is picking up a stake in
the company.
At present Megatop Financial Services and Leasing
holds 15,61,591 shares (2.98 percent) Peninsular
Investment 16,18,681 shares (3.09 percent) and New
Deal Finance and Investment 16,36,290 shares (3.12
percent) in EIH as on August 3, 2001.
Moreover Russell Credit, an ITC subsidiary, is said to
have some investments in Megatop Financial Services
and Leasing. This assumes significance in the light of
market rumours about ITC picking up stake in EIH. The
idea of the ITC group picking up stake indirectly is
not ruled out by the market players as the ITC group
does have interest in hotel business.
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IBP bidders want relief from the Rs 500 crore
forfeiture norm
New Delhi--The Cabinet Committee on Disinvestment
(CCD) may have to work out the modalities of the Rs
2,000 crore investment, to be made by the bidders for
IBP, in the petroleum sector.
The bidders say that if they cannot make the Rs 2,000
crore investment in the petroleum sector (a
pre-qualification for bidders) within the stipulated
five years, they should not be forced to forfeit Rs
500 crore which the petroleum ministry wants.
The bidders say that they should be allowed to make
the investment in IBP, rather than in refining,
pipelines etc. as specified by the government, as the
latter set of investment can get held up due to
factors beyond their control.
The bidders say that they should be allowed to make
the investment in the company itself, as it would be
easier to ensure that the amount is utilised within
the stipulated five years, officials add.
After failing to reach a consensus, the disinvestment
department (DoD) and the petroleum ministry have
decided to refer the issue to the CCD for settlement.
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VRS taken by three-fourths of Glaxos Worli employees
MumbaiThe voluntary retirement scheme announced by pharma major Glaxo India at its factory and corporate office in Worli, Mumbai has received a very good response.
In the first 8 working days since the scheme was
announced 525 employees have applied for the VRS
representing 75 per cent of the total employee
strength of 695 at the Worli plant. The scheme is open
till September 4, 2001.
Employees who have applied on or before August 21 are entitled to a hospitalisation insurance benefit for
themselves and their next of kin.
Glaxo India has offered to pay the premia on a
hospitalisation benefit scheme that will be valid for
20 years or the age of 60, whichever is earlier. It
will provide a cover of up to Rs one lakh per annum to
the employee, his or her spouse and two dependent
children.
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Hallmark to make $30-m film in India
Mumbai--Crown Media Holdings, the holding company of the Hallmark Channel, is producing the most expensive
movie in India at a whopping cost of $30 million.
The movie Thief of Baghdad would have a mix of
Indian and international stars and would be shot
either in Rajasthan or at a location close to Mumbai.
This would be the first movie produced by Crown Media in the country.
Crown Media International Asia-Pacific vice president
and managing director Terence Yau said, "We will be
drawing in local talent from India. We havent yet
finalised on the actors. We will also be including
international stars."
The shooting for the movie would start by the end of
this year. It would take three months to complete the
movie. "It will provide us a platform to popularise
our channel in India. We will be marketing it in a big
way," Mr Yau said.
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Konkan Rail's to be bailed out by the govt
New Delhi--The government is working on a Rs 600 crore bailout package for the loss making Konkan Railway
Corporation (KRC) and will KRC tide over the payment crisis it faces for the bonds raised for the project. The bonds involve an outgo of about Rs 700 crore this fiscal.
The 760 km Konkan Railway, a joint venture between the Railways and the state governments of Goa,
Maharashtra, Karnataka and Kerala incurs a loss of
nearly Rs one crore every day. Its income at about Rs
220 crore per year is just about sufficient to meet
its operating costs.
Konkan Railway officials, however, say that there
should be no need for a bailout package if the
Railways honour their commitment of transferring more
traffic from the southern region.
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ICICI to be out of debenture trustee biz
Mumbai-- ICICI has taken a decision to exit debenture
trustee business following the imposition of stringent
fiduciary responsibilities in the aftermath of the
Sebi-appointed P K Kaul committee report.
The institution, which is now in the advanced stages
of exiting the debenture trusteeship business has
decided to pass on the responsibility as debenture
trustee to the little-known trusteeship subsidiary of
the Satara-based United Western Bank.
ICICI recently signed a memorandum of understanding
with the Western India Trustee & Executors Company,
the trusteeship arm of UWB, for transferring its DT
business to the firm.
WITEC, with a net worth of Rs 53 lakh and paid-up
capital of Rs 5 lakh, was registered with the Sebi as
a debenture trustee in 1998. It also has a license
from the debt recovery tribunal for acting as a court
receiver.
The total size of bonds, debentures and other secured
instruments, sought to be transferred by ICICI upon
exiting the DT business is said to be more than Rs
10,000 crore. The number of companies for whom ICICI is currently a DT is around 350.
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Enron, India talks abruptly adjourned
New DelhiNegotiations between Enron Corporation
subsidiary, Dabhol Power Corporation and the
government were abruptly suspended on Sunday, when no agreement on the company's power project, India's
largest foreign investment, was arrived at.
The conciliation proceedings will resume on a date to
be decided by both sides, said the Indian
Attorney-General Soli Sorabjee.
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Whirlpool to introduce new products in the markets
New Delhi-- Whirlpool India, the Indian subsidiary of
Whirlpool of the US is planning to launch a clothes
drier in the market next as it feels that there is a
requirement for such a product.
The product will cost Rs 7,000-8,000 and will dry 7-8
clothes at a time.
Whirlpool is also enhancing its existing range of
refrigerators and washing machines to be rolled out
from its upgraded plant in Faridabad, Haryana and is
extending its range of products with the launch of
microwaves and cooking ranges.
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Shekhar Bajaj group on a creeping acquisition route
Mumbai--The Shekhar Bajaj group promoters of
electrical appliances major Bajaj Electricals is
quietly augmenting its stake in the company.
The promoters have acquired 5 per cent stake through
the creeping acquisition route during the last 12
months and plans are to take their holding in the
company to around 50 per cent. The Bajaj group
currently holds around 45 per cent in the electricals
company.
The Bajaj Electricals stock is currently quoting at
around Rs 42.
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Accenture to help Tea Board frame export strategy
MumbaiShaken by falling exports of tea the Tea Board
has appointed Accenture to submit a report on the
basis of which a medium term export strategy of tea
would be formulated.
Accentures report would be based on datas on taste
and preferences of leading importing countries, Tea
Board chairman NK Das said.
Accenture had been asked to submit its report by
September and the medium term export strategy would be finalised immediately after the receipt of report.
The announcement regarding appointment of consultants
to prepare and study Indias tea export potential
comes a week after the Tea Boards decision to appoint
A F Ferguson to review the functioning of the age-old
auctioning system in the country.
Tea exports between January and June this year had
come down by 5.88 per cent to 79.62 million kgs
against 84.58 million kgs in the corresponding period
last year. June exports were down by 21 per cent to
14.36 million kgs from 18.17 million kgs.
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Infosys most admired firm, Reliance most admired group
New Delhi--Infosys has emerged as "Indias most
admired company," while Reliance Industries came out
as "Indias most admired business house," according to
Taylor Nelson Sofres-mode survey for 2001.
Infosys and Reliance Industries were followed by
Wipro, Hindustan Lever, Larsen & Toubro, Bajaj Auto,
HDFC, Colgate Palmolive, Tata Power and BPL, the
TNS-mode survey said.
Among business houses the Ambanis were closely
followed by Tata, Wipro, AV Birla, Bajaj, Godrej,
Mahindra, BPL, KK Birla, Hero Honda, RPG.
The parameters were management quality, financial
performance, return to shareholders and company
ethics.
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