Indian FIs offer to reschedule DPC debt
MumbaiIndian financial insitututions (FIs) led by the Industrial Development Bank of India (IDBI) have offered to reschedule the debt of Enron-promoted Dabhol Power Company (DPC) for carrying out the 2,184-mw project.

The FIs, with an exposure of over Rs 5,125 crore to the project, are of the unanimous view that all equity holders including Enron, GE, Bechtel and Maharashtra State Electricity Board (MSEB) in addition to the FIs and off-shore lenders will collectively take a hit.

The FIs, who are trying to find a buyer for Enrons stake and who will complete the Dabhol project, want that the Dabhol phase-I should restart its generation which has come to a halt since May 29 when MSEB suspended power purchases.

FIs insisted that the Dabhol phase-II, which is over 90 per cent ready, should be completed at the earliest.

These institutions comprising ICICI, IFCI, SBI and Canara Bank have projected an additional expenditure of Rs 2,200 crore for the completion of Dabhol phase-II.

However, MSEB took a serious objection to these proposals and said that the Enron impasse cannot be resolved through piecemeal solutions and requires a comprehensive package. The organisation insists that the new buyers for the purchase of Dabhol phase-II should be identified before the completion of phase-II. MSEB assured to provide necessary assistance for the formulation of a package to resolve the Enron tangle.
Back to News Review index page  

Wartsila makes open offer for 49 percent Indian subsidiary at Rs 120/share
Mumbai--Wartsila Corporation & Wartsila Technology, the Finnish promoters of Wartsila India, have offered to buy out the remaining 49 per cent stake in their Indian subsidiary, at a price of Rs 120 per share. At this price the Wartsila group will have to shell out approximately Rs 70 crore ($15.04 million) for the stake.

The promoters currently have 51 per cent stake in the company.

Domestic financial institutions and mutual funds together hold about 19 per cent, while the individuals and others have about 26 per cent in the company.

A company by the name Benaras House has the remaining 4 per cent.

Consequently, the scrip rose almost 20 per cent today to close at Rs 82.85. A total of 61,099 shares of Wartsila were traded on the BSE today.
Back to News Review index page  

ITC increasing stake in Bhadrachalam
MumbaiThe ITC group, promoter of ITC Bhadrachalam Paperboards, is quietly augmenting its stake in the company through open market operations. As on June 30, 2001, ITCs stake in ITC Bhadrachalam went up to 61 per cent, from 56 per cent on June 30, 2000.
Russel Credit, ITCs wholly owned investment subsidiary, is carrying out the operation.
According to an ITC official, the stake increase is in conformity with Sebis creeping acquisition norms. Refusing to ascribe any particular reason for the rise in ITCs stake, the official said it could be for trading purposes.
Promoters are allowed to increase their stake up to 5 per cent annually under Sebis takeover guidelines. The shareholding pattern in the company now includes promoters with 61 per cent, the public at 16 per cent, mutual funds 13 per cent, corporate bodies at 2 per cent and the remaining with FIs.
Back to News Review index page  

Infosys to enter Nasdaq-100
BangaloreThe darling of investors on the Nasdaq, Infosys, will soon inducted into the Nasdaq-100.
According to Ghanshyam Dass, the South Asia director of Nasdaq, Infosys is a 'model' company and has shown what a well managed company is all about. Infosys is possibly the best managed company in India today and could match well with some of the mightiest of the American corporates, he said.
Dass said that while it was true that the meltdown, especially in the software stocks, has affected markets the world over the important thing was that investors had not disbanded trading at the Nasdaq.
Back to News Review index page  

Dow below 10,000
New York--US stocks fell again on Thursday, pulling the Dow Jones industrials below 10,000 for the first time since April, on government reports of slowdown in consumer spending in July and Sun Microsystems lowering of revenue expectations.
The market's fourth straight session down came a day after word of the worst showing for the gross domestic product in eight years.
The Dow, which had already fallen 332 points, or 3.2 per cent, the first three days of this week, was off 170.90 at 9,920.00 in midday trading. The last time it closed below 10,000 was April 9, when the index read 9,845.15.
Broader stock indicators also slid, a reflection of widespread selling in technology stocks. The Nasdaq composite index was down 58.97 at 1,784.20, a level also last seen in April, while the Standard & Poor's 500 index was down 19.59 at 1,128.97.
Selling was spread across the market, with technology issues hit particularly hard.
Sun Microsystems fell $2.75 to $10.68 after announcing late Wednesday it probably will lose money this quarter because demand for its products in Europe and Japan has been softer than expected.
Advanced Micro Devices was also down, slipping 85 cents to $13.35, after it said Wednesday afternoon that weaker-than-expected revenues because of weak demand for some of its computer chips.
Other tech losers included Dow components Intel, down $1 at $27.10, and Microsoft, down $3.06 at $57.19, which confirmed that European regulators had widened an antitrust investigation against it.
The Dow was also weighed down by losses in its blue chip components including General Motors, which fell $2.17 to $53.68, and American Express, off 60 cents at $36.40.
Back to News Review index page  

Nasdaq woos 50 Indian firms
Kolkata--The Nasdaq Stock Market is talking to a number of Indian companies to get them listed at the exchange. "As many as fifty Indian companies have the potential to get listed at the Nasdaq Stock Market. Only four have actually listed themselves so far, against 128 companies from Israel," informed director, south Asia, Ghanshyam Dass.

Talking on the advantages of Nasdaq listing, Dass said the exchange provides increased liquidity when compared with the New York Stock Exchange, apart from higher efficiency, better settlement process and lower cost of operation.
Back to News Review index page