Four firms enter final round for Sesa Goa
Mumbai: Four companies have entered the last round of bidding for India's largest mining company, Sesa Goa. These include Brazilian mining company CVRD, the world's largest steelmaker Arcelor Mittal, the Anil Agarwal-controlled Vedanta and the Aditya Birla group's privately held entity Essel Mining & Industries.

These four companies will be allowed to visit plants of Sesa Goa in the second week of March before they submit their final bids by the end of March.

These four companies were chosen from six companies that submitted their bids on February 19. Anglo American and Brazil's mining firm Rio Tinto's bid was rejected.

Sesa Goa exports iron ore to China, Japan, Europe and Taiwan, from its mines in Goa, Karnataka and Orissa. It sells one tenth of its 9.6-million tonne output in Japan and 58 per cent in China and Taiwan.

Mitsui & Co put up its 51 per cent stake in Sesa Goa for sale for quite some time. Morgan Stanley is Mitsui's advisor.
The successful bidder will also have to buy 20 per cent stake from retail shareholders of Sesa Goa.

At yesterday's closing price of Rs1,947.85 on the Bombay Stock Exchange, Sesa Goa is valued at Rs7667 crore.

At this rate, the winning bidder will have to pay Rs5443 crore for acquiring 71 per cent stake. Indian laws require the acquirer of Mitui & Co's 51 per cent stake to buy 20 per cent from retail shareholders as well.

Sesa Goa posted revenues of Rs1,734.8 crore last year against Rs1,423.8 crore a year ago.
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Tatas in talks for defence venture with Israeli firm
Mumbai: The Tata group is discussing the possibility of forming a joint venture with Israel`s Rafael Armament Development Authority for the supply of defence systems to the Indian Army
A Tata group spokesperson said the group is in talks with several companies after the opening up of the defence sector.

The joint venture is expected to give the Tatas access to the much-needed range of defence systems that the Indian Army wants. The state-owned Hindustan Aeronautics also has a cooperation agreement with Israel Aircraft Industries (IAI).
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Volvo to acquire Ingersoll's road development unit for $1.3 billion
Bangalore: Volvo plans to acquire the assets of Ingersoll Rand's road development division for $1.3 billion. The division manufactures heavy equipment for road construction and soil compaction. In a notice to the Bombay Stock Exchange, Ingersoll Rand said the sale of the road development business, which forms part of the construction technologies' segment, will take place after necessary legal consent and board approval.

Ingersoll Rand's shares rose 1.44 per cent to Rs337.05 on Tuesday.

The Indian operations of the company in which the US parent holds 74 per cent stake, recorded 28.42 per cent increase in sales to Rs169.82 crore on a net profit of Rs14.48 crore, which rose 65.67 per cent during the third quarter of 2006-07.

Volvo said the acquisition is strategically important since it will improve the overall competitiveness of Volvo CE as a full-range supplier of construction equipment.

The acquisition complements Volvo's current operations by strengthening its presence in equipment for road construction work.

The acquired business includes a full range of heavy compactors, asphalt pavers and milling machines, and provides favourable growth possibilities. In addition, the acquisition includes 20 dealerships in North America and distribution companies in Europe and Russia, which will leverage Volvo CE's sales of compact equipment, primarily in North America.
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HM in deal with Sriram Properties
Kolkata: Hindustan Motors Ltd (HM) has signed an agreement with Shriram Properties of Bangalore to develop an integrated IT township and an auto park in 314 acres of land specifically identified for the purpose at Uttarpara near Kolkata in West Bengal and in accordance with the conditions laid down by the West Bengal Government in its approval order dated September 13, 2006.

The development of the proposed integrated township and the auto park would be accomplished jointly with Shriram Properties through a SPV.

As compensation, HM expects to receive about Rs295 crore in five tranches spread over the next 10 quarters as well as non-compete fee equal to 4 per cent of sales proceeds.

The company will use the proceeds from the arrangement for implementation of the revival and renewal of its Uttarpara plant, as committed in its application to the State Government.

These include investments on modernisation, expansion and development of contemporary automotive forging, stamping and foundry facilities and growth initiatives.

On the BSE, 11.23 lakh HM shares changed hands and scrip touched a high of Rs40.30 during intra-day before closing at Rs38.50, gaining 2.26 per cent.
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