Grupo Mexico and Vedanta Resources are slugging it out for control over US copper company Asarco LLC. The Wall Street Journal has reported that Grupo Mexico has offered $1.3bn in cash to a court, which is hearing the bankruptcy proceedings against Asarco. Vedanta Resources, which is the holding company for the Sterlite group, has bid higher at $1.7bn but this is a combination of $1.1bn in cash and the rest in notes (fixed income instruments.
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Pfizer to raise stake in Pfizer India to 75%; is delisting on the cards?
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Pfizer Investment Netherlands BV, a subsidiary of Pfizer Inc, will pay Rs 675 a share to acquire a 33.77% stake in Pfizer India. At this price, the total consideration is Rs 680 crore and Pfizer’s stake will go up to 75%. It will take regulatory approvals for the open offer. Pfizer will have to revise its offer price for the open offer to succeed, as the current market price is already Rs 685. It would have known it may not get many buyers at this price. But it expects the offer to open only in June 2009, so it has used the prevailing price to arrive at a floor. Continue Reading →
Filed under: Companies, Top News, Delisting, M&A, MNC, Open Offer, Pfizer, Pharmaceutical
Satyam Computer sold to Tech Mahindra
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Satyam Computer Services has found a new home in Tech Mahindra. It will pay Rs 58 a share, or a premium 23% premium over Friday’s close, to acquire a 31% stake in Satyam. That speaks for Satyam’s value even after all the fudging of books or for Tech Mahindra’s desire to acquire Satyam. Either way, it’s an outcome that will please Satyam’s shareholders, board and the government itself. The shareholders got a good price, the board has managed the sale process without any glitches and the government would be happy that it remains in Indian hands.
Filed under: Companies, Information Technology, Top News, M&A, Satyam, Satyam Scam, Scam, Tech Mahindra
Satyam sale enters final stage today
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The board is expected to open financial bids on Monday submitted by a few bidders remaining at the last stage. Among them are believed to be Tech Mahindra, L&T, Cognizant Technologies and some private equity funds. If the gap between the first and losing bids is less than 10%, then there will be open auction. The highest bidder in the auction will be declared the new owner.
Filed under: Companies, Information Technology, Top News, Ramalinga Raju, Satyam, Satyam Scam, Scam
Oil PSUs get Rs 21,942 crore bonds
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The government yesterday issued bonds worth Rs 21,942 crore to the oil marketing companies to compensate for the losses incurred by them. IOC got about 54% of the total bonds while BPCL was issued nearly a fourth and HPCL the rest. These bonds have a coupon of 6.9% and mature in 2026. Since the oil marketing companies have little leeway in fixing prices of petroleum products resulting in losses, especially on the sale of kerosene and LPG.
Filed under: Companies, Oil & Gas, Top News, Bonds, Oil Marketing Companies, Subsidy
Oil PSUs to spend 2% of net profit on CSR
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The petroleum ministry announced that public sector units in the oil sector –like Gail, HPCL, ONGC, BPCL and IndianOil- have resolved to spend at least 2% of their net profits on corporate social responsibility projects. There was a joint meeting of the Minister for Petroleum & Natural Gas, Murli Deora, chairmen of oil PSUs and the petroleum secretary, RS Pandey.
Filed under: Companies, Oil & Gas, Top News, Companies Disclosures, Corporate Governance, Corporate Social Responsibility, Policy From the Government
Vedanta to delist Madras Aluminium (Malco)
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Vedanta Resources Plc has decided to delist Madras Aluminium Company (Malco). The Anil Agarwal promoted Vedanta owns 80% of Malco’s equity and has sent a proposal to its board to approve a delisting proposal under Sebi’s delisting guidelines. It will have to make an offer to Malco’s shareholders through a reverse book-building process. It will set a floor price while shareholders will be free to offer shares at a higher price. The price determined through the book-building process will be the final price, which Vedanta is free to accept or reject. Continue Reading →
Filed under: Companies, Top News, Economy International, M&A, Malco, Sterlite, Vedanta
Siemens’ IT unit SISL sold at low valuation
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Siemens Information Systems Ltd (SISL) seems to have been sold at a relatively cheap valuation, by Siemens, to a privately owned company of Siemens AG. Siemens said that SISL, which had revenues of Rs 994 crore and PBT of Rs 73 crore for the year ended September 2008, has been valued at Rs 449 crore.
Filed under: Companies, Top News, Siemens, SISL, Valuation
Satyam’s board takes baby steps
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Satyam Computer Services’ new board held its first press conference, where it faced a barrage of questions. Towards the end, Deepak Parekh, eminent banker and a special director on Satyam Computer Services’ board lost his cool. After spending some few hours in the company today, the enormity of the task seemed to have sunk in.
Filed under: Companies, Quick News, Board, Satyam, Satyam Scam, Scam
Wipro barred from World Bank contracts
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“Wipro discloses vendor status with World Bank”. That’s the headline of the release issued to the Bombay Stock Exchange. But for Satyam’s run-in with the World Bank, few would have opened the attachment. Its contents are a shocker The World Bank has declared Wipro ‘ineligible’, in June 2007, to bid for direct contracts for four years ending in 2011. Ineligible is a mild term for a ban, which is what it is. Wipro’s disclosure shows a can of worms waiting to be prised open in several parts of corporate India. Continue Reading →