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On Friday, January 2, 2008 the RBI relaxed prudential norms for recognition of bad loans by banks. The move will allow banks to hide their bad loans for a much longer time, even as they hope that the borrowers’ economic condition improves and they pay back or recover their dues through other means.
Wind power company Suzlon Energy’s is selling part of its 71.3% stake in Hansen Transmissions, a gearbox maker for wind turbines. Ecofin, a London-based investment company that claims to specialise in global utility and infrastructure sectors, will buy a 10% stake in Hansen from AE-Rotor Holding BV, a subsidiary of Suzlon. It will now have an 11.62% voting and economic interest in Hansen, indicating it had a small stake earlier too.
Software services provider Satyam Computers has postponed today’s board meeting to consider a buyback. Its chairman, B. Ramalinga Raju said that considering the questions that have been raised in the past two weeks, the need for them to be properly addressed and considering the interests of stakeholders, the company is broadening the scope of deliberations beyond a buyback.
Continue ReadingSebi has issued a consent order, accepting HDFC Bank’s application to settle the case filed against it in the IPO scam. It has paid Rs 1 lakh as part of the consent procedure. The Sebi order says that it had launched an investigation into share dealings in shares issued through IPOs during 2003-05.
The government gave oil marketing companies something to cheer before they prepare the third quarter’s results. They have got bonds to compensate them for the losses incurred on selling retail petroleum products like PDS kerosene and LPG. Indian Oil Corporation, Hindustan Petroleum Corporation and Bharat Petroleum Corporation have been issued bonds worth Rs 22,000 crore, with the companies getting 54.4%, 24.2% and 21.3% respectively.
December has been a good month for fertiliser companies. Earlier this month, the government had issued 7% bonds worth Rs 10,000 crore to 23 companies. Now the government has released another tranche of 6.2% bonds worth Rs 4,000 crore to 16 companies. These bonds are not eligible to be kept with banks as SLR but can be bought by insurance companies, in the ‘other approved securities’ list and as special bonds by PF/Gratuity/Superannuation funds.
Continue Reading“We are clear ….SEBI’s letter Forged….” That’s the blurb on Pyramid Saimira’s website, a sign of a relieved company or actually a relieved promoter that he is not under Sebi’s glare. But it would be unfortunate if the hoax perpetrated on the financial media, Pyramid’s shareholders and the market regulator Sebi were to end so tamely.
Satyam Computers has entered into damage control mode, proposing a buyback to return cash to shareholders. The IT services major recently proposed a buyout of two group firms –Maytas Properties and Maytas Infra- in the construction and infrastructure business. The move angered shareholders who went on a selling spree, from which its shares are yet to recover.
Today, Axon Global’s shares will stop trading on the London Stock Exchange, marking a smooth ending to a takeover, which at one time saw HCL Technologies and Infosys Technologies pitted against each other. Though the logic of the deal and its benefits for HCL has been dealt with earlier, the ease with which HCL outbid Infosys is puzzling.
Suzlon Energy has rescheduled its payment to Martifer, the Portuguese construction, energy and distribution company, for its 22.7% stake in Repower. Suzlon will now pay €65mn in December 2008, €30mn in April 2009 and the remaining €175mn in May 2009. The agreement will see Suzlon take control of Repower much later than scheduled but also gives it way out of a messy situation.