Tata Sons hike holdings in 5 key group
companies
Mumbai: Tata Sons, the holding company of
the Rs 40,000-crore Tata group, raised its holdings in five group companies -- Tata
Engineering and Locomotive Company, Tata Iron and Steel Company, Tata Power, Tata Tea and
Tata Chemicals in 1998-99. It did this mainly through market purchases worth over Rs 500
crore.
The Economic Times in a report said a substantial portion of the funds has come
from the profits of Tata Consultancy Services, a division of the holding company. The
present holdings are: Telco 6.92 per cent (from 2.74 per cent), Tisco 13.32 per cent (from
8.74 per cent), Tata Power 12.98 per cent (from 8.02 per cent), Tata Tea 12.32 per cent
(from 9.30 per cent) and Tata Chemicals 10.13 per cent (from 8.40 per cent). The company
has also acquired a 3.11 per cent stake in ACC.
Meanwhile,
Tata Consultancy Services has earned Rs 1,542 crore from exports in 1998-99 against the
previous year's figure of Rs 967 crore. This has been disclosed in the Tata Sons
directors' report for 1998-99.
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Mahindras exiting Otis
Elevators
Mumbai: Otis Elevator Company (India) will
become a subsidiary of the parent Otis Elevator of the US. The Mahindras, who hold a 24
per cent stake in the lift manufacturer, is selling its shares to the US parent.
A decision to this effect was taken at the board meeting
of the company on 22 July, reports The Economic Times. The company will issue a
no-objection certificate for the trasnfer of shares from the Indian promoter to the parent
company. This is required for the US company to complete the required formalities with the
Foreign Investment Promotion Board and to bring in foreign funds.
Otis Elevator of the US is a subsidiary of the $25.7
billion United Technologies group.
The Mahindra group's decision to offload the Otis shares
is in line with its restructuring plans, especially with relatin to exiting non-core
activities. The stake acquisition will help Otis Elevator of the US to integrate the
operations of the Indian arm with its global operations.
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ITC planning shopping
mall
Mumbai: ITC Ltd is now into shopping malls.
The company is looking for a suitable plot of land in Delhi with an area of nearly 6 lakh
square feet to build a complex, for which the company has earmarked about Rs 500 crore.
The company has engaged McKinsey & Co to develop a
plan for this retail venture. ITC sources say the proposed retail business will not be an
extension of the Wills Sports venture, but a serious business in itself.
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Tax waiver for Reliance
withdrawn
New Delhi: The government has withdrawn
the withholding tax exemption granted to Reliance Industries on a portion of external
commercial borrowings raised by the company. The withholding tax is levied on the interest
dues paid on external borrowings.
Normally companies, on request, are exempted from the levy
of about 29.8 per cent tax. It is understood that in the case of Reliance, the burden will
be around Rs 200 crore. The company has represented to the finance ministry against the
decision.
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IDBI asks PowerGen to
deposit GTEC shares
Mumbai: The Industrial Development Bank
of India has asked PowerGen India to pledge the shares it has acquired from Gujarat
Torrent Electricity Company in its favour as the IDBI is the biggest lenders to Gujarat
Torrent, with a debt exposure of 25 per cent.
PowerGen has recently acquired a 46 per cent stake in the
Gujarat Torrent Electricity Company from the Mehtas of the Torrent group.
IDBI has also asked Gujarat Torrent to execute a trust and
retention account agreement by which the trustee bank will control the cash flows and
receivables of the company.
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US patent for United
Phosphorus
Mumbai: United Phosphorus has been given
a US patent for a fumigation system, and claims to have become the first Indian
agrochemical company to be granted a US product patent for a new invention.
The company says the fumigation system can change the way
aluminium phosphide, used in preventing insect damage in stored grain, is applied. United
Phosphorus expects that the patent could result in revenues of Rs 250 crore over the next
five years.
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ICI India sets priorities
Calcutta: As part of a restructuring
exercise, ICI India, a subsidiary of ICI plc of the UK, is planning to reduce its exposure
in areas like pharmaceuticals, rubber chemicals, trading and nitrocellulose.
These divisions now account for 26 per cent of ICI India's
1998-99 turnover of Rs 986.5 crore. The company recently decided to hive off its
explosives business into a joint venture with Australian company, Orica.
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Icra rates Orchid Chem
as fastest drug company
New Delhi: Icra has rated Orchid Chemicals
and Pharmaceuticals of Chennai as the fastest-growing drug company in India from the top
31 domestic and multinational firms.
Orchid is emerging as the most sought-after company by
foreign institutional investors with the limit on foreign investment in it nearly at the
ceiling of 24 per cent.
The Icra report said Orchid, which has grown from a meagre Rs 90 lakh in operating
profit in 1994, to Rs 62.9 crore in five years, is also the fastest growing company in
terms of operating profit, with a compounded growth rate of 191.7 per cent.
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Microsoft, ICIL in
e-com tie-up
Mumbai: Microsoft India and
International Computers India have formed a strategic alliance for the electronic commerce
market.
ICIL will develop e-com solutions based on Microsoft
platforms and technologies. It will also set up two Microsoft centres of excellence at
Pune and New Delhi.
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Cincinnati Bell to
acquire IXC Communications
New York: Cincinnati Bell said it will
buy telecommunications service provider IXC Communications for $2.1 billion in stock.
The deal will enhance Cincinnati Bell's presence in the
internet business, data transmission and wireless. IXC has built a high-speed optic fibre
network which will help Cincinnati's foray into other areas.
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Apple introduces iBook
New York: Apple Computer has introduced
its consumer notebook computer, which includes a built-in wireless capability. The
notebook looks like an iMac offspring.
Named iBook, the portable six-pound computer, comes in two
translucent colours, blueberry and tangerine, and white and is priced at $1,599. It has a
carrying handle, a full-size keyboard, a 12.1-inch active matrix screen, a built-in
antenna for wireless, a 300 MHz PowerPC G3 processor, a CD ROM drive, a 3.2-GB hard disk
drive, a 56kbps modem and other features.
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TotalFina indicates a
peaceful settlement
Paris: On 21 July TotalFina extended the
olive branch to its acquisition target Elf Aquitaine, suggesting it is open to friendly
talks on the proposed acquisition. At the same time it signalled that it will not raise
its offer price.
TotalFina chairman Thierry Desmarest said in a newspaper
interview that share prices showed the financial markets were not counting on an increase
in its bid and the prospect was not a priority. Desmarest said he wanted a quick and
friendly end to the takeover battle.
TotalFina made a hostile 42 billion euro offer for Elf on
5 July, and Elf in return launched a 50 billion euro counter-bid.
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Bail-out for Daewoo
Seoul: Local creditors have given the
ailing South Korean Daewoo group a respite by agreeing to infuse $3.3 billion in fresh
loans.
The creditors have agreed to give the loans by 26 July in
return for collateral put up by the conglomerate, a spokesman for Korea First Bank said.
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