Zee Telefilms restructures holdings, acquires overseas unit
Mumbai: Zee Telefilms, the holding company of Subhash Chandra's Zee group, is acquiring the entire stake of Zee Multimedia Worldwide Ltd BVI, a Mauritius-based holding company for the group's operations abroad, and is converting it into a wholly-owned subsidiary.

Zee Telefilms will issue 209.24 lakh equity shares of Rs 10 to Zee Multimedia Worldwide shareholders on a swap ratio of 1.1:1. The deal will more than double the equity capital of Zee Telefilms, which at present is Rs 19 crore

The acquisition will make Subhash Chandra richer by Rs 6,800 crore in terms of market capitalisation -- his market-linked wealth at present is estimated to be Rs 3,200 crore. With the acquisition, it will go up to Rs 10,000 crore.

The shareholding pattern of Zee Telefilms will also change with the promoters' holdings going up from 50.5 per cent to 76.5 per cent and those of foreign institutional investors going down to 13.7 per cent from the present 29 per cent.
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Essar-Marathon deal in trouble?
Mumbai: The much-touted deal between Essar Power and Marathon Power appears to be on the rocks. Indications of differences between the two parties have surfaced, which may lead to Essar walking out of the deal and starting negotiations with other interested parties.

The two parties are meeting on 31 August to discuss and iron out the differences. The differences appear to be over the question of supply of 215 MW of power by Marathon after the acquisition of the Essar Power plant to Essar Steel for 20 years at a concessional captive power rate.
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Godrej Soaps acquires Cussons brands
Mumbai: Godrej Soaps has acquired detergent brands Ezee, Trilo and Key from Cussons India. The UK-based Cussons has also sold the Imperial Leather brand of soap and talc to Godrej Soaps. Cussons will, however, hold marketing rights for the brand.

Ezee is one of India's largest-selling liquid detergent brands with annual sales of about Rs 18 crore. Godrej has its own liquid detergent brand, Dip, which has a 15 per cent market share.

Ezee was originally a Godrej product launched in 1983, which was sold to Procter & Gamble in 1993, when the two formed a joint venture. Cussons acquired the brand from P&G in 1998.
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Government no to GE plans
New Delhi: The government has put a roadblock in front of the proposed plan of General Electric of the US to make India one of its crucial hubs for goods as well as services, saying its plans are outside the policy framework of the government, and hence not permissible.

The company had sought permission for trading in all forms and export of items, including Indian commercial films and documentaries. In a conditional approval, the government has told the multinational that imports would be limited to specific orders and not for general sale. It will also not be able to export Indian commercial films and documentaries.

GE will also not be allowed to enter the retail segment in the Indian market.
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Parvosin's new trials
Mumbai: Ranbaxy Laboratories plans to launch the second stage of phase one trials of its original research molecule, Parvosin, intended for use in the treatment of benign prostatic hypertrophy, on 6 September.

The drug has already successfully completed single-dose trials. It will now enter multi-dose testing. The testing will take some eight weeks. The company intends to take a decision on whether to license out the product to a multinational after phase two of the trials.
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Jindal Strips plans unit abroad
New Delhi: Jindal Strips is setting up a wholly-owned subsidiary abroad to service export markets.

The company has not decided where to locate the subsidiary, its vice president (finance) Arvind Parekh said. It could be set up in Dubai, the UK or Singapore or any other suitable place, offering wide access to the world market for the company's various products, Mr Parekh said.

The company is making a thrust into the export market, at a time when the steel industry is facing stagnation in the domestic market, Mr Parekh said.
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Mastek considering overseas issue
Mumbai: Software company Mastek is planning to float its shares overseas as it is focusing on US and European markets.

The company's chairman Ashank Desai told The Economic Times in an interview that the company is considering two options -- either let subsidiaries go public or make an American depository receipt issue.

Mastek has wholly-owned subsidiaries in five countries, the US, the UK, Germany, Malaysia and Singapore.
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Padmini Polymers sets up CD, DVD unit
New Delhi: Padmini Polymers has set up a Rs 37-crore manufacturing facility at Sahibabad to make compact discs and DVDs. The project is financed through an IFCI loan of Rs 25 crore.

The plant will have a capacity to manufacture 5.5 million DVDs and 17 million CDs per annum. Toolex of the Netherlands has provided the technology and machinery for the project. Kamman of Germany is offering the printing technology. 
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Jet cuts Mumbai-Ahmedabad fare
Mumbai: Jet Airways has reduced its one-way fare between Mumbai and Ahmedabad from Rs 2,610 to Rs 1,995. The offer is valid till 18 September. However, the fare is still higher than Indian Airlines' Rs 1,905.
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Web EDI from Satyam
Mumbai: Satyam Infoway has launched its Web EDI (electronic data interchange) products and solutions. This is in addition to the company's existing products of network-based EDI and chain management solutions, which it offers in association with Sterling Commerce of the US.
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Credit Agricole buys space in Mafatlal Centre
Mumbai: French bank Credit Agricole Indosuez has purchased an entire floor in Mafatlal Centre at Nariman Point at a cost of Rs 26.95 crore.

The 15,645 sq.ft. area in the office complex has been purchased by the bank from the Arvind Mafatlal group. 
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IDBI to take stake in Spic Electric
Mumbai: The Industrial Development Bank of India will acquire a 15 per cent stake in Spic Electric. IDBI will also provide a guarantee of Rs 500 crore and a rupee term loan of Rs 130 crore to the Spic group company.

PowerGen of the UK holds a 74 per cent stake in the company and Tamil Nadu Petroproducts 11 per cent. The remaining 15 per cent is underwritten by PowerGen.

Spic Electric is planning to set up a 525 MW imported coal-based power plant at Tuticorin in Tamil Nadu.
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Revival scheme for GTC Industries
Calcutta: A revival scheme for GTC Industries, now under the Board for Industrial and Financial Restructuring, is on the anvil. The State Bank of India, which is the operating agency for the sick company, is finalising the scheme on a directive from the BIFR..
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IOC to seek nod for buy-back
New Delhi: Indian Oil Corporation is seeking shareholders' approval for buying back its own shares.

The approval of the shareholders will be sought at the annual general meeting of the company for the board to make use of reserve funds -- Rs 1,652 crore -- to buy back shares.
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HPCL, BPCL review on jetty at Kandla
Kandla: Hindustan Petroleum Corporation and Bharat Petroleum Corporation are believed to be reviewing their plan to build their own jetty at Kandla port.

The review is being done in the context of reduced requirements of petrol, oil, lube and LPG following the commissioning of Reliance Petroleum's 27-million tonne refiner at Jamnagar.
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Carrefour, Promodes merge
Paris: Carrefour and Promodes announced their friendly $16.63 billion merger to create the world's second largest shopping chain with projected sales of $ 56.44 billion. The new firm will be second to US retail firm Wal-Mart, whose full year sales last year accounted for $139.21 billion.

Carrefour's Daniel Bernard will head the new group. Both companies were possible takeover targets for Wal-Mart.
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Daewoo banned from cross-financing
Seoul: South Korea's financial regulator and creditor banks have agreed to prevent affiliates of the Daewoo group from giving funds to needy sister units. The move is expected to accelerate the dismantling of the conglomerate, now deep in financial trouble.

Analysts feel this will prevent fresh funds being pumped into 12 affiliates of Daewoo by creditors under a debt workout programme from being diverted to units that have no hope of resurrection.

Kim Young-jaw, chief spokesman for the Financial Supervisory Commission, the Korean regulator, said the decision was aimed at putting an end to Daewoo's troubles resulting from the so-called fleet style management.
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Shell selling coal assets
Brisbane: Royal Dutch/Shell will sell its international coal assets through a tender that will enable the company to raise more than $1 billion.

The company says the intention is to sell its coal assets as a going concern, probably to a coal mining group. A number of petroleum companies have divested their coal assets in what is seen as one of the biggest trade sales in the Australian mining industry.

Shell's coal operations are a stand-alone business.  
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MS planning tablet PC
New York: Microsoft designers are on the job to create a "tablet" computer, a portable, wireless, keyboardless device, the size of a writing tablet, that will serve a person's daily requirements of computing and net surfing.

The company has drafted two of its innovators -- Butler Lampson and Chick Thacker for this purpose, The New York Times said. Mr Lampson and Mr Thacker were earlier involved in some of the pioneering ideas in the personal computer industry.
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Motorola may buy Toshiba stake in JV
Tokyo: Japan's Toshiba Corporation is talking to Motorola of the US on the future of their chip-making joint venture in Japan, Tohoku Semiconductor Corp. The talks cover the possibility of Motorola buying out Toshiba's share in the company.

Tohoku Semiconductor, based in Miyagi in northern Japan, is a 50:50 joint venture established in 1987. Media circles say Motorola has agreed to buy Toshiba's share in the venture and make it a wholly-owned subsidiary.
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Hitachi, Fuji to team up
Tokyo: Hitachi and Fuji Electric are planning to cooperate in the semiconductor business.

Japanese newspapers said the two companies propose to set up a joint venture for developing and designing power devices, including chips used in rectifiers and inverters at power plants.
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