HCL Technologies sign pact with US companies
Mumbai: HCL Technologies has entered into agreements with two US companies, Gtech and KLA Tencor, to provide software engineering services. The agreement is expected to bring in revenue worth Rs 750 crore. The deal is unique in that there is a share option to be granted.

HCL Technologies said Gtech has committed revenues worth Rs 435 crore and KLA Tencor Rs 320 crore over a period of five years in return for stock options in HCL Technologies. The stock options will lead to a maximum of 3.5 per cent equity dilution in the company. The two companies will be able to exercise the option only after the committed revenue is realised.

HCL Technologies is coming out with an initial public offering and this is expected to take its Rs 33-crore equity base to around Rs 56 crore.
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Universal Music purchases Polygram India
Mumbai: Polygram India is to have a new name – Universal Music India. This follows the acquisition of 49 per cent stake in the company by the Seagram group company, Universal Music, from the Patel family for a consideration of around $4 million. Universal Music India will be a 100 per cent subsidiary of the $6.3 billion Universal Music.

Universal had bought Polygram at the global level from Philips NV in a $10 billion deal in June 1998.

Universal Music India has plans to take Indian music to global levels. It is also earmarking $10 million for setting up an Indian repertoire to promote Indian artistes on a global music platform.
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ONGC to supply gas to BSES directly
Mumbai: The Oil and Natural Gas Corporation is offering natural gas directly to bulk consumers. It has signed a memorandum of understanding with Mumbai power utility BSES to provide natural gas for the proposed 494 mega watt power project coming up at Palghar in Maharashtra. This is for the first time that ONGC has dealt with a consumer directly. Normally it supplies gas to the Gas Authority of India, which in turn distributes it, through its network.

BSES has agreed to bear the transportation cost for taking the gas from the gas fields off the Mumbai coast.
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L&T Finance to change focus
Mumbai: Larsen & Toubro Finance, the finance arm of Larsen & Toubro, is exiting from car finance, small and medium corporates, plant and machinery finances and inter-corporate deposits businesses. Instead it is going to focus on construction equipment financing, operating leases, advisory and syndication for infrastructure development and capital market advisory

The restructuring plan comes in the wake of suggestions made by Boston Consulting Group, which is preparing a five-year strategy for the group.
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Usha Martin group telecom co restructures
Calcutta: The Rs 1,200 crore Usha Martin group has restructured the ownership of its telecom software business. The management control of UBEST India, the group’s telecom software arm is being transferred to a new umbrella holding company, UBEST America, which will be based in Portland, Oregon. Usha Beltron and a Thailand-based investment bank will pick up 42 per cent and 26 per cent equity in the holding company. The balance 32 per cent it to be split between ICICI, Exim Bank of India and the company’s employees.
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SmithKline to use own arm for drug launch in India
Mumbai: SmithKline Beecham of UK is intending to introduce its anti-diabetic Avandia in India through its wholly-owned subsidiary SmithKline Beecham Asia instead of its Indian affiliate SmithKline Beecham Pharmaceuticals.

The company had adopted the same procedure for introducing another drug, Hibrix, used in the treatment of Hib-meningitis.
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Lalbhais into entertainment
Ahmedabad: The Lalbhai group is planning to set up an entertainment cum education complex on the prime property owned by Arvind Mills in Ahmedabad. It has set up a subsidiary company, Arpan Entertainment, which is taking up the work of developing part of Arvind Mills’ Arpan Chambers in the city into an Entertaiment and education complex at a cost of Rs 8 crore. The project is being part-financed by the Gujarat Industrial Investment Corporation.

The complex is to open sometime early next year and will cater to children, youth as well as adults. It will have facilities for entertainment and education and an eatery.
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Ikon gets 3,728 orders
Mumbai: Ford India has received 3,728 orders for its Ikon cars in the first week of bookings. The company said the order level exceeds the initial target. "We are delighted that consumers have welcomed the Ford Ikon with such enthusiasm," Phil Spender, managing director of Ford India, said.

The company had introduced a scheme whereby it offered the cars on a first-come-first serve basis, doing away with the bookings system.
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TII signs pact with Steel Strips
Chennai: Tube Investments of India, a Murugappa group company, has signed an agreement with Steel Strips and Tubes, Mohali, Punjab, whereby the former has taken over the business of manufacture of steel tubes of the former as a going concern.
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Government panel on divestment
New Delhi: The government has set up a cabinet committee on disinvestment. The committee will spell out a time-table for privatisation and decide the pricing of any offering of government equity in public sector units.

The committee, set up a few days ago, is to work directly under prime minister Atal Behari Vajpayee. It will include finance minister, Yashwant Sinha, commerce and industry minister, Murasoli Maran and public sector enterprises minister, Manohar Joshi.
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Pfizer may drop conditions to bid
New York: Pfizer, into an unsolicited $75 billion acquisition bid for Warner-Lambert, says it may drop the conditions to its bid. The US No 2 drug maker believes this will give its efforts credibility on the Wall Street. Pfizer said it will decide by next week whether to formally launch a hostile bid for Warner-Lambert, which is already planning for a $68 billion friendly merger with American Home Products. If Pfizer decides to proceed with its plan, it will be the largest hostile bid ever.
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Virgin offers cheaper cellphone rates
London: Virgin Mobile, the joint venture between Richard Branson's Virgin group and Deutsche Telekom’s One2One, says it will give cheaper mobile telephone service to Britishers. Mr Branson said Virgin will abandon the traditional practice of subsidising handsets requiring customers to pay for the units. In exchange, the pricing structure will be simple and cheaper. He hopes one can save nearly $325 a year under the scheme.

Virgin hopes to have a million subscribers in one year.
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Celltech Chiroscience to buy Medeva
London: Celltech Chiroscience, Europe’s largest biotech company, is buying drug company Medeva for $915.6 million in shares hoping to get access to markets in    Europe and the US. Celltech Chiroscience will offer 34 new shares for every 100 Medeva shares. The unified entity will have potential to make drugs for a range of diseases from hepatitis, cystic fibrosis and leukemia. Celltech Chiroscience was launched in 1998.
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C&W, Star TV in JV
Hong Kong: Cable &Wireless HKT is forming a joint venture with News Corp’s Star TV to offer enhanced internet and digital television content. The new venture, 60 per cent owned by C&W HKT, will have an initial public offering in Hong Kong and US Nasdaq. The proceeds will be used to fund business expansion.
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