Essar, Marathon sign agreement, but …
Mumbai: The Essar group and Marathon Power of the US signed an agreement for 100% acquisition of equity in Essar Power by Marathon subject to the consent of the government of Gujarat, the Gujarat Electricity Board and the lending institutions. "The final transaction would be reviewed on resolution of the issues, which is expected to be addressed by both parties in the next 100 days," the two sides said. Thus, in a way, the impasse still continues with both the parties capable of exercising the option to walk out of the deal.
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4 shortlisted for IPCL divestment
Mumbai: The inter-ministerial group on disinvestment has shortlisted Reliance Industries, Dow Chemicals of the US, the Purnendu Chatterjee-Soros group and Mitsubishi of Japan as potential bidders for the 25 per cent government stake in Indian Petrochemicals Corporation. Other potential bidders, including the British-Petroleum-Amoco combine, the Exxon-Mobil combine, Sabic of Saudi Arabia and Nova Petro of Canada have opted out on their own accord.

Meanwhile,  Indian Oil Corporation has moved the petroleum ministry for a review of the decision of the inter-ministerial panel. Indian Oil had failed to meet the deadline set for submission of bids and was disqualified. Besides, the finance ministry and the department of chemicals and fertilisers had opined that Indian Oil's acquiring the stake would not really reduce the government holding in Indian Petrochemicals Corporation.

The government has appointed Warburg Dillon Read as the global advisor for the disinvestment process. It will conduct the due diligence of   the four bidders within the next 10 days.
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GAIL to take one-third stake in LNG project
Mumbai: Gas Authority of India is planning to acquire 33.33 per cent equity stake in the Rs 2,530 crore liquefied natural gas project promoted by the Tatas and Totalfina of France. GAIL will make an investment of Rs 283.33 crore for this stake.

At present, Tata Electric Companies and Totalfina have 50 per cent stake each in the Rs 850 crore-equity base of the project, Indian Natural Gas Company. GAIL's stake is to be subtracted equally from the current holdings of both the partners. The project is coming up at Trombay in Mumbai. GAIL will also participate in the marketing and supply of gas from the project.
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ITC acquires majority stake in Rollatainers
New Delhi: The ITC group, in a strategic move, will acquire a majority stake in Rollatainers, one of the largest paper packaging companies in India, The Economic Times reported.

ITC will take a 51 per cent stake in the company, and this has been approved by the board of directors of Rollatainers. The promoters of Rollatainers, the Bhargava family, will reduce their shareholding from the present 40 per cent to 20 per cent, while institutional and public shareholding in the company will reduce from 60 per cent to 29 per cent.

ITC is acquiring the stake through Russel Credit, a subsidiary of the company. There will be a preferential allotment whereby Rollatainers will issue 70 lakh shares to ITC at around Rs 35 per share, which will put the issue at around Rs 25 crore. ITC has a paper packaging and printing division.
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M&M to source tractors from Korean company
Mumbai: Tractor major Mahindra & Mahindra will source its tractor requirement from Korean tractor company, Tong Yang, to build a global supply chain.

The tractors will be acquired from Tong Yang and sold around the world under the M&M brand, The Economic Times said in a report.

Under the alliance, which has provision for equity participation, Mahindra & Mahindra's 100 per cent subsidiary Mahindra USA will buy high horsepower premium range tractors from Tong Yang for the US market. Mahindra USA has a 5 per cent market share in the US for  28-30 horsepower tractors.
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Colgate plans sale of premises and lease it back
Mumbai: Multinational fast moving consumer goods manufacturer Colgate Palmolive is planning to sell the premises and lease it back. The company had purchased a swanky building for its headquarters in suburban Mumbai  for whopping Rs 37.8 crore in September 1997. This development is in keeping with the parent company's global policy of operating only out of lease premises. 

The property is in the suburb of  Powai and has a built-up area of 1.2 lakh sq.ft.
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Thyron plans big for India
Mumbai: Thyron Informatics, a leading UK-based company in secure payment solutions for e-com applications, is planning to enter India in a big way. The company is currently  setting up a centre in New Delhi and plans to leverage the technology centre of SCO-Unix there to make its electronic and mobile commerce solutions available in India.

The company will also introduce public-key infrastructure for secure payment systems and transaction processing services.
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Internet through cable TV being tested
Mumbai: Hathway Cable & Datacom, the city's cable TV services company, is planning to introduce internet through its cable services in Mumbai shortly.

It has set up a hub at Nariman Point in the city and is testing the service now.

It is claimed that the system ensures speedier access to internet than the conventional dial-up system.
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Himachal Futuristic in software foray
New Delhi: Himachal Futuristic Communications is entering computer software field and its first product will be Medisoft, a software solution for hospitals.

The chairman and managing director of the company Mahendra Nahata said that the company is confident of generating revenue worth Rs 10 crore during the financial year 1999-2000 from Medisoft.

Medisoft will be an integrated hospital management system based on Developer 2000 and Oracle 8.0.4. It is designed to manage the entire hospital functioning from diagnosis to billing and inventory control.
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Kotak Mahindra restructuring
Mumbai: Financial services company Kotak Mahindra is restructuring its activities.

The company is being realigned along three main business divisions -- knowledge and skill, wealth management and retail (non-institutional financing).

The group is also planning to present consolidated accounts in a year, in line with the US generally accepted accounting principles.

Investment banking, mergers and acquisitions, advisory services and information services will be under knowledge and skills group, while wealth management group will have the retail part of stock broking and distribution and the retail business group will cover consumer finance.
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Blue Mountain Food, Shilton Hotel out of UB fold
Bangalore: Blue Mountain Food Products and Shilton Hotel have gone out of the United Breweries fold, while UB Information and Consultancy Services, another subsidiary, has become defunct.

The group has also divested its shares in UB Mining, Mines Exploration India, Vitasta Investments and Krest Finance.
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Bilt plans to increase equity
New Delhi: Ballarpur Industries is planning to infuse Rs 150 crore as equity into the company. The funds will be brought through financial institutions as quasi-equity funds, the company's chief financial officer B. Hariharan said.

The company will float convertible bonds for the purpose and these will be converted into equity over the next two to three years.

The fresh equity will be used mainly for the company's proposed Rs 250 crore expansion and modernisation plan and to part-finance a couple of its proposed acquisitions.
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ASE scouting for partners
New Delhi: Ambalal Sarabhai Enterprises is in search of alliance partners for its ethical formulations, veterinary and bulk drug businesses as part of a restructuring exercise.

Kartikeya Sarabhai, chairman of the company, said the company is also exploring the possibility of spinning off its existing pharma activities into joint ventures to reduce losses and retire debts.

The company has appointed PricewaterhouseCoopers to assist it in the restructuring process.
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Grasim plans readymade thrust
Mumbai: Grasim Industries of the AV Birla group is planning to enter the readymade garments sector under its own brand.

Kumarmangalam Birla, chairman of the company said in the company's annual report that the company will push value added products through its distribution network built over the years.

The company will also strengthen its premium suitings fabric market.
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Reliance Capital cuts stake in two arms
Mumbai: Reliance Share and Stock Brokers and Reliance Land have ceased to be subsidiaries of Reliance Capital as Reliance Capital has diluted its stake in these companies by 50 per cent each.
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IL&FS to take stake in L&T arm
Mumbai: Infrastructure Leasing & Financial Services will take 25 per cent equity in the infrastructure holding company that Larsen & Toubro is planning.

IL&FS chief executive S. Dayal confirmed this and said L&T will retain 75 per cent equity in the proposed joint venture project.
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Palio in early next year
New Delhi: Fiat India Automobiles will launch its Palio model early next year. The launch was earlier scheduled for July 2000.

The Palio is expected to be priced around Rs 4-5 lakh.

Managing director of Fiat India Automobiles Gianni B. Ravina said that the company is planning to manufacture one lakh units of engines and gear boxes for its Indian requirements and also for its parent, Fiat SpA's needs.
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Sun to acquire Star Division
San Francisco: Sun Microsystems says it is buying Star Division Corporation, a developer of an office application suite that is in direct competition with Microsoft.

Sun is in the process of moving office applications beyond the personal computer.

Star is a privately held company headquartered in Fremont, California. Sun, developer of computer workstations, network servers and software, is in the process of expanding its software business. With the acquisition of Star Division, Sun will offer computer users Star's office productivity tools over the internet, for free or for sale on a low-cost compact disc.
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Reader's Digest buying Books are Fun
New York: Reader's Digest Association is buying privately held Books Are Fun, a company, which sells discounted books and gifts at special events. The deal is estimated to be for $380 million.

Reader's Digest said buying the Iowa-based franchising company, will add to its line of products and provide a new distribution channel for its own publications.
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IBM, Cisco in agreement
New York: IBM says it has entered into an agreement with Cisco Systems for supply of network technology, components and computer services under a five-year deal for $2 billion.

IBM will sell Cisco its patents and intellectual property for network equipment like hubs and routers, which is Cisco's core business, and expand the sale of custom-made computer chips for Cisco equipment.
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Hyundai arm sells assets
Seoul: Hyundai Petrochemical Company, a unit of Hyundai group has sold $300 million worth of assets to foreign companies as part of its restructuring efforts.

Hyundai Petrochemical has agreed to sell its wastewater treatment facilities to Vivendi SA of France, while its power generation facilities are being offered to Sithe, a US unit of Vivendi.
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Peugeot, DaimlerChrysler tie-up
Frankfurt: Peugeot Citroen of France may help DaimlerChrysler to make a future model of the struggling Smart car.

Peugeot said it and DaimlerChrysler are in discussions on the supply of platform components for the future Smart car.
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Florsheim shifting base to India
Chicago: Florsheim, makers of men's shoes, is closing down its manufacturing plant here and is shifting to India. The Cape Girardeau, Montana plant will close down by the end of December 1999, an executive of the company said. The closure will eliminate 300 jobs. The company will incur $3 million to cover severance, pension and other closing costs for the plant.

Production is being shifted to a joint venture the company has with a manufacturing partner in India.
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Thakrals of Singapore records losses
Singapore: Thakrals, the ethnic Indian business house of Singapore, is reeling under losses. The group had recorded a full year loss of Singapore $232 million for year ended 31 March 1999

The group said it is appointing consultants Arthur Andersen as financial advisors to develop strategic plans to improve performance and enhance shareholders value.

The group had attributed the reasons for the losses to bad hedging decisions. It is planning infusion of Singapore $120 million in working capital.
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