Shell-Essar combine may get Hazira project
Ahmedabad: The Rs 2,400-crore Hazira port project work in all likelihood will be bagged by the Shell-Essar consortium. The Shell-led consortium  has been recommended by the executive committee of the Gujarat Industrial Development Board. This will mean that the consortium has outbid the Reliance-Elf-Tractabel combine, the other group in the race for the project.

Essar is basically a namesake partner in the combine as the entire project will be financed by Shell. Essar has the option to acquire equity in the project during the first three years of operation of the port.

The Gujarat government has identified Hazira as one of the 10 greenfield sites for developing a multi-purpose port with facilities to handle18 million tonnes of LNG, LPG, petrochemicals, cement, clinker, iron ore, fertiliser and general cargo.

Apart from the Shell-Essar and Reliance-Elf-Tractabel consortia, Mobil was also in the field earlier. The company later opted out.
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Continental, Ceat eye Modi Rubber stake
New Delhi: Continental of Germany, the RPG group's Ceat and the Modi group are bidding for the financial institutions' stake in Modi Rubber. These three have secured bid packs from SBI Capital Markets, which is advising the financial institutions in the divestment process. Besides these three, investment banks representing an undisclosed international company too have approached SBI Caps.

The Unit Trust of India, Life Insurance Corporation, General Insurance Corporation and its subsidiaries, the Industrial Development Bank of India, and Industrial Finance Corporation of India together own 44 per cent of Modi Rubber. They plan to divest their holding either fully or partially.

V.K. Modi and B.K. Modi together have a 14 per cent stake in Modi Rubber, and the entire Modi family controls a stake of over 20 per cent in the company. SBI Caps has stipulated that the bidder must have a minimum net worth of Rs 100 crore to be eligible for the bid. The last date for submitting the bid is 5 November.

Meanwhile, the finance ministry has sought clarifications from the financial institutions on their divestment decision. It is understood that the promoters have opposed the institutions' divestment plan. 
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TCS develops software to develop software
Mumbai: Tata Consultancy Services has launched MasterCraft, a comprehensive software development tool, enabling systematic execution and management of large software development projects.

Unveiling what he claimed is a first-of-its-kind product in the world, TCS chief executive officer S. Ramadorai said "MasterCraft can automate the generation of millions of lines of code for large software projects. It will also find widespread use in complex application development, and free clients from being locked into obsolescent platforms."

The tool will cost $150,000 for a typical installation.

A software development tool generates codes automatically and replaces manual coding. It is four to five times efficient than the manual method. The global market for the tool is estimated at $5 to 8 billion. There are half a dozen major global players in this field.
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Essar plans to let out space in its building
Mumbai: The Essar group is evaluating the proposal to offer space in its central office in Mumbai to potential tenants on a "business centre" basis.

The group has relocated its staff at plant sites and, as a result, there is availability of premium space in the building, Essar House, strategically located opposite the Mahalaksmi racecourse in Mumbai. The group wishes to capitalise on this and earn revenue.

Meanwhile, ICICI has issued a public notice saying that parties planning to lease out or rent space in Essar House will do so at their own risk and peril. The building is mortgaged to ICICI.
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Silverline Industries acquiring US unit
Mumbai: Silverline Industries is acquiring US-based Silverline Technologies, and is renaming itself as Silverline Technologies. The US company is being valued at $46.25 million, and the Indian company is seeking shareholders' approval for a fresh issue of 45 lakh shares on a preferential basis to its holding company, Silverline Holdings of the US at Rs 445 per share in consideration of the proposed merger.

Silverline Industries is also planning to increase its authorised capital to Rs 85 crore.
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SRF eyes acquisitions abroad
New Delhi: SRF is now considering overseas acquisitions of industrial yarn and fabric units. Ravi Sinha, managing director of the company, said the company is looking for overseas acquisitions, although there are no concrete proposals  It already owns a nylon tyre cord unit in Dubai.

SRF had recently taken over DuPont Fibres. Meanwhile, the company wants to dispose of Shriram Needle Bearing as part of its plan to focus on core activities.
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IT notice to Infosys
Bangalore: Infosys Technologies has said it has received a demand notice from the income tax department claiming payment of Rs 62.41 crore towards income tax and Rs 9 crore for non-deduction of tax at source on stock options issued to employees.

N.R. Narayana Murthy, chairman of the company, said the company is studying the implications of the demand notice and is seeking legal advice. He said the current demand would have no material impact on the company's  earnings as any tax liability on the stock issued under the Esop is adequately covered by indemnities from its employees and by the stock exercisable by them under the Esop.
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Rama Newsprint to divest
Mumbai: The promoters of Rama Newsprints & Papers are offering nearly half their stake in the company to an overseas company. They expect the sale to generate about Rs 400 crore, which they will use to retire loans, Vashu Ramsinghani, chairman and managing director of the company, said. The promoters have a 51 per cent stake in the company.

Rama Newsprints & Papers, one of the largest producers of newsprint in India, has been making losses despite higher sales. 
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Mirc engages Andersen for advice
Mumbai: Mirc Electronics, maker of Onida televisions and electronic systems, has engaged Andersen Consulting to advise it on its cost structure and to suggest avenues for cost saving, value engineering and standardisation. The consulting firm will help Mirc evolve a new buying process, validate costs and benchmark costs vis--vis international companies.

Onida is one of the brands that has withstood the entry of global players into the Indian consumer electronics industry. The company recently launched its Webcruiser, an internet-compatible television.
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Global Crossing buys Racal Telecom
London: Global Crossing has snatched Britain's Racal Telecom from the hands of Energis for 1 billion to reinforce its efforts to create a worldwide telecommunications network. The Bermuda-based Global Crossing outclassed Energis of the UK at the last minute by offering 950 million in cash and agreeing to take over debts worth 5 million from Racal Electronics' telecom arm.

The two British firms were in talks and a tie-up was imminent. Energis is understood to have valued Racal Telecom between 650 million and 700 million.

The Racal group is restructuring, and its various divisions are being broken up. Global Crossing has been on an acquisition spree as part of its plans to set up Pan European Crossing, connecting nine European countries with an 11,000-km long fibre optic network. Racal Telecom controls over 7,000 km of fibre optic cables in the UK.
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Lucent plans converging market foray
Geneva: Lucent Technologies, the world's largest telecommunications equipment maker, is eyeing more acquisitions to shift focus from telecom equipment to the new converging markets for voice, data and video communications.

Lucent chairman Rich McGinn said the company will continue to grow through acquisitions as well as through its own sales and research and development efforts. Wireless, data networking, optical, software and software-based switching and semiconductors are areas where acquisitions are planned, Mr McGinn said.
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AngloGold bids for Acacia
Melbourne: AngloGold, the world's largest gold producer, launched an A$832 million takeover bid on Australian gold miner Acacia Resources. Another company, Delta Gold, is already in the field to acquire Acacia.

AngloGold said its offer involved exchanging AngloGold shares for Acacia's at a rate of 3.5 AngloGold shares for 100 Acacia shares. This tops the rival bid. 
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Companies of US Indians generate $2.2 billion
New York: The top 100 Indian-American owned companies in the US generated $2.2 billion in 1998, providing jobs to more than 21,000 people, according to the fourth annual ranking brought out by Venture International and the India Abroad newspaper.

Western Sky Industries of Philadelphia, headed by Dinesh Desai, ranks first. The company generated $166.1 million. The second place goes to Atco Rubber Products of Fort Worth, Texas, ($164.4 million), headed by Ramesh Bhatia and the third place to BJS Electronics of Milpitas, California ($152.8 million) headed by Jessie Singh.
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