HAL told to refer land sale deal to state govt
New Delhi: The Board for Industrial and Financial Reconstruction has directed the sick Pune-based public sector Hindustan Antibiotics Ltd to approach the government of Maharashtra with its proposal to sell land to raise Rs 40 crore for its revival. While the company maintains that it has acquired the land under the Land Acquisition Act, and it is free to sell it, the state government has field an affidavit in the Bombay High Court saying its permission is required for the sale.

The department of chemicals, which is the operating ministry for the company, has estimated that the revival package for the company will cost Rs 89 crore. The Industrial Development Bank of India is the operating agency for the sick company. HAL claims that in the last 18 months it has made profits and its sales have increased. These have been achieved without any fresh infusion of capital.
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Crossword being sold
Mumbai: The K. Raheja group and ICICI Ventures are coming together to purchase India Book House’s popular bookstore in the city, Crossword. The K. Raheja group, which runs retail outlets like Shoppers’ Stop, will bring its retail expertise into the book business. ICICI Ventures is expected to have a majority holding in the proposed set-up that will run the bookstore, while the K. Raheja group and the employees of Crossword will hold the balance. Both ICICI Ventures and the Rahejas wish to retain the present management of the bookstore.

Crossword was promoted by the Mirchandanis of India Book House, one of the largest book and magazine distributors in the country.
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No gear box localisation, says Suzuki
New Delhi: Suzuki Motor Corporation president and chief executive O. Suzuki does not foresee Maruti Udyog undertaking localisation of gear boxes used in Maruti cars. He said Maruti Udyog is a manufacturing company for cars and not for gearboxes. He was responding to a question at a press conference where the issue was raised following a suggestion by Manohar Joshi, minister for heavy industry and public enterprises, that Maruti Udyog must achieve 100 per cent localisation, including transmission and gear boxes.
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Pantaloon plans 4 divisions
Mumbai: Pantaloon Retail (India) is planning to split into four divisions, with its retail operations resting with the parent. The four proposed divisions are brand management, manufacturing and distribution, retail operations, and software. Management consultants KPMG had advised the company on the restructuring.

While the company is giving importance to retail operations, and hence wants to have this division under its control, it may hive off the other three divisions into separate companies or subsidiaries. This will be done at a later stage. The company has three national brands, Pantaloon, John Miller and Bare. The software division is intended to be a software service provider for the retail operations of the company.
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WorldTel-Reliance signs up 8 govts
Mumbai: WorldTel-Reliance, a joint venture between the Canada-based WorldTel, headed by Sam Pitroda, and the Reliance group, will build as many as eight joint ventures in India to run Internet-related services. The company has already signed agreements with the governments of Maharashtra, Tamil Nadu, Karnataka, West Bengal, Andhra Pradesh, Gujarat, Kerala and Delhi to essentially set up state-wide Internet networks, operated through fibre-optic cables.

The total investment proposed in these ventures is of the order of $1 billion. Under the terms of the agreement, each individual state government will bring in 26 per cent of the total investment required, and WorldTel-Reliance the balance.

The networks are expected to cater to government-people interaction and also for interaction between different government departments. At a later date, these networks are expected to be used for several revenue-earning, communications-related services. Once commissioned, they will be the largest in the country to be operated by a single organisation.
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IBP plans to convert OIDB loan into equity
New Delhi: Petroleum products marketing company IBP is planning to convert the loan it has taken from the Oil India Development Board into equity and make the board an equity partner in the company. It proposes to issue preferential shares worth Rs 190 crore to the board and retire the loan. The proposal is with the government. If it is approved, the board will have a 44 per cent holding in the company. The Nitish Sengupta Committee on the petroleum sector had recommended a stand-alone identity for IBP.
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India-specific website from Symantec
Bangalore: Symantec Corporation has set up an India-specific website. The site will provide information on the company’s products and services and the effects of millennium changes, Y2K and viruses.
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Crompton, Nepal company in JV
Kathmandu: Crompton Greaves has concluded an agreement with Nepal’s Chaudhary Group Nepal for joint ventures in telecommunications and power. The joint ventures will produce goods and services in the telecom and power sectors and sell them in the Indian and Nepali markets. Nepal has abundant hydro-power resources.
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Mannesmann denies white knight theory
Frankfurt: Mannesmann of Germany said it is not scouting for a white knight to ward off the hostile takeover attempt by Vodafone Airtouch. Newspaper reports had said Mannesmann is open to the idea of a white knight becoming its partner to save it from the Vodafone bid. The company reacted saying this is pure speculation and that it is not looking for a white knight. The company also reiterated that it wanted to remain independent as it perceived better growth potential as an independent entity.

Mannesmann had rejected the 131 billion euro offer from Vodafone as impractical.
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Scottish & Newcastle, Carlsberg plan tie-up
London: Beermakers Scottish & Newcastle and Carlsberg are in talks to forge a strategic alliance. The two companies’ officials are talking to set up a joint venture, which will handle distribution and marketing in overseas markets. While Carlsberg has a substantial presence in China and Asia, Scottish and Newcastle has no representation abroad.
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Delay in sale will harm Daewoo, says GM
Detroit: Richard Wagoner, president of General Motors, which is bidding for the troubled Daewoo Motors of South Korea, feels the delay in taking a decision will hurt the value of the company. Daewoo had earlier said General Motors is an exclusive bidder for the company, which has debts of $16.4 billion. But, South Korea’s Financial Supervisory Commission has said it prefers to have an open auction to select a bidder. Automakers like Ford Motor, DaimlerChrysler and Fiat have expressed interest.
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