Tatas, Birlas, AT&T creating cellular entity
Mumbai: The Tata group and the A V Birla group have signed a memorandum of understanding to fold their cellular services operations businesses into a single entity. Since the Birlas already have an alliance with AT&T of the US, have also got AT&T as a party to the MoU, which envisages each constituent of the merged entity to hold a third of equity.

The merging companies are Tata Communications Ltd and Birla-AT&T Ltd. The merged entity will have operations in telephone circles in Andhra Pradesh, Maharashtra (excluding Mumbai), Gujarat, and Goa. Its current combined consumer base is estimated to be over 1.5 lakh. These circles are said to account for a fourth of the Indian market.
Analysts say the consolidated entity should be valued around $ 1 billion. It may seek a Nasdaq listing.
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Spic to hive off heavy chemicals division
Chennai: Spic Ltd, which is restructuring in order to focus on agri-business, will hive off its heavy chemicals division at Manali. It is believed the division, which made losses last year, will be merged with Tamilnadu Petroproducts Ltd. Spic is also building a 20 MW captive power plant at a cost of Rs 80 crore.
Spic will increase its stake in the Mauritius-based Spic Fertilisers and Chemicals, to 85 per cent from the current 51 per cent. This subsidiary is building an ammonia/urea plant in Dubai.
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MECL revival plan hints at complete interest waiver
New Delhi: The ministry of mines is reportedly considering a complete waiver of interest and transfer of loan into a capital reserve to make the public sector Mineral Exploration Corporation Ltd more attractive to prospective investors. The government plans to privatise this company soon.

As much as Rs 17 crore of interest may be waived waiver. The amount to be transferred to a capital reserve fund would be Rs 28 crore. The company will need additional funds for a voluntary retirement scheme.
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Deluxe Corp to invest more in software development
Chennai: Deluxe Corporation of the US, which has invested $12 million in software development centres in India through its subsidiary iDLX Technology Partners, in the last two years, is talking of investing a fresh $25 million in the next four to five years.
The Indian subsidiary sold its software services in the US market, and had revenues of $19 million in 1999.
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Infosys, SAP join hands for e-commerce
Bangalore: Infosys Technologies and enterprise resource planning major SAP are joining hands to build their e-commerce business. Infosys will bring in its expertise in functionality, design, and construction for the implementation of mySAP.com, which enables entreprises to operate in the Internet economy.
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Pacific Century clinches merger with C&W HKT
Hong Kong: Pacific Century CyberWorks has clinched a $35.9-billion cash-and-stock merger with Cable & Wireless HKT. It has done this in competition with rival Singapore Telecom, the Singapore government-controlled company.

Pacific Century, an Internet start-up, offered $38.1 billion in shares, or $35.9 billion in cash and shares, for Cable & Wireless HKT. The deal will create a new Asian Internet, telecommunications and multimedia giant with a market capitalisation of $70-80 billion. With the C&W HKT takeover, PCCW will have one of the world’s most sophisticated broadband delivery networks and over a half-million Internet subscribers.
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wAT&T partner buying Tritel
New York: Telecorp PCS Inc, AT&T’s largest wireless telephone partner is buying Tritel Inc, the second largest AT&T wireless affiliate, for about $5 billion in stock. The acquisition will create a contiguous wireless network from the Great Lakes in the north of the US to the Gulf of Mexico in the south.
Also, AT&T is offering TeleCorp $100 million in cash, and wireless licenses and rights to acquire licenses in Iowa and Wisconsin. In return AT&T will get TeleCorp’s existing wireless operations in the Boston area.
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Ernst & Young consulting sold
New York: ERNST & Young, the accounting and consulting firm, is selling its consulting arm to Cap Gemini, the French technology services group, for $11 billion. One of the reasons for this action is federal regulatory concerns over potential conflicts of interest between the auditing and consulting activities.

The firm’s competitors PricewaterhouseCoopers and KPMG are planning to hive off their consulting operations into separate entities.
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Nestle taking over vending machine business
Berne: Switzerland’s Nestle SA is acquiring UCC Ueshima Coffee Co’s vending machine operations for an undisclosed price. The acquisition will enable Nestle to expand its network for ready-to-drink coffee and tea.

The deal is being transacted through Nestle Japan.
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SmithKline wins new US patent on top drug
London: SmithKline Beecham has obtained a new US patent for its top-selling antibiotic, Augmentin. Its existing US patent on Augmentin was due to expire in December 2002.

Augmentin, a broad-spectrum antibiotic, is SKB’s second best-selling product, recording 1999 sales of $1.6 billion worldwide. US sales of the product were $995 million.
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