FIIs take stake in Ambuja India
Mumbai: As part of its financial restructuring pursuant to the purchase of the 7.2 per cent stake bought in cement major, ACC, Gujarat Ambuja has transferred the holding of the ACC stake to a sister company, Ambuja India Limited. This move has been apparently initiated to avoid the takeover guidelines. Gujarat Ambjua chairman, Mr. Narotam Sekhsaria, will not be on the board of the sister company.

Additionally, foreign institutional funds, including AIG Asian International Fund, AIG Asian Opportunity Fund and the investment arm of the government of Singapore, are said to be taking a 40 per cent stake in Ambuja India for an estimated $85 million. The balance 60 per cent of the company will be held by Gujarat Ambuja. The funds and the Singapore government will appoint their nominees on the board of Ambuja India.
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HDFC takes a stake in net broking company
Mumbai: The board of directors of India’s largest housing finance company, HDFC Limited, have cleared an investment by the company in an e-broking company. The broking company, HDFC Securities Limited, has been jointly promoted by HDFC, HDFC Bank and Chase Capital Partners.

Set up with a capital of Rs. 3 crore, the e-broking company is in the process of acquiring a broking license. The company plans to offer internet broking as well as traditional broking. This move follows in the foosteps of several banks that are offering such services to their customers.
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Co-opetition between VSNL and MTNL
Mumbai: Government owned telecom companies, Videsh Sanchar Nigam Limited (VSNL) and Mahanagar Telephone Nigam Limited (MTNL), who are fierce competitors in the domestic market, have decided to join hands in bidding for overseas contracts.

The two companies, alongwith Telecom Consultants India, will form a consortium to bidding for cellular and basic telecom services and setting up of international gateways. They have made a beginning in this direction by bidding for these services in Nepal and in some African companies.
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PSI-Data to take stake in UK company
Bangalore: PSI-Data Systems is set to take a 10 per cent stake in UK based Advisor Technologies.

The stake would see the British company focus on promoting security related software products developed by PSI-Data. The first of such products will be Security Advisor – a cyber equivalent of the burglar alarm that will provide security against intrusions on the internet. According to the company, with increasing threats of hacking and virus attacks from the internet, a product like Security Advisor is bound to succeed in the market.
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Gramaphone Company in seven year deal
Calcutta: Music company, Gramaphone Company of India, today signed a 7 year deal with Singapore’s Pyramid International as part of its ambitious plans to expand its existing catalogues and labels.

Under the agreement the company will immediately buy the music rights to ten Tamil films from Pyramid. Further, it will also continue to source labels from the Singapore company. The company hopes to tap hitherto untapped markets with the reach provided by this agreement.

Pyramid International, which has a strong repertoire of Tamil music, will provide GCIL with much needed access to these labels, thus increasing its volumes in the international market.
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Satyam Infoway to flood market with cyber cafes
New Delhi: As a stategy to increase the usage of its Net access services, Satyam Infoway in planning to set up over 1,000 cyber cafes in the country, under the brand name iZone. The cafes which are to be located in the metros and A class cities, will be rolled out in phases. To begin with the company has finalised a few site in and around New Delhi. Later the scheme is to be implemented in B-class towns and hill stations.

As most of the outlets will be franchised, it is believed that the company’s investment in this project will be minimal.
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Eveready brand may be sold
Calcutta: The B.M. Khaitan group which controls the flagship company, Eveready Industries India Limited, the owner of the famed Eveready brand of batteries and cells, is said to be keen on selling the brand and exiting from the batteries segment.

In a report appearing in the Business Standard in the regard, it appears that the company is in talks with several leading global players for the sell out. Foremost among such global players is said to be The Gillette Company of the US. Gillette already has interests in the batteries segment in this country through its control over such brands as Geep and Duracell.

Company officials from both companies refused to comment on this issue.
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Sterlite may spin off telecom operations
Mumbai: In a report appearing in the Financial Express, it is believed that Sterlite Industries may go in for a restructuring under which its copper and aluminum businesses and the telecom business may be split. The telecom venture may be hived off into a separate venture itself. This restructuring is said to be based on a study of the company’s operations by Arthur Andersen.

While all three lines of business are said to have done well in fiscal 1999, the split is being considered to extract better market valuations for the company’s shares.
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DSQ Software in spate of joint ventues
New Delhi: Bank of America is said to be picking up a 52 per cent stake in a joint venture with Chennai based DSQ Software. This joint venture is set to become BankAm’s global hub for software development for international banking and financial services.

In yet another joint venture, IBM India is said to be taking an equity position in a joint venture with the internet subsidiary of DSQ Software. This equity, in lieu of supply of hardware required, technology and services, is valued at approximately $45m.

DSQ is also said to be in the final stages of finalising a third joint venture with an undisclosed partner for offering multimedia solutions.
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DaimlerChrysler may pip others in race to buy Mitsubishi Motors
Tokyo: Troubled Japanese carmaker, Mitsubishi Motors, is said to have reached a decision to enter into a strategic deal with DaimlerChrysler under which the latter will get effective control of the Japanese company, thus creating the world’s third largest carmaking group. It is expected that the deal will give DaimlerChrysler a 33.4 per cent stake with a veto power over board decisions.

The takeover will give DaimlerChrysler an Asian manufacturing base with the small car expertise of Mistubishi, and it will give the Japanese company much needed cash to retire expensive loans to improve its financial position.

If the deal comes through as expected, it will be the third such deal made by troubled Japanese auto companies, the first two being the Mazda-Ford alliance and the Nissan-Renault tie-up.
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Samsung Motors may still have to wait for help
Seoul: Debt ridden and troubled South Korean automaker, Samsung Motors, which saw succor in the form of a proposal made by French car company, Renault SA, may have to wait for some more time till it is pulled out of the deep.

The French car company made a $450m bid for the Korean car company, under which $50m was to be paid immediately to the creditors. Creditors of the Korean company believe that the offer is way below their expectation levels which envisaged creditors being settled to the tune of $313m. The negotiations between the French company and the creditors of Samsung, which began in January this year, are set to expire by end-March. While Renault is firm on the final offer, Korean creditors are hoping that Renault would relent in the final round of talks, failing which the negotiations would collapse and the hunt for another partner for the Korean car company would have to begin again.
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