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Wipro reduces initial offer price
Washington: Wipro, India’s leading diversified technology
company, which began its roadshows for its debut in the American capital markets, lowered
its projected price for the planned US initial public offering to $52.48 per share from
$63.86.
The company now expects to raise about $136.3 million, down 18 per cent from the previous
expected amount of $166.2 million, according to an amended prospectus filed with the US
Securities and Exchange Commission.
Wipro, which plans to use the proceeds from the IPO to acquire businesses and other
general corporate purposes, last month filed to go public in the United States.
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Carlyle, like
Tetley, may come into Tata fold
Mumbai: Manhattan-based, 6-star deluxe hotel, Carlyle,
may soon come into the Tata fold. The Tata group company, Indian Hotels Limited, is
understood to be close to finalising a deal under which it would acquire Carlyle for an
estimated $143 million.
For the Indian Hotels-controlled Taj group of hotels, this acquisition would signal a move
up the global value chain — from standard to premium properties. The hotel chain had
already signalled its intention of moving up the chain last year, when it sold the
715-room Lexington Plaza in New York for $105 million and the 320-room Executive Plaza in
Chicago for $47 million. Both these properties did not qualify as premium hotels.
The Carlyle is a 190-room hotel, including include 52 suites, and occupies 34 floors. In
keeping with the snob value attached to the address at which it is situated, the room
rates are a lot higher than Lexington’s, ranging from $295 to $2,400 per night.
While known investment bankers are of the opinion that the deal should be signed any day,
officials from the Tata group declined to make any comment. According to informed sources,
the deal, which is a fairly complex one, is likely to be done through a US-based
subsidiary in which Indian Hotels will own a majority stake and the balance of the equity
will be held by strategic partners.
Except for the St James Court Hotel in London, IHCL has exited all its other hotel
properties abroad.
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Arun Bajoria set to demand berth on Bombay Dyeing board and Bilt
Calcutta: In what he termed as a "shocking reaction
to his acquiring a 14 per cent stake" in the company,
jute-baron-turned-corporate-raider, Mr. Arun Bajoria, stated in an interview with Business
Standard, that he will seek a seat on the board of directors of Bombay Dyeing.
His intention for doing so, according to
him, is to block all proposals which would erode shareholder value. He also termed the
reaction of the company management as "unprovoked" and intended to put him under
presssure.
While stating that, only a professional
management can rejuvenate the company, he stated that he will either acquire a further 20
per cent through open market purchases or sell of all his holdings to an interested party.
Meanwhile, Mr. Gautam Thapar, managing
director of Ballarpur Industries, challenged Mr. Bajoria, who has also acquired 6 per cent
of Bilt, to seek a vote on his board membership at the ensuing annual general meeting of
the company, slated for October 16.
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Hindustan Lever to make open offer for International Bestfoods
Mumbai: FMCG major, Hindustan Lever, has approached Sebi
for approval to make an open offer to the minority shareholders of International
Bestfoods, the Indian subsidiary of the US major which is being acquired by HLL’s
British parent, Unilever.
Unilever already holds 76 per cent in
International Bestfoods India as a result of the global acquisition, and HLL is seeking to
make an open offer for the remaining 24 per cent held by small shareholders.
The company, which is sitting on cash
reserves of Rs 1,883 crore , is to make an offer price of Rs 173 a share, which would
result in an outgo of Rs 14.28 crore for HLL. Investment banking firm, Merill Lynch, has
been appointed lead manager to the issue.
The acquisition is expected to strengthen
HLL’s foods business. The Bestfood brands available in India are Captain Cook (salt
and atta), Knorr soups and chinese mixes, Brown and Polson custard powder, cake mixes,
cornflour, orange drink powder, Tarla Dalal-mixes, Rex jelly and baking powder and Skippy
soft drinks and jelly bites.
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Ranbaxy,
Ajanta in marketing alliance
Mumbai: Close on heels of its alliance with another pharma
company. Ranbaxy Laboratories has entered into a marketing alliance with Ajanta Pharma to
market some of its natural products in south east Asia. The alliance, for a basket of
Ajanta’s natural products, includes Carofit, an anti-oxidant (derived from carrots)
which is patented in several countries to Ajanta.
The alliance, which covers countries like Malaysia and Myanmar, with Vietnam and Cambodia
likely to be added, will see Ajanta provide the dosage forms and finished products, that
Ranbaxy will market in these countries.
The alliance is likely to be beneficial to both companies, For Ajanta this would help it
establish its brands in these countries without incurring marketing costs, while Ranbaxy
would be able to optimise its marketing and distribution infrastructure.
The five other products covered under the agreement are Thirty Plus (revitaliser), Beauty
Plus (skin toner), Livo Plus (liver protector), Figurin (slimming agent), and Rheumarub
(anti-inflammatory).
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HLL seeks
strategic partners in chemical business
New Delhi: FMCG major Hindustan Lever is understood to be talking
to various multinational chemical companies for a possible technical or financial tie-up
for its speciality chemical division.
The company is seeking the supply of
state-of-the-art technology for the business on a continuous basis. The company has been
facing the problem of accessing the latest technology for this business division ever
since its parent, Unilever, sold off its speciality chemicals business worldwide to ICI
Plc a couple of years ago.
According to the company, depending on the final shape of the alliance, it will take a
decision on whether to spin off this division into a seperate entity or to continue to
keep it under its fold. The company has also not decided on the amount of equity it will
offer the prospective foreign partner.
The chemical business of Hindustan Lever has a turnover of about Rs 500 crore. The product
line of the Lever speciality business include aroma chemicals, flavours and fragrances,
speciality adhesives, sunscreens, glycerine and functionlised biopolymers.
The company already has a marketing alliance with the German chemical major BASF for joint
marketing of some of the speciality chemical products under which, the Lever speciality
chemical division will undertake marketing of a couple of aroma chemical products of BASF
in India initially.
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Competition forces SmithKline to slash hepatitis price
Mumbai: Thanks to increased competition and the threat of
new entrants, SmithKline Beecham Pharmaceuticals, leader in hepatitis vaccine segment, has
slashed prices of Hepatitis B vaccine by 20 per cent . The pharma major has cut the price
to Rs 2,300 from Rs 2,870 recently.
With the second price cut in one year,
the price of its HB brand Engerix multi-dose (10ml) has come down to Rs 1,670 from Rs
2,100, for adult dose to Rs 450 from Rs 485, and pediatric dose to Rs 180 from Rs 285. The
current market size of the HB vaccine segment in India is estimated at Rs 150 crore, with
SmithKline and Hyderabad-based Shanta Biotech jointly sharing 60 to 70 per cent market
share.
However, with the mass immunisation programme
undertaken by many state governments, the growth prospects of all players in the sector is
high. The new strategy, according to an analyst, will help the company expand the market
share of Engerix brand by slashing prices and at the same time promote its newly launched
Traitanrix HB through traditional route
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