FIs turn down RIL request for control of BSES management
Mumbai: In what can be a blow to the dreams of Reliance, the financial institutions, which cumulatively hold 37 per cent of the equity of power major, BSES, have turned down the former’s request for management control of BSES. It is, however, understood that the FIs may entertain Reliance’s demand for a representation on the BSES board.

Reliance had made its demand for a seat on the board or management control of the company, after hiking its stake by 11.9 per cent to 26.6 per cent through an open offer. Reliance is now the single largest stakeholder in BSES with 26.6 per cent stake.

According to Mr. RV Shahi, chairman and managing director of BSES, the financial institutions are unlikely to disturb the existing management as they are extremely happy with the present professional management.
Back to News Review index page 

Tatas hike stake in Telco by two per cent
Calcutta: In its bid to stave off any possible takeover threat, the Tata group has increased its stake in Tata Engineering and Locomotive Company Ltd (Telco) by two per cent to 24.78 per cent during the first four months of current financial year. The Tatas have used the creeping acquisition route to raise their stake.

The Tata move is significant in corporate India when many family managed companies, especially where the promoters are holding below that the required 51 per cent stake, are being hit by hostile takeovers.

Lauding the group’s move, analysts said that companies, which cry foul when they face hostile bids, should, follow the creeping acquisition route like the Tatas to raise their stakes in the companies. That is the only solution in a free economy when hostile takeovers are inevitable. It also separates genuine promoters from casual ones.
Back to News Review index page 

Nicholas Piramal and CDRI ready two more drugs
Mumbai: The alliance between pharma major Nicholas Piramal and the government-promoted Central Drug Research Institute is set to go further places. After successfully commercialising anti-malarial drug Bulaquin (aablaquin), the partnership is preparing to get two more compounds in the therapeutic segments of cardiology and diabetes to the market.

According to the chief scientific officer of the company, Ms. Swati Piramal, the two compounds were in the final lap of clinical trials and it would take a year for the regulatory submissions to be completed. The company refused to reveal details about the two compounds, for competitive reasons.

Academia-industry partnerships are becoming increasingly popular especially since a handful of companies have begun to give original research its due importance it anticipation of a new Patents Law. Some sections of the industry are also looking at partnering with government labs.

The credit for this goes to Council for Scientific and Industrial Research director general Mr. R A Mashelkhar who did his best to cut down on red tape and encourage labs to do research with an eye on the marketplace.
Back to News Review index page 

LG India to foray into mobile handsets
New Delhi: The Indian subsidiary of South Korean electronics gaint, LG India, is planning to diversify into the GSM handset market, besides augmenting its audio range next year with an eye on capturing 10 per cent share in both the segments.

The company will launch four models of GSM mobile phones in April next with two of the mobile handsets would be Web-enabled. Also being planned are 10 new models of audio products by July next, which will include mini component audio systems with multi-media capabilities and MP3 format.

The company expects to earn Rs 50 crore of turnover each from the mobile handsets and audio products next calendar year. While LGEIL plans to sell 50,000 cellphone units during 2001, the target for audio products stands at 25,000 units.

LGEIL will also consider local assembling and manufacturing of audio systems in the third quarter of the next year. However, only moulds would be manufactured in the country, while designs would continue to be imported.
Back to News Review index page 

Birla-AT&T-Tata, Spice strategic talks fail
Mumbai: With the BK Modi family, who control Spice Telecom with rights to operate in Punjab and Karnataka, unwilling to give up controlling interest, the negotiations between the Birla-AT&T-Tata consortium and Spice Telecom for a strategic and equity alliance have fallen through.

Since the company has been making enough investments for upgrading its infrastructure, the Modis feel that the company will have enough cash flows in the years to come, sources said.

As per the plan, the Birla-AT&T-Tata combine was planning to increase its present user-base to more than four lakh either through a merger or by picking up a large equity stake.

Recently, the Birla-AT&T-Tata union has bid for the RPG's cellular licence in Chennai, in which around 40 per cent stake could be on offer. It has already picked up a controlling stake in RPG's Madhya Pradesh circle.
Back to News Review index page