GTB merger with UTI Bank off
Mumbai: This was a merger destined to be doomed. Finally the Global Trust Bank, GTB, has pulled out of the proposed merger with UTI Bank. Though Sebi continues to investigate the matter, this breakup of merger plans will cool things for GTB, for the time being.

The board of GTB has informed the stock exchanges of its decision to withdraw the merger proposal. The GTB decision came after a crucial board meeting of the bank in Mumbai, where the board finalised the annual results of the bank. The board has unanimously resolved to withdraw the merger proposal.

The decision by GTB comes at a time when neither UTI chairman PS Subramanyam nor UTI Bank chairman PJ Nayak is in Mumbai. Mr Subramanyam had earlier stated clearly that as far as UTI Bank was concerned, the merger plan was on hold and on the backburner, following the allegations against GTB.

Prior to the board meeting, GTB chairman Ramesh Gelli is understood to have spoken to both Mr Subramanyam and Dr Nayak and informed them about the thinking in the bank. After the meeting, the top brass of GTB met RBI deputy governor SP Talwar and conveyed the decision to call off the merger.

In January this year the UTI Bank and the Global Trust Bank had come together to jointly form India’s largest private bank the UTI Global Bank. The chances of the merger proposal getting RBI approval became dimmer after a Sebi interim report held Ketan Parekh responsible for allegedly ramping up the GTB share price before the merger.

The report also alluded to an alleged nexus between Parekh and the GTB top brass. Following the revelations, UTI Bank gradually distanced itself from the merger, leaving the ball in GTB’s court to withdraw the merger proposal.

Relations between GTB and UTI Bank were strained following allegations of price rigging in the GTB scrip prior to the merger. The UTI Bank board is expected to meet on April 11 to formally withdraw its merger application with the RBI.
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Bad times ahead for Indian software companies
Washington: Analysts predict that Indian software companies are very likely to face traumatic times for the rest of 2001.

Tuesday’s bloodbath in US software stocks, with announcements of huge job cuts right across US software companies does not augur well for the global software industry and by the time the carnage ends, even Wednesday’s depressed prices of software stocks could even look good.

Indian software giants, including Infosys and Wipro, are expected to announce results for 2000-01 in the next two weeks. Optimists hope these will maintain their track record of 100 per cent profit growth. However this could well be a thing of the past as the future indeed looks grim.
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Trai postpones recommendations for WLL rentals
New Delhi: The Telecom Regulatory Authority of India (Trai) will recommend the rentals for the wireless in local loop, WLL, services by May 8. Earlier, it was scheduled to submit its recommendations by April 7.

Trai said the determination of the rental was a data intensive exercise and the information sought by it from service providers, including the incumbent had been provided after "considerable delay."

Earlier Ram Vilas Paswan, union communications minister had indicated that monthly rental for WLL services would be based on actual cost and not be subsidised as in the case of fixed services.

The government had permitted basic operators to offer limited mobility within local call areas with free incoming and outgoing calls costing Rs 1.20 for three minutes. BSNL, which started its limited mobility services last week in the country, from Gurgaon in Haryana to begin with, is charging Rs 400 per month towards rental.

The service provider has, however, incorporated a clause that the service is subject to TDSAT’s verdict as well as change in monthly rental as per TRAI’s recommendation.
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Government clears FDI proposals worth Rs 545 crore
New Delhi: The commerce and industry minister Murasoli Maran has cleared 44 FDI proposals involving a total inflow of Rs 545 crore.

These include those of Eli Lilly Ranbaxy to buy out Ranbaxy’s holding of 50 per cent in the joint venture, Abbott Equity Holding of the UK, General Electrical International and Indian Infrastructure Equipments. Eli Lilly will buy out Ranbaxy’s 50 per cent stake for Rs 79.9 crore and thus convert the JV into 100 per cent subsidiary.

General Electric International has been permitted to set up a 100 per cent subsidiary to venture into infrastructure and information technology enabled services, telecommunications and Internet. The company will invest Rs 47 crore in the project.

Abbot Equity Holding Ltd has been allowed to bring in Rs 106.27 crore to pick up 20 per cent stake in a project to manufacture pharmaceutical formulations.

Indian Infrastructure Equipments has been permitted to issue 49.8 per cent equity stake worth Rs 24.91 crore and FCCBs worth Rs 97.29 crore.

Other proposals include Compaq Computer of Mauritius, which will bring in Rs 18.5 crore for 7.88 per cent stake in an e-commerce venture. Berjaya Vacation Club Berhad of Malaysia will set up a 100 per cent subsidiary with investment worth Rs 70.5 crore to operate hotels and resorts. Enron GmbH of Germany’s plan is to enter the wind energy business with a 100 per cent subsidiary involving investment of Rs 9.4 crore.

Astra Pharmaceuticals of Sweden has been allowed to increase holding in IDL to 56.49 per cent from the existing level of 51.5 per cent. The Swedish company will bring Rs 16.75 to acquire additional stake.

Schenectady (India) Holdings will increase foreign holding in one project from 80 per cent to 94.97 per cent, and in another from 58.37 per cent to 80.66 per cent. Blaser Swisslube of Switzerland will set up a 100 per cent subsidiary with investment of Rs 4.60 crore to import and distribute cutting fluids, and Danisco Ingredients (India) to increase foreign equity to 100 per cent from the existing level of 74 per cent.
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