New York, February 1
Microsoft Corp has made an unsolicited offer to buy Yahoo Inc for $44.6 billion in cash and stock, seeking to join forces against Google Inc in what would be the biggest Internet deal since the Time Warner-AOL merger.

In its boldest-ever acquisition move, Microsoft said on Friday it offered $31 per share for Yahoo, or a 62 per cent premium over the Internet media company's closing stock price on Nasdaq Thursday.

Yahoo, whose shares jumped to $30.75 in pre-market trading, confirmed on Friday that it had received an unsolicited bid from Microsoft Corp to acquire the company and that its board of directors would consider the $44.6-billion deal.

Yahoo said in a statement that its board would evaluate the proposal “carefully and promptly in the context of Yahoo’s strategic plans and pursue the best course of action to maximize long-term value for shareholders.”

Microsoft shares, which have a market capitalisation of about $300 billion, fell 6 per cent to $30.78. Speculation over a Microsoft move on Yahoo has swirled for at least a year, as investors wondered whether the two would seek a joint stand against an ever more powerful Google.

Internet audience researcher comScore estimates Google's share of the worldwide web search market has reached 77 per cent, while Yahoo is second with 16 per cent and Microsoft was a distant third with 3.7 per cent.

Yahoo attracts more than 500 million people monthly to a range of media sites, including Yahoo Mail, the world's biggest e-mail service for consumers.

Microsoft said the online advertising market is growing rapidly and expected to reach nearly $80 billion by 2010 from over $40 billion in 2007. It added it is "increasingly dominated by one player," referring to Google.

"We have great respect for Yahoo, and together we can offer an increasingly exciting set of solutions for consumers, publishers and advertisers while becoming better positioned to compete in the online services market," Microsoft chief executive Steve Ballmer said in a statement.

Microsoft, the world's largest software company, said it had identified four areas that would generate at least $1 billion in annual synergies for the combined entity.

Under the proposal, Yahoo shareholders can choose to get $31 cash, or 0.9509 of a share of Microsoft common stock. The deal in aggregate must consist of one-half cash and one-half Microsoft common stock, it said.

The Microsoft-Yahoo deal would be the largest in the Internet market since the $182 billion purchase of Time Warner Inc by AOL in 2001, which was seen as the worst merger in recent corporate history, with clashing corporate cultures and many of the promised synergies never materializing. — Reuters

Manipal, February 1
Kingfisher Airlines and Deccan Airways have finally decided to merge.

Deccan Airways executive chairman G R Gopinath told the press on the sidelines of a function that a board meeting with representatives from both the airlines held in Bangalore yesterday had passed the resolution to the effect.

Two valuators attending the meeting from both sides were working on the shareholding and assets of the new entity, he said. ''The board has agreed to merge Kingfisher with Deccan Airways.'' Capt Gopinath said.

Though it is yet to fully work out the equity holding by two companies in the new set up, it will be approximately in the ratio of 35:65 respectively, he said adding the value of every two and half shares of Kingfisher will be equal to one share of Deccan Airlines.

To a query, Capt Gopinath clarified it will take two to three months to complete the process of the merger.

The airlines will be functioning separately under single entity and Vijay Mallya, Chairman of Kingfisher, will become the chairman of the new entity and Gopinath will be the vice-chairman.

The Deccan Helicopter Wing would also keep its separate identity with Capt Gopinath continuing as chairman and CEO. Mallya would be the vice-chairman.

The existing low-cost airline service by Deccan Airways will continue even after merger, he said. — UNI

New Delhi, February 1
Impacted by a strong domestic currency against the US dollar, India’s exports during December 2007 grew by a paltry 2.54 per cent even as in dollar terms it grew by a healthy 16.04 per cent.

Amid exporters’ concerns over slowdown in the US economy and over 12 per cent appreciation in rupee against the dollar, exports went up to $12.31 billion in December 2007 as against $10.61 billion during December 2006.

According to the government data released here today, in rupee terms, exports touched Rs 48,569.64 crore, which was 2.54 per cent higher than the value of exports during December 2006.

Imports during the month were valued at $17.68 billion, up 18.06 per cent from $14.97 billion in December 2006. In rupee terms, imports increased by 4.31 per cent to Rs 69,731.56 crore in December 2007.

The cumulative value of India’s exports for the first nine months of the current fiscal (April-December 2007) was $111.04 billion as against $91.20 billion, registering a growth of 21.76 per cent in dollar terms and 7.74 per cent in rupee terms during the same period last year.

India's trade deficit for April-December period of the current fiscal widened by $14.97 billion to $57.82 billion from $42.85 billion in the year-ago period.

Oil imports during December 2007 were valued at $5.96 billion, up 23.78 per cent from $4.81 billion in 2006. For the nine-month period of the current fiscal, oil imports were to the tune of $49.31 billion, 11.68 per cent higher than $44.15 billion in the corresponding period of previous fiscal.

New Delhi, February 1
The Finance Ministry today proposed to make it mandatory for all companies listed on stock exchanges to ensure that their minimum public holding does not fall below 25 per cent of the equity.

“For a company to be listed and continue to be listed, it must have a public stake of 25 per cent,” the Finance Ministry said, while releasing a discussion paper on ‘Public Holdings for Listing’.

If for any reason, the public holding falls below 25 per cent, the paper said, promoters, management and the company will have to ensure that it is increased to the mandatory level within three months.

Making a case for defining the word “Public”, the discussion paper said, “If ‘public’ means ‘non-promoters’ and includes FIs, FIIs, MFs, employees, NRIs/OCBs, private corporate bodies, etc, the floating stock would be insignificant.”

The ministry also wants the discrimination between a government and non-government company to be done away with at least for the purposes of listing requirements.

These proposals, the Ministry said, should be incorporated in the Securities Contract (Regulations) Rules for initial and continuous listing requirements of companies in stock exchanges. — PTI

Calgary, February 1
India has invited Canadian firms to invest in India's petroleum sector under the seventh round of the New Exploration Licensing Policy (NELP) and make use of the opportunities it has to offer.

"India offers attractive opportunities for foreign investors in petroleum sector under the seventh round of the New Exploration Licensing Policy (NELP)," minister of state for petroleum and natural gas Dinsha Patel said on Thursday, while inaugurating a road show here.

The road show was a part of the country's promotional campaign to invite foreign investors to participate in the bidding under its NELP-VII. Fifty seven exploration blocks including 19 deep water, nine shallow water and 29 inland blocks are open for global bidders under NELP-VII. The offer closes on April 11.

The show attracted 120 top Canadian companies, including Niko Resources, Canoro Resources, and Geoglobal Resources.

Highlighting the features of NELP-VII, the minister urged Canadian companies to enter into a long-term relationship with India by becoming part of its growing petroleum sector.

Referring to the excellent business relationship between India and Canada, Patel said the trade between the two nations was valued at about $3.6 billion last year and it was at a stage of take-off.

Commending the contributions made by the Canadian firms in India's petroleum sector, the minister said, production of natural gas from the deep water block awarded in the first round of NELP would commence from June this year, with peak production of 80 million standard cubic meters per day.

The NIKO resource was the partner in this block with Reliance Industries Ltd, he added.

Major stakeholders in India's oil sector Canoro and Oil India made presentations during the road show. — PTI

Chandigarh, February 1
Having tasted success with their technology- aided mobile banking initiatives for rural population, Union Bank of India has now embarked upon a similar initiative for the urban poor. The bank will also be expanding its base overseas, with a new branch to be opened at Hong Kong next year.

Talking to TNS here today, M V Nair, CMD of Union Bank of India, said that the bank was moving towards its goal of complete financial inclusion amongst the rural population and urban poor. “Other than opening of 4.61 lakh no-frills accounts, we have introduced biometric cards for these people. 

A hand-held computer is taken to rural areas and hawkers in urban areas by volunteers/ business facilitators of the bank, which biometrically identify the thumb impression of the customer and then allow him to withdraw / deposit money from his account. A receipt is also issued to the customer, while the transactions made is later fed in the bank’s main server at the branch to maintain records,” he said.

Other than banking transactions, the hand held computer can be used to disburse old age/ widow pensions in rural areas.

The chairman said that they were now using the biometric cards for 25,000 hawkers in Mumbai and for slum dwellers in Chandigarh.

The bank has also opened 500 Village Knowledge Centres, wherein farmers are educated about best farm practices, employment schemes and setting up of self help groups.

He also said that they have introduced a SMS information channel, where record of a bank transaction by the customer is sent to him through SMS.

“Since all our branches will be under core banking by the end of this financial year, this facility will be available to all our customers. AS of now 1994 of a total of 2380 branches are under core banking,” he said.

Nair also informed TNS that as part of the bank’s restructuring, they have opened two new reginal offices in North India- at Karnal and Ludhiana. He said that they have opened two overseas rep offices at Abu Dhabi and Shanghai and 74 new branches in the country.

Ludhiana, February 1
The new C-Class Mercedes-Benz, that was formally launched in Punjab today, already has more than 50 buyers queuing up, including 25 from Ludhiana.

The company, that has delivered 100 units of the new car within a month of its launch in the country, is quite buoyant on growth this year and expects Punjab to contribute a significant share to it.

The state boasts of nearly 1,500 Mercedes-Benz cars of which Ludhiana alone has more than 700 cars on road.

“After Delhi and Mumbai, it is Punjab and Tamil Nadu that rank on top. We recorded an 18 per cent growth in 2007 from the previous year and are expecting even higher increase,” Sanjiv Sahajwala, head marketing, Daimler Chysler India, told The Tribune here today. In case of Punjab, he added, an average annual growth of 25 per cent was recorded and the company expects to increase it.

“The real estate boom triggered growth and currently the share of rural customers is almost 15 per cent. The contribution comes mainly from the cotton-growing areas like Bathinda,” said Manjit Singh Bala, head of Tai Pan India, the authorised dealers for the car.

With a view to cater to a vast segment of customers keen on purchasing a pre-owned Merc, the company would soon come up with a separate facility for refurbished cars, said Bala.

“We are in the process of developing the facility. It would come up soon.” This spells good news for those who longed to own a Mercedes but were unable to do so on account of the luxurious price tag the car carried. Giving details of the new C-Class, Sahajwala said it is priced from Rs 26.5 lakh to Rs 31 lakh and is “more power packed, more spacious”.

New Delhi, February 1
Finance Minister P Chidambaram today said that Central tax to GDP ratio is estimated to have increased to 11.8 per cent in 2007-08 as per budget estimates, providing additional resources to the Centre for social expenditure and achieve fiscal consolidation.

Buoyant economic growth along with efforts to improve the tax administration system has yielded rich dividends. As a result, the Central tax to GDP ratio is estimated to have increased from 8.2 per cent in 2001-02 to 11.8 per cent in 2007-08 as per budget estimates, Chidambaram said.

While speaking at this year’s first meeting of the Parliamentary Consultative Committee attached to his ministry, he said this increase has provided the government with additional resources that are being shared with the states besides being utilised for meeting expenditure in the social and infrastructure sectors and for fiscal consolidation.

Gross Tax Revenues are budgeted at Rs 5,48,122 crore in 2007-08 he said, while inviting suggestions from the members for the Union Budget for 2008-09.

He said the overall macro-economic fundamentals continue to be strong. — PTI

New Delhi, February 1
The government today said that a national policy on bio- diesel has already been prepared and was under active consideration.

Addressing the Second National Convention and Exhibition on Bio-diesel Minister of State for New and Renewable Energy Vilas Muttemwar said the policy outlined the strategy to achieve energy security in the country through sustainable production, conversion and application of bio-fuels.

The bio-diesel policy, which proposes to make mandatory blending of 20 per cent ethanol with petroleum, will come by March as a GoM is due to take a final decision on the issue in its meeting next week, the minister added. “The proposal is for 20 per cent blending initially, so that no changes are required to be made in auto engines,” he added.

The government recently also approved mandatory blending of 10 per cent of ethanol with petrol from October 2007 in the country except in Northeastern States, some smaller states and Union Territories. The policy has been awaiting clearance for over a year now.

The Group of Ministers, headed by Agriculture Minister Sharad Pawar, was scheduled to meet on January 29, Muttemwar said, adding the meeting has been deferred to next week.

The proposed policy, which seeks to promote biofuel as an alternate source of energy, has been prepared by the Ministry of New and Renewable Energy and is under active consideration of the government, Muttemwar added.

Under the policy, the ministry has proposed setting up a biofuel development board, to be chaired by Prime Minister Manmohan Singh.

However, the Ministry of Rural Development, which has offered funding cultivation of biodiesel plants, has also proposed to manage the board.

“The issue will be decided by the GoM. The Rural Development Ministry is willing to provide funding. But, there are issues such as promotion, marketing, research which have also to be taken care of,” Muttemwar said.