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RCom, MTN call off deal
India will grow at 8 pc: IMF
Chidambaram: It’ll be over 8 pc
Frame long-term policies, auction spectrum: Arun Sarin
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Corporate Results
PSEB ups peak-load restrictions on industry
HPCL hikes price of premium diesel
Gas from Reliance, GSPC fields
MNC trying to derail deal with Daiichi: Ranbaxy
Import from India
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RCom, MTN call off deal
New Delhi, July 18 “The two sides were unable to conclude the transaction due to certain regulatory issues,” RCom spokesperson said in a statement tonight. The deal, which was clouded by the bitter dispute between the Ambani siblings, was called off a day after RIL nominated an arbitrator to resolve the dispute with RCom. RCom and MTN decided to end the exclusivity agreement three days before its expiry. MTN in a statement to Johannesburg Stock Exchange said, “With regard to exclusive negotiations relating to a potential business combination between MTN and RCom, owing to certain regulatory issues, the parties are unable to conclude a transaction. Accordingly, it has been mutually decided to allow the exclusivity agreement to lapse." Spokespersons of both RIL and RCom declined to comment on the arbitration issue. Meanwhile, sources in the know said MTN has possibly started looking at Bharti Airtel, a Chinese company and a Russian entity for negotiations, but no confirmation could be obtained from the concerned corporate. The high voltage drama once again saw an eruption of the war between the two brothers despite the family settlement that was arrived at June 18, 2005, resulting in culmination of negotiations between RCom and MTN that could have created a $70 billion entity. So much so, Samajwadi Party leader Amar Singh termed as “disgusting” RIL’s opposition to the MTN deal and sought the Prime Minister’s intervention to bring about a rapprochement between the warring brothers. While RCom has been charging the elder Ambani’s flagship company RIL of “sabotaging” the negotiation that could have created one of the biggest telecom entities that could generate annual profits of $10 billion, RIL has been steadfast on its claim and had warned of legal action in case its rights were violated by either RCom or MTN. In almost identical statements late tonight, both RCom and MTN said that two sides have mutually agreed for lapse of the 45-day exclusivity agreement that was extended on July 8 for a further two weeks to July 21. MTN announced withdrawal of the agreement “owing to certain legal and regulatory issues,” and said the parties were unable to conclude a transaction. “Accordingly it has been mutually decided to allow the exclusivity agreement to lapse and caution is no longer required to be exercised by shareholders when dealing in MTN securities,” the South African company said. Referring to announcements made on May 26 for exclusive agreement and July 9 for its extension, RCom said in its statement "owing to certain legal and regulatory issues, the parties are unable to conclude a transaction. Accordingly it has been mutually decided to allow the exclusivity agreement to lapse.” RCom spokesperson, however, did not take any query on the impact of the fight with RIL on the deal or the fate of the arbitration process that has virtually become infructuous after the collapse of the deal.
— PTI
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India will grow at 8 pc: IMF
Washington, July 18 The global economy has weathered the impact of the credit crunch better than first feared, the IMF said on Thursday as it issued a downbeat forecast for the second half of 2008, amid concerns about inflation, particularly in emerging markets. "The global economy is in a tough spot, caught between sharply slowing demand in many advanced economies and rising inflation everywhere, notably in emerging and developing economies," IMF's World Economic Outlook (WEO) said. The IMF expects global growth to slow significantly in the second half of the year, before recovering gradually in 2009. Updated forecasts in the WEO also raise inflation projections, particularly for emerging markets and developing countries. The WEO expects a moderation in global growth from five percent in 2007 to 4.1 per cent in 2008 and 3.9 per cent in 2009. Following a better-than-expected performance in the early part of 2008, WEO projections for the US, the euro area and Japan show a slowdown in activity in the second half of 2008. Expansions in emerging and developing economies are also expected to lose further steam, with growth in these countries projected to ease to around seven per cent in 2008-09 from eight per cent in 2007. China's growth rate is expected to ease from near 12 percent in 2007 to around 10 per cent in 2008-09. At the same time, as the growth slowdown, the WEO notes, rising energy and commodity prices have boosted inflationary pressure, particularly in emerging and developing economies. In emerging and developing countries, inflationary pressures are mounting faster, fuelled by soaring commodity prices, above-trend growth, and accommodative macroeconomic policies. Hence, inflation forecasts for these economies have been raised by more than 1.5 percentage points in both 2008 and 2009, to 9.1 per cent and 7.4 per cent respectively and the moderation in inflation in 2009 will depend on more assertive tightening of monetary conditions. "In the recent past, the global economy has managed to take large shocks in stride, but we think its capacity to absorb them is being increasingly challenged," IMF chief economist Simon Johnson said.
— IANS |
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Chidambaram: It’ll be over 8 pc New Delhi: Despite the surge in oil prices and rise of inflationary pressures, India will record over 8 per cent growth and prices would moderate by year-end, finance minister P Chidambaram said today. The finance minister has also made it clear that inflation management would get top priority and reasonable growth the second. “I still maintain that we will grow at 8 per cent plus. We are managing in a difficult year, but, by the end of this year, we will be able to bring about a moderation in inflation as well a reasonable growth”, he said. Admitting that it has been the most difficult of the five years as finance minister in the UPA government, he said India had been hit by the global financial, food and fuel crises and anybody who thought the country would not be affected by the global turbulence would be naive. "If our economy is growing at eight per cent, we should not wear sackcloth and ashes and mourn. We should celebrate. Eight per cent growth will still make us the silver medallist in the World Olympics," he said Very few countries, and hardly any large nation except China are growing at eight per cent, he said, and pointed out that 8 per cent growth would still be higher than the average rate of 5.8 per cent achieved during the six years of NDA rule. Asked about the potential impact on inflation, market and the investors' confidence in case the government fails to win the vote of confidence, Chidambaram said such a situation was purely hypothetical and his party would win the floor test. Even after July 22, there will be a government in this country and we will be that government. And that government will, true to its oath of office, discharge its functions to maintain the economy. Asked if the political instability was adding to the inflation and hurting investors' confidence, as reflected in the volatility in stock markets, Chidambaram said, political instability was always bad for the market. — TNS
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Frame long-term policies, auction spectrum: Arun Sarin
New Delhi, July 18 "We always prefer long-term regulatory policies as we have to plan our businesses for long-term," Arun Sarin, the outgoing CEO of UK-based Vodafone Group, one of the world's largest mobile operators, said here. When asked whether his company did see any change in the past 18 months since it acquired the controlling stake in Hutchison, Sarin said "clearly certain things have changed...I always looked for long-term policy". "But as far as Vodafone's operations are concerned, India has been a very exciting market. When we started about 18 months ago we just had 20 million subscribers and today we have 50 million and we are looking to achieve the 100 million mark very soon," he said. On the contentious issue of approach towards spectrum allocation to new players and also to CDMA operators under dual technology, Sarin said, "Auction is always a good way...whatever the way highest valuation national government can get is always good." When asked whether further consolidation was possible in India, Sarin said it has been happening the world over and this would be the phenomenon here too.
— PTI |
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Satyam Q1 net up 45 pc
Mumbai, July 18 The company had a net profit of Rs 378.32 crore in the first quarter of FY’08, Satyam said in a filing to the Bombay Stock Exchange. The total income rose to Rs 2,653.95 crore, from Rs 1,893.39 crore in the same quarter in FY’08. “During the first quarter of FY’09, Satyam achieved an annual revenue run rate of Rs 10,000 crore. In Q1, we grew by 8.5 per cent,” Satyam Chairman B Ramalinga Raju said. Satyam reported a standalone Q1 net profit of Rs 575.91 crore, a 48 per cent growth over the previous year. The firm had a net profit of Rs 389.14 crore in the June quarter of FY’08. The total income rose to Rs 2,556.52 crore in the latest quarter, from Rs 1,820.93 crore in the year-ago period. Wipro nets Rs 907-cr profit
IT major Wipro Ltd today announced a net profit of Rs 907.80 crore for the first quarter ended on June 30, 2008, against Rs 725.60 crore in the year-ago period. The consolidated total income rose to Rs 6,087.10 crore in the latest quarter, from Rs 4,303.20 crore in the same period of FY’08, Wipro said in a filing to the Bombay Stock Exchange. The June quarter results does not include the effects of the merger between Wipro Infrastructure Engineering, Quantech Global Services, Wipro Healthcare IT, mPower Software Services India, mPact Technology Service and cMango India, which was effective from April 1, 2007. The company reported a standalone Q1 net profit of Rs 546 crore, against Rs 671.40 crore in the previous year. The total income rose to Rs 4,807.4 crore in the latest quarter, from Rs 3,776.8 crore in the same quarter last year. GE Shipping
Great Eastern Shipping today announced a net profit of Rs 387.59 crore for the first quarter ended March 31, a 7.94 per cent decline over the corresponding period last year. The firm had a net profit of Rs 421.04 crore in the fourth quarter of FY ‘08, GE Shipping said in a filing to the Bombay Stock Exchange. The total income rose to Rs 992.49 crore in the latest quarter, from Rs 754.32 crore in the same period a year-ago. Ultratech Cement
Aditya Birla Group company Ultra Tech Cement today announced a net profit of Rs 265.01 crore for the first quarter ended June 30, a 2.17 per cent growth over the corresponding period last year. The firm had a net profit of Rs 259.38 crore in the first quarter of fiscal 2008, Ultra Tech Cement said in a filing to the Bombay Stock Exchange. The total income rose to Rs 1522.58 crore in the latest quarter, from Rs 1384.69 crore in the corresponding period a year-ago. Allahabad Bank net falls
Allahabad Bank today posted a net profit of Rs 93.36 crore for the quarter ended June 30, 2008, falling more than half, compared to the same period a year ago. The bank’s total income for the latest quarter stood at Rs 1,849.63 crore, against Rs 1,535.10 crore for the corresponding period last year.
— Agencies |
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PSEB ups peak-load restrictions on industry
Chandigarh, July 18 It has also been decided to impose a compulsory 36-hour off on other industry. This, even as irregular power supply and increasing cost of captive power generation is leading to a huge dip in profit margins, besides bringing down the industrial output by more than 20 per cent. Exporters say that they are unable to finish their export orders in time because of unavailability of power. The worst affected is the industry located in the urban areas, which is fed electricity through the urban industrial feeders. These mixed use feeders also cater to the domestic consumers. Since power cuts ranging from six to eight hours have been imposed on the domestic consumers in Punjab, the industry in these areas, too, faces similar cuts during the day. As a result, industry has now started operating on night shift. Official sources in Punjab State Electricity Board (PSEB) informed TNS that as against the availability of 1,500 lakh units, the demand in the state had gone up to over 2,000 lakh units, on account on increased demand in agriculture sector. This deficit was forcing them to impose cuts. S.C. Ralhan, regional chairman of Engineering Export Promotion Council (EEPC), rues that the erratic power supply to industry and frequent tripping was taking a toll on production. “We agree that there is a shortage of power. Only if the government were to regulate the power cuts, we would ask our labour to work in shifts when uninterrupted power is available. The exporters are the worst hit as they cannot finish their orders in time,” he says. Agrees Gaurav Sood, managing partner of Jalandhar based leather goods export house, Prime Leathers, “Since we cannot complete orders in time because of power unavailability, we have to often airlift the consignment, which becomes economically unviable. With the cost of diesel having increased last month, the industry says that the cost of captive power generation has gone up to Rs 10 per unit, as compared to Rs 3.60 per unit, being supplied by the state electricity board”. |
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HPCL hikes price of premium diesel
Chandigarh, July 18 This is the second time in two months that the price of this premium diesel, Turbojet, has been increased. In Punjab, it will now be available at Rs 35.96 per litre, and in Haryana at Rs 36.22 per litre. After the retail prices of petrol and diesel were hiked by the government last month, HPCL, IOC and BPCL had increased the price of its premium diesel by Rs 4 per litre and premium petrol by Rs 6 per litre. These premium fuels are outside the purview of price control and prices are loosely pegged to normal petrol and diesel price. With HPCL's daily under-realisation (from selling the four subsidised products — petrol, diesel, kerosene and LPG ) pegged at about Rs 115 crore, the company decided to increase the price of its premium diesel. Since the cost of these fuels is already more than the normal fuel, oil companies suffer lesser losses on their sale. With the rising consumption of these fuels, the companies are hoping to bring down their losses. Official data available with The Tribune shows that the sale of these fuels has gone up by 89 per cent in 2007-08. The sale of premium fuels contributed to almost 35 per cent of total sale by the three oil companies in the last fiscal. It may be noted that HPCL has been curtailing its product supplies to domestic market. HPCL dealers have alleged that they are not getting adequate supplies for the past two months now. "Though the price hike was affected last month, we have not been getting adequate supplies," said a Patiala-based dealer.
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Gas
from Reliance, GSPC fields
New Delhi, July 18 An Empowered Group of Ministers (eGoM) headed by external affairs minister Pranab Mukherjee has decided that companies "would sell gas to consumers in accordance with the marketing priorities determined by the government." "The sale would be on the basis of formula for determining the price as approved by the government," a senior official said citing the eGoM's decision. The eGoM, however, said the priority would not impact the process of price discovery that would involve participation by all customers. — PTI
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MNC trying to derail deal with Daiichi: Ranbaxy
New Delhi, July 18 "All these issues have emerged after the deal with Daiichi Sankyo... This is a much larger issue. It is not only about Ranbaxy, but about high quality affordable generic drugs versus expensive innovative products," he said adding an MNC is trying to derail Ranbaxy's deal with Daiichi Sankyo. Recently, the Department of Justice has filed a motion in the US court against Ranbaxy alleging systematic fraudulent conduct and supplying fabricated information to the USFDA.
— PTI |
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Pak adds 136 new items
Islamabad, July 18 The changes have been incorporated in the new trade policy announced by the government. Pakistan has not fully implemented the the South Asian Free Trade Agreement, restricting the trade to a positive list of items. India, on the other hand, allows trade with Pakistan on all but a few times in the negative list. Though the trade between the countries has seen a big jump to over $1 billion over the past few years, a large part is still routed through third countries, adding cost to consumers. — PTI
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Exim Bank to raise 17k cr IBM’s ‘Project Big Green 2.0’ Idea launches data card BoI to raise Rs 7,360 cr 98.36-cr orders for ORG Info
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New Delhi:
Despite the surge in oil prices and rise of inflationary pressures, India will record over 8 per cent growth and prices would moderate by year-end, finance minister P Chidambaram said
today. The finance minister has also made it clear that inflation management would get top priority and reasonable growth the second.
