The Tribune, Chandigarh, India

	Bill to cut govt stake in SBI New Delhi, March 8 The government today tabled an Amendment Bill in the Lok Sabha seeking to reduce its holding in the SBI to 51 per cent, a move that is aimed at allowing the bank to raise fresh capital through public offerings. Following the amendment, the SBI will be in a position to raise funds through follow-on public offer, rights issue or preferential allotment, said the statement of objects and reasons of the Bill which was introduced by Finance Minister Pranab Mukherjee. The government holds 59.41 per cent stake in the bank now which it acquired from the Reserve Bank in 2007 and as per the existing Act its holding cannot come below 55 per cent. The amendment will bring the SBI at par with other public sector banks in which the government is required to hold at least 51 per cent equity. Mukherjee tabled the State Bank of India (Amendment) Bill, 2010, amidst slogan shouting by the SP, RJD and BSP members against the Women's Reservation Bill in its present form. The Bill's statement of objects and reasons said the legislation is aimed at allowing "reduction of shareholding of the Centre from 55 per cent to 51 per cent consisting of the equity shares of the issued capital." If Parliament passes the Bill, the Centre will be empowered to appoint not more than four managing directors, abolish the post of vice-chairman and enable shareholders with at least Rs 5,000 worth of shares to contest the election for directorship of the bank. The previous UPA government had first brought the Bill in the Lok Sabha in December 2006 and it was referred to a parliamentary standing committee. But the Bill lapsed due to the dissolution of the House. — PTI
	Venus Remedies,US funds settle row Ambika Sharma PTI Baddi, March 8 Venus Remedies has amicably settled its long-pending dispute with the US-based hedge funds (DE Shaw and Citadel Investment Group) pertaining to the redemption of the $12-million foreign currency convertible bond (FCCB) issue.Pursuant to direction of the Punjab and Haryana High Court, both parties reached a settlement and apprised the High Court about it in the last hearing. Under the settlement agreement, Venus Remedies will pay $7 million within the next one-and-a-half years to the holders and remaining $ 5 million will be rolled over for a period of five years, which will be subject to statutory approvals. Moreover, the investors will continue to remain invested in the company, he said. The FCCB of Venus Remedies was launched in May, 2006. The Panchkula-based company had availed the FCCB route for setting up a research and development plant at Baddi in Himachal Pradesh and for setting up a subsidiary in Germany. However, Venus Remedies failed to redeem the FCCB issue in May, 2009, following which DE Shaw and Citadel Investment filed a petition with the Punjab and the Haryana High Court in August 2009, he said. This is a positive step as the international investors are sending out a message that they believe in the longterm growth story of Venus Remedies. Venus Remedies Ltd is a profitable company with revenues of Rs 265 crore and a net profit of Rs 46 crore in 2008-09. The company had declared a 30 per cent dividend on August 21, 2009. The Bank of New York Mellon, the custodian for the FCCB issue, had filed the case on behalf of the hedge funds in the Punjab and Haryana High Court in Chandigarh. Before admitting the petition, the High Court had directed both parties to initiate talks for arriving at amicable resolution of the dispute.
	Kraft faces probe on Cadbury deal: Report New York, March 8 Kraft Foods is being probed by UK regulators over allegedly misleading investors and workers of Cadbury Plc, says a media report.In January, Kraft said it would take over Cadbury in a cash-and-stock deal worth about 11.9 billion pounds. Attributing to people familiar with the matter, The Wall Street Journal reported that the UK regulators were investigating whether Kraft had misled employees and investors during its battle to take over Cadbury. The panel on takeovers and mergers was looking into comments Kraft executives made during the contentious takeover battle about Cadbury's Somerdale candy factory in Keynsham, the report noted. According to the publication, Kraft officials had repeatedly said they had believed the factory could be kept open. While Cadbury had said it would close the plant and move Somerdale's 500 jobs to Poland. Last month, when it became clear that Kraft had won the takeover battle, the company reversed course and said it would close the plant by 2011. — PTI
	Mobile number portability by May likely Telecordia that enables the change gets nod Girja Shankar Kaura Tribune News Service New Delhi, March 8 Mobile Number Portability (MNP) may become a reality over the next two months with Telecordia - the company that enables this change - getting the Home Ministry clearance to set up shop in the country.The clearance from the Home Ministry came even as the officials from telecom firm S Tel, which has been asked to stop services due to national security concerns, met Telecom Minister A Raja to clarify issues. S Tel, which offers mobile services in three circles of Himachal Pradesh, Bihar and Orissa, was asked to stop operations last week as it is yet to get security clearance from the Intelligence Bureau (IB) Reports said S Tel might get a clearance soon as there was no other concern except pending security clearance. Telecom operators, especially those from abroad have to get the IB clearance before starting services here. Reports said S Tel services to its existing customers were still on and the company was hopeful the matter would be resolved soon. The company has licences for three more circles of Jharkhand, Jammu, Kashmir and Assam but was yet to start services there. Bahrain’s Batelco, which has 42.7 per cent stake in S Tel, has entered into a partnership with Islamic investment bank Global Banking Corporation (GBC), which has acquired 11 per cent stake in S Tel for $50 million. GBC buying 11 per cent in S Tel will indirectly raise Batelco’s stake in S Tel by 6.3 per cent. Meanwhile, switching mobile operators without changing numbers may become possible from May this year. Telecordia, the US-based telecom solution vendor that was selected by the Department of Telecom to be one of the firms to make Mobile Number Portability possible, had hit a security bump owing to its operations in Pakistan. It’s investment plan had earlier come under question at the Foreign Investment Promotion Board, because of objections raised by the Home Ministry. In the last FIPB meeting, the Home Ministry is learnt to have given a clearance to the company with some riders that mandated Telecordia USA to furnish credible information about its exact role in Pakistan - whether it was just a vendor or does it also enable Number Portability in that country. The Home Ministry has conveyed its no objection to the starting of the services. Telecordia has a 74:26 joint venture with Deepak Talwar Consultants. The CEO and CFO shall be Indians, it said. The Home Ministry in its note said, “Suitable conditions are imposed to ensure that the equipment and services provided to India or to any Indian associate company would have no connection with its operating company in Pakistan.” The ministry has also ensured that the number portability data concerning India shall be maintained in a server in India.
	Reliance Media ups offer size in Fame Mumbai, March 8 Reliance MediaWorks today said three ADA Group companies have upped the open offer size for Fame India by 1 lakh more shares to 2.17 crore, representing 52.72 per cent in the multiplex operator. Last month three Anil Ambani group firms -- Reliance MediaWorks, Reliance Capital and Reliance Capital Partners -- had announced an open offer to acquire 2.16 crore shares or 52.48 per cent stake in Fame at Rs 83.40 a share aggregating to around Rs 180 crore. In a filing to the Bombay Stock Exchange, Reliance Media Works today said in compliance with regulations, the acquirer had increased the offer size from 2.16 crore to 2.17 crore fully paid-up equity shares of face value Rs 10 each of Fame. Reliance MediaWorks said on the date of making the open offer on February 21, it held about 1 lakh shares less than what it had said in its previous public announcement. Currently the ADA Group companies hold 13.79 per cent stake in Fame. The race for Fame heated up after Inox entered into an agreement with the promoters of Fame to acquire their 43.28 per cent stake for Rs 66.48 crore or at Rs 44/45 a share. — PTI
	Bank of R’sthan under lens Had flouted norms in dealings with Sahara Shiv Kumar Tribune News Service Mumbai, March 8 The Reserve Bank of India has ordered a special audit of the Bank of Rajasthan's books amidst revelations that it had flouted corporate governance norms among other things in its dealings with the controversial Lucknow-based Sahara group. Under scanner is the bank's links with Subroto Roy's Sahara group which has availed of a large intra-day overdraft facility from the Bank of Rajasthan. The RBI had earlier imposed strict restrictions on the chit funds run by the Sahara group and has made it mandatory for all money collected to be invested in government securities instead of group companies. According to the RBI, the Bank of Rajasthan is under scanner for bypassing regulatory norms which specify formation of a credit appraisal committee which determines the credit-worthiness of a borrower. The apex bank has also objected to the presence of the promoters in the committee. The apex bank had only last year appointed G Ramachandran from the State Bank of India MD and CEO of the Bank of Rajasthan promoted by the Tayal family. The decision was taking following detection of a number of irregularities, sources said. The special audit of BoR's lending policy will be conducted by Deloitte Haskins and Sells while Deloitte Touche Tohmatsu will probe the information security system of the bank. The Bank of Rajasthan is also under scanner for violating money laundering norms. Senior directors and members of the promoters' families are also suspected of influencing grant of credit to certain types of borrowers, the sources said. Only last month, the RBI had levied a fine of Rs 25 lakh on the Bank of Rajasthan. Apart from its dealings with Sahara, the bank is under the scanner for the rent it pays for its head office in Mumbai. Questions have also been raised about the remuneration paid to senior employees of the bank, the sources said. Confirming the special audit, Ramachandran said the exercise was expected to be completed by this month-end and corrective measures suggested by the consultants would be implemented.
	Top industrialists on Assam investment panel Bijay Sankar Bora Tribune News Service Guwahati, March 8 Assam Chief Minister Tarun Gogoi has empaneled top-notch industrialists of the country as members of the Assam Investment Advisory Board that will hold its first meeting here tomorrow in presence of a host of global luminaries, including Ratan Tata, Sunil Bharti Mittal, MS Banga, MS Swaminathan, BN Khaitan, Naina Lal Kidwai, to name a few and top officials of Reliance Industries, Godrej and Boyce, Mahindra & Mahindra. Assam Industries and Commerce Minister Pradyut Bardoloi today said the Assam government had been overwhelmed by the response of top industrialists and bankers in the country who had given consent to be members of the board in response to a request made by Tarun Gogoi. “Those who have agreed to be part of our government’s strategy to facilitate flow of investment include Ratan Tata, Mukesh Ambani, Anand Mahindra, BN Khaitan, Jamshyd Godrej, MS Banga (Uniliver group), HSBC CEO Naina Lal Kidwai, chairman of Eveready Industries BM Khaitan, SBI chairman OP Bhat, renowned agriculture scientist M S Swaminathan, Ambassador to the US and economist Ronen Sen, Airtel chairman Sunil Bharti Mittal, chairman of Videocon group V N Dhoot, Asocham chairman Dr Swati Piramal, Tata group director R K Krishnakumar,” Bardoloi said. He said it would be first in the country when such high-profile dignitaries of top-notch industrialists, bankers and economists would converge at a single meeting in a state in the country. All these dignitaries have been accorded the state guest status. Besides attending the first meeting of the board, Ratan Tata will attend the foundation laying ceremony of first Taj group hotel in the city for which the Assam government has provided land within the heart of the city.
	Lyondell rejects RIL bid New York/Mumbai, March 8 LyondellBasell is understood to have rejected a multi-billion dollar takeover bid by Reliance Industries.Luxembourg-based LyondellBasell is believed to have today submitted to the US Bankruptcy Court a detailed plan of settlement with the creditors to move out of bankruptcy protection, terming this plan as superior to the sale of controlling stake to Mukesh Ambani-led Reliance Industries. While an RIL spokesperson declined to comment on the development, the officials at LyondellBasell could not be contacted immediately. RIL had reportedly made a $12-billion bid to acquire a controlling stake in the global major and later raised the bid to over $14 billion. The two companies had disclosed in November last year that they were negotiating for a possible deal, but never officially disclosed the financial details. — PTI
	Inflation to cool down in 2 months, says Montek New Delhi, March 8 The Planning Commission today said food prices would come down in the next two months easing the overall inflation, which is currently at over 8.5 per cent.“The trend is that food price will come down in the next two months. I am sure that the trend down on food prices will bring down the overall inflation in the next two months,” Planning Commission Deputy Chairman Montek Singh Ahluwalia said. The wholesale price inflation (WPI) rose to 8.56 per cent in January, the highest in over 13 months, shooting past the RBI’s forecast of 8.5 per cent for this fiscal end. The WPI hike was mainly because of a surge in prices of food items such as sugar, potatoes and pulses. Overall inflation in December was 7.31 per cent. In January, sugar prices rose by 58.96 per cent year-on-year while potatoes turned costlier by 53.39 per cent and pulses by 45.64 per cent. — PTI