The Tribune, Chandigarh, India

AstraZeneca rejects Pfizer’s $100-bn acquisition offer
US pharmaceutical giant considers other options

London, April 28
US pharma giant Pfizer Inc today said it is considering options with respect to AstraZeneca, which had twice rejected the $100 billion acquisition proposal.

"Pfizer Inc confirms that it previously submitted a preliminary, non-binding indication of interest to the Board of directors of AstraZeneca in January, 2014 regarding a possible merger transaction," the company said.

After limited high-level discussions, AstraZeneca declined to pursue negotiations, it added.

The US drug major contacted AstraZeneca on April 26, 2014, again "seeking to renew discussions in order to develop a proposal that could be recommended by both companies to their shareholders".

"AstraZeneca again declined to engage. Pfizer is currently considering its options with respect to AstraZeneca," the
company said.

"Pfizer's previous proposal made to the Board of AstraZeneca on January 5, 2014, included a combination of cash and shares in the combined entity which represented an indicative value of £46.61 ($76.62) per AstraZeneca share and a substantial premium of approximately 30% to AstraZeneca's closing share price of £35.86 on January 3, 2014," the company said.

On the basis of the offered price, the deal would have been valued at around $100 billion.

Commenting on the development, AstraZeneca said the proposal "very significantly undervalued AstraZeneca and its prospects" and the (company's) Board remains confident in the ongoing execution of AstraZeneca's strategy as an independent company.

AstraZeneca said when Pfizer chairman and CEO Ian Read contacted its chairman Leif Johansson on April 26, there was no "specific proposal regarding an offer to acquire AstraZeneca", but Pfizer requested that both companies "issue a joint statement, prior to the market open on April 28, 2014, announcing that they had entered into discussions regarding a combination".

"The Board of AstraZeneca considered this request and concluded that, absent a specific and attractive proposal, it was not appropriate to engage in discussions with Pfizer," the company said. — PTI

Buyout proposal

Pfizer’s previous proposal made to the Board of AstraZeneca on January 5 included a combination of cash and shares in the combined entity

It represented an indicative value of £46.61 per AstraZeneca share and a premium of approximately 30% to AstraZeneca's closing share price of £35.86 on January 3, 2014

On the basis of the offered price, the deal would have been valued at around $100 billion

Biz talk
Michelin eyes bigger market share with new offerings
Pradeep Thampy
Commercial Director, Michelin talks to Girja Shankar Kaura

Michelin, the world’s leading tyre manufacturer, has launched its high-performance Pilot Road 2 and Pilot Street Radial for the passionate motorbike riders in India. Michelin Pilot Road 2 is targeted at the 500+ cc segment of sports and super bikes and Pilot Street Radial focuses on the 250-500cc segment of motorbikes. Pradeep Thampy, Commercial Director — Motorcycle & Scooter tyres, Michelin India, talks about the launch of the superbike tyres and Michelin’s strategy for motorcycle tyres in India.

Q. What opportunities do you see in the Indian two-wheeler industry?

A. In the premium motorbike segment, biking is rapidly becoming an extension of the personality for the young at heart, which is fuelling the growth of the Indian premium bike segment. There is a gradual but sure shift from utilitarian usage of motorbikes to leisure and recreation. This segment is only going to increase, with industry analysts pegging the annual growth at 25%. Michelin Pilot Road 2 and Michelin Pilot Street Radial will cater to the needs of this growing market and will provide the consumer with a fitting product.

According to Indicus research, motorcycles as a segment have grown at a CAGR of 17.4% during the past 16 years; other two-wheelers have been virtually stagnant, growing at a meagre CAGR of 1.8%, clearly demonstrating the customers’ choice. The share of motorcycles in the two-wheeler market has risen from 30% to 80% and within this segment, the premium motorbikes segment has also seen an upsurge.

Q. How does the current launch fit in the overall growth plan of Michelin in India?

A. With the introduction of these tyres, Michelin demonstrates its world-wide commitment to riders to provide new tyres, each of which delivers more performance -taking India to a higher plane of mobility. Over the years, Michelin has constantly demonstrated its commitment to make motorbike riding enjoyable in all situations and to develop tyre ranges that deliver the best performance in terms of dry or wet grip, feel and steering accuracy, and total mileage.

Combining these qualities is the promise that underlies Michelin’s total performance. Michelin tyres deliver safety, riding enjoyment and total mileage.

Q. What is your growth strategy in India?

A. The two-wheeler market in India is one of the fastest growing in the world and it continues to grow at an interesting pace. We consider India as an important and strategic market for growth. According to Indicus research, motorcycles as a segment have grown at a CAGR of 17.4% during the past 16 years; other two-wheelers have been virtually stagnant, growing at a meagre CAGR of 1.8%, clearly demonstrating the customers’ choice. There is tremendous market potential that India offers.

Michelin’s presence in the market is currently at a nascent stage. We are enhancing our distribution network and bringing in products that excite the consumers. With the introduction of the Pilot Road 2 and Pilot Super Sport, Michelin demonstrates its worldwide commitment to riders to provide new tyres, each of which delivers more performance -taking India to a higher plane of mobility.

Q. How important is the two-wheeler industry in India for Michelin?

A. Today’s two-wheeler customer is tomorrow’s passenger car owner. Hence, the two-wheeler market becomes extremely critical for Michelin. The launch of the Michelin Pilot Street Radial and Michelin Pilot Road II showcase our commitment to offer the best-in-class technology for the fast-moving industry. The two-wheeler market in India is one of the fastest growing in the world and it continues to grow at an interesting pace. We consider India as an important and strategic market for growth. We will continue enhancing our product offerings for the Indian consumers.

Michelin is a major player in the area of better mobility and is known for its spirit of innovation and technology. Michelin’s strategy is to develop tyres capable of delivering superior performance simultaneously in different areas. All Michelin brand tyres, therefore, combine safety, improved fuel efficiency, and longer mileage.

Infosys director says no to re-appointment

New Delhi, April 28
Infosys today said its independent director Ann Fudge will not seek re-appointment to the Board after her term expires in June this year.

"Ann Fudge, independent director, who is scheduled to complete her term on the Infosys Board on June 14, 2014, has conveyed her intention not to seek re-appointment owing to her busy schedule," Infosys said.

Currently, Infosys Board has seven independent directors and six executive directors.

"Due to increasing time commitments on other Boards, I have decided not to seek re-appointment on the Infosys Board.

With the addition of new Board Members and a solid succession plan in place, I know the company is well-positioned for success," Fudge said. — PTI

Reforms must for higher growth, says India Ratings

Mumbai, April 28
The economy is ‘delicately’ balanced and to return to a higher growth trajectory, it needs strong policy reforms, according to India Ratings.

The agency has kept its FY15 growth forecast unchanged at 5.6%.

The agency also rules out any drastic drop in farm productivity saying the reservoirs are a decadal high already and it is too early to assess the impact of possible El Nino.

"The economy, at this point of time, is delicately balanced and requires a serious policy push to return on the high growth path," India Ratings said in a report today.

According to the report, although the worst appears to be over, it is unlikely that the economy will migrate to a high growth phase of around 9% over next 2 to 3 years.

Finance Secretary Arvind Mayaram over the weekend had said the economy is likely to grow at 5.5% in the current fiscal.

On the likelihood of an El Nino incident, the report said it is too early to assess the impact of the phenomenon on agriculture.

Last week, the India Meteorological Department (IMD) had said the monsoon was expected to be below normal because of the El-Nino effect. The seasonal rainfall is likely to be 95% of the long period average with an error of plus or minus 5%, it said.

The rating agency expects seasonal factors, mainly rainfall, to continue to exert pressure on inflation.

However, it expects both the WPI and the CPI based inflations to fall and average out at 5.5% and 8%, respectively, in FY15.

India Ratings rules out the possibility of sharp monetary easing by the RBI in FY15.

In its base rate scenario, the agency expects a 25 basis points cut in policy rates, that too in second half of the current fiscal.

The report estimates current account deficit (CAD) to be $45.4 billion (2.1% of GDP) in FY15. It was $32 billion or 1.7% last fiscal.

"Capital flows are expected to be buoyant and are estimated to touch $60 billion (mainly through direct and portfolio investment) in FY15," the report said. — PTI

FY15 forecast

The agency has kept its FY15 growth forecast unchanged at 5.6%

It expects seasonal factors, mainly rainfall, to continue exerting pressure on inflation

The report estimates current account deficit at $45.4 bn (2.1% of GDP) in FY15 as compared to $32 bn in FY14

Capital flows are expected to be buoyant and are estimated to touch $60 bn

RCom, Tata Tele, Aircel tie up for 3G services

New Delhi, April 28
Telecom operator Reliance Communications (RCom) today announced a tripartite agreement with Tata Teleservices and Aircel to provide 3G roaming services to each others customers using their network across the country.

RCom and Aircel have permits for 3G services in 13 out of 22 service areas while Tata Teleservices has permit in 9 circles.

"We are delighted to be the first operator to offer 3G national roaming to our customers in partnership with other telecom firms having the state-of-the-art 3G networks.

"These alliances will further consolidate RCom's position as the leading data operator in the country and will help the Company improve its post-paid and Corporate customer market share," RCom's CEO for Consumer Business Gurdeep Singh said. — PTI

REC to raise up to Rs 30,000 cr

New Delhi, April 28
Rural Electrification Corporation (REC) will issue debentures of up to Rs 30,000 crore during FY15.

"Board of Directors have approved issuance of Non-Convertible Debentures up to Rs 30,000 crore through private placement during the current fiscal (2014-15)," REC said. NCDs can't be converted into shares. They are used for raising long-term funds by companies through public issue. — PTI

BRIEFLY

Lenovo unveils smartphone ‘S860’ at ~21,500
Bangalore: Chinese tech giant Lenovo on Monday launched in India its high-end S-series smartphone 'S860', priced at Rs 21,500. It combines sleek design elements with quad-core performance and features such as longer battery life for an overall impressive mobile user experience, Lenovo said. The device is powered by a 1.3 GHz quad-core processor, running on Android Jelly Bean and 2 GB RAM, it said. — PTI

Flipkart guarantees same day delivery in 10 cities
Bangalore: Flipkart on Monday launched its "Same Day Guarantee Delivery" in 10 cities. Customers can place their orders by 12 noon on a business day to have their orders delivered to them by 9 pm on the same day, it said. The service is available in Bangalore, Delhi, Mumbai, Kolkata, Noida, Gurgaon, Faridabad, Manesar, Navi Mumbai and Thane and will be scaled up to other cities soon, it said. — PTI

Hindustan Unilever Q4 net up 11% at ~872 crore
Mumbai: Hindustan Unilever Ltd (HUL) on Monday reported 10.78% jump in standalone net profit at Rs 872.13 crore for the fourth quarter ended March 31, 2013-14 fiscal. Net sales climbed to Rs 6,935.82 crore in Q4, 2013-14, compared with Rs 6,367.14 crore a year earlier. The company's Board of Directors has declared a final dividend of Rs 7.50 per equity share of face value of Re 1 each for the fiscal year ending March 2014. — PTI

MFs lost 33 lakh investor accounts in FY'14
New Delhi: Mutual Funds lost about 33 lakh investors, measured in terms of individual accounts or folios, in the last financial year, 2013-14, primarily on account of volatility in equity market. Out of total investor accounts with 44 fund houses, the number of folios fell to around 3.95 crore at the end of 2013-14, from 4.28 crore n the last fiscal (2012-13). — PTI