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Friday, December 21, 2007
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Market Commentary
Dec 20 2007 9:41AM
IFCI may see action
The IFCI deal is reportedly called off. As per reprots, the IFCI board has decided to call off the exercise to rope in a strategic partner through the private placement of 26% equity stake. The lone bidder that had qualified -- the consortium of Sterlite Industries and Morgan Stanley had asked for virtual control of the institution's management with three nominees and two independent directors. In addition, Sterlite also wanted a covenant under which the appointment of the chief executive officer needs its affirmative consent.

Deccan Aviation approved a plan to merge with billionaire Vijay Mallya-owned Kingfisher Airlines. After the absorption is complete, the company will trade publicly as Kingfisher Airlines, UD Group chairman Vijay Mallya said after a board meeting in Bangalore on Wednesday, 19 December 2007.

The Madras High Court has reportedly restrained TVS Motors from booking, distributing or selling the recently-launched Flame 125 cc motorcycle, following a patent infringement suit filed by Bajaj Auto. The case, which came up for hearing before Justice R Banumathi, has been adjourned till 3 January 2008.

PSL announced that it has been awarded Rs 125 crore pipeline order from DNP for coated line pipes and long-radius bends. The total 200 kilometre pipeline would link Duliajan to Numaligarh within the northeastern State of Assam.

Bedlinen maker Welspun India said it has bought a 76% stake in Pourtugal's Sorema Tapates e Cortinas de Banho SA (Sorema) for Rs 60 crore. With the deal, Welspun gets access to Sorema's facilities in Portugal, Mexico and the UK.

Nicholas Piramal India (NPIL) has entered into a joint venture with Arkray of Japan to market diagnostic products, mainly self-monitoring blood glucose systems in the Indian market. NPIL will transfer all its existing blood glucose monitoring business into the 49:51 joint venture for a consideration of Rs 4 crore.

Reliance Industries (RIL) is reprotedly in talks with Tata Chemicals (TCL) for sale of 2.2 million standard cubic metres per day (mscmd) of gas once the ongoing dispute with Reliance Natural Resources (RNRL) is resolved.

MRF will reprotedly set up a greenfield facility for two- and four-wheeler tyres to meet the growing demand in the country. MRFs Rs 500 crore facility will come up in Trichy, Tamil Nadu. The company is in talks with the state government for acquiring land, the report added.

Vale, the worlds largest producer of iron ore and pellets, is reportedly in talks with Tata Steel to set up a steel slab plant in Brazil. The $20 billion mining company, formerly known as CVRD, has three plants under construction in Brazil in partnership with ThyssenKrupp, Dongkuk and Baosteel. Vale has a minority stake in these projects.

NTPC is reprotedly in active talks with more than one foreign power generation company for acquiring assets in excess of $1 billion (Rs3,960 crore).

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