The Cabinet Committee on Economic Affairs (CCEA) on Thursday, 30 June 2011, granted conditional approval to Vedanta Resources' plan to buy British oil explorer Cairn Energy's Indian assets. CCEA approved the deal subject to the condition that Cairn has to equally and retroactively share royalty payments with ONGC on crude-oil production from an important block, reports suggest. Cairn Energy agreed last August to sell a majority stake in Cairn India to Vedanta. But the sale, one of the largest in India's energy sector, has been delayed due to a disagreement over royalty payments. Earlier this week, Cairn and Vedanta agreed to cut the price of the deal for 40% stake by more than $600 million.
Oil and Natural Gas Corporation (ONGC) may reportedly file a draft prospectus for a follow-on public offer (FPO) with the stock market regulator by 5 July 2011.
After Infosys and Wipro, India's income-tax department has reportedly initiated scrutiny on Tata Consultancy Services for claiming tax benefits for onshore services, also called 'body shopping'. Onshore services reportedly account to about 45% of TCS' $8-billion revenues.
Wipro, India's third-largest information technology (IT) services firm by sales, is now reportedly eligible to participate in various World Bank projects; a four-year ban on the company in 2007 has expired. However, according to reports, the company has to reapply to become a vendor of the bank, which will be decided based on the eligibility criteria and other norms. Earlier, the World Bank had slapped a four-year ban on Wipro from doing business with the group under its corporate procurement programme for providing improper benefits to the bank's staff.
The government is reportedly expected to approve a proposal to open up the multi-brand retail sector in India, allowing global chains to enter by March 2012. According to reports, there will be riders such as areas where multinationals can enter and state governments will decide whether foreign chains are welcome or not.
DLF will reportedly sell its shareholding in two IT special economic zones in Pune and Noida for Rs 1300 crore.
Tour operator Cox & Kings is reportedly scouting for acquisitions in English-speaking nations to expand its operations.
Global pharma giant Pfizer Inc has reportedly sued Aurobindo Pharma over the generic version of Lipitor. Aurobindo may opt for out-of-court settlement with Pfizer, which sued the Indian drugmaker on 27 June 2011, reports suggested. Lipitor, which is used to lower cholesterol, is one of the best selling medications in the American market with annual sales of approximately $7 billion.
Ackruti City has clarified that the company is primarily engaged in the business of execution and development of real estate projects which are highly capital intensive for which the company is requited to borrow funds from banks, financial institutions and other entities. The borrowing of funds and creation of security by way of mortgage are part of normal commercial business transactions of the real estate industry and the company, which is a part of the routine operations and does not require to be reported to the stock exchanges. The clarification came after some reports on Thursday, 30 June 2011, suggested that Ackruti City had raised Rs 300 crore from three lenders by mortgaging two fully built commercial buildings in suburban Mumbai.
Tecpro Systems has entered into an agreement with Advanced Conveyor Technologies (AC-Tek) of USA to exclusively co-operate on overland conveyor projects in India. Both the firms will collaborate on projects involving the design, supply and installation of an overland conveyor.
Reliance Broadcast Network has completed its final negotiations with Reliance BIG Entertainment (RBEPL), a group company and executed a business undertaking transfer agreement in connection with acquisition of BIG Productions a business undertaking/division of RBEPL. BIG Productions is engaged in the business of production of content for telecast on television. The company has acquired BIG Productions as a going concern on a slump sale basis effective from 1 April 2011.
3i Infotech has announced that its US subsidiary has completed the sale of US-based billing and payments unit in favour of Cerberus Capital Management
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