Tag Archives: Says

Blackstone Group, Bain Capital Mulling Joint Yahoo Bid, says Report

There are media speculations that Blackstone Group and Bain Capital are mulling the option to buy Yahoo Inc for about $25 billion. However, there is no confirmation yet from any of the sides. It has also been said that the duo would be approaching Asian partners, including China’s Alibaba Group and Japan’s Softbank Corp, to make a bid for the same.

For long, the share of the company had been stable at $20 per share, and if this figures is quoted, then the worth of the deal is somewhat closer to $25 billion.

It has been known that Chinese e-commerce giant Alibaba has long been trying to buy back a 40% stake gained by Yahoo, but will it go for this bid is yet not known. The company which has been battling tough competition from Google Inc. and Facebook in growing Internet ad market has been going through rough patch off lately.

“Alibaba Group has not made a decision to be part of a whole company bid for Yahoo”, said Alibaba Group spokesman, John Spelich, when asked about the media reports.

It has been known that the company had been mooting on this option since the time the Internet Company booted out its CEO Carol Bartz. So far, none of the directors have come out to confirm on any such option, Tim Morse, Yahoo’s chief financial officer, has been handling the responsibilities of the CEO. There are possibilities that new CEO is roped in for the same position.

There are others like Silver Lake Partners, Providence Equity Partners and Kohlberg Kravis Roberts & Co who are trying to get hand on the stake of the company. While the news has certainly raised hopes of the investors, shares of the company moved up by 6% $16.72 in extended trading.

2G Scam: Bharti, Vodafone May Come Out Clean, Says Expert

It seems like the long-running mystery over the 2G spectrum scan is not going to unfold anytime soon. In the latest progression in 2G probe, the Central Bureau of Investigation (CBI) rummaged around Vodafone’s Indian unit and Bharti Airtel’s office on Saturday.

As per reports, the search was focused on soliciting details related to spectrum allocation to operators by the Government during 2001-02.

While expressing his deep astonishment over FIR registered by CBI against Bharti and Vodafone, HP Ranina, the Corporate Tax lawyer said that as per his expectations, both Bharti and Vodafone will come out clean against all the allegations placed by the CBI.

On the other hand, Ranina does not really believe that a noteworthy impact will be enforced on Bharti following the recently filed FIR, though Bharti Airtel experienced a brief down trip during early morning trade, recording a fall of nearly 3%.

Earlier on Saturday, the federal police of India carried out searches at Indian unit of Vodafone along with offices of Bharti Airtel, with the intent of finding details related to the allocation of 2G spectrum.

While briefing the status of the case, Dharini Mishra, a spokesperson for the Central Bureau of Investigation (CBI), said: “All our documents are in complete compliance with the governing laws and regulations. Vodafone India is completely co-operating with the officials and will provide them all the required details as part of their checks”.

As per officials, the searches were realtion with potential irregularities during the allotment of spectrum by the earlier government, Bharatiya Janata Party (BJP), which is now in opposition.

In response to the raid conducted by CBI on Mumbai and New Delhi offices of Vodafone and Bharti Airtel’s office in Gurgaon, a Spokesperson for Bharti Airtel said: “We would like to categorically state that the entire spectrum allotted to us from time to time has been strictly as per the stated government policy”.

Manufacturing Division Profit Seen Descending By 5.7% During Q2, Says CMIE

Centre for Monitoring Indian Economy (CMIE) has reviewed its estimation for net profit of the manufacturing segment during the September quarter downwards, mainly because of the poor show of petroleum products biz.

In its monthly appraisal, it stated, “We now expect net profit to fall by 5.7 per cent, against our earlier expectations of a 34.2 per cent rise. This is on account of a downward revision in the profit forecast of the petroleum products industry.”

But, CMIE anticipates the manufacturing division to continue its growth impetus by recording a 20.7% increase in net sales during the September quarter.

A steep reduction in profit of the petroleum products business and big losses to be incurred by the aviation business are likely to confine the development in business profit during the second quarterly period.

The report signalizes that exclusion of 5% import duty on crude during the month of June was likely to have a optimistic impact on the earnings of petroleum products business during the existing quarter.

“But, a sharp rise in crude prices in July prompted us to revise our forecast for crude prices upwards for the September quarter and for the full fiscal,” it said.

“We expect the rise in crude prices to offset the impact of duty removal. The industry is now expected to report a steep 56.7 per cent fall in net profit in the second quarter as against 33.1 per cent fall expected earlier,” CMIE added.

CMIE estimates net profit development of manufacturing division (apart from petroleum products) during the quarter almost unaltered at 32.5%.

New National Manufacturing Policy This Month, Says Administration

The administration stated that it is expected to come forward with a National Manufacturing Plan by the end of September 2011 that aspires to generate mega industrial zones crosswise the nation with top-notch infrastructure facilities.

Commerce and Industry Minister Anand Sharma said, “The note (for the policy) will go to the Cabinet within a week. I do not foresee any delay. Hopefully within this month, it will become a reality.”

The national manufacturing plan eyes to generate 100 million extra jobs and take the share of manufacturing to 25% of India’s gross domestic product by the year 2020 as against 15-16%.

The section adds more than 80% to India’s total industrial production.

The plan also aimed to relax labour and environment regulations and looked for tax sops for the projected National Manufacturing Investment Zones (NMIZs).

These proposed big enclaves could even consider SEZs.

On the determined $90 billion Delhi-Mumbai Industrial Corridor (DMIC), Mr. Sharma stated that seven novel investment areas would be established crosswise the six Indian states under the project.

These two measures would assist unlock the true prospective of manufacturing in the country.

He also stated that the initial gathering of a Joint Task Force of the administration and industry will take place on September 12.

The Joint Task Force was declared after the minister held talks with CII on July 13.

Steel Rates To Climb Further From Oct This Year, Says CMIE

As per CMIE report, domestic steel giants are likely to increase rates further during the month of October on account of a expected upswing in manufacturing as well as infrastructure construction actions.

In its monthly assessment, the Centre for Monitoring Indian Economy (CMIE) stated, “We expect steel companies to hike prices in October-November once industrial and infrastructure construction activity gathers pace.”

During the existing financial year, CMIE anticipates finished steel rates to average 7% higher than during the last fiscal.

It should be mentioned that steel rates have already mounted around 15% during the first quarter of 2011-12.

But, it has sharply reduced its growth estimation for finished steel fabrication for 2011-12 to 9.5% as against 12%.

“The downward revision is due to the lower-than-expected growth in demand for steel in the first quarter and a shortfall of iron ore likely to be faced by the steel units in Karnataka,” it said.

Previously, Tata Steel Managing Director HM Nerurkar stated that domestic steel demand was expected to nurture at around 9% in the existing financial.

The steel giant anticipates steel rates to stay stable, with rates climbing or dropping by Rs 1,000 a tonne for some time.

The majority of firms have inked coking coal agreements for the existing quarterly period at $315 per tonne, which is 40% higher than the year-ago level.

“If the ban continues for long, the plants located in Karnataka will have to cut down production,” the CMIE said.

Inflation may touch double digit, says FM

Finance Minister Pranab Mukherjee has informed that there could be a double-digit inflation this March.

Mukherjee said this while taking part in the discussion on the General Budget for the Financial Year 2010-11 at the Rajya Sabha.

However, he believes that the current rise in food prices will go down very soon. The government is taking all the necessary steps to tackle the food inflation, said the minister.

But at the same time, he has also expressed his concerns over the possible double digit rate of inflation in the current month. Hence, it is going to be a hectic and troublesome financial year end for the Indian consumers.

In the month of February, the country’s annual rate of inflation had risen to 9.89 per cent. This figure was the highest in the last 16 months. In January, this was reported to be 8.56 per cent.

Rise in food price is undoubtedly pushing the rate up. On the contrary, the annual food inflation has also ended with as high as 17.81 per cent for the last week of February.

While India shows good growth rate figures, this inflation could be a major roadblock.