IBM's exit leaves the field open for engineering giant Larsen & Toubro, which owns 12 per cent in Satyam, Tech Mahindra, Cognizant Technology and private equity firm Wilbur L Ross. Satyam currently faces 13 class action suits by holders of the company's ADRs in the US. An investment banker close to the deal said IBM was a big name and could, therefore, be vulnerable to more lawsuits.
Nasdaq-listed Cognizant Technology Solutions, which did not complete the due diligence process for Satyam Computer Services, is understood to be back in the race to acquire the troubled software company.
Some banks made it clear that banks have to make commercial decisions. "There is a limit to which we can reduce the deposit rates because of competing investment products such as small savings instruments," said a bank chief. With banks unable to lower deposits rates, lending rates were unlikely to drop significantly. A banker is said to have talked about the fact that companies that are unable to sustain themselves during the present downturn would face many risks.
"The situation is bad. Some people are leaving and some are being asked to leave. And more important, several positions are remaining vacant. The selected candidates for these posts are not coming," said an associate, as the employees are called. "There is talk now that the new company, whichever that is, will cut at least 10,000 jobs gradually. We are praying that this is unfounded," a senior associate said.
Prime Minister Manmohan Singh said India is in favour of sharing tax information and monitoring tax havens more closely.
The buzz refuses to die down even though other PE players, investment bankers and analysts say such an alliance is highly unlikely. Wilbur Ross, meanwhile, is understood to have completed the due diligence of the scam-tainted IT company. When contacted, a company official declined comment.
While a company spokesperson said Bharti would either dilute its stake or exit the venture, the fund house is trying to rope in a bank to strengthen its distribution network. In addition, an asset management venture is seen to have closer links with banks, which are looking to offer a wide range of financial products.
The bank, which had announced a similar cut in January, will see its mortgage prime rate fall to 13.75 per cent from April 1. In a statement, the bank said that the benefit will be available to all its existing customers on floating rate loans. A bank spokesperson said that, depending on loan tenure and amount as well as the customer's relationship with the bank, he could get a loan at up to 50 basis points lower than the benchmark rate.
Real estate majors, who had lined up projects in Punjab to woo non-resident Indians, have put on hold their plans indefinitely with most NRIs no longer keen to invest in these properties.
Industry estimates show that the business news channels generate about Rs 300 crore a year in advertising. However, with the economic slowdown, ad revenue is expected to drop by about 15-20 per cent this year.
The bidders had started sending teams from departments like human resources, finance and legal, who were holding discussions with their counterparts at Satyam, the sources added. The Satyam stock was up 4 per cent at Rs 42.20 on BSE. It had dropped a little over 10 per cent in the past month. "Between this week and next week, there will be several meetings between various bidders and company officials," confirmed Satyam's Hari Tallapalli.
The Satyam board said corporate governance, a clean record, management and organisational ability in operating a global company will be considered, apart from the financial bid and other technical criteria. The bidders will furnish an irrevocable and unconditional performance bank guarantee of Rs 100 crore to guarantee the deposit of funds required for the preferential allotment and the requisite escrow amounts for the public offer within four days of being selected.
The financial meltdown and heavy taxes on works of art imported or sold in India has caused many art galleries to shut down in recent times.
Bosch Ltd, the flagship company of Bosch Group, plans to open 230 multibrand Bosch Car Service (BCS) centres by 2010 across the country, taking the total number to 500.
The airline will be running the fight on a daily basis from the Rajasansi International Airport. The flight currently runs thrice a week. The proposed move is expected to provide a relief to perishable exporters and farmers of Punjab who were affected after Jet Airways and Singapore Airlines withdrew their services last year stating it was not feasible for them to continue anymore.
Board to meet investment advisors Goldman Sachs and Avendus today.
The supply of Tata Motors' much-awaited small car, the Nano, is going to be well below the demand for quite some months.
The newly appointed (by the government) board members, O P Vaish and Ved Jain, said the company and its lenders were expected to reach an agreement in this regard by March 25. The board met in Hyderabad under the chairmanship of Vaish and sought information on the state of the company and the various projects it was implementing and negotiating. Vice-Chairman B Teja Raju and Additional Director B Narasimha Rao were present.
The news of global IT giant IBM buying Sun Microsystems has been doing the rounds for years. So, despite the Wall Street Journal reporting that an approximately $6.5 billion buyout is imminent, analysts remain sceptical.
In the absence of buyers, projects have either slowed down or have been delayed. Punjab Colonisers and Builders Association finance secretary HS Lamba said people in Ludhiana are bottom fishing and awaiting further correction in prices. "Though prices of construction material like steel and cement have come down, builders are unable to reduce the price owing to the high land costs," Lamba said.
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