Srinivas Vadlamani, the CFO of the erstwhile beleaguered Satyam board, said the evaluation of Maytas was based on Sebi regulations. The valuation for the Maytas deal, he said, was done by Ernst & Young, while the title diligence was done by Luthra & Luthra.
Vadlamani never mentioned when this valuation was done leading to questions on the veracity of his statements.
However, E&Y denies these charges. "We would like to clarify that Ernst & Young was neither the advisor to the proposed Satyam transaction and nor were we engaged by Satyam Computer or any of its subsidiaries to conduct the valuation of Maytas Properties. We learnt of the proposed Satyam Maytas transaction after it was announced publicly," it clarified.
Tuesday, January 20, 2009
Binani Cement to invest Rs 900 cr on capacity expansion
Binani Cement Ltd plans to invest over Rs 900 crore in the next three
years in setting up greenfield plants both in domestic and overseas
locations to take its overall production capacity to 15 million
tonnes by 2011-12.
While the company has firmed up about Rs 800 crore investment for
setting up a new plant in Gujarat with an installed capacity of up to
2.5 million tonnes, it also plans to set up a unit in Mauritius with
a proposed capacity of two million tonnes.
"During Vibrant Gujarat Investor Summit, we are signing an MoU with
the state government to invest about Rs 800 crore to set up a plant
with an installed capacity of up to 2.5 million tonnes," Binani
Cement Managing Director Vinod Juneja told PTI.
The plant, which will be set up at Junagarh district in Gujarat, is
expected to be operational in the third quarter of 2011, he added.
years in setting up greenfield plants both in domestic and overseas
locations to take its overall production capacity to 15 million
tonnes by 2011-12.
While the company has firmed up about Rs 800 crore investment for
setting up a new plant in Gujarat with an installed capacity of up to
2.5 million tonnes, it also plans to set up a unit in Mauritius with
a proposed capacity of two million tonnes.
"During Vibrant Gujarat Investor Summit, we are signing an MoU with
the state government to invest about Rs 800 crore to set up a plant
with an installed capacity of up to 2.5 million tonnes," Binani
Cement Managing Director Vinod Juneja told PTI.
The plant, which will be set up at Junagarh district in Gujarat, is
expected to be operational in the third quarter of 2011, he added.
Positive Company Results - Updates::::::
Net profit of Aztecsoft rose 692.78% to Rs 7.69 crore in the quarter ended
December 2008 as against Rs 0.97 crore during the previous quarter ended December
2007. Sales rose 30.35% to Rs 72.88 crore in the quarter ended December 2008 as
against Rs 55.91 crore during the previous quarter ended December 2007..
Shakti Pumps (India) Ltd (Rs.66.95)
Net profit of Shakti Pumps India rose 51.82% to Rs 2.08 crore in the quarter ended
December 2008 as against Rs 1.37 crore during the previous quarter ended December
2007. Sales rose 22.67% to Rs 30.68 crore in the quarter ended December 2008 as
against Rs 25.01 crore during the previous quarter ended December 2007
Electrosteel Castings Ltd (Rs.15.55)
Net profit of Electrosteel Castings rose 168.37% to Rs 37.33 crore in the quarter
Net profit of Electrosteel Castings rose 168.37% to Rs 37.33 crore in the quarter
ended December 2008 as against Rs 13.91 crore during the previous quarter ended
December 2007. Sales rose 30.10% to Rs 421.84 crore in the quarter ended December
2008 as against Rs 324.25 crore during the previous quarter ended December 2007.
TCS bags multi-million dollar deal from Ducati
MUMBAI, INDIA: Tata Consultancy Services , today announced that it has won a multi year, multi million dollar deal from Italian auto major Ducati motor holding company.
As per the deal TCS will deliver its technology based services to Ducati that would improve customer responsiveness and business efficiency.
S Ramadorai, TCS' CEO and managing director, Gabriele Del Torchio, Ducati's CEO and president, along with N Chandrasekaran, TCS' COO made this announcement in Mumbai.
Under the partnership, TCS has signed a multi-million dollar, multi-year agreement with Ducati to deliver technology based services that will help to improve customer responsiveness and business efficiency. In the first assignment TCS has been awarded an ERP engagement for Ducati Motor Holding and its subsidiaries in Europe. While TCS has partnered KPMG Advisory Italy for this deal.
S Ramadorai, TCS' CEO and managing director said," Our partnership with Ducati is another example of the cutting edge technology services that TCS is providing to leaders in different sectors and industries. With TCS as its tech partner, Ducati's ability to respond to customers and react to the evolving business environment will increase and help them to effectively use TCS' talent and expertise to boost their presence globally."
Further he added, "Both the companies are iconic and has expertise in respectively fields. Now this new strategic partnership will add value to both brands and products."
Ducati entered the Indian market just about two months back.
"We are proud and hold high respect for TCS. It's important for company like us to remain outstanding and iconic in our field. So we need expertise of TCS to help us improve our products and efficiency," said Gabriele Del Torchio, Ducati's CEO and president.
On commenting about selecting TCS as Ducati's tech partner, Torchio said," Cost is one of the factors along with it the track record of TCS and its success in the field. Already Ferrari has partnered TCS and although we are small company our products are world renowned for its performance. And TCS can help to enhance our products further."
Earlier, Ducati had partnered several American IT companies to help in the technology front. However, the worth of the new deal and number of tech staffs involved in the project are not disclosed here.
N Chandrasekaran, TCS's COO called a strategic partnership between the two companies and said," Significance of this project is to provide technology enhancement and provide efficiency in the areas of Supply Chain management, initially with SAP platform and then to move further in other areas."
TCS will help Ducati in implementing SAP platform that will drive quantum improvement in supply chain management, in areas of forecasts, inventory levels and optimized production plans and overall reduced logistics costs.
As per the deal TCS will deliver its technology based services to Ducati that would improve customer responsiveness and business efficiency.
S Ramadorai, TCS' CEO and managing director, Gabriele Del Torchio, Ducati's CEO and president, along with N Chandrasekaran, TCS' COO made this announcement in Mumbai.
Under the partnership, TCS has signed a multi-million dollar, multi-year agreement with Ducati to deliver technology based services that will help to improve customer responsiveness and business efficiency. In the first assignment TCS has been awarded an ERP engagement for Ducati Motor Holding and its subsidiaries in Europe. While TCS has partnered KPMG Advisory Italy for this deal.
S Ramadorai, TCS' CEO and managing director said," Our partnership with Ducati is another example of the cutting edge technology services that TCS is providing to leaders in different sectors and industries. With TCS as its tech partner, Ducati's ability to respond to customers and react to the evolving business environment will increase and help them to effectively use TCS' talent and expertise to boost their presence globally."
Further he added, "Both the companies are iconic and has expertise in respectively fields. Now this new strategic partnership will add value to both brands and products."
Ducati entered the Indian market just about two months back.
"We are proud and hold high respect for TCS. It's important for company like us to remain outstanding and iconic in our field. So we need expertise of TCS to help us improve our products and efficiency," said Gabriele Del Torchio, Ducati's CEO and president.
On commenting about selecting TCS as Ducati's tech partner, Torchio said," Cost is one of the factors along with it the track record of TCS and its success in the field. Already Ferrari has partnered TCS and although we are small company our products are world renowned for its performance. And TCS can help to enhance our products further."
Earlier, Ducati had partnered several American IT companies to help in the technology front. However, the worth of the new deal and number of tech staffs involved in the project are not disclosed here.
N Chandrasekaran, TCS's COO called a strategic partnership between the two companies and said," Significance of this project is to provide technology enhancement and provide efficiency in the areas of Supply Chain management, initially with SAP platform and then to move further in other areas."
TCS will help Ducati in implementing SAP platform that will drive quantum improvement in supply chain management, in areas of forecasts, inventory levels and optimized production plans and overall reduced logistics costs.
Satyam in talks with Citi, BNP for funds
MUMBAI, INDIA: The new board of embattled Satyam Computer Services has asked Citigroup and BNP Paribas, the company's bankers, to help it with immediate funding needs, a top board member told the Economic Times newspaper.
"We talked to the existing bankers -- Citibank and BNP Paribas -- and requested them to understand the situation, provide additional funding and give them (Satyam) more time to repay loans," Deepak Parekh, a senior banker and a newly-appointed Satyam board member, was quoted as saying.
Satyam, India's No. 4 software services exporter, has been battling for survival since Ramalinga Raju resigned as chairman earlier this month, revealing profits had been falsified for years and that $1 billion of cash on the books did not exist.
A government-appointed board, which met on Saturday, said it was still looking for a new chief executive and chief financial officer for the outsourcing firm at the centre of India's biggest corporate scandal.
In a separate report, Indian Prime Minister Manmohan Singh was quoted as saying the Satyam scam was a risk to India's corporate image.
"It indicates how fraud and malfeasance in one company can inflict suffering on many and can also tarnish India's image more broadly," the Financial Express quoted Singh as saying at an awards function in Mumbai.
"The government is determined to unravel the full nature of of the fraud and to punish those involved under the due process."
Satyam founder Raju, his brother, who was the managing director of the company, and the former chief financial officer have been charged and are being held in a jail.
On Saturday, a Hyderabad court ordered the three to be moved into police custody for four days from Sunday for further questioning, V.S.K. Kaumudi, inspector general of police in Hyderabad, told Reuters.
"We talked to the existing bankers -- Citibank and BNP Paribas -- and requested them to understand the situation, provide additional funding and give them (Satyam) more time to repay loans," Deepak Parekh, a senior banker and a newly-appointed Satyam board member, was quoted as saying.
Satyam, India's No. 4 software services exporter, has been battling for survival since Ramalinga Raju resigned as chairman earlier this month, revealing profits had been falsified for years and that $1 billion of cash on the books did not exist.
A government-appointed board, which met on Saturday, said it was still looking for a new chief executive and chief financial officer for the outsourcing firm at the centre of India's biggest corporate scandal.
In a separate report, Indian Prime Minister Manmohan Singh was quoted as saying the Satyam scam was a risk to India's corporate image.
"It indicates how fraud and malfeasance in one company can inflict suffering on many and can also tarnish India's image more broadly," the Financial Express quoted Singh as saying at an awards function in Mumbai.
"The government is determined to unravel the full nature of of the fraud and to punish those involved under the due process."
Satyam founder Raju, his brother, who was the managing director of the company, and the former chief financial officer have been charged and are being held in a jail.
On Saturday, a Hyderabad court ordered the three to be moved into police custody for four days from Sunday for further questioning, V.S.K. Kaumudi, inspector general of police in Hyderabad, told Reuters.
Sunday, January 4, 2009
Gujarat Alkalies and Chemicals Ltd (GACL)
Gujarat Alkalies and Chemicals Ltd (GACL) and the second largest
global chemical giant, Dow Chemicals, have decided to �esynergise�f
their efforts in the state and are in the process of giving this
agreement a shape for long-lasting co-operation. The two companies
would set up a 50:50 joint venture for a proposed chemical plant at
Dahej in Gujarat or enter into a product sharing and marketing
agreement.
Projects And Expansions The Gujarat Government announced that it was
likely to divest this year its entire 40% holding in State-owned
Gujarat Alkalies and Chemicals Ltd (GACL). Among the potential
suitors reported to be interested in buying the State Government�Œs
40 per cent holding in GACL were the Reliance Group�Œs Indian
Petrochemicals Corporation (IPCL), the Aditya Birla group and Tata
Chemicals. Tata Chemicals Ltd, the country�Œs largest soda ash and
edible salt maker, announced that it planned to broaden its business
canvas by entering into the manufacture of bio-fuels and
distribution of fresh fruits and vegetables. The company planned to
set up its first bio-ethanol plant in Maharashtra at a cost of
INR400-500mn with a capacity of 30 kilolitres per day.
Industry Outlook The plastics industry is increasing at a rate of
14% per annum, and consumption is expected to be more than 12mn
tonnes per annum (tpa) by 2010. Further, according to India�fs Union
Minister for chemicals, fertiliser and steel, the demand for
fertiliser is forecast to rise to 35.9mn tonnes by 2010. As such,
the government plans to restart eight public sector fertiliser
plants in the next two years.
global chemical giant, Dow Chemicals, have decided to �esynergise�f
their efforts in the state and are in the process of giving this
agreement a shape for long-lasting co-operation. The two companies
would set up a 50:50 joint venture for a proposed chemical plant at
Dahej in Gujarat or enter into a product sharing and marketing
agreement.
Projects And Expansions The Gujarat Government announced that it was
likely to divest this year its entire 40% holding in State-owned
Gujarat Alkalies and Chemicals Ltd (GACL). Among the potential
suitors reported to be interested in buying the State Government�Œs
40 per cent holding in GACL were the Reliance Group�Œs Indian
Petrochemicals Corporation (IPCL), the Aditya Birla group and Tata
Chemicals. Tata Chemicals Ltd, the country�Œs largest soda ash and
edible salt maker, announced that it planned to broaden its business
canvas by entering into the manufacture of bio-fuels and
distribution of fresh fruits and vegetables. The company planned to
set up its first bio-ethanol plant in Maharashtra at a cost of
INR400-500mn with a capacity of 30 kilolitres per day.
Industry Outlook The plastics industry is increasing at a rate of
14% per annum, and consumption is expected to be more than 12mn
tonnes per annum (tpa) by 2010. Further, according to India�fs Union
Minister for chemicals, fertiliser and steel, the demand for
fertiliser is forecast to rise to 35.9mn tonnes by 2010. As such,
the government plans to restart eight public sector fertiliser
plants in the next two years.
Infosys Bags Five-Year, Multi-Million Dollar Deal From AstraZeneca
British drug maker AstraZeneca has awarded India's Infosys
Technologies Ltd. a five year, multi-million dollar contract for
back office work, the companies said Monday.
They did not specify the dollar value of the deal.
Under the agreement, Infosys will deliver application maintenance
services to AstraZeneca' s global operations in areas including
manufacturing, supply chain, finance, and human resources.
The deal comes as India's outsourcing companies struggle to cope
with the global meltdown. Wall Street firms have long dominated the
client lists of India's top outsourcers, who are now trying to
diversify revenue streams away from their troubled financial
services clients.
Technologies Ltd. a five year, multi-million dollar contract for
back office work, the companies said Monday.
They did not specify the dollar value of the deal.
Under the agreement, Infosys will deliver application maintenance
services to AstraZeneca' s global operations in areas including
manufacturing, supply chain, finance, and human resources.
The deal comes as India's outsourcing companies struggle to cope
with the global meltdown. Wall Street firms have long dominated the
client lists of India's top outsourcers, who are now trying to
diversify revenue streams away from their troubled financial
services clients.
Reliance Petroleum Ltd (News Update)
Reliance Petroleum on Thursday announced commissioning of its only-for-exports oil refinery in a Special Economic Zone at Jamnagar in Gujarat.
The commissioning of the 580,000 barrels per day (29 million tons a year) capacity refinery by RPL, a unit of Mukesh Ambani-run Reliance Industries, will make Jamnagar the biggest oil refining hub in the world.
The company further stated that with the completion of the refinery, Jamnagar has emerged as the ‘Refining Hub of the World’ with the largest refining complex with an aggregate refining capacity of 1.24 million bpd in any single location in the world.
RPL, in which the US energy major Chevron Corp hold five per cent stake, will produce petrol and diesel complaint to Euro-IV emission norms.
The commissioning of the 580,000 barrels per day (29 million tons a year) capacity refinery by RPL, a unit of Mukesh Ambani-run Reliance Industries, will make Jamnagar the biggest oil refining hub in the world.
The company further stated that with the completion of the refinery, Jamnagar has emerged as the ‘Refining Hub of the World’ with the largest refining complex with an aggregate refining capacity of 1.24 million bpd in any single location in the world.
RPL, in which the US energy major Chevron Corp hold five per cent stake, will produce petrol and diesel complaint to Euro-IV emission norms.
Will Australia Epic Reel In Tourism?
Not likely. The country could learn a thing or two from New Zealand, home of Lord of the Rings.
The Australian tourism industry has banked millions of dollars on Australia, Baz Luhrmann's new 165-minute movie epic, which stars Nicole Kidman as a haughty English dame seduced by the rugged Hugh Jackman amid the grandiose Australian landscape. Already, signs are not looking good. Several critics at home and abroad have panned the movie, and uninspiring viewing figures so far mean that Australia is unlikely to send tourists to the Outback in droves.
But over in neighboring New Zealand, tour operators are still flush from the phenomenal success of director Peter Jackson's Lord Of The Rings trilogy, which was filmed all over the country. The adventures of Frodo Baggins captivated the imagination of moviegoers between 2001 and 2003, and wannabe Hobbits have been seeking out Middle Earth ever since. It's doubtful that Australia, which is set in the 1940s and traces the history of a cattle station, will replicate this success.
The Australian tourism industry has banked millions of dollars on Australia, Baz Luhrmann's new 165-minute movie epic, which stars Nicole Kidman as a haughty English dame seduced by the rugged Hugh Jackman amid the grandiose Australian landscape. Already, signs are not looking good. Several critics at home and abroad have panned the movie, and uninspiring viewing figures so far mean that Australia is unlikely to send tourists to the Outback in droves.
But over in neighboring New Zealand, tour operators are still flush from the phenomenal success of director Peter Jackson's Lord Of The Rings trilogy, which was filmed all over the country. The adventures of Frodo Baggins captivated the imagination of moviegoers between 2001 and 2003, and wannabe Hobbits have been seeking out Middle Earth ever since. It's doubtful that Australia, which is set in the 1940s and traces the history of a cattle station, will replicate this success.
Reduce Bajaj Hind, target of Rs 66: Prabhudas Lilladher
Prabhudas Lilladher has recommended a reduce rating on Bajaj Hindusthan with a target of Rs 66 in its research report. "Over the last 2-3 years, Bajaj Hindustan (BHL) augmented its sugar capacity by 7,000 TCD to 96,000 TCD. BHL set up two new distilleries , each of 160 KLPD, totalling the capacity to 640 KLPD. Capacity of sugar plants of its subsidiaries have been augmented from 6,000 TCD to 40,000 TCD and new distillery was set up with capacity of 160 KLPD and surplus power of 15 MW. We expect 20.9% growth in topline in FY2008-09 and 13.2% in FY2009-10. We expect EPS of Rs 3.1 and 7.7 in FY2008-09 and FY2009-10 respectively, Reduce, target of Rs 66," says Prabhudas Lilladher's research report.
TATA Sasol JV against profit sharing in CTL projects
PTI reported that the TATA group and its South African partner Sasol have opposed giving part of the crude oil they plan to produce from coal to the government as profit share.
Strategic Energy Technology Systems Ltd, a JV of TATA Sons and Sasol, vying for the coal to liquid project has told the government that profit sharing would effectively be a new tax, which is not permissible under relevant Acts.
SETSL has, however, opposed the regime in the project saying that the Oilfield Regulation Act or the Petroleum and Natural Gas Rules do not apply if crude oil and gas produced from coal are synthetic and not naturally occurring hydrocarbon.
It said that "Therefore, if a new tax in the form of profit sharing on CTL products is to be allowed, this can be done only through a legislative measure with the approval of Parliament. This cannot be done through an executive order."
As per report, the India Government is considering replicating the production sharing regime in oil and gas in the ambitious project, which envisages producing crude oil up to 80,000 barrels per day. Instead of charging upfront payment or signature bonus for allocating natural resources, the Government gets a share of oil and gas produced called profit petroleum, which is biddable and can be taken in kind or cash.
Strategic Energy Technology Systems Ltd, a JV of TATA Sons and Sasol, vying for the coal to liquid project has told the government that profit sharing would effectively be a new tax, which is not permissible under relevant Acts.
SETSL has, however, opposed the regime in the project saying that the Oilfield Regulation Act or the Petroleum and Natural Gas Rules do not apply if crude oil and gas produced from coal are synthetic and not naturally occurring hydrocarbon.
It said that "Therefore, if a new tax in the form of profit sharing on CTL products is to be allowed, this can be done only through a legislative measure with the approval of Parliament. This cannot be done through an executive order."
As per report, the India Government is considering replicating the production sharing regime in oil and gas in the ambitious project, which envisages producing crude oil up to 80,000 barrels per day. Instead of charging upfront payment or signature bonus for allocating natural resources, the Government gets a share of oil and gas produced called profit petroleum, which is biddable and can be taken in kind or cash.
GlaxoSmithKline slips despite setback for rival
Pharmaceuticals group GlaxoSmithKline, which performed relatively well amidst last year's stock market chaos, has slipped back today despite a buy note and what could be good news on the competition front.
There are reports from India that rival Ranbaxy failed to launch generic copies of migraine treatment Imitrex in the US in December. According to analyst Savvas Neophytou at Panmure Gordon, that could benefit Glaxo well into the new year. In a buy note Panmure said:
"Indian generics manufacturer Ranbaxy [has reportedly failed] to obtain registration for its generic copy of Imitrex. The generic had been expected in December 2008 so given lack of registration for the generic at least one extra month of revenues unopposed was achieved in 2008. If the delay in regulatory approval relates to well known manufacturing issues for Ranbaxy then the benefit could continue until May 2009, which will be an unexpected bonus for [GlaxoSmithKline]. Each additional month of revenues represents around 1% of operating profits for the group.
"The reason for the delay is unknown but could be related to the [US regulator] FDA ban in September which stopped Ranbaxy from importing more than 30 generic drugs to the US for not meeting some manufacturing norms at two plants in India.
"[GlaxoSmithKline] stock is trading on P/Es of 11.5x for 2009 and 9.8x for 2010. Its earnings per share is below the sector average, but we expect the dividend yield of 5.3% to provide support and remain buyers. Overall in the sector we still prefer AstraZeneca which is trading at a 56% discount to GlaxoSmithKline but, given our positive stance on the sector in general, we also advocate buying GlaxoSmithKline at these levels."
So far the message is being ignored, however, and GlaxoSmithKline is down 29p at £12.55.
Overall though the market has made a fairly bright if quiet start to the new year. With Asian markets edging higher the FTSE 100 is currently 22.94 points ahead at 4457.11.
The heavyweight mining and banking sectors are among the main gainers, with Vedanta Resources up 38.5p to 650p and Rio Tinto rising 53p to £15.43.
HBOS is up 2.6p at 71.6p while Royal Bank of Scotland has climbed 1.7p to 51.1p.
Good sales figures from John Lewis immediately before and after Christmas has helped lift Next 15p to £10.96, with Marks & Spencer - tipped by Seymour Pierce recently to make a January profit warning - up 0.5p at 215.25p.
Lower down the market chocolate retailer Thorntons is down 8.5p at 91.5p on worries about seasonal trading.
There are reports from India that rival Ranbaxy failed to launch generic copies of migraine treatment Imitrex in the US in December. According to analyst Savvas Neophytou at Panmure Gordon, that could benefit Glaxo well into the new year. In a buy note Panmure said:
"Indian generics manufacturer Ranbaxy [has reportedly failed] to obtain registration for its generic copy of Imitrex. The generic had been expected in December 2008 so given lack of registration for the generic at least one extra month of revenues unopposed was achieved in 2008. If the delay in regulatory approval relates to well known manufacturing issues for Ranbaxy then the benefit could continue until May 2009, which will be an unexpected bonus for [GlaxoSmithKline]. Each additional month of revenues represents around 1% of operating profits for the group.
"The reason for the delay is unknown but could be related to the [US regulator] FDA ban in September which stopped Ranbaxy from importing more than 30 generic drugs to the US for not meeting some manufacturing norms at two plants in India.
"[GlaxoSmithKline] stock is trading on P/Es of 11.5x for 2009 and 9.8x for 2010. Its earnings per share is below the sector average, but we expect the dividend yield of 5.3% to provide support and remain buyers. Overall in the sector we still prefer AstraZeneca which is trading at a 56% discount to GlaxoSmithKline but, given our positive stance on the sector in general, we also advocate buying GlaxoSmithKline at these levels."
So far the message is being ignored, however, and GlaxoSmithKline is down 29p at £12.55.
Overall though the market has made a fairly bright if quiet start to the new year. With Asian markets edging higher the FTSE 100 is currently 22.94 points ahead at 4457.11.
The heavyweight mining and banking sectors are among the main gainers, with Vedanta Resources up 38.5p to 650p and Rio Tinto rising 53p to £15.43.
HBOS is up 2.6p at 71.6p while Royal Bank of Scotland has climbed 1.7p to 51.1p.
Good sales figures from John Lewis immediately before and after Christmas has helped lift Next 15p to £10.96, with Marks & Spencer - tipped by Seymour Pierce recently to make a January profit warning - up 0.5p at 215.25p.
Lower down the market chocolate retailer Thorntons is down 8.5p at 91.5p on worries about seasonal trading.
ONGC Intraday Buy Call
Stock market analysts have maintained ‘buy’ rating on ONGC stock with an intraday target of Rs 680.
According to analysts, interested traders can purchase the stock above Rs 665 with a strict stop loss of Rs 652. If the stock market remains on positive track, the stock pricing becomes more attractive, and reach above Rs 696.
Shares of the company, on Wednesday (Dec 31), closed at Rs 667.65 on the Bombay Stock Exchange (BSE). The total volume of shares traded at the BSE was 368580. Current EPS & P/E ratio stood at 84.77 and 8.02 respectively. The share price has seen a 52-week high of Rs 1356.70 and a low of Rs 538.10 on BSE.
The stock has great potential to rise on the back of healthy growth plans and well-built operating capabilities.
On Dec 31, ONGC Videsh (OVL), the overseas arm of ONGC, has finished Imperial Energy acquirement for GBP 1.3 billion (USD 1.9 billion) with around 96% of the London-listed firm’s stockholders consenting its offer of 12.50 pounds per share.
OVL wanted only 90% shareowners to sanction its contract that will result in delisting of Imperial, which has the majority of its energy assets in Russia.
It is also learnt that at the close of the offer period on Tuesday, approximately 96% shareholders tendered their shares and the complete acquisition and subsequent delisting may take 2-3 weeks.
On Dec 24, Samsung Engineering in association with Linde (Germany) has been awarded by ONGC Petro addition (OPaL) a new engineering, procurement, construction & commissioning order for a naptha and gas dual feed ethylene cracker division and related units plant worth approximately $1.43 billion (Samsung Engineering at USD 0.96 billion and Linde at USD 0.47 billion ).
For the financial year 2008-09, ONGC, on Dec 19, declared the interim dividend of 180% for.
This interim dividend is on an expanded post-bonus equity capital of Rs 21,390 million and is priced at Rs 18 per share on equity share of Rs 10 each.
During fiscal 2005-06, the company (ONGC) announced an interim dividend of 250% and aggregate dividend of 450% amounting to Rs 64,170 million.
ONGC, on Dec 13, signed up a memorandum of understanding (MoU) with Indian Oil Corporation (IOC) for mutual co-operation in the fields of oil and gas exploration, production, and marketing.
Other stocks from the same sector that looks good for short-term as well as long-term trading includes GAIL, Cairn India, and Reliance Natura.
According to analysts, interested traders can purchase the stock above Rs 665 with a strict stop loss of Rs 652. If the stock market remains on positive track, the stock pricing becomes more attractive, and reach above Rs 696.
Shares of the company, on Wednesday (Dec 31), closed at Rs 667.65 on the Bombay Stock Exchange (BSE). The total volume of shares traded at the BSE was 368580. Current EPS & P/E ratio stood at 84.77 and 8.02 respectively. The share price has seen a 52-week high of Rs 1356.70 and a low of Rs 538.10 on BSE.
The stock has great potential to rise on the back of healthy growth plans and well-built operating capabilities.
On Dec 31, ONGC Videsh (OVL), the overseas arm of ONGC, has finished Imperial Energy acquirement for GBP 1.3 billion (USD 1.9 billion) with around 96% of the London-listed firm’s stockholders consenting its offer of 12.50 pounds per share.
OVL wanted only 90% shareowners to sanction its contract that will result in delisting of Imperial, which has the majority of its energy assets in Russia.
It is also learnt that at the close of the offer period on Tuesday, approximately 96% shareholders tendered their shares and the complete acquisition and subsequent delisting may take 2-3 weeks.
On Dec 24, Samsung Engineering in association with Linde (Germany) has been awarded by ONGC Petro addition (OPaL) a new engineering, procurement, construction & commissioning order for a naptha and gas dual feed ethylene cracker division and related units plant worth approximately $1.43 billion (Samsung Engineering at USD 0.96 billion and Linde at USD 0.47 billion ).
For the financial year 2008-09, ONGC, on Dec 19, declared the interim dividend of 180% for.
This interim dividend is on an expanded post-bonus equity capital of Rs 21,390 million and is priced at Rs 18 per share on equity share of Rs 10 each.
During fiscal 2005-06, the company (ONGC) announced an interim dividend of 250% and aggregate dividend of 450% amounting to Rs 64,170 million.
ONGC, on Dec 13, signed up a memorandum of understanding (MoU) with Indian Oil Corporation (IOC) for mutual co-operation in the fields of oil and gas exploration, production, and marketing.
Other stocks from the same sector that looks good for short-term as well as long-term trading includes GAIL, Cairn India, and Reliance Natura.
UBS sells stake in Bank of China - update
Financial services firm UBS AG (UBS: News ) Wednesday announced the sale of its investment of about 3.4 billion Bank of China Limited H-shares to institutional investors through a placement. The Zurich, Switzerland-based company purchased the stake in Bank of China in 2005 in preparation for Bank of China's Initial Public Offering, or IPO, to the international market.
UBS said it remains committed to its business relationship with Bank of China and to its businesses in China as a whole. The company will continue to develop its client franchise in China.
Similar to other banking and financial institutions, UBS has been hit hard by the credit market slump, incurring huge losses from sub-prime related mortgages. In October, the firm received a $59.2 billion aid package from the government. The company said in November that Chief Executive Officer Marcel Rohner, his 11 colleagues on the executive board and Chairman Peter Kurer would not receive bonus payments for 2008.
Last week, J.P. Morgan Chase & Co. (JPM: News ) announced a deal to acquire UBS Commodities Canada Ltd., the Canadian energy operations of UBS, as well as the firm's global agricultural business. Terms of the deal were not disclosed. The transaction is expected to be closed in the first quarter of 2009.
Media reported in early December that UBS is planning to cut its total workforce by a further 4,500, adding to its already announced about 9,000 job cuts, primarily in the investment banking business. The planned reduction will bring the company's total head count to below 80,000.
For the third quarter ended in September, UBS reported a profit compared with a loss last year, helped by a gain on own credit and a tax benefit. However, for the fourth quarter, the company expects the adverse conditions seen at the beginning of the quarter to continue to affect its fee-earning businesses. Wall Street analysts are of the view that UBS will incur a loss of $1.15 per share in the fourth quarter on revenues of $11.40 billion.
Meanwhile, UBS's peer, Citigroup, Inc. (C: News ) has completed the sale of its India-based captive business processing outsourcing business, Citigroup Global Services Ltd, to Tata Consultancy Services Ltd., a Tata Group company, for all cash consideration of $512 million. With the sale, Citi would be able to focus on its core financial services competencies.
In mid-December, Citi reached an agreement to sell its India-based Citi Technology Services Ltd. to another Indian company, Wipro Ltd. (WIT: News ), for an all cash consideration of approximately $127 million. Further, On December 16, Nikko Citi Holdings Inc., the principal holding company of Citi in Japan, announced a definitive deal to sell all shares of NikkoCiti Trust and Banking Corp. to Mitsubishi UFJ Trust and Banking Corp., or MUTB, for an all cash consideration of 25 billion yen. In December itself, Citi completed the sale of its German retail banking operation Citibank Privatkunden AG & Co. KGaA and certain of its affiliates, to Crédit Mutuel-CIC, a French banking group, for a cash consideration of US$6.6 billion.
UBS said it remains committed to its business relationship with Bank of China and to its businesses in China as a whole. The company will continue to develop its client franchise in China.
Similar to other banking and financial institutions, UBS has been hit hard by the credit market slump, incurring huge losses from sub-prime related mortgages. In October, the firm received a $59.2 billion aid package from the government. The company said in November that Chief Executive Officer Marcel Rohner, his 11 colleagues on the executive board and Chairman Peter Kurer would not receive bonus payments for 2008.
Last week, J.P. Morgan Chase & Co. (JPM: News ) announced a deal to acquire UBS Commodities Canada Ltd., the Canadian energy operations of UBS, as well as the firm's global agricultural business. Terms of the deal were not disclosed. The transaction is expected to be closed in the first quarter of 2009.
Media reported in early December that UBS is planning to cut its total workforce by a further 4,500, adding to its already announced about 9,000 job cuts, primarily in the investment banking business. The planned reduction will bring the company's total head count to below 80,000.
For the third quarter ended in September, UBS reported a profit compared with a loss last year, helped by a gain on own credit and a tax benefit. However, for the fourth quarter, the company expects the adverse conditions seen at the beginning of the quarter to continue to affect its fee-earning businesses. Wall Street analysts are of the view that UBS will incur a loss of $1.15 per share in the fourth quarter on revenues of $11.40 billion.
Meanwhile, UBS's peer, Citigroup, Inc. (C: News ) has completed the sale of its India-based captive business processing outsourcing business, Citigroup Global Services Ltd, to Tata Consultancy Services Ltd., a Tata Group company, for all cash consideration of $512 million. With the sale, Citi would be able to focus on its core financial services competencies.
In mid-December, Citi reached an agreement to sell its India-based Citi Technology Services Ltd. to another Indian company, Wipro Ltd. (WIT: News ), for an all cash consideration of approximately $127 million. Further, On December 16, Nikko Citi Holdings Inc., the principal holding company of Citi in Japan, announced a definitive deal to sell all shares of NikkoCiti Trust and Banking Corp. to Mitsubishi UFJ Trust and Banking Corp., or MUTB, for an all cash consideration of 25 billion yen. In December itself, Citi completed the sale of its German retail banking operation Citibank Privatkunden AG & Co. KGaA and certain of its affiliates, to Crédit Mutuel-CIC, a French banking group, for a cash consideration of US$6.6 billion.
Eventful 2008 for the Indian economy
The global economic downturn made 2008 a forgettable year, it had its usual share of ups and downs for India Inc
The global economic downturn made 2008 a forgettable year. It had its usual share of ups and downs for India Inc. Here’s a look at some of the events that shaped the year:
10 Jan: ‘Nano´ is born. The world’s cheapest car costing Rs100,000 unveiled at 9th Auto Expo in Delhi by Ratan Tata.
15 Jan: India’s largest IPO by Reliance Power to raise Rs11,000 crore opens. The issue closed on 18 January but was hammered in the market on debut. The company issued bonus shares to retain investor confidence.
8 Feb: Developer Emaar MGF Land Ltd calls off Rs7,000 crore IPO following poor investor response.
11 Mar: Real estate firm BPTP strikes India’s biggest ever land deal by shelling out Rs5,006 crore for a 95 acre commercial plot at Noida. As financial crisis deepens, the company is now facing problems paying the sum.
26 Mar: Tata Motors announces agreement with Ford Motor to acquire Jaguar Land Rover for $2.3 billion.
19 Apr: Cancer drug maker Dabur Pharma acquired by Singapore-based Fresenius Kabi for nearly Rs1,000 crore.
6 May: Telecom operator Bharti Airtel in talks with South Africa’s MTN Group for a deal that would give it presence in 21 African and Asian countries.
24 May: Bharti Airtel backs out from MTN deal.
28 May: Anil Ambani-run Reliance Communications begins discussions for reverse merger with MTN. Talks fail in July.
11 June: Japanese drug firm Daiichi Sankyo acquires control of Ranbaxy for over Rs22,000 crore - essays biggest Indian pharma industry deal.
18 June: India gets first commercially available hybrid car when Honda Siel launched its Civic Hybrid priced at Rs21.5 lakh.
25 June: Idea Cellular acquires 40.8% stake in a smaller rival Spice Communications for about Rs2700 crore.
27 June: Russia’s Severstal outbids Essar’s $1.2 billion offer for US-based Esmark.
11 July: Gurgaon-based WNS (Holdings) Ltd acquires UK insurance major Aviva’s BPO business Aviva Global Services (AGS) for around $228 million (Rs980 crore).
8 Aug: South Korean steel giant Posco gets approval from Supreme Court to go ahead with its Rs51,000 crore steel project in Orissa after getting environmental clearance.
11 Aug: Low-cost airline Spicejet secures $100 million investment from Goldman Sachs and WL Ross.
21 Aug: Apple’s iPhone makes India debut.
16 Sep: US Foods and Drug Administration bans 30 drugs manufactured by Ranbaxy Laboratories at its two facilities in Dewas and Poanta Sahib.
23 Sep: UAE telecom giant Emirates Telecommunications Corp (Etisalat) buys about 45% of Swan Telecom for up to $900 million.
26 Sep: HCL Technologies makes a cash offer of 650 pence a share for acquiring UK-based SAP consulting firm Axon Group.
3 Oct: Tata Motors pulls out of Singur, where it planned to set up the mother plant for Nano at an investment of Rs1,500 crore.
7 Oct: Tata Motors announces new Nano plant will come up at Sanand in Gujarat at an investment of Rs2000 crore.
Oct 8: TCS acquires 96.3% stake in Citigroup Global Services Ltd, the BPO outfit of the American bank, for $505 million.
13 Oct: Jet Airways and Kingfisher Airlines form operational alliance to cut costs.
15 Oct: Jet Airways lays off 1900 of its employees in various work profiles. Two days later, company Chairman Naresh Goyal orders reinstatement of all the sacked employees.
30 Oct: Real estate major Unitech sells 60% stake in telecom venture Unitech Wireless to Norway-based Telenor for Rs 6,120 crore.
4 Nov: Kolkata-based FMCG firm Emami completes acquisition of Zandu Pharmaceuticals.
12 Nov: Japan’s largest mobile operator by users, NTT DoCoMo picks up 26% stake in mobile and wireline operator Tata Teleservices (TTSL) for $2.7 billion.
21 Nov: Dabur India acquires 72.15% stake in women’s skin-care company Fem Care Pharma (FCPL) for Rs203.7 crore.
11 Dec: State-owned telecom operator MTNL launches third generation (3G) services.
16 Dec: India’s fourth largest IT firm Satyam Computer announces acquisition of Maytas Properties and Mytas Infra for $1.6 billion dollars.
17 Dec: Satyam calls off acquisition after angry shareholders response. Since then, four of the company’s independent directors have quit.
23 Dec: Country’s third-largest software services provider Wipro agrees to buy Citi Technology Services Ltd from Citigroup for about $127 million.
25 Dec: World Bank says Satyam barred from doing business with it for eight years; Reliance Petroleum commissions its 580,000 barrels per day refinery ar Jamnagar.
31 Dec: Stock market benchmark Sensex closes trading for the year down 69 points at 9,647.31. It had peaked to 21,206.77 points in January.
The global economic downturn made 2008 a forgettable year. It had its usual share of ups and downs for India Inc. Here’s a look at some of the events that shaped the year:
10 Jan: ‘Nano´ is born. The world’s cheapest car costing Rs100,000 unveiled at 9th Auto Expo in Delhi by Ratan Tata.
15 Jan: India’s largest IPO by Reliance Power to raise Rs11,000 crore opens. The issue closed on 18 January but was hammered in the market on debut. The company issued bonus shares to retain investor confidence.
8 Feb: Developer Emaar MGF Land Ltd calls off Rs7,000 crore IPO following poor investor response.
11 Mar: Real estate firm BPTP strikes India’s biggest ever land deal by shelling out Rs5,006 crore for a 95 acre commercial plot at Noida. As financial crisis deepens, the company is now facing problems paying the sum.
26 Mar: Tata Motors announces agreement with Ford Motor to acquire Jaguar Land Rover for $2.3 billion.
19 Apr: Cancer drug maker Dabur Pharma acquired by Singapore-based Fresenius Kabi for nearly Rs1,000 crore.
6 May: Telecom operator Bharti Airtel in talks with South Africa’s MTN Group for a deal that would give it presence in 21 African and Asian countries.
24 May: Bharti Airtel backs out from MTN deal.
28 May: Anil Ambani-run Reliance Communications begins discussions for reverse merger with MTN. Talks fail in July.
11 June: Japanese drug firm Daiichi Sankyo acquires control of Ranbaxy for over Rs22,000 crore - essays biggest Indian pharma industry deal.
18 June: India gets first commercially available hybrid car when Honda Siel launched its Civic Hybrid priced at Rs21.5 lakh.
25 June: Idea Cellular acquires 40.8% stake in a smaller rival Spice Communications for about Rs2700 crore.
27 June: Russia’s Severstal outbids Essar’s $1.2 billion offer for US-based Esmark.
11 July: Gurgaon-based WNS (Holdings) Ltd acquires UK insurance major Aviva’s BPO business Aviva Global Services (AGS) for around $228 million (Rs980 crore).
8 Aug: South Korean steel giant Posco gets approval from Supreme Court to go ahead with its Rs51,000 crore steel project in Orissa after getting environmental clearance.
11 Aug: Low-cost airline Spicejet secures $100 million investment from Goldman Sachs and WL Ross.
21 Aug: Apple’s iPhone makes India debut.
16 Sep: US Foods and Drug Administration bans 30 drugs manufactured by Ranbaxy Laboratories at its two facilities in Dewas and Poanta Sahib.
23 Sep: UAE telecom giant Emirates Telecommunications Corp (Etisalat) buys about 45% of Swan Telecom for up to $900 million.
26 Sep: HCL Technologies makes a cash offer of 650 pence a share for acquiring UK-based SAP consulting firm Axon Group.
3 Oct: Tata Motors pulls out of Singur, where it planned to set up the mother plant for Nano at an investment of Rs1,500 crore.
7 Oct: Tata Motors announces new Nano plant will come up at Sanand in Gujarat at an investment of Rs2000 crore.
Oct 8: TCS acquires 96.3% stake in Citigroup Global Services Ltd, the BPO outfit of the American bank, for $505 million.
13 Oct: Jet Airways and Kingfisher Airlines form operational alliance to cut costs.
15 Oct: Jet Airways lays off 1900 of its employees in various work profiles. Two days later, company Chairman Naresh Goyal orders reinstatement of all the sacked employees.
30 Oct: Real estate major Unitech sells 60% stake in telecom venture Unitech Wireless to Norway-based Telenor for Rs 6,120 crore.
4 Nov: Kolkata-based FMCG firm Emami completes acquisition of Zandu Pharmaceuticals.
12 Nov: Japan’s largest mobile operator by users, NTT DoCoMo picks up 26% stake in mobile and wireline operator Tata Teleservices (TTSL) for $2.7 billion.
21 Nov: Dabur India acquires 72.15% stake in women’s skin-care company Fem Care Pharma (FCPL) for Rs203.7 crore.
11 Dec: State-owned telecom operator MTNL launches third generation (3G) services.
16 Dec: India’s fourth largest IT firm Satyam Computer announces acquisition of Maytas Properties and Mytas Infra for $1.6 billion dollars.
17 Dec: Satyam calls off acquisition after angry shareholders response. Since then, four of the company’s independent directors have quit.
23 Dec: Country’s third-largest software services provider Wipro agrees to buy Citi Technology Services Ltd from Citigroup for about $127 million.
25 Dec: World Bank says Satyam barred from doing business with it for eight years; Reliance Petroleum commissions its 580,000 barrels per day refinery ar Jamnagar.
31 Dec: Stock market benchmark Sensex closes trading for the year down 69 points at 9,647.31. It had peaked to 21,206.77 points in January.
Business review of 2008
Households received a New Year blow to their finances after Centrica increased gas and electricity tariffs by an average 15 per cent.
Last orders loomed for Foster's brewer Scottish & Newcastle after it agreed a £7.8bn takeover offer from rivals Heineken and Carlsberg; the price of oil set a new record above 100 US dollars a barrel.
In the north west, Altrincham recruitment firm NES reported a 28 per cent rise in annual profits; ACP Capital shelved plans to buy Manchester-based lender Davenham Group; the £12m Glassworks scheme in Manchester's Northern Quarter collapsed when its development companies went into administration; Jelf Group bought Manchester-based insurance group Manson for up to £18.7m.
February
Northern Rock was nationalised after Chancellor Alistair Darling called time on private sector attempts to rescue the ailing lender.
Other banks were also suffering, although Barclays and Royal Bank of Scotland shrugged off further credit crunch write-downs to post profits of £7.08bn and £10bn respectively for 2007. Barclays warned of "at least" another six months of turmoil, but RBS chief Sir Fred Goodwin said the company had begun the year with "real momentum" after its acquisition of ABN Amro. The UK's five biggest banks chalked up a mammoth £39bn in profits for 2007. Oil major BP said it would axe nearly one in 10 of its UK staff under cost-cutting plans.
March
City watchdogs were forced to step in and warn over suspicious trading tactics after speculation swirled around Britain's biggest lender, Halifax Bank of Scotland. HBOS shares dropped as much as 20 per cent at one stage, as talk of further credit crunch pain swept the City, despite strong denials from the firm. Thousands of jobs and pensions were safeguarded when ownership of Jaguar and Land Rover passed from Ford to Tata Motors of India.
Around 69,000 staff at John Lewis and Waitrose were offered bonuses worth a fifth of their salary after annual profits rose to £379.8m.
In the north west, Stobart Group bought Cheshire haulier James Irlam & Sons for £59.9m; losses of £42.1m at Wilmslow air conditioning business Worthington Nicholls were after `a complete failure of corporate governance at all levels'; the M.E.N. revealed Manchester Airport Group's interest in buying Gatwick Airport.
Fitted furniture firm Neville Johnson, of Trafford Park, was sold for £12.5m by Endless to Key Capital Partners.
April
Halifax Bank of Scotland called on shareholders for £4bn to strengthen its balance sheet. HBOS said the rights issue, which followed Royal Bank of Scotland's record European cash call of £12bn, was needed to "consolidate its competitive position". Elsewhere in the sector, the world's largest bank, Citigroup, announced plans to cut 9,000 jobs but boosted shares with lower than expected losses.
Chocolate giant Mars confirmed a deal to buy Juicy Fruit and Extra chewing gum group Wrigley for around £11.6bn. Bank of England governor Mervyn King attacked the City for its excessive pay packages and heavy risk taking.
Wigan-based JJB Sports announced its intention to shut 72 underperforming stores with the loss of 800 jobs by the end of the month.
The Co-operative revealed that it was interested in buying supermarket chain Somerfield.
A flurry of deals ahead of capital gains tax changes saw a £12.5m management buyout of Denton's KDC Contractors, and the sale of Richardson Projects, a Rochdale-based building business, for up to £40.5m to Rok; Children's nursery chain Kids unlimited underwent a secondary buyout, valuing the business at £45m; duvets to curtains company Character World saw RJD Partners take a sizeable stake, and Dawn Gibbins sold Cheshire-based Flowcrete to American firm RPM International for more than £30m; Bolton-based retail chain Cash Generator was sold by founder and chairman Brian Lewis to his management team and New World Corporate Finance, of London.
May
Business class-only airline Silverjet called in administrators after a vital cash injection from a Middle Eastern investor failed to materialise. Marks & Spencer's annual profits topped £1bn for the first time in a decade, but staff failed to cash in after the retail giant slashed bonus payouts. Sainsbury's crowned a three-year turnaround plan with annual profits of £488m, up 28 per cent. Buy-to-let specialist Bradford & Bingley announced a £300m rights issue just weeks after it told the City it had no need for a bail-out. The head of Northern Rock said it was "in the commercial interests" of the publicly-owned lender to continue sponsoring Premier League team Newcastle United.
In the north west, Bodycote International announced plans to sell its testing division; Dragons' Den star Theo Paphitis backed the Many Hands Campaign to raise £250,000 for the New Children's Hospital Appeal in Manchester; Blue Oar, a London broker, called off its bidding for Manchester stockbroking business WH Ireland.
June
Mervyn King warned that "innocent bystanders" could be at risk if banks failed to curb excessive risk-taking.
Bradford & Bingley angered shareholders by agreeing to sell a 23 per cent stake to private equity firm Texas Pacific Group and carrying out a deep-discounted rights issue.
Norwich Union owner Aviva warned of up to 1,800 redundancies; Woolworths caused a surprise by ending chief executive Trevor Bish-Jones' six-year run in one of the high street's toughest jobs; Primark said it had stopped buying clothes from three Indian suppliers after it emerged child labour was being used to finish the goods.
In the north west, Urban Splash founder Tom Bloxham told the M.E.N. that he remained bullish despite housebuilders facing the worst slump for a generation, although the firm would later slash its workforce; the Serious Fraud Office began a probe into events at Worthington Nicholls; showers and tiles business Norcros said it was cutting more than 200 jobs across the UK and South Africa as the credit crunch began to bite.
July
British Gas parent Centrica fuelled anger over record price hikes by announcing a £144.6m dividend payout for its shareholders.
The 16 per cent jump in the dividend came as the group posted better than expected half-year profits of £992m.
Spanish banking giant Santander made a thrust into the UK market by agreeing a £1.26bn deal to buy Alliance & Leicester.
Sir Stuart Rose received a broadside from shareholders over his controversial dual role at the helm of Marks & Spencer. His re-election as executive chairman failed to win the support of investors representing 22 per cent of the group's shares voting at the firm's annual meeting. His role - combining chairman and chief executive - raised the ire of many investors as it breached corporate best practice. The vote was another blow to Sir Stuart after falling sales prompted a shock profits warning from M&S.
In the north west, CCTV to air conditioning group ID Support Services was sold to private equity outfit Penta Capital Partners in a deal which valued it at £25m.
Developer West Properties revealed plans to splash out £250m on five hotels in Manchester; the Co-op hailed its return to the big league of food retailing after agreeing a £1.6bn takeover of rival Somerfield; ATP International Group, a travel management company which sponsors the Belle Vue Aces, was sold in a £73m deal to Barclays Private Equity; rebel shareholders tried, but ultimately failed, to oust Lee Birkett, co-founder and chief executive of Cheshire-based financial services firm Prestbury Holdings, and his mother, its finance director.
August
The UK's nuclear power strategy was mired in uncertainty after a takeover of generator British Energy collapsed at the eleventh hour. The £12bn swoop by state-owned EDF of France had been seen as a key step towards the proposed construction of new nuclear power plants in the UK. But EDF's hopes of unveiling a takeover deal were dashed when two of British Energy's biggest City shareholders reportedly called for a higher price tag to reflect rising energy prices.
Royal Bank of Scotland boss Sir Fred Goodwin insisted that he remained the best man for the job despite unveiling the group's first loss in 40 years as a public company. The NatWest and Direct Line owner reported pre-tax losses of £691m for the first half of this year thanks mainly to a £5.9bn credit crunch hit. It was the second biggest banking loss in UK corporate history, and compared with £5bn of profits the bank made last year. In the north west, the new boss of Holland's Pies, Neil Court-Johnston, pledged to revive the iconic company by going back to basics; Vimto maker Nichols' profits in the first half of its centenary year jumped 15.5 per cent to £3.2m; Crown Paints, based in Darwen, was sold by Akzo Nobel to Endless for £70m;
Bodycote sold its testing division for £417m to US private equity firm Clayton Dubilier and Rice; the M.E.N. revealed plans to take Bolton healthcare IT group Ascribe private.
September
The dramatic collapse of US investment bank Lehman Brothers sent stock markets into freefall. There were fears for thousands of UK jobs after Lloyds TSB agreed the UK's biggest bank rescue deal with the ailing Halifax Bank of Scotland. The government-approved £12bn takeover would create a "mega-bank".
Bradford & Bingley was another casualty after the government seized control of the mortgage lender. B&B's fall into public ownership put £50bn - including £41bn in mortgage loans - on the public balance sheet. The company's savings business and branches, with 2.7m customers and £20bn in deposits, were sold to Santander for £612m.
Tens of thousands of holidaymakers were left stranded after the UK's third largest tour operator went into administration and grounded all flights. XL Leisure Group declared bankruptcy.
Manchester City was sold for £200m to Abu Dhabi investors in a deal which stunned the soccer world; the Parliamentary and Health Service Ombudsman announced plans to open a new office in Piccadilly and create 150 jobs; the Cheshire and Derbyshire building societies announced mergers with the Nationwide after turning to the mortgage giant for shelter from financial difficulties; JJB Sports revealed it had lost £9.7m in the first half of the year, and worse was to follow as its shares tumbled and an insurer refused to cover suppliers; water additives business BWA, of Stretford, was sold to United International Bank of Bahrain for £100m.
October
The government said it would throw a taxpayer lifeline to three of the UK's biggest banks. The stakes in Royal Bank of Scotland, Lloyds TSB and Halifax Bank of Scotland came with strings attached, including curbs on management bonuses.
Savers found themselves exposed to the problems in the Icelandic banking sector when their accounts in internet bank Icesave were frozen as its parent, Landsbanki, was nationalised by the Icelandic government. Around 230,000 UK savers held money with the bank, alongside 108 councils and other public bodies which had a total of more than £1bn invested with it.
Northern Rock denied claims that it took an "aggressive" attitude towards repossessions, after research showed the nationalised lender was more than twice as likely to repossess homes as other lenders.
In the north west, NWF Group sold its garden centres for £14.5m; Co-op Financial Services' plans to merge with Britannia Building Society were confirmed.
And the Co-op's takeover of Somerfield was given the green light by competition watchdogs.
November
Top UK firms joined the growing list of companies cutting jobs. Aerospace giant Rolls-Royce, defence firm BAE Systems and Anglo-Swedish drugmaker AstraZeneca were among firms to unveil cuts.
Taxpayers were landed with a 57.9 per cent stake in Royal Bank of Scotland after investors snubbed its £15bn share offer. High street lenders were told by Alistair Darling to lower mortgage rates "as quickly as possible" after the Bank of England slashed its base rate by 1.5 per cent to three per cent. Darling slashed VAT in a £20bn cash boost.
PZ Cussons, Nichols, NCC Group, Advanced Medical Solutions, ukfast.net and gettingpersonal.co.uk won M.E.N. Business of the Year awards; the government provoked anger by postponing a change of chairman at the Northwest Regional Development Agency to ensure continuity during the economic crisis. Critics said the process had been rendered a `farce'.
December
The death knell for Woolworths was sounded when administrators confirmed all its stores would close by January 5, at the likely cost of 27,000 jobs.
Other high street names to hit the buffers included MFI, Xavvi, Whittard of Chelsea, The Officers Club, Adams and USC.
UK banks lined up to reveal billions in potential losses as a result of alleged fraud by Wall Street investment manager Bernard Madoff.
Manchester-based London Scottish Bank fell into administration, and Bolton-based kitchen maker Bernsteing Group Holdings was another casualty. The Brookside Garden Centre at Poynton was sold out of administration, safeguarding scores of jobs.
Last orders loomed for Foster's brewer Scottish & Newcastle after it agreed a £7.8bn takeover offer from rivals Heineken and Carlsberg; the price of oil set a new record above 100 US dollars a barrel.
In the north west, Altrincham recruitment firm NES reported a 28 per cent rise in annual profits; ACP Capital shelved plans to buy Manchester-based lender Davenham Group; the £12m Glassworks scheme in Manchester's Northern Quarter collapsed when its development companies went into administration; Jelf Group bought Manchester-based insurance group Manson for up to £18.7m.
February
Northern Rock was nationalised after Chancellor Alistair Darling called time on private sector attempts to rescue the ailing lender.
Other banks were also suffering, although Barclays and Royal Bank of Scotland shrugged off further credit crunch write-downs to post profits of £7.08bn and £10bn respectively for 2007. Barclays warned of "at least" another six months of turmoil, but RBS chief Sir Fred Goodwin said the company had begun the year with "real momentum" after its acquisition of ABN Amro. The UK's five biggest banks chalked up a mammoth £39bn in profits for 2007. Oil major BP said it would axe nearly one in 10 of its UK staff under cost-cutting plans.
March
City watchdogs were forced to step in and warn over suspicious trading tactics after speculation swirled around Britain's biggest lender, Halifax Bank of Scotland. HBOS shares dropped as much as 20 per cent at one stage, as talk of further credit crunch pain swept the City, despite strong denials from the firm. Thousands of jobs and pensions were safeguarded when ownership of Jaguar and Land Rover passed from Ford to Tata Motors of India.
Around 69,000 staff at John Lewis and Waitrose were offered bonuses worth a fifth of their salary after annual profits rose to £379.8m.
In the north west, Stobart Group bought Cheshire haulier James Irlam & Sons for £59.9m; losses of £42.1m at Wilmslow air conditioning business Worthington Nicholls were after `a complete failure of corporate governance at all levels'; the M.E.N. revealed Manchester Airport Group's interest in buying Gatwick Airport.
Fitted furniture firm Neville Johnson, of Trafford Park, was sold for £12.5m by Endless to Key Capital Partners.
April
Halifax Bank of Scotland called on shareholders for £4bn to strengthen its balance sheet. HBOS said the rights issue, which followed Royal Bank of Scotland's record European cash call of £12bn, was needed to "consolidate its competitive position". Elsewhere in the sector, the world's largest bank, Citigroup, announced plans to cut 9,000 jobs but boosted shares with lower than expected losses.
Chocolate giant Mars confirmed a deal to buy Juicy Fruit and Extra chewing gum group Wrigley for around £11.6bn. Bank of England governor Mervyn King attacked the City for its excessive pay packages and heavy risk taking.
Wigan-based JJB Sports announced its intention to shut 72 underperforming stores with the loss of 800 jobs by the end of the month.
The Co-operative revealed that it was interested in buying supermarket chain Somerfield.
A flurry of deals ahead of capital gains tax changes saw a £12.5m management buyout of Denton's KDC Contractors, and the sale of Richardson Projects, a Rochdale-based building business, for up to £40.5m to Rok; Children's nursery chain Kids unlimited underwent a secondary buyout, valuing the business at £45m; duvets to curtains company Character World saw RJD Partners take a sizeable stake, and Dawn Gibbins sold Cheshire-based Flowcrete to American firm RPM International for more than £30m; Bolton-based retail chain Cash Generator was sold by founder and chairman Brian Lewis to his management team and New World Corporate Finance, of London.
May
Business class-only airline Silverjet called in administrators after a vital cash injection from a Middle Eastern investor failed to materialise. Marks & Spencer's annual profits topped £1bn for the first time in a decade, but staff failed to cash in after the retail giant slashed bonus payouts. Sainsbury's crowned a three-year turnaround plan with annual profits of £488m, up 28 per cent. Buy-to-let specialist Bradford & Bingley announced a £300m rights issue just weeks after it told the City it had no need for a bail-out. The head of Northern Rock said it was "in the commercial interests" of the publicly-owned lender to continue sponsoring Premier League team Newcastle United.
In the north west, Bodycote International announced plans to sell its testing division; Dragons' Den star Theo Paphitis backed the Many Hands Campaign to raise £250,000 for the New Children's Hospital Appeal in Manchester; Blue Oar, a London broker, called off its bidding for Manchester stockbroking business WH Ireland.
June
Mervyn King warned that "innocent bystanders" could be at risk if banks failed to curb excessive risk-taking.
Bradford & Bingley angered shareholders by agreeing to sell a 23 per cent stake to private equity firm Texas Pacific Group and carrying out a deep-discounted rights issue.
Norwich Union owner Aviva warned of up to 1,800 redundancies; Woolworths caused a surprise by ending chief executive Trevor Bish-Jones' six-year run in one of the high street's toughest jobs; Primark said it had stopped buying clothes from three Indian suppliers after it emerged child labour was being used to finish the goods.
In the north west, Urban Splash founder Tom Bloxham told the M.E.N. that he remained bullish despite housebuilders facing the worst slump for a generation, although the firm would later slash its workforce; the Serious Fraud Office began a probe into events at Worthington Nicholls; showers and tiles business Norcros said it was cutting more than 200 jobs across the UK and South Africa as the credit crunch began to bite.
July
British Gas parent Centrica fuelled anger over record price hikes by announcing a £144.6m dividend payout for its shareholders.
The 16 per cent jump in the dividend came as the group posted better than expected half-year profits of £992m.
Spanish banking giant Santander made a thrust into the UK market by agreeing a £1.26bn deal to buy Alliance & Leicester.
Sir Stuart Rose received a broadside from shareholders over his controversial dual role at the helm of Marks & Spencer. His re-election as executive chairman failed to win the support of investors representing 22 per cent of the group's shares voting at the firm's annual meeting. His role - combining chairman and chief executive - raised the ire of many investors as it breached corporate best practice. The vote was another blow to Sir Stuart after falling sales prompted a shock profits warning from M&S.
In the north west, CCTV to air conditioning group ID Support Services was sold to private equity outfit Penta Capital Partners in a deal which valued it at £25m.
Developer West Properties revealed plans to splash out £250m on five hotels in Manchester; the Co-op hailed its return to the big league of food retailing after agreeing a £1.6bn takeover of rival Somerfield; ATP International Group, a travel management company which sponsors the Belle Vue Aces, was sold in a £73m deal to Barclays Private Equity; rebel shareholders tried, but ultimately failed, to oust Lee Birkett, co-founder and chief executive of Cheshire-based financial services firm Prestbury Holdings, and his mother, its finance director.
August
The UK's nuclear power strategy was mired in uncertainty after a takeover of generator British Energy collapsed at the eleventh hour. The £12bn swoop by state-owned EDF of France had been seen as a key step towards the proposed construction of new nuclear power plants in the UK. But EDF's hopes of unveiling a takeover deal were dashed when two of British Energy's biggest City shareholders reportedly called for a higher price tag to reflect rising energy prices.
Royal Bank of Scotland boss Sir Fred Goodwin insisted that he remained the best man for the job despite unveiling the group's first loss in 40 years as a public company. The NatWest and Direct Line owner reported pre-tax losses of £691m for the first half of this year thanks mainly to a £5.9bn credit crunch hit. It was the second biggest banking loss in UK corporate history, and compared with £5bn of profits the bank made last year. In the north west, the new boss of Holland's Pies, Neil Court-Johnston, pledged to revive the iconic company by going back to basics; Vimto maker Nichols' profits in the first half of its centenary year jumped 15.5 per cent to £3.2m; Crown Paints, based in Darwen, was sold by Akzo Nobel to Endless for £70m;
Bodycote sold its testing division for £417m to US private equity firm Clayton Dubilier and Rice; the M.E.N. revealed plans to take Bolton healthcare IT group Ascribe private.
September
The dramatic collapse of US investment bank Lehman Brothers sent stock markets into freefall. There were fears for thousands of UK jobs after Lloyds TSB agreed the UK's biggest bank rescue deal with the ailing Halifax Bank of Scotland. The government-approved £12bn takeover would create a "mega-bank".
Bradford & Bingley was another casualty after the government seized control of the mortgage lender. B&B's fall into public ownership put £50bn - including £41bn in mortgage loans - on the public balance sheet. The company's savings business and branches, with 2.7m customers and £20bn in deposits, were sold to Santander for £612m.
Tens of thousands of holidaymakers were left stranded after the UK's third largest tour operator went into administration and grounded all flights. XL Leisure Group declared bankruptcy.
Manchester City was sold for £200m to Abu Dhabi investors in a deal which stunned the soccer world; the Parliamentary and Health Service Ombudsman announced plans to open a new office in Piccadilly and create 150 jobs; the Cheshire and Derbyshire building societies announced mergers with the Nationwide after turning to the mortgage giant for shelter from financial difficulties; JJB Sports revealed it had lost £9.7m in the first half of the year, and worse was to follow as its shares tumbled and an insurer refused to cover suppliers; water additives business BWA, of Stretford, was sold to United International Bank of Bahrain for £100m.
October
The government said it would throw a taxpayer lifeline to three of the UK's biggest banks. The stakes in Royal Bank of Scotland, Lloyds TSB and Halifax Bank of Scotland came with strings attached, including curbs on management bonuses.
Savers found themselves exposed to the problems in the Icelandic banking sector when their accounts in internet bank Icesave were frozen as its parent, Landsbanki, was nationalised by the Icelandic government. Around 230,000 UK savers held money with the bank, alongside 108 councils and other public bodies which had a total of more than £1bn invested with it.
Northern Rock denied claims that it took an "aggressive" attitude towards repossessions, after research showed the nationalised lender was more than twice as likely to repossess homes as other lenders.
In the north west, NWF Group sold its garden centres for £14.5m; Co-op Financial Services' plans to merge with Britannia Building Society were confirmed.
And the Co-op's takeover of Somerfield was given the green light by competition watchdogs.
November
Top UK firms joined the growing list of companies cutting jobs. Aerospace giant Rolls-Royce, defence firm BAE Systems and Anglo-Swedish drugmaker AstraZeneca were among firms to unveil cuts.
Taxpayers were landed with a 57.9 per cent stake in Royal Bank of Scotland after investors snubbed its £15bn share offer. High street lenders were told by Alistair Darling to lower mortgage rates "as quickly as possible" after the Bank of England slashed its base rate by 1.5 per cent to three per cent. Darling slashed VAT in a £20bn cash boost.
PZ Cussons, Nichols, NCC Group, Advanced Medical Solutions, ukfast.net and gettingpersonal.co.uk won M.E.N. Business of the Year awards; the government provoked anger by postponing a change of chairman at the Northwest Regional Development Agency to ensure continuity during the economic crisis. Critics said the process had been rendered a `farce'.
December
The death knell for Woolworths was sounded when administrators confirmed all its stores would close by January 5, at the likely cost of 27,000 jobs.
Other high street names to hit the buffers included MFI, Xavvi, Whittard of Chelsea, The Officers Club, Adams and USC.
UK banks lined up to reveal billions in potential losses as a result of alleged fraud by Wall Street investment manager Bernard Madoff.
Manchester-based London Scottish Bank fell into administration, and Bolton-based kitchen maker Bernsteing Group Holdings was another casualty. The Brookside Garden Centre at Poynton was sold out of administration, safeguarding scores of jobs.
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