23rd October - THE MINT

PUNEET
RAGHURAJ SINGH
RAHUL SINGH
Section - H

EXPANSION PLAN
Hindujas look to buy stake in German power company Steag
Hinduja group has submitted a bit to acquire 5th largest power production in Germany. The acquisition will give $ 23 billion London headquarter to management capabilities and technology could be transformed to India rs 45000 Cr to build 10,000 MW of capacity. Hinduja national power corp. Ltd is building 1040 MW coal based power plant in Visakhapatnam ,Andra pradesh and is on final stage typing finance. The others in the race are energetic by Prumyslovy Holding of Czech Republic, Remondis AG of germany and park holding of turkey winner will be decided in November.
Steag has 9400MW in germany out of that 7700MW is in Germany rest is in Turkey,Columbia and Philippines. Hinduja's advisedly BNP Paribas and JP Morgan Chase & Co. Investment banker to Evonik Industries. Value of steag AG is between Euro 3.8-4 billionSteag operation in emerging markets like Columbia, Philippines and Turkey . Indian companies to purchase there are no synergies as power is a localized business and cash flows depends on demand and supply in country. For overseas acquisition depend on cheap finance and cheap assets with better cash flows.
WIPRO Q2 RESULT'S DISSAPPOINT
India's No.3 outsourcing firm Wipro Ltd under performed & sending its shares down more than 5%.
As with Economic Uncertainty & Currency Volatility are the biggest Challenges that these IT companies would face in near term.
However competitors Tata Consultancy Service Ltd rose as much as 5.8 % to a record high forecast -beating profit.
“ Macro Economics continues to be Uncertain whereas Micro Economic has a high degree of confidence” says Wipro chairman Azim Premji.
Wipro shares have fisen about 11% in the year versus a 19% jump in the sector index and a 16% rise in broader Mumbai market.
International news -
Google launches music player download service in India-
Google launched a music service in India to help users to search for legal online streams and downloads,a move aimed at combating digital piracy.
The US giant with 3 other partners have thousands of indian tracks, from Bollywood to Indian classical.
The three partners are Saregama India Ltd.,Saavn and In.com.
Google hopes that this effort of providing online music to the users will help to reduce the level of piracy. Google is also eager to build up broadband usage in India and sees music -which is the subject of large percentage of searches in the country.
The partners hope the deal will bring an influx of traffic to theis websites which user will be able to click through to from Google's search results. These partners will hope to increase their revenue through online advertisements.
Fresh MoU prunes sweat equity, may give new lease to Kochi IPL
Rendezvous Sports World Pvt. Ltd has reduced its shareholding in the Kochi franchise of the Indian Premier League (IPL) from the original 26% to 10%.
A new memorandum of understanding (MoU) has been signed by all the shareholders and the franchise has been renamed as Kochi Cricket Pvt. Ltd, three persons in the know of the developments who did not want to be identified confirmed.
The six investors in the Kochi franchise were Rendezvous Sports World (26%; 25% was sweat equity), Anchor Group (27%), Parinee Developers (26%), Film waves (12%), Anand Shyam (8%) and Vivek Venugopal (1%).
Five of the investors had come together and demanded that Rendezvous Sports dilute its holding to 10%. However, the investor refused to comply, leading to a deadlock. The officials of Rendezvous Sports did not respond to queries.
Auto news
JRL launches armoured vehicles
Tata Motors owned Jaguar Land Rover(JRL) launched a new armoured range of land rover and discovery sport utility vehicle with indicative price of rs.4.75 crore and rs.3.75 crore respectively.
PM to meet Wen in Hanoi amid rising tensions
After seeing a conflict between India and China, both countries’ prime minister is going for meet next week trying to reduce the differences between two countries. The meeting between Manmohan Singh and Chinese prime minister wen jiabao will take place after Manmohan Singh’s visit to Malaysia and Japan where he announces the key cooperation pact.
SC stays hike in spectrum usage charge
The Supreme Court on Friday stayed an order of the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) that allowed a hike in usage charges for radio spectrum, but asked petitioners Bharti Airtel Ltd, Vodafone Essar Ltd and Idea Cellular Ltd to deposit 50% of the increased fees with the tribunal.
The apex court also asked the firms to furnish bank guarantees for the remaining 50%. The deposits and the guarantees have to be furnished within two weeks, it said.
On 25 February, the department of telecommunications (DoT) had increased spectrum usage charge from 2-6% to 3-8% of the adjusted gross revenue (AGR) based on the quantum of spectrum being used by the telcos..
AGR refers to the revenue of the mobile telephony firms after deducting items such as interconnection charges and service tax that does not accrue directly to them.
Vodafone has to pay `135 crore while Idea and Bharti have to pay `220 crore each due to the hike in the charges.
The operators contested the DoT decision at TDSAT, arguing that there was a contractual agreement between them and the government in which the rates for air waves are fixed, and therefore cannot be altered.
TDSAT has decided on September that the government was within its rights to increase fees. The firms then took the matter to the Supreme Court.
“The hike in spectrum did not lead to an increase in tariffs due to the ongoing tariff war in the country but led to an additional squeeze on the margins of the operators,“ a Mumbai-based analyst with a multinational brokerage said on condition of anonymity because he is not authorized to speak with the media. The wireless operators were seeing a payout of as much as `500 crore per quarter, he added.
Bharti, India's largest telecom firm, said at the end of its first quarter results that its net profit declined about `104 crore due to the increased charges.