Microsoft Corp has made an unsolicited offer to buy Yahoo Inc for $44.6 billion in ($31 a share bid of )cash and stock, seeking to join forces against Google Inc in what would be the biggest Internet deal since the Time Warner-AOL merger.
View:
Both companies have strong development and support presence in India and have adapted aggressive strategies in fast-growing and youthful market for internet content and services.
Counter view:Microsoft CEO Steve Ballmer is attempting the biggest ever technology take over after failing to compete with Google in a market that may almost double to $80 billion by 2010. Google has grown faster than Microsoft in every quarter since Google's 2004 IPO as its search engine won more users.
href="http://ap.google.com/article/ALeqM5g9cE_gI-aemyNxZQb7YOBC3rsNlQD8UHLKK00">
Friday, February 1, 2008
M&As and Corporate India
Business has been up in arms on the merger provisions of the new Competition Act, 2002 (amended in 2007) not just now, but ever since it was being debated. Now, it is not only the long period of a mandatory review, but how they will be applied, and by persons, who may just be under skilled and over zealous.
The objectives of the new law are to promote economic development of the country and to do so by dealing with market failures, advancing consumer interest and ensuring the freedom of trade for other participants in markets in India.
Other than cartels and abuse of dominance, one cannot ignore the fact that mergers and acquisitions (M&As) also need to be regulated so that they do not end up in a potentially abusive position. That’s the reason the law has provided for approval of mergers over certain high thresholds prior to their consummation.
The objectives of the new law are to promote economic development of the country and to do so by dealing with market failures, advancing consumer interest and ensuring the freedom of trade for other participants in markets in India.
Other than cartels and abuse of dominance, one cannot ignore the fact that mergers and acquisitions (M&As) also need to be regulated so that they do not end up in a potentially abusive position. That’s the reason the law has provided for approval of mergers over certain high thresholds prior to their consummation.
IT : ISPs reroute ,seek DoT's intervention
Problem:
A SHIP'S anchor severed two undersea cables in the Mediterranean region near Egypt, disrupting internet access for Tens of millions of internet users across the Middle East and Asia on 30th jan.
Effect:Indian Service Providers (ISPs) such as Bharti, Tata owned-VSNL and Reliance Comunications, who offer international connectivity through global undersea links, have engaged in large scale re-routing of voice and data-traffic, in addition to swinging to the backup mode following the disruption in international connectivity due to breakdown of two undersea cables .
The country’s other international bandwidth provider, BSNL, however, said that it services were unaffected as all its traffic is routed via Sri Lanka.
Solution:
Short-term:
Bharti had re-routed its network through i2i while the Tatas are diverting a significant chink of their traffic through the SMW-3 cable (which connects Asia to Europe) and the Tata Indicom cable.Reliance, on the other hand, has already started restoring its services by routing its traffic on other partner networks.
Long Term:
DoT to act whereby it mandates that Bharti, VSNL and Reliance have backup redundancy plans in place.
Past History:
in 2006, an earthquake in Taiwan had knocked out internet links to India for 20-25 minutes and affected Reliance Communications’ FLAG and VSNL’s SEA-ME-WE-3 under-sea cable systems.
A SHIP'S anchor severed two undersea cables in the Mediterranean region near Egypt, disrupting internet access for Tens of millions of internet users across the Middle East and Asia on 30th jan.
Effect:Indian Service Providers (ISPs) such as Bharti, Tata owned-VSNL and Reliance Comunications, who offer international connectivity through global undersea links, have engaged in large scale re-routing of voice and data-traffic, in addition to swinging to the backup mode following the disruption in international connectivity due to breakdown of two undersea cables .
The country’s other international bandwidth provider, BSNL, however, said that it services were unaffected as all its traffic is routed via Sri Lanka.
Solution:
Short-term:
Bharti had re-routed its network through i2i while the Tatas are diverting a significant chink of their traffic through the SMW-3 cable (which connects Asia to Europe) and the Tata Indicom cable.Reliance, on the other hand, has already started restoring its services by routing its traffic on other partner networks.
Long Term:
DoT to act whereby it mandates that Bharti, VSNL and Reliance have backup redundancy plans in place.
Past History:
in 2006, an earthquake in Taiwan had knocked out internet links to India for 20-25 minutes and affected Reliance Communications’ FLAG and VSNL’s SEA-ME-WE-3 under-sea cable systems.
Business of Brands- Subhiksha, Bajaj Auto
SUBHIKSHA IN TIFF WITH DRUG WHOLESALERS
Issue:
Subhiksha(MD-Mr.Subramain) has sent legal notice to its wholesalers in Karnataka, gujarat and Chandigarh for withholding supply of medicines.
View:
The law mandates that wholesalers cannot deny orders from retailers when they have stocks.
Counterview:
According to All India Druggist and Chemist Association(AIOCD), Subhiksha was unfairly competing with 5.5 lakh stand-alone chemists (and affecting their bread and butter) across the country by selling drugs at 10% discount.
Competition should be on value addition and services and not on price.
Action:
Subhiksha officials and AIOCD are scheduled to meet on 1st Feb.
AIOCD Secretary(Mr.Shinde) said business interests of its members will not be compromised and AIOCD is ready to take on Subhiksha in court.
BAJAJ AUTO FOLLOWING TATA NANO?
The two and three wheeler major (Bajaj Auto) is negotiating with Nissan-Renault for a foray into ultra low-cost cars and developing light pick up trucks on its own and forging partnerships and deals for high-end bike companies overseas.
Go with the approach of motor cycle maker which cuts down development costs and manufacturing expenses.
Issue:
Subhiksha(MD-Mr.Subramain) has sent legal notice to its wholesalers in Karnataka, gujarat and Chandigarh for withholding supply of medicines.
View:
The law mandates that wholesalers cannot deny orders from retailers when they have stocks.
Counterview:
According to All India Druggist and Chemist Association(AIOCD), Subhiksha was unfairly competing with 5.5 lakh stand-alone chemists (and affecting their bread and butter) across the country by selling drugs at 10% discount.
Competition should be on value addition and services and not on price.
Action:
Subhiksha officials and AIOCD are scheduled to meet on 1st Feb.
AIOCD Secretary(Mr.Shinde) said business interests of its members will not be compromised and AIOCD is ready to take on Subhiksha in court.
BAJAJ AUTO FOLLOWING TATA NANO?
The two and three wheeler major (Bajaj Auto) is negotiating with Nissan-Renault for a foray into ultra low-cost cars and developing light pick up trucks on its own and forging partnerships and deals for high-end bike companies overseas.
Go with the approach of motor cycle maker which cuts down development costs and manufacturing expenses.
Political News: Sethu project , SEZ in GOA
SETHU PROJECT
Project:
Rs. 24 billion Sethusamudram Ship Channel Project envisages dredging of a ship channel across the Palk straits between India and Srilanka. The project will alllow ships sailing between the east and west costs of India to have a straight passage through India's territorial waters, instead of having to circumvent Sri Lanka.
View:
This will lead to a saving of upto 424 nautical miles (780 Km) and upto to 30 hours in sailing time. substantial savings for the shipping companies, exporters and importers, manufacturers.
Indian fishing boats can transit freely though north of Adam's Bridge. This is not possible today. The project will facilitate coast movement of domestic cargo, leading to greater employment generation in the Ports and the industries in the vicinity.
The channel will become an invaluable asset from national defence and security point of view enabling easier and quicker access between the coasts.
Tamil Nadu Chief Minister M Karunanidhi has been painting the deal with a nasty communal brush.
Counterview:
BJP is anti Sethusamudram campaign. It has maintained that the project will adversely affect the ecological balance destroy a piece of heritage and hurt religious sentiments of millions of Hindus (To deepen the sea in the Palk Straits is the rocky bottom in the Adam's Bridge area. Devout Hindus say it is actually 'Ramar Sethu', a bridge of rocks that the monkey army of Lord Ram had built to help him cross over to Sri Lanka to rescue Sita, from the clutches of Ravana).
Congess is not equally confident of backing the project. It said government should cautiously approach the project.
Now the Director general of the Coast Guards Vice Admiral R F Contractor has said the proposed canal could serve security threat to the country. Indian Meteorological Department had assigned the Palk Bay area as "high risk area" for volcanic and cyclonic activity. Constructing a shipping canal in an area which show tectonic activity is not quite scientific according to experts.
http://sethusamudram.gov.in/WhatisSethu.asp
http://sethusamudram.tamilar.org/
SEZ DEVELOPRERS GO ALL OUT TO WIN OVER GOANS , REVERSE GOVT ORDER
Three companies- Cipla, K.Raheja Corp. and Peninsula Land -whose SEZ projects were scrapped by the GOA Govt have joined hands to take over the Digambar Kamat Govt.
View:
Project is non-polluting and ideally suited to Goa which has high literacy rate and good English speaking population. Cipla CEO,Amar Lulla said they are in talks with pharmacy colleges to train students and enhance local job opportunities.
Goa cannot rely on tourism alone and SEZ must be considered.
Plan of companies:
Hold exhibitions, distribute pamphlets and educate people about the proposed projects. Promise job reservations and train youths for the appropriate skills.
Address concerns of depleting groundwater and power shortages.
Counterview:
"SEZs does not match the talent skills available in Goa and hence will only further burden the existing infrastructure. We do not think it will create any employment in state,” said noted architect and vice-chairman TF-21, Charles Correa.
Local villagers alleged misappropriations in land sale to real estate majors for setting up malls in state.
Succumbing to the pressure CM Digambar Kamat cancelled notifications of all approved SEZs incurring losses of over Rs.200 crore to cipla and Rs.400 crore to Peninsula Land.
http://economictimes.indiatimes.com/PoliticsNation/Goa_govt_cancels_all_SEZs/articleshow/2666017.cms
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