Google Inc, which a couple of years ago gave a tough time to venture capitalists by lapping up startups even before VCs spotted them, is now directly entering the space. The search engine is rumoured to be launching a venture investing arm titled Google Ventures. If this is indeed true, Google would be joining the likes of corporates like Cisco, Nokia, Qualcomm and Motorola, all of which have corporate venture arms.
A Reuters report speculates that Rich Miner, the head of Google's Android project, would be affiliated with Google Ventures. Miner, who joined Google in 2005 after the search giant acquired Android way back in 2005, is responsible for wireless platforms. He joined Google in 2005 when the search giant acquired Android, a company he co-founded and which is the basis of Google's new smartphone operating system.
A Google spokesman asked about Google Ventures on Thursday said, "It's a project we're working on. But we're not able to discuss the details right now."
Sunday, March 22, 2009
Sun Pharmaceutical extends offer to buy Taro stake
Sun Pharmaceutical Industries, which is attempting a hostile takeover of Israel-based Taro Pharmaceutical, extended the tender offer to acquire the remaining stake in the drug maker to April 3, as it launched a fresh round of negotiations to settle the differences out-of-the-court.
"The mediation process with Levitt and Moros families, initiated at the behest of Supreme Court recommendation, is ongoing," said a Sun Pharma official, declining to disclose further details.
Independent sources said the negotiations were mainly on revised price at which Sun Pharma could buy out the shares of the promoters. Sun Pharma is attempting to acquire the remaining 64 per cent stake of promoters Levitt and Moros families and other shareholders in Taro.
Taro Pharmaceutical, one of the largest generic companies operating in the US market, had demanded a 58 per cent premium, or $15 per share, in cash to effect a merger with Sun Pharmaceutical Industries. However, Sun Pharma rejected the offer citing it was beyond the worth of Taro, which did not disclose audited results for three years and restated accounts.
Sun's offer was a maximum of $9.50 per share with two options. Thus the earlier rounds of discussions had failed and both parties demanded the Court to give a verdict. However, the court directed Sun Pharma and Taro to re-negotiate through a mediator. Sun's tender offer is at a price of $7.5 per share.
Sun Pharma managing director Dilip Shanghvi and Taro chairman Barrie Levitt met in Israel last month to discuss a compromise in the presence of advocate Ram Caspi, who is mediating the discussion, Israeli newspapers had reported a few weeks ago.
The tender offer, which was triggered by Sun Pharma in June, last year following the failure of a merger agreement, was to expire on March 20. Sun Pharma said the offer would expire on April 3, unless further extended or earlier terminated. The offer was extended to comply with an order issued by the Supreme Court of Israel temporarily prohibiting the closing of the offer until the Supreme Court issues a decision on the appeal. Taro and its directors had challenged the applicability of the special tender offer rules under the Israeli Companies Law to the offer.
The Israeli company backed out from a $454 million merger deal signed in May 2007, citing that the fortunes of the company turned around since the merger plan. Following this, Sun Pharma sued Taro in the Supreme Court of New York court for breaching the agreement, while Taro challenged the validity of the tender offer in Israel courts.
"The mediation process with Levitt and Moros families, initiated at the behest of Supreme Court recommendation, is ongoing," said a Sun Pharma official, declining to disclose further details.
Independent sources said the negotiations were mainly on revised price at which Sun Pharma could buy out the shares of the promoters. Sun Pharma is attempting to acquire the remaining 64 per cent stake of promoters Levitt and Moros families and other shareholders in Taro.
Taro Pharmaceutical, one of the largest generic companies operating in the US market, had demanded a 58 per cent premium, or $15 per share, in cash to effect a merger with Sun Pharmaceutical Industries. However, Sun Pharma rejected the offer citing it was beyond the worth of Taro, which did not disclose audited results for three years and restated accounts.
Sun's offer was a maximum of $9.50 per share with two options. Thus the earlier rounds of discussions had failed and both parties demanded the Court to give a verdict. However, the court directed Sun Pharma and Taro to re-negotiate through a mediator. Sun's tender offer is at a price of $7.5 per share.
Sun Pharma managing director Dilip Shanghvi and Taro chairman Barrie Levitt met in Israel last month to discuss a compromise in the presence of advocate Ram Caspi, who is mediating the discussion, Israeli newspapers had reported a few weeks ago.
The tender offer, which was triggered by Sun Pharma in June, last year following the failure of a merger agreement, was to expire on March 20. Sun Pharma said the offer would expire on April 3, unless further extended or earlier terminated. The offer was extended to comply with an order issued by the Supreme Court of Israel temporarily prohibiting the closing of the offer until the Supreme Court issues a decision on the appeal. Taro and its directors had challenged the applicability of the special tender offer rules under the Israeli Companies Law to the offer.
The Israeli company backed out from a $454 million merger deal signed in May 2007, citing that the fortunes of the company turned around since the merger plan. Following this, Sun Pharma sued Taro in the Supreme Court of New York court for breaching the agreement, while Taro challenged the validity of the tender offer in Israel courts.
Saturday, March 21, 2009
Tata Tea forays into branded cold drink market
Tata Tea today announced its foray into the branded cold drink market with launch of its cold beverage T!ON. The product has been launched in three flavors-Mango Rush, Peach Punch and Apple Buzz and will be initially launched in Chennai, a press release said here today. "This is a defining moment in the history of Tata Tea as it symbolizes the transformative change taking place in the company," Tata Tea Executive Director Sangeeta Talwar said in the release. The 400 ml bottle has been competitively priced at Rs 22, the release said. The move is significant for Tate Tea, which has been steadily transforming itself from a company with primary focus on tea to a beverages company focusing on the wellness and health platform, the release said.
Tata Tea has operations in over 40 countries.
Tata Motors enters into tie-up with Bank of Baroda
In order to provide an added facility of car finance to its customers, Tata Motors has entered into an understanding with Bank of Baroda for financing its range of passenger vehicles.
Bank of Baroda, a public sector undertaking, caters to the needs of industry as well as retail segment. The bank has pan India presence with over 2900 branches spread all over the country. It has recorded over 50% growth in the auto loan segment during the first 11 months of this fiscal.
Bank of Baroda offers car loans up to 85% of the invoice price, for tenure ranging up to 7 years, at a very competitive rate of 10.5% p.a.
This facility will be available at all 2900 branches of Bank of Baroda and 470 sales touch points of Tata Motors. This tie-up will provide a single window for both cars as well as car loans and will make car buying easier for the customers.
Bank of Baroda, a public sector undertaking, caters to the needs of industry as well as retail segment. The bank has pan India presence with over 2900 branches spread all over the country. It has recorded over 50% growth in the auto loan segment during the first 11 months of this fiscal.
Bank of Baroda offers car loans up to 85% of the invoice price, for tenure ranging up to 7 years, at a very competitive rate of 10.5% p.a.
This facility will be available at all 2900 branches of Bank of Baroda and 470 sales touch points of Tata Motors. This tie-up will provide a single window for both cars as well as car loans and will make car buying easier for the customers.
DLF eyes minority stake in DAL to aid REIT listing
DLF is considering picking up minority stake in DLF Assets Limited (DAL), reports CNBC-TV18 quoting sources. This will help DLF Assets in their plans for real estate investment trust (REIT) listing plan and DLF will be its sponsor for the same. This move may also be aimed at reducing DAL’s Rs 5,000 crore receivables to DLF.
CNBC-TV18 also learns that DAL has been trying to raise USD 450 million from private equity investors since July. The deal, supposed to close by the end of this financial year, is likely to be delayed till April.
Some good news though for DLF Assets Limited as well as the shareholders of DLF is that other than 9.5 million squre feet that will be delivered to DAL by the end of this year, they are securitizing rent and hopefully raising about Rs 2,000 crore from three banks. So that should also help bring down receivables.
Vivek Paul starts new PE fund
Vivek Paul, who quit as partner from global private equity giant Texas Pacific Group (TPG) at the end of 2008, has started a private equity fund that is understood to be targeting a corpus of $300 million to $400 million.
The fund, Akansa Capital, is understood to have signed some seed capital and is hoping for its first closure in the fag end of 2009. Paul is starting this fund at a time when limited partners are shying away from private equity funds.
According to industry sources, Paul’s new fund will be “sector agnostic” and a majority of the fund will be funnelled into companies in India. “We feel this fund will also look at investing in some companies which have presence in Asia,” according to an investment bank source.
Vivek Paul had joined the Texas Pacific Group after he quit Wipro Technologies as vice-chairman in 2005 after trying to put Wipro on a accelerated path to reach a top line of $5 billion. Paul was famous for his “String of Pearls” acquisition strategy for Wipro Technologies. Paul, as vice-chairman of Wipro Technologies, was instrumental in transforming Wipro from a $150 million software developer into a $1.4 billion force in offshore outsourcing. Prior to Wipro, he was the CEO of GE’s medical equipment joint venture in India. Paul currently serves on the board of Electronic Arts, which is among the world’s leading games publisher, and on the advisory council of the Federal Reserve of San Francisco.
This development comes close on speculation that Paul is being actively considered as one of the candidates to take over as the CEO of Satyam Computers. Paul has gone on record saying he is not interested in the opportunity and the post of the CEO is for the next generation.
Vodafone Essar To Hive-off Telecom Infrastructure Arm
Telco Vodafone Essar has applied to FIPB to hive of its telecom infrastructure business into a new entity called Ortus Infratel and Holdings Pvt Ltd. The entity will hold Vodafone Essar’s 42% stake in Indus Towers, a joint venture between Bharti Airtel, Vodafone Essar and Idea Cellular, reports Economic Times. Apart from this, it will also hold the infrastructure owned by Vodafone Essar.
Indus Towers operates 90,000 towers in around 16 circles. Besides this, Vodafone Essar separately operates 6,000 towers in six circles where Indus is not present. Essar also operates its own independent mobile tower firm, Essar Telecom Infrastructure, which will not be included with Ortus. Essar Telecom Infra has around 4,500 towers and is currently in talks with Tata-Quippo combine.
Essar Group’s Ruias own 33% stake in Vodafone Essar, and shareholding of Ortus will also be along similar lines. Ortus also plans to invest Rs 500 crore, it said in its FIPB application.
The telecom infrastructure sector, in which private equity funds have invested billions of dollars is going through a process of consolidation. This seems to be aided by the falling valuation oftelecom towers. Towers were valued at Rs 78 lakh in Tata-Quippo merger, while in the more recent American Tower's acquisition of Xcel Telecom valued them at Rs 47 lakh.
Indus Towers operates 90,000 towers in around 16 circles. Besides this, Vodafone Essar separately operates 6,000 towers in six circles where Indus is not present. Essar also operates its own independent mobile tower firm, Essar Telecom Infrastructure, which will not be included with Ortus. Essar Telecom Infra has around 4,500 towers and is currently in talks with Tata-Quippo combine.
Essar Group’s Ruias own 33% stake in Vodafone Essar, and shareholding of Ortus will also be along similar lines. Ortus also plans to invest Rs 500 crore, it said in its FIPB application.
The telecom infrastructure sector, in which private equity funds have invested billions of dollars is going through a process of consolidation. This seems to be aided by the falling valuation oftelecom towers. Towers were valued at Rs 78 lakh in Tata-Quippo merger, while in the more recent American Tower's acquisition of Xcel Telecom valued them at Rs 47 lakh.
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