Sterlite, Morgan Stanley group front-runner for IFCI stake(Live mint.com 18th Dec 2007)A Sterlite Industries and Morgan Stanley consortium is the front-runner for picking up a 26% stake in IFCI Ltd.
“After considering proposals received from three interested parties, Sterlite Industries and Morgan Stanely emerged as the lead player,” an IFCI official said late Monday night.
He added a meeting of the board of the company was going on and more details would emerge after it ended.
A CNBC-TV 18 report that cited unnamed sources claimed that the consortium had bid between Rs90 and Rs100 a share. It was not immediately possible to ascertain the overall value of the deal because IFCI’s capital restructuring is still in progress.
Analysts had previously estimated the size of the deal at between $500 million and $700 million. The reported price per share is lower than the Rs108.4 close the share registered on the Bombay Stock Exchange on Monday.
“After considering proposals received from three interested parties, Sterlite Industries and Morgan Stanely emerged as the lead player,” an IFCI official said late Monday night.
He added a meeting of the board of the company was going on and more details would emerge after it ended.
A CNBC-TV 18 report that cited unnamed sources claimed that the consortium had bid between Rs90 and Rs100 a share. It was not immediately possible to ascertain the overall value of the deal because IFCI’s capital restructuring is still in progress.
Analysts had previously estimated the size of the deal at between $500 million and $700 million. The reported price per share is lower than the Rs108.4 close the share registered on the Bombay Stock Exchange on Monday.
Rupee rise pinches govt projects (Business Standard 18th Dec 2007)
States borrow more dollar funds from Asian Development Bank to finance development works.
The adverse impact of the rupee appreciation has gone beyond exports. The currency’s climb is now affecting government infrastructure projects funded by multilateral lending agency such as the Asian Development Bank (ADB).
Some state governments, which have borrowed funds for various infrastructure projects, have asked ADB for additional dollar funds after experiencing a sharp appreciation of the rupee against the dollar.
“The rupee, which was ruling at Rs 48-49 in the last few years, has moved close to Rs 39.50 this year. The Madhya Pradesh Urban Development project, which has a loan approval for $181 million (in 2003), has sought an extra $70 million due to a rise in the valuation of the rupee” an ADB official said.
States borrow more dollar funds from Asian Development Bank to finance development works.
The adverse impact of the rupee appreciation has gone beyond exports. The currency’s climb is now affecting government infrastructure projects funded by multilateral lending agency such as the Asian Development Bank (ADB).
Some state governments, which have borrowed funds for various infrastructure projects, have asked ADB for additional dollar funds after experiencing a sharp appreciation of the rupee against the dollar.
“The rupee, which was ruling at Rs 48-49 in the last few years, has moved close to Rs 39.50 this year. The Madhya Pradesh Urban Development project, which has a loan approval for $181 million (in 2003), has sought an extra $70 million due to a rise in the valuation of the rupee” an ADB official said.
Re may fall on Asia stocks decline (The Economic Times 18th Dec 2007)The rupee may fall to two-week lows on Tuesday on worries that foreign funds will sell local stocks after sharp falls in Asian markets on concerns about the strength of the US economy. The partially convertible rupee ended at 39.54/55 per dollar on Monday, down from Friday's close of 39.34/35 and its lowest since Dec. 6.
RBI feels liquidity crunch, begins bond shopping (The Economic Times 18th Dec 2007) Signs of tight liquidity conditions in the market are getting clearer. The Reserve Bank of India (RBI) has started buying bonds under the open market operations (OMOs) after a long time. As a result of a cash crunch, even short-term interest rates have begun hardening since the past one month. In the first week of December, RBI bought bonds worth Rs 1,575 crore. In contrast, the central bank’s cumulative bond purchases in the secondary market until November 30, were only Rs 50 crore. Even in the year ago period, RBI had purchased bonds worth only about Rs 700 crore. And for the whole of FY07, it had purchased bonds worth Rs 720 crore from the secondary market.
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