The Hindu Business Line : `Birla Mutual close to acquiring Alliance Capital'

BIRLA Sun Life Mutual Fund has claimed it has inched closer to wrapping up its acquisition of Alliance Capital. The matter, however, is yet to be concluded.

Birla MF, which has more than Rs 10,000 crore under management, has reiterated that it will only take over the latter's schemes (and not the asset management company per se) and also the manner in which the Alliance products will fit into the Birla MF family.

Mr Ravi Sharma, Vice-President - Marketing, has said the issue is pending with the regulatory authorities for long.

"The letter of intent that we had worked out clearly suggests that we are serious about this (the acquisition)," he said.

The Alliance schemes, being referred to here, include a clutch of equity products — Alliance Equity, Frontline Equity, Basic Industries, New Millennium and the like. Alliance Capital Tax Relief (ACTR), an equity-linked savings scheme, is also part of the list.

Birla MF is aware that there is some `overlap' in the case of ACTR. Its own tax-saving product, Birla Equity Plan, is expected to be pushed forward, thanks to the recently-announced changes in tax norms.

Alliance New Millennium, basically oriented towards the IT sector, will not replicate Birla MF's efforts in this direction. This is because the erstwhile Birla IT Fund has now been transformed into a more diversified scheme. It is now known as Birla Opportunities Fund.

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