The Hindu Business Line : Weekly news round-up

Inflation shot up to 11.05 per cent during the week ending June 7, hitting a 13-year high, following fuel price hikes made earlier this month. This is significantly higher than the 8.75 per cent in the previous reported week.

The spat between the Ambani brothers over Reliance Communication's multi-billion dollar merger talks with MTN has snowballed into a major row. Anil Ambani has threatened to claim damages from Reliance Industries Ltd if it went to court claiming first right in the event of stake sale by RCom. On the other hand, the Mukesh Ambani camp has trained its guns on the South African telecom major warning the company of legal action if it gets into an agreement with RCom.

Ranbaxy Laboratories and Pfizer Inc have agreed to settle most of their patent litigations globally, involving the blockbuster cholesterol-lowering drug, Lipitor. Under the agreement, Ranbaxy will be allowed to sell generic versions of the drug in the US from November 30, 2011. Ranbaxy, in which Japanese pharma major Daiichi Sankyo is picking up 51 per cent stake for over $4 billion, was earlier pushing for a launch in 2010, when the drug is supposed to go off patent.

Telecom firm Shyam Group and IT services company Spanco Telesystems and Solutions Ltd have entered into an agreement with Punj Lloyd Ltd to acquire its Internet services company Spectranet for Rs 500 crore. Shyam and Spanco have formed a 50:50 joint venture called Citycom Networks for this purpose.

Honda Motor Co launched its first hybrid vehicle sedan Civic in the country. The car is equipped with a petrol engine and an electric battery. The Civic Hybrid would cost Rs 21.5 lakh (ex-showroom Delhi).

The growth rate of the six core infrastructure industries witnessed a major slide in April this year compared to the same month last year. The combined growth registered by the six core sector industries dipped to 3.6 per cent in April as against 5.9 per cent in April 2007.

A more than 10 per cent growth in coal production along with improved performance by the steel and cement sector prevented the infrastructure index from dipping further.

With the price of aviation turbine fuel (ATF) soaring, almost all airlines including Air India, Jet Airways, JetLite and the low cost airline, SpiceJet have announced an increase in basic fares. Air India and Jet Airways will now charge a minimum basic fare of Rs 1,000 for distances of up to 750 km, while the basic fare for longer journeys will be Rs 3,000.

Complied by M. J. Madhavan

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