The Hindu Business Line : Weekly news round up

The country's gross domestic product growth decelerated to 7.9 per cent during April-June 2008 mainly due to near halving of manufacturing sector growth in the first quarter of this fiscal.

It is lower than the 9.2 per cent growth recorded in the same period last year.

This performance is the slowest quarterly growth in the last 14 quarters.

The Communication and IT Ministry has said the 3G spectrum for CDMA operators will be auctioned.

This is a shift from the earlier announced policy, which stipulated that CDMA operators will be allocated spectrum in the 800 Mhz band to the operator with most number of subscribers in a circle.

An easing of inflation levels among primary articles and fuel items pulled down inflation, with the Government terming the dip as "early signs of moderation".

The annual wholesale price index-based inflation rose 12.40 per cent for the week ended August 16, lower than the 12.63 per cent the previous week.

Inflation was at 3.99 per cent during the corresponding week a year ago. Among primary articles, 21 out of total 98 articles witnessed a decline in price levels and another 48 articles staying unchanged.

Bajra, jowar, maize, potatoes, tomatoes, mutton, raw silk, cotton, groundnut seeds and iron ore are among items recording a dip.

Sun Pharma's $454-million proposal to acquire Israeli-drug company Taro Pharmaceutical received a shot in the arm, with the Tel-Aviv District Court rejecting Taro's contention that Sun should conduct a `special tender offer' under the Israeli law.

Consequently, Sun Pharma will be able to complete its previously announced tender offer by its subsidiary, Alkaloida Chemical Company Exclusive Group Ltd.

Taro could appeal the ruling, following which the case could then shift to Israel's Supreme Court, a company official familiar with the development told Business Line.

ONGC Videsh Ltd, the overseas investment arm of ONGC, last Tuesday announced that it has agreed to acquire LSE-listed Imperial Energy Corporation plc for approximately œ1.4 billion (about Rs 11,400 crore).

The OVL offer now needs approval of the Russian Government and the individual shareholders of Imperial Energy.

The rupee fell by about 50 paise against the dollar during the week ended April 30, due to heavy dollar buying by corporates and oil companies.

All foreign banks were also seen buying dollars for their month-end demand. The Indian unit opened last Monday at 43.45/46 against its previous close of 43.42/43.

It breached the psychologically important level of 44 on Tuesday and touched a low of 44.80 during the week and recovered afterwards as nationalised banks started selling dollars at those levels. It closed the week at at 43.93/94.

Infosys Technologies Ltd last Monday said that it is buying UK-based SAP consulting company Axon Group Plc for œ407.1 million or Rs 3,310 crore, in an all-cash deal to strengthen its SAP services offering.

Even as the open offer by Daiichi Sankyo to acquire additional 20 per cent stake in Ranbaxy Laboratories is currently on, a "procedural issue" appears to have cropped up on the Japanese drug maker's plans to increase its stake in the Indian drug company through issue of warrants.

The Foreign Investment Promotion Board now plans to place Daiichi's FDI proposal to acquire stake in Ranbaxy before the Cabinet Committee on Economic Affairs (CCEA), as the proposal exceeds Rs 600 crore and hence requires CCEA nod.

If this gets approved, Daiichi Sankyo's stake in Ranbaxy could go up to 58 per cent.

Compiled by M J Madhavan
Podcast by S Vasudevan