The proposal of ACC to make a preferential allotment of warrants to the Tata group was formally withdrawn at the company's extraordinary general meeting (EGM) here today. The remaining resolutions including a Rs. 190-crore rights issue, sub-division of equity share face value from Rs. 100 to Rs. 10 and increase in the authorised capital to Rs. 225 crores were passed. Mr. N.A. Soonawala, Director, ACC, and Finance Director, Tata Sons, said the Tatas won't be making an open offer to hike their stake to 20 per cent. Beyond 14.9 per cent, SEBI rules require the Tatas to make an open offer for 20 per cent.

Forex cover unlikely for UTI millennium bonds

The Finance Ministry is set to again reject the renewed proposal to extend foreign exchange cover for the Millennium Bonds Scheme planned by Unit Trust of India. After this predominantly equity-oriented scheme for NRIs was announced in the Budget, UTI sought exchange cover from the Government for the debt portion of the scheme prior to launching it. However, the Ministry rejected the proposal during the middle of 1998, saying that equity schemes could not be provided guarantees or a risk cover.

VSNL, MTNL not for stock swap, prefer buyback

Videsh Sanchar Nigam Ltd (VSNL) and Mahanagar Telephone Nigam Ltd (MTNL) are not in favour of the cross-holding structure and prefer buyback of shares. They have conveyed their opinion to the Department of Telecommunications (DoT), official sources said. "They (MTNL and VSNL) have not found it profitable and we have also decided not to press them," top DoT sources said. The Government holds a stake of 56.4 per cent in MTNL and 64.96 per cent in VSNL.

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