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4-fold
growth, 25 million jobs
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The
automobile industry is envisaging over
a four-fold growth to reach the $145-billion
mark, at an investment of about $40 billion,
by 2016. Over the next decade, this industry
would begin accounting for 10% of the
country's gross domestic product (GDP)
and provide additional employment to 25
million people, as per the Auto Mission
Plan (AMP) 2006-16 unveiled by Prime Minister
Dr Manmohan Singh on Monday. Releasing
the AMP at his residence, the PM said
that amid growing global concerns about
climate change, the auto industry stakeholders
must invest in environment-friendly and
fuel-efficient technologies. Speaking
later at a press conference, Heavy Industries
Minister, Sontosh Mohan Deb, said: "In
co-operation with the industry, the AMP
has been finalised as a document to be
followed by the government and the industry
to make India a global player."
Courtesy:
www.sify.com, January 31, 2007
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Tata
Steel early on Wednesday morning outbid
its Brazilian rival CSN to pull off its
audacious $11.3 billion acquisition of
the Anglo-Dutch steel major Corus, the
ninth largest steel company in the world,
the biggest-ever takeover by an Indian
company. Tata-Corus will now become the
world's fifth largest steelmaker.The winning
bid values shares of the London-based
Corus at 608 UK pence each, five pence
higher than the 603 pence final offer
made by CSN, Tata Steel announced in Mumbai
on Wednesday morning. Mr Ratan Tata, chairman
of the Tata Group, told reporters here:
"It marks the end of a journey that commenced
some time ago... From the outset we have
remained determined to pursue our stated
strategy of growth through international
expansion and remain convinced of the
compelling strategic rationale of this
partnership. Following the conclusion
of the auction process, the revised terms
of the acquisition deliver substantial
additional value to Corus shareholders.
At the same time, Tata Steel gains a significant
platform to generate additional value."
A relaxed Mr Tata betrayed no exuberance
over this largest single acquisition deal
nor did he display any tiredness, though
according to sources he had personally
monitored the auction in London all night
from his suite at the Taj Mahal Hotel
here till 6 am on Wednesday morning. His
words were measured and clipped, and there
was not an ounce of boasting either from
him or Tata Steel managing director B.
Muthuraman. There was, however, an understated
but distinct pride in what the acquisition
would mean for Tata Steel, the steel industry
and business in the country overall.
Mr
Tata said: "When the first bid was made,
many said it was audacious for an Indian
firm to bid for a European firm much larger
in tonnage than itself as it had never
happened before. In October we made our
bid, which had the support of the Corus
management and the unions. Competitive
bidding started after CSN entered the
fray, and many of us wondered whether
our efforts would be frustrated. I am
glad that coming to the auction we were
able to win away Corus from the Brazilian
CSN, and happily Corus has been acquired
by an Indian company. It is a greatly
fulfilling moment because Tata Steel as
an Indian steel company will have a global
scale and a footprint in Europe. It is
a continuance of Tata Steel's global strategy
and elevates it to the fifth largest global
company." Mr Tata said: "We will see Corus
grow and integrate with Tata Steel. The
top management of Corus will remain with
the company and be part of the integration
operations. It is an expression of their
faith and confidence in the management
and ownership of Tata Steel." Aware of
the criticism over the price paid in the
auction, he said he was satisfied that
Tata Steel would not be in jeopardy because
of the acquisition and in the long term
"it will be recognised as a very visionary
move with positive repercussions on the
future of Tata Steel." Asked whether the
group was not becoming heavily weighted
towards steel, Mr Tata said: "More than
half the turnover of the group has come
from steel and auto, and because of Corus
steel will have a heavier weightage. But
the auto sector will grow and continues
to grow, and the parity will be restored
over time." He added: "If you see, 65
per cent of our bottomline comes from
steel, auto and information technology.
IT and communications have grown substantially.
The anchor point is basic heavy industry,
where we have sizeable marketshare." On
the funding of the acquisition, the company
said Tata Steel will contribute $4.1 billion
and the balance of the equity infusion
will come through the special purpose
vehicle that will be set up. The financial
arrangement has been supported by Tata
Sons. In the terms of the revised acquisition
value, the entire existing issued and
to be issued share capital of Corus at
approximately £6.2 billion and the revised
price represents an increase of approximately
33.6 per cent compared to 455 pence, which
was the original bid price. The revised
price is also a premium of approximately
68.7 per cent to the average closing mid-market
price of 360.5 pence per Corus share for
the 12 months ending October 4, 2006,
the day prior to the announcement by Tata
Steel that it was evaluating various opportunities,
including Corus. The company said that
ABN Amro and Deutsche Bank, as joint financial
advisers to Tata Steel and Tata Steel
UK, were satisfied that sufficient resources
were available to satisfy in full the
consideration payable to Corus shareholders
under the proposed terms of the revised
acquisition.
Courtesy:
www.deccan.com, January 31, 2007
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Tata
Steel wins Corus with $11.3 billion offer
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Tata
Steel is set to become the world's fifth-biggest
steelmaker after winning a bid battle
for Anglo-Dutch steelmaker Corus Group
by agreeing to pay 5.75 billion pounds
($11.3 billion). Britain's Takeover Panel
said in an e-mailed statement that after
an auction Tata Steel had agreed to offer
Corus investors 608 pence per share in
cash, topping a final bid of 603 pence
from Brazilian Companhia Siderurgica Nacional
(CSN). Both offers were right at the top
end of what analysts had thought possible
and will now be put to Corus investors,
who have no reason not to accept the higher
price. Corus was not immediately available
for comment. The auction process, following
a takeover tussle that began in earnest
when Tata Steel offered 455 pence per
share on Oct. 20, started at the close
of trading in London on Tuesday when Corus
shares ended 0.5 percent higher at 563
pence. CSN and Tata Steel were keen to
buy Corus to become significant players
in the consolidating steel industry, where
Dutch-based Mittal Steel last year bought
Luxembourg's Arcelor to create the world's
biggest steelmaker, Arcelor Mittal.
The
608 pence Tata Steel is set to pay values
Corus at around seven times its forecast
earnings before interest, tax, depreciation
and amortisation (EBITDA) for 2006, well
above the multiple Mittal Steel paid for
Arcelor which was 4.6 times historic EBITDA.
Ahead of the auction, called last week
by the Takeover Panel to bring the bid
battle to an end, CSN had the upper hand
after it had made a bid worth 4.9 billion
pounds ($ 9.6 billion) or 515 pence per
share, accepted by Corus on Dec. 11, hours
after it had accepted a 500 pence offer
from Tata Steel. The battle pushed Corus's
share price to seven-year highs and pitted
70-year-old Tata group chairman Ratan
Tata, from one of India's best-known business
families, against Benjamin Steinbruch
who at 52 is one of Brazil's most famous
executives as chief executive and main
owner of CSN. Ratan Tata has transformed
the once-staid Tata group since taking
over as chairman in 1991. He has cut the
number of companies in the group from
over 300, and acquired new businesses
with growth potential. Tata Steel has
spent more than $400 million in recent
years to buy Singapore's NatSteel and
Thailand's Millennium Steel, and other
group companies have also made acquisitions
outside India. For CSN's part, its 603
pence offer marks the second time in five
years it has failed to buy Corus. In 2002,
CSN openly held talks with Corus about
a tie-up but ended up backing off because
of concerns about the European company's
financial health. Steinbruch set his sights
on Corus again last year after CSN lost
out to Chicago-based steel services group
Esmark in a showdown for U.S. steelmaker
Wheeling-Pittsburgh Corp. On Tuesday,
Tata Steel reported a 41 percent jump
in net third-quarter profit to Rs 1063
crore. Sterling, which has been nudging
the $ 2 mark for several weeks, could
get a boost from the deal as Tata Steel
looks to buys pounds to pay Corus's British
shareholders.
Courtesy:
www.sify.com, January 31, 2007
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Last
3 digits: That's all a credit card thief
needs
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You
don't need to lose your credit card for
a thief to dip into your account. All
that a smart thief needs for online transactions
is your CVV (card verification valid)
number - last three digits at the back
of your card - in addition to your credit
card number and card expiry date. When
you hand your card to a waiter at a restaurant
or a retailer at a shop, it's not hard
for him to memorise your CVV number. Your
credit card number is on the shop bill
anyway, a copy of which is with the retailer.
Chandni Parekh (23) learnt this the hard
way. Her HSBC Premier credit card was
used to purchase 13 airline tickets worth
Rs 85,676.49 without her knowledge. She
did not lose her card, which was with
her during the time the fraudulent transactions
were taking place.
Courtesy:
www.timesofindia.indiatimes.com, January
23, 2007
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