Deutsche Bank may consider merger with European rival

25th June 2005: Deutsche Bank AG, Germany’s largest bank, may consider merging with a European competitor after its own market value rises about 30%, Hilmar Kopper, a former chief executive officer of the bank, said on Friday.

“Deutsche Bank has to add 10 billion euros more to its market capitalisation, and then it can think about European mergers,” said Kopper, who ran the bank from 1989 to 1997. “It would then be on par with the likes of BNP, and peers from Spain and the UK. In such a case, I could well imagine a large European merger.”

Josef Ackermann, the CEO, is trying to make the company one of the world’s top 10 banks by market value by cutting costs and boosting revenue. Ackermann said last week the task has been “a big challenge” because improved profitability isn’t being fully reflected in the bank’s 35 billion-euro ($42 billion) market value, which ranks it 27th among the world’s financial institutions.

Deutsche Bank’s share price is little changed from a year ago, compared with an 11% increase for UBS AG, Europe’s biggest bank, and a 9% climb for France’s BNP Paribas SA.

Bharat Forge acquires Federal Forge for $9.1mn

25th June 2005: Bharat Forge's (BFL) US subsidiary Bharat Forge America has announced the acquisition of Federal Forge, USA in all cash deal. Federal Forge is engaged in the design and manufacture of complex forged steel components for automotive industry.

According to a Bharat Forge release issued to the BSE, the company's US subsidiary has acquired the assets of Federal Forge with effect from June 24, 2005. The total transaction cost has been valued at $ 9.1 million.

B N Kalyani, CMD, of Bharat Forge said, "The Federal Forge acquisition is a significant step towards implementing Bharat Forge's strategy of expanding our global footprint and establishing a manufacturing presence in one of our largest markets - USA".

Punjab Tractors (PTL) to buy Swaraj Mazda's shares from Sumitomo Corporation

25th June 2005: According to a release issued by Punjab Tractors to the BSE, the company board has decided to purchase 15.73 lakh equity shares of Rs 10 each constituting 15% of the paid up capital in Swaraj Mazda from Sumitomo.

Punjab Tractor is subscribing to the shares at a price of Rs 400 per share aggregating to a consideration of Rs 62.92 crore, and the transaction would be subject to regulatory approval, the release said.

Sumitomo Corporation is an existing shareholder holding 10.41% of the paid up capital and JV partner of Punjab Tractors in Swaraj Mazda, the release further added.