Shaw Wallace-UB deal likely within 3 months

25th March 2005: Indian liquor maker Shaw Wallace & Co. Ltd. said its planned 8.5 billion rupee ($195 million) sale to rival United Breweries Group was expected to be completed within three months. "The financial closure is expected within 60 to 90 days," Shaw Wallace said in a notice to the Bombay Stock Exchange late on Thursday. Indian liquor king Vijay Mallya's United Breweries, through its McDowell & Co. Ltd. unit, agreed this week to buy up to 54.54 per cent of Shaw Wallace from rival Jumbo World Holdings Ltd. The deal will make United Breweries the world's second largest spirits maker after Diageo Plc.

CLC Global Board approves draft Scheme of Amalgamation

25th March 2005: CLC Global Ltd has informed BSE that the Board of Directors of the Company at its meeting held on March 24, 2005, have approved the draft Scheme of Amalgamation as per the following details:

1. The appointed date is April 01, 2004.

2. The Swap Ratio is 1:1.

3. The Record date will be fixed by the Board of Directors after getting approval of Scheme from the concerned court(s).

4. All Assets & Liabilities, Reserves / Authorised Share Capital of the Company stand transferred to Spentex Industries Ltd on approval of the Scheme of Amalgamation.

5. All Contracts, deeds, agreement, Bonds to which the Company is a party shall remain in full force and effect against or in favour of Spentex Industries Ltd.

6.All suits, claims, action and Proceeding by or against the Company shall be enforced by or against Spentex Industries Ltd as the same has been instituted by or against Spentex Industries Ltd.

7. The Spentex Industries Ltd will allot / issue One equity share of Rs 10/- each credited as fully paid-up for every One equity share of Rs 10/- each fully paid-up held by such member of the Company.

8. All employees of the Company who are in employment on the effective date of the scheme become the employees of Spentex Industries Ltd without interrupting their services.

9. On the scheme becoming effective the Company, shall be dissolved without going through the process of winding up.

New DoT secretary will look into BSNL-MTNL merger plan

24th March 2005: Department of telecommunications (DoT) today held a meeting with the chairman and managing directors (CMDs) of MTNL and BSNL to discuss the report of the advisors to the synergisation process of the two PSUs. However, a decision on the synergisation of Bharat Sanchar Nigam Limited and Mahanagar Telephone Nigam Limited (MTNL) will be taken only once the new secretary of the DoT takes charge in April. Today at the meeting, the current DoT secretary Nripendra Misra revisited the report made by ICICI-Securities (I-Sec) with the CMDs of BSNL and MTNL. “In the meeting today, we revisited the recommendations made and it was decided that the recommendations would be taken up by the new secretary who would join beginning April,” Mr. Misra said.

MTNL chairman and managing director RSP Sinha said, “The matter is still open and the new secretary will be briefed on this.” MTNL earlier had made statements to the press that it was against the option of making MTNL a subsidiary of BSNL. Mr. Sinha of MTNL had earlier said, “MTNL as a subsidiary of BSNL is just not justified. If both the entities are retained as two separate entities then the purpose of synergisation will be lost out. Of all the options laid down by the banker, we are in favour of a merger.” While BSNL’s chairman and managing director AK Sinha had indicated that: “Experts along with the government will decide whatever is best for us. It will not be appropriate for me to comment, right now.”

I-Sec, which submitted its first report to the DoT last month, is believed to have suggested making MTNL a subsidiary of BSNL with the former retaining an independent board. The consultant, I-Sec, has given first part of the report to the DoT and other than making MTNL a subsidiary of BSNL the consultant has also suggested making BSNL a subsidiary of MTNL and merging the operations of both PSUs.