It's only a rumour, but will Infosys or Wipro bid for Cap Gemini, in order to stay competitive in the wake of HP's acquisition of EDS?
http://dealbook.blogs.nytimes.com/2008/ ... -services/
Indian M&A Deals
SanjayM: Wipro/Infy will acquire cos based on their reqs and assessments on how well prospective mergers will jell with their culture. EDS merger with HP should be of concern to IBM as this will give tremendous headache once the merger is completed and they start executing their E2E sales strategies.
The best people left Cap long time becuz of these rumors which have been festering for years. Cap Gemini is already hemorraging money and it's west coast practice in the US is practically dead. Clients are refusing to give them projects as they know this co. will not last for long.
Wipro or Infosys will do well to stay away from this millstone.
The best people left Cap long time becuz of these rumors which have been festering for years. Cap Gemini is already hemorraging money and it's west coast practice in the US is practically dead. Clients are refusing to give them projects as they know this co. will not last for long.
Wipro or Infosys will do well to stay away from this millstone.
India May 15, 2008, 7:01AM EST
India's Global M&A Boom
Indian corporations, established at home and seeking new markets, are flush with cash and spending it abroad. But have they gone overboard?
Logix Micro nears $20m buyout in US.
Small-cap software developer Logix Microsystems is close to buying a US-based software firm for about $20 million to beef up its auto dealer-centric software-as-a-service (SaaS) offerings.
Logix, with a market cap of $75 million, provides business and technology solutions to blue-chip companies in the US, Far East, Middle East and India.
According to Logix managing director Sanjay Soni, the slowdown in the US economy has prompted most auto original equipment manufacturers (OEMs) and their dealers to take steps to cut operational costs using information technology. Through this planned acquisition, Logix hopes to cash in on this opportunity.
SaaS can help companies slash the total cost of ownership (TCO) of IT infrastructure by 40% due to its pay-per-use nature. This way, user companies save the cost of owning infrastructure such as hardware and software and maintaining it. “This is why we have witnessed a 30% increase in demand for our SaaS-based software,â€
Small-cap software developer Logix Microsystems is close to buying a US-based software firm for about $20 million to beef up its auto dealer-centric software-as-a-service (SaaS) offerings.
Logix, with a market cap of $75 million, provides business and technology solutions to blue-chip companies in the US, Far East, Middle East and India.
According to Logix managing director Sanjay Soni, the slowdown in the US economy has prompted most auto original equipment manufacturers (OEMs) and their dealers to take steps to cut operational costs using information technology. Through this planned acquisition, Logix hopes to cash in on this opportunity.
SaaS can help companies slash the total cost of ownership (TCO) of IT infrastructure by 40% due to its pay-per-use nature. This way, user companies save the cost of owning infrastructure such as hardware and software and maintaining it. “This is why we have witnessed a 30% increase in demand for our SaaS-based software,â€
Bharti Calls Off MTN Merger Talks
Here's another interesting tidbit:
http://www.stockhouse.com/News/Financia ... n=10839000
Here's another interesting tidbit:
http://www.stockhouse.com/News/Financia ... n=10839000
Loks like they may have cried wolf onece too often. This time, I believe, their shares actually fell (and 16% no less).Vipul wrote:MTN has developed a reputation of ditching its suitors at the last moment.It has before Bharti done this twice and has each time been able to increase its market valuation tremendously.
Good. Cheats and manipulators ought to shoot themsleves in the foot, at least once in a while, for justice to prevail, eh?
I wonder how orient express holdings with its luxury properties is doing
these days. I would prefer to see them file for bankruptcy or get purchased
by a "patel motel" tycoon and converted into howard johnson type motels.
all the fancy cutlery and rugs to be disposed in chor bazaar mumbai at
steep markdown.
these days. I would prefer to see them file for bankruptcy or get purchased
by a "patel motel" tycoon and converted into howard johnson type motels.
all the fancy cutlery and rugs to be disposed in chor bazaar mumbai at
steep markdown.
Reliance to acquire Vanco.
NEW DELHI: Anil Ambani Group company Reliance Communications is likely to emerge a front runner to acquire UK-based Global Virtual Network Operator Vanco, a move that would bring under Indian company's fold a virtual network in various parts of the world.
According to sources in the know, the negotiations are in the last stage and the deal could be closed by the end of this week.
Although the final price of the deal is not known, at its peak the market cap of Vanco stood at 800 million dollars.
Virtual network operators are companies which lease infrastructure and bandwith from others but provide and manage the communication needs of their clients.
According to sources, 12 international players are in the fray including AT&T, BT, T-System, NTT and private equity firms like Platinium and Oakley.
Vanco has over 750 million dollars worth long-term contracts from its customers.
Reliance Communication is offering CDMA and GSM services in India and is the only player who has been offering the services on both platforms.
NEW DELHI: Anil Ambani Group company Reliance Communications is likely to emerge a front runner to acquire UK-based Global Virtual Network Operator Vanco, a move that would bring under Indian company's fold a virtual network in various parts of the world.
According to sources in the know, the negotiations are in the last stage and the deal could be closed by the end of this week.
Although the final price of the deal is not known, at its peak the market cap of Vanco stood at 800 million dollars.
Virtual network operators are companies which lease infrastructure and bandwith from others but provide and manage the communication needs of their clients.
According to sources, 12 international players are in the fray including AT&T, BT, T-System, NTT and private equity firms like Platinium and Oakley.
Vanco has over 750 million dollars worth long-term contracts from its customers.
Reliance Communication is offering CDMA and GSM services in India and is the only player who has been offering the services on both platforms.
'Reliance favourite to land MTN bid'.
Meanwhile, Wall Street Journal Asia quoted people “familiar with the matterâ€
Meanwhile, Wall Street Journal Asia quoted people “familiar with the matterâ€
Some choppiness ahead for the deal :Vipul wrote:Sterlite Industries to buy Asarco for $2.6 bn.
Grupo Mexico to do all it can to halt Asarco sale
Possible pressure tactic by Grupo Mexico to have Sterlite drop the case started by Asarco alleging asset stripping by Grupo Mexico ? :
Judge lets Asarco sue Mexican owners
Last edited by arun on 01 Jun 2008 20:47, edited 1 time in total.
From WSJ
Copper Deal In U.S. Shows Growing Reach Of Indian Firms
By Joel Millman and Dana Cimilluca
31 May 2008
The Wall Street Journal
Highlighting the growing global clout of companies from emerging markets, India's Vedanta Resources PLC reached a $2.6 billion deal to purchase the assets of a bankrupt U.S. copper miner, Asarco LLC, people familiar with the transaction said.
The deal would be one of the largest foreign purchases ever by an Indian company. The Mumbai-based metals conglomerate outbid three other groups, including Grupo Mexico SA, which first bought Asarco in 1999 but later lost control in a bankruptcy case. Grupo Mexico has said it will challenge the sale.
The sale would mark a turning point for the world's mining giants, creating a showdown between a powerful Latin American group and an Asian rival for control over a historic U.S. corporation.
Flush with cash after years of torrid economic growth and surging commodity prices, companies in developing economies are striking deals that would have been unheard of just a few years ago. In many cases, these companies are snapping up established Western companies that have fallen on hard times. Often, the goal is to create a national champion that will eclipse competitors elsewhere in the world.
As the U.S. credit crunch slows deal-making in the developed world, emerging-market countries such as India and Brazil are taking a larger piece of the mergers-and-acquisitions pie. Emerging-market M&A activity so far in 2008 is up 17% over last year at this time, to $218 billion, while for the rest of the world it is down 43%, to $991 billion, according to Thomson Reuters.
South Africa's MTN Group Ltd. is in talks to buy India's Reliance Communications Ltd. for a price of $30 billion or more, potentially creating one of the world's biggest cellphone companies. Brazilian miner Cia. Vale do Rio Doce earlier this year came close to a $90 billion purchase of Anglo-Swiss miner Xstrata PLC, before the talks broke down over price. In Russia, discussions are under way that could lead to a three-way tie-up between OAO Norilsk Nickel, OAO Metalloinvest and United Co. Rusal. Such a deal would create a Russian national metals-and-mining champion with a value of as much as $160 billion.
Indian companies have been particularly active. Tata Motors Ltd., part of the Tata group of companies, earlier this year agreed to purchase the Land Rover and Jaguar brands from Ford Motor Co. for $2.3 billion. Last year, Tata Steel Ltd. bought the Anglo-Dutch steel company Corus Group PLC for about $12 billion.
The sale of Asarco, which will be part of an overall settlement of creditors' claims against Asarco, remains subject to approval by the U.S. bankruptcy court in Corpus Christi, Texas.
Though Vedanta shares are listed on the London Stock Exchange, the bulk of the company's assets are in India. Chairman Anil Agarwal and his family control the company, whose share price has surged about 70% in the past year. The company had sales of $8.2 billion in the 12 months ended in March.
Vedanta produces aluminum, copper, zinc and lead, with copper operations in India and smelting and refining operations in Zambia. The company has generally shied away from acquisitions, but the few it has made -- including the 2004 purchase of a majority stake in Zambia's Konkola copper mines -- have paid off quickly.
Mining companies are searching the world for new deposits at a time of rising prices. Acquisitions are a quick way to add to their stores. Indian companies are especially vying for a piece of the world's minerals, as India's economy grows. The country is already having trouble finding enough iron ore to fuel its busy steel mills.
The battle for control of Asarco began in 1999. That is when Grupo Mexico, a family-owned Mexican construction-and-mining conglomerate, surprised Wall Street by outmaneuvering a U.S. rival, Phelps Dodge Corp., to grab Asarco in a hostile takeover.
Asarco was facing outstanding claims by federal and state governments involving environmental damage after a century of mining across the western U.S. In the years after it bought the company, Grupo Mexico shifted Asarco's profitable mining interests controlled by its U.S. unit into the Mexican parent's other corporate holdings. In 2005, Grupo Mexico placed Asarco in Chapter 11 bankruptcy.
Asarco's court-appointed management sued the Mexican company, alleging that it stripped Asarco of assets to avoid paying the cleanup bill. That civil suit is currently being heard in a Texas court and could lead to damages of as much as $10 billion.
Jorge Lazalde, vice president and general counsel for Asarco Inc., the Grupo Mexico entity that is the nominal owner of Asarco LLC, denied the asset-stripping claim and said the suit is a legal tactic designed to damage Grupo Mexico.
Grupo Mexico contends the court-ordered auction for Asarco was flawed. The company insists it offered to pay Asarco creditors in full when initial bids were submitted in April and says that should trump any outsider's attempt to buy Asarco's assets. "The bottom line is we're offering full payment, and they never even read our proposal," said Mr. Lazalde.
Asarco's attorneys say Grupo Mexico can't know the value of what "paid in full" will be until all environmental litigation is settled, which could take years.
Today, Asarco runs refineries and mines in Texas and Arizona only. Former Asarco sites across the West have been the subject of disputes involving potential contamination. Earlier this year, New Mexico challenged the reopening of an Asarco smelter in El Paso, Texas, near the New Mexico border. It was closed in 1999, but Asarco wanted to reactivate it due to high global prices for copper.
,Indian Media Giant Buys Virgin Radio From Scottish Firm
By HEATHER TIMMONS
Published: June 2, 2008
NEW DELHI — An Indian media conglomerate that owns The Times of India, the world’s largest-circulation English newspaper, has agreed to buy Virgin Radio Holdings for £53.2 million ($105 million) in its first foreign acquisition.
Aegis eyes Philippine BPO.
Aegis BPO Services, an Essar Group business process outsourcing (BPO) company, is close to acquiring an 8,000-seater BPO firm in the Philippines. The exact size of the deal is not clear.
When completed, the company would have acquired close to 10 firms in the last two-and-half years.
Aegis BPO Services, an Essar Group business process outsourcing (BPO) company, is close to acquiring an 8,000-seater BPO firm in the Philippines. The exact size of the deal is not clear.
When completed, the company would have acquired close to 10 firms in the last two-and-half years.