India’s No.2 smartphone marker Micromax Informatics Ltd has expressed interest in buying a stake in South Korean peer Pantech Co Ltd as part of its drive to expand overseas and go upmarket, two sources said on Monday.
Pantech, South Korea’s No.3 smartphone maker, has been under a debt-restructuring programme after suffering six consecutive quarters of losses due to fierce competition. “Micromax told Pantech that it was interested in a stake in the company,” one of the sources said, declining to elaborate on the size of a potential deal and other details.
Nine creditor banks own a combined 37 percent of Pantech, while Qualcomm Inc has a 12 percent stake and Samsung Electronics Co Ltd holds 10 percent. “Micromax is among those who are interested in Pantech,” another source said.
The two sources declined to be identified because of the confidentiality of the sales process. High-end smartphone maker Pantech has struggled against competition from giant rivals Samsung Electronics and LG Electronics Inc in South Korea, where nearly 70 percent of mobile users have smartphones.
Pantech also sells phones in such markets as the United States and Japan. Micromax has brought smartphones to the masses in India’s price-sensitive market where basic handsets still dominate, with heavy advertising and phones based on Google Inc’s Android software starting at USD 50 – almost half the price of a comparable Samsung model.
Now the unlisted company backed by private equity firms TA Associates and Sequoia Capital is trying to push into pricier segments dominated by global brands and break into overseas markets.
The UK inflation rate has declined to 1.6 per cent in March, the lowest since October 2009, giving the Bank of England scope to keep rates on hold at rock-bottom lows despite simmering concerns over a property boom and credit growth.
The consumer price index fall from 1.7 per cent in February was in line with consensus. Month-on-month, inflation slowed to 0.2 per cent, down from 0.5 per cent in February, also in line with economists’ expectations.
The UK economy has finally begun to recover its vim after several years in the doldrums, and the Bank of England is keen to keep nurturing the renaissance by holding interest rates low.
Nonetheless, some investors and analysts are convinced that the strength of the recovery will force the Bank to hike rates – perhaps even as early as this year – which has pushed sterling up higher this year.
The direction and pace of policy reforms in India, more than which political party takes control after elections, will have a bearing on the sovereign rating, said Standard and Poor’s rating agency on Tuesday.
“An important factor is how fragmented the government will be. The more parties involved in the next coalition government, the more likely policies will be incoherent and less supportive of credit attributes,” said Kim Eng Tan, sovereign credit analyst at S&P, in a statement.
The world’s biggest-ever election is under way in India, Narendra Modi, the prime-ministerial candidate of the Bharatiya Janata Party (BJP), taking on the ailing ruling Congress party and several regional parties. Most surveys predict BJP will win the biggest chunk of seats but fall shy of the halfway mark, forcing them to seek a coalition with the powerful regional parties.
Voting runs until May 12 and results are due on May 16. S&P has a BBB- rating on India with a negative outlook and has warned of the risks of a ratings downgrade in the absence of structural reforms, fiscal consolidation and if economic growth decelerates further.
Morning boldly we have written NF below 6775…… Panic expected!!!
After broken 6775……… straight fall came upto 6735!!!
Now trading 6750………
Again if stays below 6735…………. will take next support 6690 to 6700
Suppose if not break 6735……… if trade above 6775 will check 6800++
More update to our clients only
Updated : 02.07pm / 15th April’14
Inflation in India rose to a seven-month high of 5.7 percent in the month of March, snapping a three-month easing trend that will give the Reserve Bank of India (RBI) less scope to support the economy amid fresh signs of slowdown.
The inflation in the food items, based on the wholesale price index (WPI), shot up by 9.9 percent in March as against 8.12 percent in the previous month.
The overall WPI inflation, which was on decline since December, had dropped to a nine-month low of 4.68 percent in February. As per the data released by the government today, the January inflation number has been revised upward to 5.17 percent as against earlier estimate of 5.05 percent.
March WPI Internals: Primary Articles Inflation At 7.66% Vs 6.33% (MoM)
Primary Articles Index Up 0.7% (MoM)
Manufactured Products Inflation At 3.23% Vs 2.76% (MoM)
Manufactured Products Index Up 0.5% (MoM)
Fuel & Power Group Inflation At 11.22% Vs 8.75% (MoM)
Fuel & Power Group Index Up 0.2% (MoM)
British spirits maker Diageo Plc has launched an open offer to increase its stake in United Spirits Ltd from the current 29 percent to 55 percent, at a price of Rs 3,030 per share, or a 18.4 percent premium to Friday’s closing stock price.
The total size of the open offer, which if successful would give Diegeo control of the firm, is around Rs 11,449 crore. The price that Diageo is now willing to offer for the stake represents a premium of 22.5 percent to the price at which it last acquired USL shares in January 2014, and 20.0 percent to the 60-day volume-weighted average price for the stock (the SEBI regulatory floor price).
“This was not completely unexpected because Diageo was looking to increase stake through creeping acquisition,” Varun Lohchab of CIMB told
“The price offered is very good and we should see good tendering. I will not be surprised if Diageo is able to get close to majority stake post this open offer.” CIMB said that stock’s fundamental value is in the Rs 2,500-2,600 range and the stock should see some correction after the open offer goes through. But market sources have told that some investors may not enter tender in their shares even at the relatively-attractive price as they believe that USL’s prospects should change drastically once Diageo takes control of the business.
Diageo has been busy buying USL shares through creeping acquisition (via the open market) and has used up about 75 percent of the total 5 percent total stake promoters can acquire in their companies in a year.
The USL share sale is also the subject of litigation as the Karnataka High Court late last year ruled the sale of USL shares by erstwhile parent company UB Holdings as “null and void” after lenders of Kingfisher (on whose loans UB Holdings had provided a guarantee) had laid claims to the shares.
Google Inc has acquired solar-powered drone maker Titan Aerospace as the Web search giant ramps up plans to deliver wireless Internet access to remote parts of the world. Titan Chief Executive Vern Raburn declined to provide information on the price of the deal, which he said closed on Monday morning.
The 20-person company will remain in New Mexico for the foreseeable future, Raburn said, with all employees joining Google. The deal could further Google’s efforts to deliver Internet access to remote regions of the world. Last year Google launched a small network of balloons designed to deliver Internet access over the Southern Hemisphere, dubbed as Project Loon.
“Atmospheric satellites could help bring internet access to millions of people, and help solve other problems, including disaster relief and environmental damage like deforestation,” Google said in an emailed statement confirming the Titan acquisition.
Google’s acquisition of Titan comes several weeks after rival Facebook Inc announced plans to build solar-powered drones and satellites capable of beaming Internet access to underdeveloped parts of the world. A few weeks before Facebook’s announcement, press reports said that Facebook was in discussions to acquire Titan.
Titan is developing a variety of solar-powered “atmospheric satellites,” according to the company’s website, with initial commercial operations slated for 2015. The drones, which fly at an altitude of 65,000 feet and can remain aloft for up to five years and have a 165-foot (50-metre) wingspan, slightly shorter than that of a Boeing 777. News of the acquisition was first reported on Monday by the Wall Street Journal.
Friday NF was traded very Rangebound & Low volume
Made a high was 6823.65 low was 6775……… then closed 6803.55
Friday’s our Resistance was 6840 Support was 6765….
Both level is not break!!!
Nifty Future outlook very Bullish
Short term Target 7250 & 7500!!! if not close below 6600 continue three days…
Today’s Nifty Future facing Resistance 6815, 6832 & 6855
If sustain above 6855 with 15 minutes…….. Rally expected upto 6900+
Today’s Support 6795 & 6775….. if stays below 6775……….
Panic selling will be expected upto 6750 & 6720!!!
More Live Market update to our clients only
Updated : 08.45am / 15th April’14