Maruti Suzuki India on Saturday decided to seek the approval of minority shareholders for its Gujarat plant, which it has decided would be built and owned by its parent firm Suzuki Motor (SMC). As reported earlier by FE, the company does not need any such approval, as the relevant provisions of the Companies Act, 2013, have not yet been notified, but Maruti said it would do so “as a measure of good corporate governance”.
However, it remains to be seen whether the amended proposal finds favour with the fund houses, who were the first to raise objections. “We will convince all the domestic institutional investors to vote against the proposal so that it gets defeated, ” a fund manager from a public sector fund told FE.
A senior fund manager of a large fund conceded the changes made to the proposal were welcome. However, the fund manager said opposition to the plant being housed in Suzuki Motor Corporation’s wholly-owned subsidiary rather than in>> Read More
The Reserve Bank of India today notified that Foreign Institutional Investors (FIIs), through primary market and stock exchanges, can now purchase up to 52.50 per cent of the paid up capital of M/s IDFC Limited under the Portfolio Investment Scheme (PIS). M/s IDFC Limited has passed resolutions at the board of directors’ level and a special resolution by the shareholders, agreeing for decreasing the limit from 54 per cent to 52.50 per cent for the purchase of its equity shares and convertible debentures by Foreign Institutional Investors (FIIs). The Reserve Bank has notified this under FEMA 1999, regarding raising of aggregate ceiling for investments by FIIs in Indian companies under Portfolio Investment Scheme (PIS).
Further the Reserve Bank advise that the foreign share holding by FIIs in M/s IDFC Limited has crossed the overall limit of its paid-up capital. Therefore, please note that no further purchases of shares of this company would be allowed through stock exchanges in India on behalf of FIIs.
At the moment Google is preparing an especially uncertain and distant shot. It is planning to launch Calico, a new company that will focus on health and aging in particular. The independent firm will be run by Arthur Levinson, former CEO of biotech pioneer Genentech, who will also be an investor. Levinson, who began his career as a scientist and has a Ph.D. in biochemistry, plans to remain in his current roles as the chairman of the board of directors for both Genentech and Apple, a position he took over after its co-founder Steve Jobs died in 2011. In other words, the company behind YouTube and Google+ is gearing up to seriously attempt to extend human lifespan.
Microsoft’s CEO Steve Ballmer announced his retirement today, saying he would step down within 12 months, once a successor is found.
“There is never a perfect time for this type of transition, but now is the right time,” Ballmer said in a company-issued statement.
“We have embarked on a new strategy with a new organization and we have an amazing Senior Leadership Team. My original thoughts on timing would have had my retirement happen in the middle of our company’s transformation to a devices and services company. We need a CEO who will be here longer term for this new direction.”
Microsoft shares rose 9.02% pre-open in the minutes after the announcement.
Microsoft’s board of directors has built a committee to choose Ballmer’s successor, made up of several high-ranking Microsoft executives, including Bill Gates.>> Read More
JPMorgan Chase & Co. (NYSE: JPM) today reported net income for the fourth-quarter of 2012 of $5.7 billion, compared with net income of $3.7 billion in the fourth quarter of 2011. Earnings per share were $1.39, compared with $0.90 in the fourth quarter of 2011. Revenue for the quarter was $24.4 billion, up 10% compared with the prior year. The Firm’s return on tangible common equity for the fourth quarter of 2012 was 15%, compared with 11% in the prior year. Net income for full-year 2012 was a record $21.3 billion, compared with $19.0 billion for the prior year.>> Read More
The Reserve Bank should give preference to the non-corporate sector for new bank licences, Prime Minister’s Economic Advisory Council ChairmanC Rangarajan said.
“It is possible for the Reserve Bank to start with initially non-corporate business and find out whether there are suitable applicants and thereafter proceed to look at the other applicants,” he said in an interview.
The RBI is in the process of finalising the guidelines for giving new bank licences after Parliament approved Banking Laws (Amendment) Bill last month.
The central bank, Rangarajan said, “should look at various types of financial institutions that are available currently and decide”.
“…. many of the strong private sector banks today have been at one time or other in the financial system. They can look at it first and look at the other later on,” he said. >> Read More
The 39.5 billion euros ($51 billion) Spain’s euro-zone partners agreed to provide for recapitalizing four nationalized Spanish banks will be disbursed next week, Eurogroup President Jean-Claude Juncker said here Monday.
“The implementation of the program is well on track, meeting all required conditionality steps as enshrined in the memorandum of understanding,” the Luxembourg prime minister said after a meeting of euro-zone officials in Brussels.
“We have also welcomed the decision by the ESM (European Stability Mechanism) board of directors to authorize the first tranche of the program of up to 39.5 billion (euros). The disbursements will be made in mid next week,” Juncker said.
The four nationalized Spanish banks will receive 36.97 billion euros in European aid.>> Read More
US-based Orient Express Hotels has termed the USD 1.86 billion acquisition offer by Tata group firm Indian Hotels as ‘unsolicited’ and said it will evaluate the proposal ‘carefully and respond’ accordingly.
In a statement on its website, Orient Express Hotels said it “has received an unsolicited letter from The Indian Hotels Company Ltd (IHCL) and certain other members of the Tata group of companies dated October 18, 2012…”
The offer also included “an unsolicited proposal by those parties and a fund controlled by Montezemolo & Partners to acquire all outstanding shares of Orient-Express Hotels Ltd”.
While it did not spell out its immediate course of action, the firm said: “The Board of Directors of Orient Express Hotels Ltd expects to evaluate the proposal carefully and respond in due course in accordance with the best interests of the Orient Express Hotels Ltd and its shareholders”.>> Read More
CITIGROUP NAMES MICHAEL CORBAT AS CEO VIKRAM PANDIT STEPS DOWN
CITIGROUP PRESIDENT-COO JOHN P. HAVENS ALSO RESIGNS
CITIGROUP NAMES MICHAEL CORBAT AS CEO VIKRAM PANDIT STEPS DOWN
CITIGROUP BOARD UNANIMOUSLY ELECTED CORBAT TO CEO
CITIGROUP SAYS HAVENS HAD BEEN PLANNING TO RETIRE AT YEAR END
And so the rat procession out of the Titanic begins.
The Board of Directors of Citigroup today announced that Vikram Pandit has stepped down as the Company’s Chief Executive Officer and as a member of the Board, effective immediately. The Board also announced it has unanimously elected Michael Corbat CEO and a director of the Board. Mr. Corbat previously served as Citigroup’s CEO of Europe, Middle East and Africa.
Mr. Pandit said: “Thanks to the dedication and sacrifice of people across Citigroup, we have emerged from the financial crisis as a strong institution.
Citigroup is well-positioned for continued profitability and growth, having refocused the franchise on the basics of banking. Given the progress we have made in the last few years, I have concluded that now is the right time for someone else to take the helm at Citigroup. I could not be leaving the Company in better hands. Mike is the right person to tackle the difficult challenges ahead, with a 29-year record of achievement and leadership at this Company. I will truly miss the wonderful people throughout this organization. But I know that together with Mike they will continue to build on the progress we have made.”>> Read More