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Internet, Media Stars Line Up for *****
Thursday April 10, 8:17 am

Report: *****, AOL in Alliance Talks; Microsoft, News Corp. May Join Forces in ***** Bid

SAN FRANCISCO (AP) -- ***** Inc.'s last-ditch efforts to avoid a takeover by Microsoft Corp. appear to be setting the stage for a dramatic finale featuring a rich cast of Internet and media stars.
Eager to frustrate Microsoft in any way possible, Internet search leader Google Inc. has already agreed to help out ***** by participating in an unusual test that will gauge how much more advertising Google can sell for its struggling rival.

The two-week experiment announced Wednesday will be limited to ads posted alongside a small percentage of *****'s online search results in the United States.

***** reportedly hopes to build upon the Google deal by combining its online operations with Time Warner Inc.'s AOL, which has been struggling to regain its stride after stumbling badly for years. Google already handles AOL's search advertising and owns a 5 percent stake in the Time Warner subsidiary.

As part of the AOL deal, Time Warner would make a cash investment in return for a 20 percent stake in the combined entity, according to a Wall Street Journal story that cited unnamed people familiar with the matter. ***** then would use the Time Warner cash to buy back stock to put some money in shareholders' pockets. ***** would pay between $30 and $40 per share for an unspecified amount of stock, the Journal said.

Microsoft's bid was worth about $42 billion, or $29.24 per share, as of Wednesday, when ***** shares closed at $27.77.

If *****'s maneuvering raises the pressure for a higher bid, Microsoft reportedly may mount its counterattack with a surprising ally -- Rupert Murdoch's News Corp., whose media empire already includes the Fox television networks, The Wall Street Journal and the popular online hangout MySpace.com.

If Microsoft and News Corp. were successful in a joint bid, it would unite three of the Internet's most popular Web sites -- *****, along with MySpace and MSN.com.

The New York Times reported Microsoft's discussions with News Corp. late Wednesday, citing people involved in the discussions.

***** had previously been exploring using an alliance with MySpace as one of its escapes from Microsoft.

All the negotiations are at a sensitive stage and still could unravel, according to the newspapers' reports.

Contacted late Wednesday, a ***** spokesman declined to comment on the reported AOL talks. Microsoft representatives didn't respond to inquiries.

The complex web of deals faces various complications.

Because Google and ***** control a combined 80 percent of the U.S. search market, any long-term advertising alliance between them almost certainly would have trouble getting antitrust clearance, analysts said.

A broader relationship between ***** and Google also would face intense political scrutiny, said Sen. Herb Kohl, D-Wis., who chairs a committee overseeing antitrust issues.

A *****-AOL combination probably would have to overcome shareholder skepticism because both companies have been fading in recent years. Before Microsoft announced its bid Jan. 31, *****'s market value had plunged by nearly $30 billion during a two-year period. AOL is now believed to be worth about $10 billion, about half of its value when Google paid for a $1 billion stake in 2005.

And Microsoft might alienate one of partners, Facebook Inc., if it teams up with News Corp. in an attempt to buy *****. Microsoft last year paid $240 million for a 1.6 percent stake in Facebook, which is the second largest online network behind News Corp.'s MySpace.com.

***** has been working for more than two months to put together a package that trumps Microsoft's takeover bid.

Microsoft has set an April 26 deadline for ***** to accept its current offer, which was initially valued at $44.6 billion, or $31 per share. The deal's value has eroded because Microsoft wants to pay for half of the acquisition with its recently declining stock.

Analysts have said that Microsoft can afford to pay about $35 per share, or about $50 billion, for ***** without undermining its future earnings. ***** has indicated it thinks its franchise is worth at least $40 per share, or more than $55 billion.

*****'s ad tests with Google make a friendly deal with Microsoft less likely and raises the odds that Microsoft will follow through on a recent threat to lower its bid, said Standard and Poor's equity analyst Scott Kessler.

In a statement Wednesday, Microsoft reiterated its bid is fair and pointed out the antitrust problems likely to prevent Google and ***** from working together.

"This would make the market far less competitive, in sharp contrast to our own proposal to acquire *****," said Brad Smith, Microsoft's general counsel. "We will assess closely all of our options."

Microsoft has said that if things can't be worked out amicably, it is prepared to oust *****'s 10-member board in a proxy contest that could prolong the drama into the summer.

If the Google tests were to begin immediately, they would be completed shortly before Microsoft's April 26 deadline.

***** didn't specify when the trial run would begin but said the test doesn't mean it will join the thousands of other Web sites that rely on Google to place text-based advertising links next to search requests or their other content.

Under the deal announced Wednesday, Google will show ads tied to about 3 percent of the queries made in the United States through *****'s search engine -- the Internet's second largest after Google's.

***** will still use its own technology -- acquired and developed at a cost of more than $2 billion -- to place ads next to the other search results on its Web site. The Sunnyvale-based company also will continue to distribute search ads to its own partners.

By flirting with Google, ***** is trying to prove it has other options besides succumbing to Microsoft, Kessler said. But he doubts most investors will take the Google alternative seriously, given the antitrust obstacles.

"It doesn't make a lot of sense for ***** to make an announcement like this when everyone knows a long-term relationship (with Google) can't happen," Kessler said. "It strikes me as somewhat desperate."

Stocks Waver After Mixed Retail Data
Thursday April 10, 10:23 am
Wall Street Fluctuates As It Digests Mixed Sales Data From Retailers, Dip in Jobless Claims

NEW YORK (AP) -- Stocks fluctuated Thursday as investors weighed mixed sales figures from major retailers and a drop in unemployment claims.
The Labor Department said initial claims for unemployment benefits fell by 53,000 to 357,000 last week, a better-than-expected reading. Still, the four-week average of claims, which helps the market look past week-to-week volatility, rose last week to 378,250, a two-and-a-half-year high.

Because of the shaky economy, retailers have been hurting. Gap Inc., Kohl's Corp., Saks Inc. and Nordstrom Inc. all reported drops in March sales on Thursday. The news came a day after home furnishings retailer Bed Bath & Beyond Inc. warned its first-quarter profit would come in below the average analyst estimate.

But some retailers -- particularly discounters that sell staples like food and gasoline -- are weathering the economic weakness. Wal-Mart Stores Inc. reported a strong rise in March sales at stores open for at least a year, and boosted its forecast for April sales and first-quarter profit. Warehouse club operator Costco Wholesale Corp. also witnessed a sharp rise in March sales.

Wal-Mart rose 61 cents to $54.76, while Costco rose 42 cents to $66.43.

In midmorning trading, the Dow Jones industrial average fell 5.04, or 0.04 percent, to 12,522.22.

Broader stock indicators were mixed. The Standard & Poor's 500 index fell 1.19, or 0.09 percent, to 1,353.30, and the Nasdaq composite index rose 11.03, or 0.47 percent, to 2,333.15.

The Nasdaq got a big boost after Japanese drug maker Takeda Pharmaceutical Co. announced an $8.8 billion, all-cash bid for U.S. biotechnology company Millennium Pharmaceuticals. Millenium soared $8.06, or 49 percent, to $24.41.

Bond prices were little changed. The yield on the benchmark 10-year Treasury note, which moves opposite its price, was at 3.48 percent, the same as late Wednesday.

The mixed readings on consumer spending arrived as oil prices trade near record highs and banks reveal more trouble with the credit markets.

Lehman Brothers Holdings Inc. disclosed in a regulatory filing Wednesday that it liquidated three funds because of the tight credit markets and bought the assets of those funds, valued at $1 billion, on Feb. 29. The investment bank said it also purchased deteriorated assets valued at $800,000 from other funds.

Lehman fell 86 cents, or 2.1 percent, to $39.68, along with other financial stocks.

Light sweet crude fell 63 cents to $110.26 a barrel on the New York Mercantile Exchange, after surging above $112 a barrel during Wednesday's session.

Gold prices rose, while the dollar fell.

The Bank of England lowered its base lending rate by a quarter-point to 5 percent, the lowest level in 17 months, while the European Central Bank left its rates unchanged.

In other corporate news, ***** Inc. and Time Warner Inc.'s AOL are close to a deal to combine their Internet operations, The Wall Street Journal reported, citing unnamed sources. The deal is aimed at thwarting Microsoft Corp.'s effort to buy *****, but Microsoft reportedly is talking with Rupert Murdoch's News Corp. about launching a joint bid for *****.

The Russell 2000 index of smaller companies fell 0.26, or 0.04 percent, to 698.12.

Overseas, Japan's Nikkei stock average dropped 1.27 percent. Britain's FTSE 100 fell 1.14 percent, Germany's DAX index fell 1.06 percent, and France's CAC-40 fell 1.17 percent

Aishwarya Telecom IPO opens on Tuesday
10 Apr, 2008, 1605 hrs IST.......................

MUMBAI: Aishwarya Telecom's initial public offering will open for subscription on Tuesday. The issue, priced within a band of Rs 32 to Rs 35, will offer 40,00,000 equity shares of Rs 10 each through the 100 per cent book building process. The issue closes on Thursday.

The issue comprises a reservation of up to 1,00,000 equity shares for eligible employees while the rest would be open for public, which constitutes 36.59 per cent of the fully diluted post issue paid-up capital of the company.

The proposed issue will be lead managed by SREI Capital Markets, Sobhagya Capital Options and the registrar to the issue will be Bigshare Services.

Aishwarya Telecom is in the business of manufacturing test and measurement equipments like mobile tester, fibre optic tester, data tester, cable fault locator. The company currently manufactures products for telephone service providers, defense sector, railways, telecom equipment manufacturing companies and cable TV operators.

The company has its manufacturing facilities at Yanam, Pondicherry and Dehradun in Uttaranchal. It also has a research and development facility at Hyderabad.

The main object for the issue is to raise capital for financing the expenditure on company's proposed business plans, to meet additional working capital requirements and to meet expenses of the issue.

As a part of the expansion plans, Aishwarya Telecom will incur capital expenditure of Rs 80.39 lakhs for research and development of main frame optical time domain reflectometer.

It also plans to invest Rs 64.17 lakhs for research and development of ethernet traffic analyzers, and another Rs 700.13 lakh to fund the cost of global system for mobile communication, general packet for radio service, code division multiple access analyzers for providing technical audit services to the mobile operators.

Aishwarya Telecom posted net sales of Rs 22.08 crore with a net profit at Rs 3.14 crore. For FY2006-07, the company has reported net sales at Rs 21.74 crore with a PAT of Rs 3.03 crore.

CARE assigns 'IPO Grade 4' to DB Corp
9 Apr, 2008, 1607 hrs IST.............

MUMBAI: CARE assigned 'CARE IPO Grade 4' to the proposed initial public offer of DB Corp Ltd, which indicates above average fundamentals.

The grading factors in the company’s long experience in print media, track record of promoters and strong brand name of the publications. It also takes into account well diversified geographical presence and growth prospects of the industry.

However, the grading is constrained by the risks associated with expansion in newer territories and its impact on the overall profitability of the company.

DB Corp is planning an IPO of 188 lakh equity shares of face value Rs 10 each. The company publishes five newspapers – Dainik Bhaskar, Divya Bhaskar, Saurashtra Samachar and on a franchisee basis, DNA Money and DNA.

Its flagship publication, ‘Dainik Bhaskar’ is present in various states like Madhya Pradesh, Chattisgarh, Rajasthan, Haryana, Punjab, Chandigarh and enjoys highest readership in most of the territories. DB Corps Gujarati newspaper ‘Divya Bhaskar’ is the highest circulated Gujarati daily in that state.

The company also publishes five periodicals.

In addition to the newspaper and publication businesses, DB Corp through its subsidiaries operates an FM radio and internet portals which contain editorial content from daily editions of the company’s newspapers in the form of e-papers.

The promoters of DBCL are into print media business since four decades. The promoter group combined own 92.86 per cent of the total share holding of DB Corp and Cliffrose Investment --an affiliate of Warburg Pincus--owns the remaining 7.14 per cent.

The IPO will constitute 10 per cent of the fully diluted post-issue equity share capital of DB Corp. Proceeds from the issue are intended to be deployed towards expansions, modernisation of plant and

Modify Service Tax proposal on ULIP: FICCI asks Finmin

New Delhi, April 10: Industry chamber FICCI on Thursday asked the Finance Ministry to modify the budget proposal to impose Service Tax on the Unit Linked Insurance Policy (ULIP) products by limiting the levy of tax to only fund management charges.

Finance Minister P Chidambaram, in his budget, has proposed to impose Service Tax on entire range of charges on ULIP schemes, which according to FICCI, would widen the disparity between ULIP and mutual funds resulting in "unfair and unintended discrimination".

The service tax on Ulip should be levied in the same manner as in case of mutual funds, it said, adding "this would truly bring parity between mutual funds and ULIPs in respect of application of Service Tax."

At present, Service Tax on mutual funds is levied on asset management charge, while the charges on ULIP products do not attract Service Tax.

The budget proposal, if implemented, would make ULIP products unviable and slow down growth of the life insurance industry, besides placing the life insurance industry at a disadvantageous position within the financial services sector, FICCI said.

It said that in case of ULIP, the Service Tax should be levied be on fund management charge which is comparable to the asset management charge paid by mutual funds to asset management companies.

UPA govt to review foreign trade policy

New Delhi, April 10: Relief for exporters, additional incentives for export of farm products other than those in short supply and more steps to check inflation through hassle- free and cheap imports are likely to be announced on Friday in the last review of foreign trade policy by the UPA government.

The Commerce Ministry will be unveiling the annual review of the Foreign Trade Policy (FTP) in the backdrop of India's increasing dependence on import of food articles and exporters' woes arising from a looming US recession and rupee appreciation.

The FTP, defining the priority areas for exports and setting the ground rules for imports for the 2008-09, will be the last from the UPA government, which had changed its nomenclature from the Export-Import Policy since 2004.

The government has already indicated that it would address the problems of exporters, especially those engaged in the labour-intensive sectors of textile, leather, handicrafts and gems and jewellery.

"We are examining what relief can be given to exporters, especially in the employment generating sectors and the sectors to which we want to give a priority," Commerce & Industry Minister Kamal Nath said recently.

Tata Motors' rating may be downgraded: Moody's
10 Apr, 2008, 1950 hrs IST.........................


NEW DELHI: Global credit rating agency Moody's on Thursday said it is reviewing the corporate family rating on Tata Motors for a possible downgrade following the firm's decision to acquire British luxury brands Jaguar and Land Rover for about $2.3 billion.

At present, Tata Motors has a speculative grade rating of Ba1 which could be downgraded to Ba2.

"Moody's expects to close the review upon the completion of the deal which is still subject to various regulatory approvals in Q2 of 2008 and the rating is likely to be revised to Ba2," Moody's Investors Service Vice President and Senior Credit Officer Elizabeth Allen said in a statement.

He added such an action would reflect "considerable challenges that TML will face in successfully integrating such a large operation, which only recently turned profitable, and the immediate impact on TML's financial profile.
According to the report, the possible downgrade in rating reflects the refinancing risk faced by Tata Motors, its weaker financial profile, the integration risks it faces and the uncertainty of JLR's performance under its new owner amid the slump in car sales in the US and European markets.

"There are inherent challenges with any major M&A transactions - especially in the auto sector where few have been successful - and this deal significantly raises the immediate business risk profile of TML," Allen added.

However, the credit rating agency noted that in the long term, the acquisition could elevate Tata Motors' status to a global automobile manufacturer. The buyout could "... enlarge its operating scale, provide access to long-established brands, improve its technology base and broaden its product range.

Nonetheless, the uncertainty in the near-to-medium term is high," it added.

Moody's said Tata Motors' liquidity position is considered to be weak since the company has a high reliance on "domestic bank debt which is typically uncommitted and rolled over on an annual basis."

Even though, the firm's debt requirements in the context of Jaguar and Land Rover deal would be high, the support for "the rating at the Ba2 level comes from an expectation that TML will retain strong access to the Indian banking system as part of the broader Tata group," it said.

For the $2.3 billion purchase of the two British luxury brands and related requirements in the future, Tata Motors has arranged for a three billion dollar bridge loan.

NTPC net up 4%, to double coal imports
10 Apr, 2008, 1438 hrs IST......................

NEW DELHI: NTPC Ltd, India's largest power producer, on Thursday reported a 4 per cent rise in full-year provisional net profit and said it would double coal imports in 2008/09 as it expands capacity.

State-run NTPC, which has a generation capacity of 29,144 megawatts (MW), plans to add 22,430 MW by 2012 and take the total to 75,000 MW by 2017.

"New capacities are coming up and they also need coal," Chairman and Managing Director T. Sankaralingam told reporters. The company, which generates power mostly by using coal, will double coal imports to 5 million tonnes in 2008/09 from 2.5 million tonnes a year earlier, he said.

He said the company would spend 135.88 billion rupees ($3.4 billion) as capital expenditure in 2008/09. NTPC said it made a provisional net profit of 71.3 billion rupees for the year ended March 31, up from 68.6 billion rupees a year earlier. By 0832 GMT, shares in NTPC were down 0.4 percent at 186.90 rupees in a firmer Mumbai market.

Merrill Lynch said in March contract prices of thermal coal in Asia may rise by as much as 200 percent after weather-related supply disruptions in Australia, China and South Africa. India and China will lead a 73 percent leap in world coal demand to 4,994 million tonnes of oil equivalent by 2030 from 2,892 million tonnes in 2005, the International Energy Agency said in late 2007.

Chandan Roy, the company's director for operations, said NTPC was in talks with state-run oil companies to bid for oil and gas blocks under the latest auction round. By 2017, NTPC plans to produce atleast 1,000 MW through renewable energy such as wind and hydro power, Sankaralingam said.

Yes Bank Q4 net profit jumps over 100 % at Rs 64.5 crore
9 Apr, 2008, 1915 hrs IST................................

MUMBAI: Private sector lender Yes Bank on Wednesday posted a net profit of Rs 64.5 crore for the fourth quarter ended March 31 due to an overall growth.

The net profit was up 108.7 per cent from Rs 30.9 crore in the corresponding quarter previous fiscal, Yes Bank Managing Director and CEO Rana Kapoor told reporters.

Total income during the period recorded 75.9 per cent growth at Rs 494.3 crore as compared to Rs 281.1 crore a year ago.

The bank's profit after tax during the year ended March 31 went up by 112 per cent at Rs 200 crore as compared to Rs 94.4 crore in the fiscal ended March 31, 2007.

Total income during the year increased by 112.9 per cent at Rs 1,665.4 crore as against Rs 782.2 crore during the year ended March 31, 2007, he said.

The net interest margin of the bank went up to 3.06 per cent, while the non-performing assets stood at 0.09 per cent.

The capital adequacy ratio stood at a comfortable level of 13.64 per cent.

"We would continue to develop and we will utilise any window of opportunity to raise more capital to expand our presence," Kapoor said.

Bank CFO Rajat Monga said all options were open for fund raising plans. "If public markets are good we can go for a Qualified Institutional Placement (QIP) or else we can look for a private placement," he said.

Kapoor said the bank was focusing on raising the share of current and savings account, which stood at 8.5 per cent of the total deposits as of end March.

Presently, the bank has 56 per cent foreign shareholding; 24 per cent through Foreign Direct Investment, 31 per cent through FIIs and one per cent through non-resident Indians

FIIs sell shares worth Rs 462 crore on bourses
10 Apr, 2008, 2112 hrs IST.....................

MUMBAI: Foreign Institutional Investors were net sellers in equities on Thursday, amid the benchmark index, Sensex, ending about 95 points down.

FIIs made gross sale of equities worth Rs 2,995.14 crore and gross purchase of Rs 2,532.80 crore, resulting in a net sale of Rs 462.34 crore.

Domestic institutional investors, however, were net investors in shares worth Rs 594.48 crore, provisional data available on the Bombay Stock Exchange showed.

Among other categories, non-resident Indian entities invested in shares worth Rs 0.38 crore and proprietors sold shares worth Rs 11.16 crore.

Brokers also sold shares worth Rs 31.94 crore for their clients or retail investors.

According to the information available on the SEBI website, FIIs sold shares worth Rs 172.30 crore yesterday.

The Sensex ended the day at 15,695.10 a fall of 95.41 points from the previous close.