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Need To Know | Sterlite net up19%, deal with Asarco ends

Need To Know | Sterlite net up19%, deal with Asarco ends
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First Published: Thu, Oct 23 2008. 10 38 PM IST
Updated: Thu, Oct 23 2008. 10 38 PM IST
Mumbai, Wilmington, Delaware/Mexico City: Sterlite Industries (India) Ltd said profit rose 19%, aided by higher demand for metals and an increase in income from sources other than its main operations.
Net income climbed to Rs1,280 crore in the three months to 30 September from Rs1,080 crore a year earlier, it said on Thursday in a statement.
Separately, in another development, Asarco Llc. says it will collect a $50 million (Rs249 crore) break-up fee following the decision by Sterlite to cancel a $2.6 billion purchase of the bankrupt US copper producer, Asarco said on Thursday.
Sterlite vice-chairman Navin Agarwal, however, said, “We are not willing to pay $2.6 billion for the deal.”
The Arizona-based firm, will draw the entire amount of a $50 million letter of credit that Sterlite was required to post when it signed a contract to buy Asarco out of bankruptcy, said Asarco general counsel Doug McAllister.
Bloomberg
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ArcelorMittal reviews expansion plans
London: ArcelorMittal is reviewing expansion plans on concern a global economic slowdown will curb industrial demand for metal.
“ArcelorMittal’s growth strategy remains unchanged,” Haroon Hassan, a spokesman for ArcelorMittal, based in London, said on Thursday in an emailed statement. “However, the current market situation is prompting us to check the order of priority to be assigned to our different growth projects. We are currently reassessing these priorities.”
Bloomberg
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RIL arm falls on report Chevron may sell stake
Mumbai: A unit of the Mukesh Ambani-led Reliance Industries Ltd (RIL), Reliance Petroleum Ltd, fell in Mumbai trading on a report Chevron Corp. may sell its 5% stake in the refiner.
Reliance Petroleum declined Rs10.30, or 10.29%, to Rs89.75 at close on the Bombay Stock Exchange on Thursday.
NDTV Profit reported on Thursday that Chevron, the second biggest US energy company, may sell the stake, citing people it didn’t identify.
Nicole Hodgson, Chevron’s spokeswoman, didn’t immediately respond to an email. RIL denied the sale and said in an email that the news report was “based on rumours spread by vested interests”.
Bloomberg
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Tata Motors slides most in 15 years
Mumbai: Car maker Tata Motors Ltd, that bought Jaguar and Land Rover, fell the most in 15 years in Mumbai trading on concerns it may need to sell more shares to fund the $2.4 billion (Rs11,952 crore now) deal.
The auto maker slumped 14.57% to Rs195 .
On 20 October, the company closed a rights offering, aimed at raising Rs2,186 crore to help fund the purchase of the luxury auto units from Ford Motor Co.
Banks have tightened lending after the collapse of Lehman Brothers Holdings Inc. and recent declines in stock markets will make fund-raising difficult for Tata Motors, Ashutosh Goel, an analyst said.
The company offered existing shareholders one share for every six held at Rs340 apiece. Tata Motors still hasn’t compiled the response to the share-sale offer, spokesman Debasis Ray said.
Bloomberg
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Beijing meet to discuss global financial crisis
Beijing: India will for the first time be attending the Asia-Europe Meeting (Asem) that will be discussing the global financial crisis in Beijing beginning here on Friday.
Although the Asem agenda is to promote economic interaction and social development between Asia and Europe, the persistent global economic downturn has sparked fears that Asia cannot be saved from this transnational epidemic. On his arrival in Beijing, the Prime Minister articulated the concern, saying that he “sincerely hoped that this meeting of minds between Europe and Asia will produce a solution to many global problems, including the financial crisis”.
Jyoti Malhotra
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DLF only bidder for land sale in Mumbai by Rlys
Mumbai: India’s biggest real estate developer DLF Ltd was the sole bidder for an office plot in Mumbai offered by the state-run Indian Railways.
“We will evaluate the bid to see whether it meets the technical qualification,” Anil Kumar Gupta, general manager at the Rail Land Development Authority, or RLDA, said in a phone interview from New Delhi on Thursday. No time frame has been set for the evaluation.
RLDA has offered to lease a 45,300 sq. m plot adjoining the Bandra railway station for offices for 80 years at a reserve price of Rs3,960 crore.
DLF spokesman Sanjey Roy declined to comment.
Bloomberg
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First Published: Thu, Oct 23 2008. 10 38 PM IST