The last day of 2009 had mixed news for Indian company Sun Pharma. The good news was that shareholders of Israeli firm Taro rejected a proposal to re-elect its directors. The bad news is the company will remain in control of its existing directors. Sun Pharma and Taro are locked in a dispute ever since Sun Pharma tried to takeover Taro. Sun Pharma currently owns a 36% stake in Taro, making it the company’s largest shareholder.
The government has delayed the implementation of mobile number portability across the country. The new date is now the 31 March, which means a three month delay for metro cities, where portability was supposed to have been introduced on the 31 December. Mobile number portability allows customers to retain their phone numbers when they change their operator.
In another delay in the telecom sector, the government has postponed the auctions for 3G spectrum for mobile phone services. They will now be held in February instead of January. Just last week the telecom ministry had maintained the auctions would be held on time. The government is hoping to raise Rs25,000 crore from the auctions.
Food prices shot up through the middle of the month. India’s food price index rose 19.83% in the week ending the 19 December. A weak monsoon and floods in parts of the country, has driven up food prices for several months.
After several days of speculation, the RBI has said it will only review interest rates at its next policy review, which is going to take place on the 29 January. The RBI has changed interest rates outside of its scheduled quarterly reviews several times in the past.