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The Mint Report for 17 February 2011

The Mint Report for 17 February 2011
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First Published: Thu, Feb 17 2011. 10 27 PM IST
Updated: Thu, Feb 17 2011. 10 27 PM IST
Satyam has cleared a major hurdle on its path to a merger with Tech Mahindra. It has offered $125 million to settle a lawsuit with foreign investors. The investors in question include the Public Employees’ Retirement Scheme of Mississipi and Britain’s Mineworker’s Pension Scheme. Not included in the settlement is a separate class action suit led by the Aberdeen Group. But Satyam says that suit can be resolved at marginal price.
The company’s $125 million payout will come from its existing cash reserves of some Rs 2,900 crore. New of the settlement comes just days after Satyam announced a better than expected third quarter net profit of Rs 59 crore. Stocks of the firm climbed 1.52% on the BSE to 63.60.
In other news, Devas Multimedia has lost its access to transponder space on two Indian satellites. On Thursday, the government announced it was scrapping the deal under which Isro rented out the transponders to Devas. That deal gave Devas access to spectrum for mobile Internet applications, but was carried out without bids or auctions.
Earlier, Devas said it would take legal action if the contract was terminated. But after announcing the decision on Thursday, law minister Veerappa Moily said the government could defend itself against any such move.
There are more signs food prices are finally easing. The food price index climbed stood at 11.05% in the period to 5 February. The previous week it had gone up 13.07%.
This is the second week in which food inflation has slowed down. Food inflation in India remains high despite a healthy monsoon and higher food output.
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First Published: Thu, Feb 17 2011. 10 27 PM IST