The Mint report for 9 June 2010

The Mint report for 9 June 2010

The duel between Kingfisher Airlines and the Competition Commission of India has taken a fresh turn. On Wednesday, Kingfisher went to the Supreme Court to challenge a Bombay High Court decision in the case. The court had earlier dismissed a petition from Kingfisher that asked it to stall a Competition Commission investigation. Last year, the commission started an investigation into whether an operational alliance between Kingfisher and Jet Airways had created a cartel.

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The government could ease up on its new listing norms for companies with publicly held shares. On Wednesday finance secretary Ashok Chawla said it would make changes in the norms if necessary. Chawla also said some PSUs had approached the finance ministry over the last few days asking for modifications.

The new listing norms make it compulsory for listed companies to float at least 25% of their shareholdings. And PSUs have to float five percent of their shares every year until they reach the 25% mark. Companies are concerned that all the new public issues will cause a glut in the market and bring down share prices. The new norms also appear to clash with some Sebi regulations.

Fortis Healthcare is preparing its war chest for a possible battle over Parkway. The company’s board has approved a plan to raise Rs2,750 crore through an issue of securities. It has also increased the borrowing limit to Rs6,000 crore. Fortis currently owns about 25% of Singapore’s Parkway Healthcare. And it plans to eventually hold a controlling stake in it. But last month, Malaysian sovereign wealth fund Khazanah made an offer of its own for fifty one point five percent of Parkway. Fortis is widely expected to make its own counter bids for control of the company.