Mukesh Ambani bails out Anil Ambani, Jet runs into more troubles, Hostile takeover of Mindtree- Weekly Digest #80

Monday- 18th March 2019

  • Mukesh Ambani helped his brother Anil from imprisonment by paying money owed by him to Ericsson. The bailout came in critical time as Tuesday was the deadline for Anil’s RCom to clear ₹580 crore due to the Swedish equipment maker.
  • L&T has bought a 20.32% stake in Mindtree for ₹3,269 crore from early investor VG Siddhartha, after a lot of noise and the firing of a warning shot by promoters of the mid-tier IT services firm. The Mumbai-based engineering firm will pay ₹980 per share.
  • ArcelorMittal moved closer to acquiring Essar Steel with the NCLAT allowing the implementation of its ₹42,000 crore resolution plan for the debt-laden steel company. It asked ArcelorMittal to deposit ₹42,000 crore with the committee of creditors (CoC), which may disburse funds.
  • Ratan Tata, the chairman of Tata Sons, and other members of the Tata Group have moved the Bombay HC to quash the 2-year-old criminal defamation case filed by Bombay Dyeing chairman Nusli Wadia. Justice Mridula Bhatkar, while allowing more time to both parties, adjourned the matter to March.

 

Tuesday-  19th March 2019

  • Jet Airways’ financial problems became worse as partner Etihad formally asked SBI to purchase its stake in the airline and the pilots’ union threatening to strike work from April 1 if salary arrears are not cleared.
  • Goldman Sachs has upgraded its investment view on Indian equities to ‘overweight’ from ‘market-weight’ and set a one-year target for Nifty at 12,500.
  • RCom has moved the NCLAT asking it to direct the telecom department not to cancel its mobile permits for missing a spectrum payment. It has also sought the appellate tribunal’s intervention to ensure that the government does not invoke RCom’s bank guarantees.

 

Wednesday-  20th March 2019

  • No major event due to the occasion of Holi.

 

Thursday- 21st March 2019

  • IndiGo is hiring more than 100 Boeing 737 commander-level pilots, primarily those exiting Jet Airways, as the country’s biggest airline looks to overcome a flying-crew shortage and establish its dominance.
  • Crawford & Co is suing Cognizant saying the IT services provider failed to staff, manage and implement a software project at the company and caused it significant problems. Crawford’s suit against Cognizant is related to an ERP project that initially began in 2014 and was plagued by problems that peaked in 2018.
  • Mindtree, facing a hostile takeover from L&T, said it would reconvene its board meeting on March 26, the day when the engineering conglomerate is set to share details of its open offer with shareholders of the mid-tier IT services company.
  • Tata Steel to sell parts of its European packaging activities to secure regulatory approval for a planned JV with ThyssenKrupp. The two steelmakers agreed to an eight-day extension to a deadline for submitting remedies to the European Commission, which has been concerned that the combined entity could hurt competition.

 

Friday- 22nd March 2019

  • Indian lenders may buy a controlling stake in Jet Airways and sell it to an interested party as the promoters have failed to agree on a deal. As part of the plan, SBI has asked Naresh Goyal, his wife Anita Goyal and two other members on board to step down.
  • The government is set to tighten accountability rules for social media apps such as WhatsApp, with upcoming intermediary guidelines likely to propose penalties and jail terms for executives, especially on traceability and user consent before being added to groups.
  • Karnataka suspended Ola’s licence to operate in the state for six months after the homegrown cab aggregator failed to comply with an order to suspend “illegal” two-wheeler taxi services in the state’s capital Bengaluru.
  • The ED has attached a Gurgaon property of Kashmiri businessman Zahoor Ahmad Shah Watali who is in Tihar jail on charges of funding terror. The move is part of a multi-agency crackdown on people and organisations suspected of funding terrorist activities in the country.
  • The BSE has given Mumbai police the derivative trading details on Sun Pharma for the December contract, with law enforcement seeking to ascertain whether some traders had conspired with an equity research team to hammer the stock of India’s biggest drug-maker.

 

Source: The Economic Times
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