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DATED: 8th MAY 2008

STEEL MAKERS OFFER TO CUT PRICES

Acknowledging concerns that steel prices were exerting inflationary pressure on the economy, leading steel makers on Wednesday decided to reduce prices of flat products by Rs 4,000 per tonne and those of rebars and structural steel by Rs 2,000 per tonne. This price reduction would, however, not be applicable on exports or negotiated prices.

GOVERNMENT MAY DIVEST STAKE IN VSNL

The government is considering divesting its 26 per cent residual stake in Tata Communications Ltd (formerly VSNL), a deal that could fetch the exchequer about Rs 3,650 crore at current market prices. The government holds 26.12 per cent stake in Tata Communications Ltd and going by the market price the value of the residual stake is a little over Rs 3,650 crore as the company shares are changing hands at Rs 491 a share.

GOKALDAS EXPORT MAY DELIST

Blackstone Group (foreign promoter) holding a majority 67.88% stake in the company is mulling to take the Bangalore based apparel player private this year. Indian promoters hold 20% stake in the company (as at end March 2008). The delisting process is expected to be start during second half of the current year. In addition to delisting plan, Blackstone has also reportedly expressed its willingness to buy out a few more factories which are currently owned by promoters of Gokaldas Exports.

UNION BANK TO RAISE CAPITAL

Union Bank of India is reportedly planning to raise capital by issuing fresh equity shares on rights basis to existing shareholders including government. Government holds over 55% stake in the bank. The bank management has discussed plans for rights issue with the government and is looking for further development.

MINDTREE TO BUY AZTECSOFT

MindTree is buying a majority stake in software services firm Aztecsoft for Rs 190 crore. MindTree will initially buy 32.57% of Aztecsoft at Rs 80 per share and follow it up with an open offer for an additional 20%. It will be paying Rs 190 crore in the all-cash deal. The acquisition will be funded by internal accruals.

SESA GOA TO OFFER BONUS AND STOCK SPLIT

It was announced that Sesa Goa would split shares of Rs.10 each to shares of Re.1 each and further would offer bonus shares in the ratio of 1:1. Sesa Goa reported 216.37% surge in net profit to Rs 798.30 crore on 116.21% increase in sales to Rs 1669.97 crore in Q4 March 2008 over Q4 March 2007.

FINOLEX INDUSTRIES TO SELL OFF SEZ PLOT

Finolex Industries has reportedly decided to sell off its special economic zone (SEZ) plot at Chinchwad near Pune. It is close to signing a deal with a US-based developer to sell the land for between Rs 350 crore and Rs 400 crore.

INDIA INFOLINE TO OFFER STOCK SPLIT

The board of India Infoline approved splitting each share of Rs 10 each into five shares of Rs 2 each. Further, the board also recommended a dividend of Rs 6 per share of Rs 10 each. India Infoline reported 8.47% rise in net profit to Rs 17.42 crore on 14.34% decline in sales to Rs 203.94 crore in Q4 March 2008 over Q4 March 2007.