Today's Biz Bit

• There are growing industry reports that GE will restructure its consumer finance operations in India, sell off some of its assets and rope in new partners. GE Money in India has been grappling with plummeting profits. The firm, an unlisted NBFC, saw its profits decline to Rs 10 crore for the year ended March 31, 2007 as against Rs 50 crore in the previous fiscal. (ET)
  

• A number of foreign investors - CVC International and the Government Investment Corporation (GIC) of Singapore, along with others - have picked up a 15% stake in a SPV floated by the Shapoorji Pallonji group for about $290 million. The deal is the largest so far in the real estate space and has been arranged by HDFC Realty. The deal includes investing in 6 large FDI-compliant projects, including commercial, residential and shopping malls. The projects are located in Pune, Kolkata and Nagpur, among other places. (ET)
  

• According to sources, consulting firm Accenture has recommended a merger of Kingfisher Airlines with Deccan Aviation in order to fully exploit the synergies between the two airlines. The recommendations will be considered by the UB board at a meeting on Wednesday. The modalities of the deal structure will be decided by a financial consultant to be appointed by the board. (ET)
  

• A SEBI committee has proposed that qualified institutional buyers (QIBs) be made to pay 100% margin money up-front while bidding for shares in an IPO. The move is part of the initiatives being examined by the committee to clean up the IPO process and make it more transparent. (ET)
  

• Reliance Communications (RCOM) has bagged a licence to become Uganda’s sixth telecom operator. The co. will invest Rs 800 crore to roll out a telecom network — fixed and mobile and plans to launch services by Q3 in 2008. According to sources, RCOM has bagged two licences — Public Infrastructure Provider (PIP) and Public Service Provider (PSP) — which will allow the company to offer mobile, fixed, internet, national and international long distance services, in addition to WiMax and Wifi services in Uganda. (ET)
  

• A govt. official has indicated that the govt may take a cautious approach while negotiating FTAs with countries such as Chian that do not have market economy status and a market-driven exchange rate policy. This follows fears expressed by Indian cos that free trade with such economies may not leave them with a level playing field. (ET)
  

• A consortium of Sterlite Industries and Morgan Stanley has emerged as the front runner to acquire 26% stake in IFCI. Sources said that the consortium has bid a minimum of Rs 107 a share, the price at which institutional shareholders will convert their debt into equity. (ET)
  

• The commerce ministry is considering the demand to extend tax benefits to EOUs after the ensuing deadline of March 2009. Investors are worried over the EOUs once the tax benefits are withdrawn, especially in the wake of the SEZs. The ministry will discuss the proposal soon and forward it to the govt. (BS)
  

• The MoF has rejected a proposal by the ministry of power to give tax incentives to captive and merchant power plants. (BS)
  

• The Planning Commission has asked the govt. to consider the possibility of setting up 3 multi-sectoral regulators for energy, communications and transport sectors to prevent proliferation of regulatory commissions. (BS)
  

• 6 bidders have filed EoI with the Maharashtra govt for appointment as consultants for a mega project to introduce state-of-the-art magnetic levitation (or, maglev) trains running at speeds of up to 300 kmph in the state. The proposed high-speed rail is for 6 routes in the Mumbai Metropolitan Region (MMR). Besides, a passenger-cum-freight railway corridor between Mumbai and Nagpur, a distance of 1,000 km, is also part of the project. The bidders are: Louis Berger Group in association with Reliance Industries Ltd-promoted Urban Infrastructure Development Company; KPMG; Vossing (Germany); TÜV SÜD South Asia; Rohit Gupta & Associates; and Bhobe & Associates. The consultants will be appointed to carry out a feasibility study and help the state govt prepare the bidding document for the project, the cost for which has been varyingly estimated at Rs 8,000-30,000 crore. (FE)