• Easier FDI rules for real estate likely
• Govt weighs MNC proposal to charge arms annual fees
• Cabinet OK for 3G auctions likely this week
• Increase TTML offer price, SEBI tells DoCoMo,Tatas
• Telenor to fund Unitech buy with own funds, debt
• ISB ranked 15th among global B-schools
• UB in final stages of talks with Diageo for stake sale
• World Economic Forum meet begins today
• According to sources, govt is mulling a proposal to exempt mixed development projects from the minimum capitalisation and area development norms in order to ease the flow of FDI into real estate. The changes, proposed by the ministry of commerce and industry include exemption to such projects from the $10 million requirement, reduction of the project size to 10 acres and cutting the minimum built up area to 10,000 square feet. However, all FDI brought to these projects will continue to have a lock-in of three years after the date of completion of the project. (BS)
• Govt is learnt to be considering a proposal to allow foreign multinationals to impose an annual service fee on their Indian subsidiary for providing management services. If allowed, this is likely to become another important source of income for foreign multinational companies from their Indian arms. The issue came up in the last FIPB meeting while discussing the proposal of Canada-based McCain Foods for removal of restriction on payment of service fees by McCain India. The board deferred its decision on the proposal and referred it to the RBI as it has foreign exchange implications. (ET)
• According to sources, Union Cabinet is likely to clear the long-pending proposal to auction 3G spectrum this week and is also expected to take a final call on the floor price for the sale of 3G radio frequencies. The views from all the ministries are learnt to have been obtained. (ET)
• SEBI has questioned the open offer made by Japanese telecom major DoCoMo to acquire 20 per cent stake for Tata Teleservices (Maharashtra) (TTML) at Rs 24.70 per share and has asked the co to increase the offer price in line with the valuation of another Tata group firm, Tata Teleservices (TTSL), which owns 37.5 % stake in TTML. Since it was an indirect acquisition, the offer price of Rs 24.70 per share was based on the average of the last six months share price in accordance with the SEBI regulation. However, SEBI is believed to have said that since both co.s are operating in India and are engaged in the same vertical, the valuation for indirect acquisition should also be the same as direct acquisition. (FE)
• Norway’s largest telco Telenor ASA has scrapped its controversial 12 billion-Kroner ($1.8 billion) rights issue to fund its acquisition of 60% stake in India’s Unitech Wireless and will now fund the Unitech deal with more debt and cash saved by not paying dividends in both 2008 and 2009. Telenor has signed an 8 billion-Kroner ($1.2 billion) three-year loan and this could be used to fund the Unitech Wireless. (ET)
• Indian School of Business (ISB) has been ranked 15th in the global B-school rankings released by the Financial Times, London for the second year in a row. The institute was earlier ranked 20 by Financial Times.
• Vijay Mallya, chairman, UB Group, has stated that the group is in final stages of talks for selling up to 14.9% stake in group company United Spirits Ltd (USL) to Diageo, putting an end to rumours and speculations over the deal. Mallya and his senior team will be meeting Diageo counterparts on Wednesday in New York for the stake sale and the deal is likely to be concluded in the next 10-15 days. Diageo could increase its stake beyond 15% later if regulations permit so. (FE)
• World’s top business and political leaders will begin their five-day brainstorming tomorrow at the Congress center of the World Economic Forum (WEF). There would be 40 heads of state present at the forum including Chinese Premier Wen Jiabao, Russian Prime Minister Vladimir Putin, Chancellor of Germany Angela Merkel, British Prime Minister Gordon Brown and Premier Taro Aso of Japan. (BS)
