Kothari’s DSP, Blackrock Set Up PE Fund – The world’s largest asset management firm, BlackRock, will join hands with Hemendra Kothari’s DSP Group to set up a private equity fund to do ‘classic PE deals’ targetted at mid-sized companies. DSP and the US-based BlackRock, which run a joint venture asset management company, are discussing the formation of a separate firm to run the new business. Two chief operating officers, armed with long experience in managing companies, will be hired as operating partners. Rajeev Gupta, former head of Carlyle and an old DSP hand, is advising Kothari on the business model. (Economic Times)
Four Cos Drop IPO Plans – If this slowdown in the IPO market continues, then there shall be significant impact on the fund raising abilities of Indian corporates. This will also have impact on the ability of exits for private equity funds. The companies which have let their regulatory approvals lapse include Micromax Mobiles, Pride Hotels, Betul Oil and Tara Jewels. There are at least 10 other companies who have valid approval in hand and are left with just two months in their validity period of one year from the date of approval. (Moneylife)
NY Hedge Fund Buys 10% In Patni Computers – New York-based hedge fund Elliott Management Corp has picked up a 9.4% stake in Patni Computer Systems, possibly scuppering iGate Corporation’s efforts to delist the Indian IT firm. Elliott has been buying small chunks of Indian technology outsourcer Patni Computer Systems since October. Elliot Management is a hedge fund known in the Wall Street for its tenacity and gall to take on deep-rooted management head-on and win despite holding minority stakes. (Economic Times)
Mahindra In Fray For Saab – Up to five companies, including an Indian firm, are keen to buy Saab, one of the bankrupt Swedish carmaker’s three administrators said. Indian commercial utility vehicles manufacturer Mahindra and Mahindra is interested and company officials have reportedly prolonged a visit to the Saab factory in the southwestern town of Trollhaettan to pursue talks.
NMDC Eyes Atlas Mining’s Ridley Deposit – After acquiring Australian firm Legacy Iron Ore last year for Rs 92 crore, NMDC is eyeing to acquire two more properties— Ridley iron ore deposit of Atlas Mining and Wonarah phosphate reserve of Minemakers Ltd— in the island continent. The Ridley project, 100 per cent owned by Atlas Mining, contains 970 million tonnes of high grade iron ore reserves and can produce 330 million tonnes of ore with 68.3 per cent Fe content for over 30 years. (Business Standard)
OGPL Unit To Pledge 23% – Beta Wind Farm Pvt Ltd, a subsidiary of the BSE-listed Orient Green Power Company Ltd (OGPCL), a Shriram Group company plans to set up a 300 mega watt (Mw) wind project in the southern states and Gujarat. For this, it is planning to pledge 23 per cent of the equity shares held in BETA towards IL&FS Financial Services Ltd (IFIN) and other lenders. It is being done for sanctioning of bridge loan of Rs 90 crore. (Business Standard)
Subrata Roy Makes Bid For Mariott – Indian billionaire entrepreneur and owner of London’s prestigious Grosvenor House hotel Subrata Roy has made a bid for Marriott hotels in the city, being sold by Royal Bank of Scotland for about 750 million pound (Rs 5,808 crore), according to media reports. According to a report in The Sunday Times, the 42 four-and five-star properties have attracted interest from a range of potential buyers. Roy’s Sahara Group, which acquired the Grosvenor House a year ago for 470 million pound (Rs 3,275 crore), is vying with the Abu Dhabi Investment Authority and another Indian investor, Blue Post Group, among others. (Economic Times)
Mukesh, Anil Ambani May Jointly Develop CBM Blocks– Mukesh Ambani’s Reliance Industries and his younger brother Anil’s Reliance Power have held initial talks to jointly develop their adjoining coal-bed methane (CBM) blocks, giving the estranged brothers another opportunity to join forces apart from the potential handshake in the telecom sector. The two companies had initiated discussions a few months ago to optimise costs by developing common infrastructure at the contiguous CBM blocks in Madhya Pradesh. (Economic Times)