• AVEO Pharmaceuticals, Inc. (AVEO) Enters into Worldwide License Agreement with Centocor Ortho Biotech Inc.; AVEO Receives $15 Million; Eligible for up to $540 Million More...
• AstraZeneca PLC (AZN), Heptares In Study Pact Targeting GPCR Drugs;Heptares to Receive $6.25 Million Upfront More...
• Generex Biotechnology Corporation (GNBT) in Agreement to License RapidMist(TM) Technology for $10 Million to Amarantus BioSciences for Use With Its Proprietary MANF Proteins More...
• Deinove Achieves The First Key Milestone In The Deinol Project And Receives E1.6 Million From OSEO More...
• SAIC-Frederick, Inc. (SAI) and Biomatrica Collaborate to Improve Molecular Analysis in Cancer Research More...
• Future Bleak for Renovo Group Plc (RNVO.L) With No Workers or Products More...
• JB Chemicals & Pharmaceuticals Limited to Hire About 800 Medical Representatives in 2 Years More...
• Intrexon Corporation Raises $100 Million for Synthetic Biology InitiativesMore...
• EpiCept Corporation (EPCT) Obtains New $10.6 Million Secured Debt Financing More...
• Ashland to Acquire International Specialty Products More...
• A New Chief Executive Officer to Strengthen BioAlliance Pharma's Growth More...
• Segal Institute for Clinical Research Announces Appointment of Dr. Leslie Penny Moldauer as Corporate Chief Medical Officer More...
• Peregrine Pharmaceuticals, Inc. (PPHM) Appoints Jeffrey Masten as Vice President, Quality as Company Advances Phase II Clinical Programs More...
• Derycz Scientific Hires AstraZeneca PLC (AZN) Executive to Drive Global Sales Growth More...
• Acasti Pharma Year End Results More...
• Medicago, Inc. Announces 2011 First Quarter Results More...
• Triclinic Labs Adds New Laboratory Space and Chemical Development Capabilities More...
• Sanofi (France) (SASY.PA)'s Diabetes Drug Cuts Blood Sugar, Weight-Study More...
• Eli Lilly and Company (LLY) Presents Data on Cixutumumab in Five Subtypes of Sarcomas More...
• UCB Group (UCBJF.PK) Release: New Analysis Shows Potential Cost Savings of Adding Antiepileptic Drug Vimpat® C-V More...
• Aegerion Pharmaceuticals, Inc. Announces Phase III 56-Week Data in HoFH Patients Taking Investigational Lomitapide is Consistent With 26-Week Data More...
• Teva Pharmaceutical Industries Limited (TEVA) Announces Data on Granulocyte Colony Stimulating Factor Compounds for the Prevention of Chemotherapy-Induced Neutropenia in Breast Cancer Patients More...
• FDA Approves Optimer Pharmaceuticals, Inc. (OPTR)'s Dificid, a Treatment For Clostridium Difficile Infection More...
• FDA Approves Oceana Therapeutics's Solesta(R); Novel Specialty Therapeutic Addresses Large Treatment Void for Patients with Life-Altering Fecal (Bowel) Incontinence More...
• Affymax, Inc. (AFFY) and Takeda Pharmaceutical Co. Ltd. (TKDG.DE) Announce the Submission of a New Drug Application for Peginesatide for the Treatment of Anemia Associated with Chronic Renal Failure in Patients on Dialysis More...
• No Link Between Stress and MS in Women, According to University of Bergen Study More...
• Combo of Paxil, Pravachol May Raise Blood Sugar, Stanford University Study More...
• Bacteria Police Keep Cheaters in Line, Proceedings of the National Academy of Sciences Study More...
• Drug Can Reverse Overgrown Hearts to Help Prevent Heart Failure, UT Southwestern Medical Center Researchers Find More...
• Mutated Muscle Protein Causes Deafness, Max Planck Institute Research More...
( Source: Biospace )
• AstraZeneca PLC (AZN), Heptares In Study Pact Targeting GPCR Drugs;Heptares to Receive $6.25 Million Upfront More...
• Generex Biotechnology Corporation (GNBT) in Agreement to License RapidMist(TM) Technology for $10 Million to Amarantus BioSciences for Use With Its Proprietary MANF Proteins More...
• Deinove Achieves The First Key Milestone In The Deinol Project And Receives E1.6 Million From OSEO More...
• SAIC-Frederick, Inc. (SAI) and Biomatrica Collaborate to Improve Molecular Analysis in Cancer Research More...
• Future Bleak for Renovo Group Plc (RNVO.L) With No Workers or Products More...
• JB Chemicals & Pharmaceuticals Limited to Hire About 800 Medical Representatives in 2 Years More...
• Intrexon Corporation Raises $100 Million for Synthetic Biology InitiativesMore...
• EpiCept Corporation (EPCT) Obtains New $10.6 Million Secured Debt Financing More...
• Ashland to Acquire International Specialty Products More...
• A New Chief Executive Officer to Strengthen BioAlliance Pharma's Growth More...
• Segal Institute for Clinical Research Announces Appointment of Dr. Leslie Penny Moldauer as Corporate Chief Medical Officer More...
• Peregrine Pharmaceuticals, Inc. (PPHM) Appoints Jeffrey Masten as Vice President, Quality as Company Advances Phase II Clinical Programs More...
• Derycz Scientific Hires AstraZeneca PLC (AZN) Executive to Drive Global Sales Growth More...
• Acasti Pharma Year End Results More...
• Medicago, Inc. Announces 2011 First Quarter Results More...
• Triclinic Labs Adds New Laboratory Space and Chemical Development Capabilities More...
• Sanofi (France) (SASY.PA)'s Diabetes Drug Cuts Blood Sugar, Weight-Study More...
• Eli Lilly and Company (LLY) Presents Data on Cixutumumab in Five Subtypes of Sarcomas More...
• UCB Group (UCBJF.PK) Release: New Analysis Shows Potential Cost Savings of Adding Antiepileptic Drug Vimpat® C-V More...
• Aegerion Pharmaceuticals, Inc. Announces Phase III 56-Week Data in HoFH Patients Taking Investigational Lomitapide is Consistent With 26-Week Data More...
• Teva Pharmaceutical Industries Limited (TEVA) Announces Data on Granulocyte Colony Stimulating Factor Compounds for the Prevention of Chemotherapy-Induced Neutropenia in Breast Cancer Patients More...
• FDA Approves Optimer Pharmaceuticals, Inc. (OPTR)'s Dificid, a Treatment For Clostridium Difficile Infection More...
• FDA Approves Oceana Therapeutics's Solesta(R); Novel Specialty Therapeutic Addresses Large Treatment Void for Patients with Life-Altering Fecal (Bowel) Incontinence More...
• Affymax, Inc. (AFFY) and Takeda Pharmaceutical Co. Ltd. (TKDG.DE) Announce the Submission of a New Drug Application for Peginesatide for the Treatment of Anemia Associated with Chronic Renal Failure in Patients on Dialysis More...
• No Link Between Stress and MS in Women, According to University of Bergen Study More...
• Combo of Paxil, Pravachol May Raise Blood Sugar, Stanford University Study More...
• Bacteria Police Keep Cheaters in Line, Proceedings of the National Academy of Sciences Study More...
• Drug Can Reverse Overgrown Hearts to Help Prevent Heart Failure, UT Southwestern Medical Center Researchers Find More...
• Mutated Muscle Protein Causes Deafness, Max Planck Institute Research More...
( Source: Biospace )
 |
| Daily Digest Stockinvestips |
Upgrades for May 31 2011 Tuesday:
1) AMAG Pharma ( NASDAQ: AMAG ) upgraded from neutral to outperform by Robert W. Baird.
2) Commvault Systems ( NASDAQ:CVLT ) upgraded from neutral to positive by Avian.
3) Motricity ( NASDAQ : MOTR) upgraded from Underperform to Sector Perform by RBC Capital Mkts.
4) Travelzoo ( NASDAQ : TZOO) upgraded from Market Perform to Outperform by Morgan Keegan.
See More
Downgrades for May 31 2011 Tuesday:
1) Dreamworks Animation ( NASDAQ: DWA ) downgraded from buy to Above Average by Caris & Company.
2) Full Circle Capital ( NASDAQ : FULL ) downgraded from buy to neutral by Ladenburg Thalmann.
3) Impax Labs ( NASDAQ : IPXL) downgraded from Outperform to Sector Perform by RBC Capital Mkts.
4) Lions Gate Entertainment ( NYSE : LGF) downgraded from Average to Below Average by Caris & Company.
5) Medtronic ( NYSE : MDT) downgraded from Hold to Sell by Argus.
6) Wisconsin Energy ( NYSE : WEC ) downgraded from Buy to Hold by Argus.
See More
Coverage Initiated for May 31 2011 Tuesday:
1) Aeterna Zentaris ( NASDAQ: AEZS ) coverage initiated with buy by Needham.
2) Air Lease ( NYSE: AL) coverage initiated with sector perform by RBC Capital Mkts.
3) Ardea Biosciences ( NASDAQ : RDEA) coverage initiated with Outperform by Boenning & Scattergood.
4) Mission NewEnergy ( NASDAQ: MNEL ) coverage initiated with Market Perform by Rodman & Renshaw.
5) Orrstown Financial Services ( NASDAQ: ORRF ) coverage initiated with Neutral by Boenning & Scattergood.
6) Sagent Pharma ( NASDAQ: SGNT) coverage initiated with Outperform by RBC Capital Mkts.
7) Tesoro Logistics LP ( NYSE : TLLP ) coverage initiated with Outperform by RBC Capital Mkts.
See More here at stockinvestips
Tech Five: Technology Headlines for March 31 2011 ( Tuesday ) !!
1. There're big rumors Twitter is to reveal its own photo-sharing service today, linked to its own API and using its own facilities. It's another "internalizing" move by the successful social networking site, but it's bound to raise significant controversy--especially since TwitPic, one of the leading third party sites that used to do this for Twitter, just (controversially) signed a deal to license users' pics onward for sale. Their business model may be in tatters.
1. There're big rumors Twitter is to reveal its own photo-sharing service today, linked to its own API and using its own facilities. It's another "internalizing" move by the successful social networking site, but it's bound to raise significant controversy--especially since TwitPic, one of the leading third party sites that used to do this for Twitter, just (controversially) signed a deal to license users' pics onward for sale. Their business model may be in tatters.
2. Samsung has revealed it's sold one million Galaxy SIIs, and the device has only been on sale one month--making it Samsung's fastest selling device. Meanwhile the company's execs have dismissed Apple's lawsuit alleging the Galaxy range of products are rip-offs of the earlier iPhone and iPads, noting it's not "legally
problematic" as their products don't "copy" Apple. Samsung's even hinting it could escalate the legal battle.
3. On the weekend it emerged that U.S. defense contractors had been hit with hack attacks, and now the Pentagon has escalated its response: Cyber attacks coming from another country, it threatens, can actually constitute an act of war--with all the requisite force that involves. Late last week it was revealed that China has assembled an elite cadre of hackers to defend its military Net from the influence of outsiders, and it's possible to see how this could also be construed as a threat.
4. ARM has revealed hints on its future direction, and plans to have its low-power CPUs in half of the mobile PC market by 2015. It's banking on expansion of the tablet sector at the expense of the laptop market, because it already has a huge share of tablet CPUs and Intel hasn't yet leaped into the fray. Meanwhile it looks like Intel is delaying the launch of its key next-gen 22nm "3-D transistor" laptop chips, which could enable ARM's plans.
5. A quarter of U.S. Internet users have now made a phone call online--up from a mere 8% just four years ago. It's a sign that thanks to the VoIP revolution, and changing habits driven by increased cell phone use, traditional phone use is potentially on its way into history. The statistic is important for many communications companies, but particularly Microsoft which just invested billions in Skype, the driving force behind much of consumer VoIP use.
( Source: Fast Company )
( Source: Fast Company )
Nokia Corp ( NYSE: NOK ) announced that company will see weaker sales and slashes outlook for 2011, shares tumble as much as 15 % to $ 6.92.
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| Nokia Corp |
Nokia, once the undisputed force in the mobile phone market, has seen its position challenged in recent years, particularly losing ground in the smartphone market to newcomers Apple Inc and Google Inc.
The company, which is still the number one handset maker by volume, has overhauled its phone business, adopting Microsoft Corp's software instead of its own Symbian platform.
But it continues to suffer from mounting competition and said in a profit warning it expects net sales from its devices and services business in the second quarter to be "substantially below" its previous forecast of between 6.1 billion euros ($8.7 billion) and 6.6 billion.
It expected its non-IFRS operating margin for devices and services to be around break-even in the second quarter, rather than previously expected range of 6 percent to 9 percent.
"This update is primarily due to lower than previously expected average selling prices and mobile device volumes," the company said.
"Given the unexpected change in our outlook for the second quarter, Nokia believes it is no longer appropriate to provide annual targets for 2011," it said, adding it would still provide quarterly updates.
"Given the internal turmoil that will be generated by this news, it is increasingly difficult to see that Nokia can leapfrog one handset generation and be on par with the competition in early 2012. Investors should be more than concerned about the dividend possibility," said WestLB analyst Thomas Langer.
"It seems like it's especially their emerging markets exposure in China where they are hit by competition in the low end of the market," said Sydbank analyst Morten Imsgard.
"Short term, there's a lot of turmoil in the company."
The warning comes a month after Nokia said it would cut 7,000 jobs and outsource its Symbian software development unit to cut costs.
( Source: Reuters )
MultiCell Technologies Inc ( NASDAQ: MCET ) , a biotech firm is granted a patent by US Patent and Trademark Office. Patent is about the isolation and use of human liver stem cells to treat liver disease. Penny Stock soared more than 120 % and might keep going higher. Traders might trade the stock with buy positions at current levels and might get handsome returns. Strong Move Alert, On radar at stockinvestips.
Below is the news fro Reuters:
MultiCell Technologies, Inc. announced the issuance of U.S. patent 7,935,528 by the United States Patent and Trademark Office (USPTO) relating to the isolation and use of human liver stem cells to treat liver disease. Under the terms of its license agreement with Rhode Island Hospital, MultiCell Technologies is the worldwide exclusive licensee of U.S. patent 7,935,528. The patent describes methods to isolate and use human liver stem cells to treat degenerative liver diseases, or inherited deficiencies of liver function.
Eltek Reports Net Profit of $788,000 in First Quarter of 2011, Below is the key figures. Stock jumped more than 30 %.
• Revenues increased 22.9% to $11.8 million • Operating profit of $877,000
• Net profit of $788,000
 |
| Eltek Ltd |
Eltek Ltd (NASDAQ:ELTK), the leading Israeli manufacturer of advanced flex-rigid circuitry solutions, announced today its financial results for the first quarter of 2011.
Revenues for the first quarter of 2011 were $11.8 million, a 22.9% increase over revenues of $9.6 million recorded in the first quarter of 2010.
Gross Profit for the first quarter of 2011 was $2.5 million (21% of revenues), an increase of 139% compared to the gross profit of $1.0 million (10.8% of revenues) in the first quarter of 2010.
Operating Profit for the first quarter of 2011 was $877,000 compared with an operating loss of $559,000 in the first quarter of 2010.
Net Profit for the first quarter of 2011 was $788,000, or $0.12 per fully diluted share, compared with a net loss of $682,000 or ($0.10) per fully diluted share in the first quarter of 2010.
Apple said Chief Executive Steve Jobs, who has been on medical leave, will "kick off" the company's annual developers conference June 6.
The brief statement issued Tuesday did not make clear what role Jobs would play at the conference or whether he would be coming back from medical leave.
An appearance by Jobs, a survivor of pancreatic cancer, would mark one of the few occasions he's been seen in public on the company's behalf since he went on his third medical leave in January.
( Source: Reuters )
( Source: Reuters )
Agilysys Inc ( NASDAQ: AGYS ) announced to sell its Technology Solutions Group business to OnX Enterprise Solutions for about $64 million. Stock soared more than 34% with substantial volumes based on news. It might be a good trading call to initiate buy positions at this levels as up move looks stronger.
Below is the detailed news:
 |
| Agilysys Inc |
( Source: Reuters )
Google has announced that it is planning to restrict the use of its Chrome to only notebooks and PCs. It has no plan to launch Chrome browser to be available either for tablets or for Android software for smart phones, said a senior executive.
Google had seen Chrome user numbers double over the past year to about 160 million, Sundar Pichai, Google's senior vice president for Chrome, told a news conference on Tuesday during the Computex PC show in Taipei.
"Chrome OS is a computer model designed with various form factors in mind, but we are entirely focused on the notebook form factor for now. We have no other plans at this time," Pichai said in response to a question on whether Chrome would also be available for tablet PCs.
Web-centric PC laptops, made by Samsung Electronics and Acer using Chrome will go on sale in June, challenging Microsoft and Apple.
With the number of original equipment manufacturers still small, Google had set up a Chrome centre in Taiwan, hoping to engaging more partners in the region, Pichai said, declining to provide details.
The bare-bones operating system is essentially a web browser that steers users to applications such as email and spreadsheets directly on the web, instead of using software stored on the PCs.
Some analysts said it would be some time before Chrome could revolutionise the PC world in the same way that Google's Android operating system did for mobile devices.
"The big issue is whether Google has the marketing nous and focus to position the Chrome PC to compete head on with the established full-OS laptop and tablet players in the consumer computing market," said Steve Hodgkinson, IT research director for Asia Pacific at research firm Ovum.
"This will take a lot of investment in software development and marketing, and the danger is that the Chrome PC just kind of falls between the cracks—not quite a smartphone/tablet and not quite a full OS laptop."
The fast-growing market for smartphones and tablets using Google's Android operating system has quickly taken center stage for the Internet heavyweight, and some observers say Google should reconcile or merge it with Chrome.
But Pichai dismissed such speculation.
"We think it's distinctive of all other operating systems out there, so there are no current plan to converge this with anything else," he said.
Copyright 2011 Thomson Reuters.
Magal Security Systems Ltd ( NASDAQ: MAGS ) announced winning of $ 35 million African Football contract. Stock jumped 15 % to % 3.60. Its 52 week high is close to $3.68. If stock crosses the range with higher volumes, it will considered a strong breakout. Until then it will be cautious trade to initiate buy below $ 3.68.
Below is the Detailed News:
 |
| Magal Security Systems Ltd |
Magal Security Systems announced that it has signed a $35.5 million contract for a turnkey project, to provide a fully integrated security system, covering multiple sites, for the African Cup of Nations Football Championship to be held in January 2012 in West Africa. The project will cover football grounds, the stadium and the Olympic villages for the participating teams. The full solution will be networked and integrated into several command and control centers by Fortis - Magal's state of the art Physical Security Information Management (PSIM) system. A built in hierarchical structure will enable control of several smaller centers by a main regional control center.
( Source: Reuters )
In a press release FunTalk China Holdings Ltd ( NASDAQ: FTLK ) announced that Fortress Group Limited to acquire Funtalk at $7.20 per share totaling a value of US$ 443 million on a diluted basis. Stock jumped more than 20% in premarket trade to close to offer price. Limited upside might prevent new trade positions.
Below is the press release:
 |
| FunTalk China Holdings Inc |
Funtalk China Holdings Limited (the "Company" or "Funtalk") (Nasdaq: FTLK), a leading China-based retailer and wholesale distributor of wireless communications devices, accessories and content, announced today that it has entered into a definitive agreement with Fortress Group Limited ("Parent") and Fortress Merger Sub Limited ("Merger Sub") pursuant to which Parent will acquire Funtalk for US$7.20 per share (the "Transaction"). The Transaction values Funtalk's equity at approximately US$443 million on a fully diluted basis, and represents a 35.9% premium over the Company's 30 trading day average price as quoted by NASDAQ on March 24, 2011, the last trading day prior to the Company's announcement on March 25, 2011 that it had received a "going private" proposal.
Parent is a newly-formed entity jointly owned by ARCH Digital Holdings Ltd. ("ARCH"), Capital Ally Investments Limited ("Capital Ally"), GM Investment Company Limited ("GM"), Sinowill Holdings Limited ("Sinowill"), which is controlled by the chairman of the board of directors of the Company, Mr. Kuo Zhang, Huge Harvest Enterprises Limited ("Harvest"), which is wholly owned and controlled by the chief executive officer of the Company, Mr. Dongping Fei, Kingstate Group Limited ("Kingstate"), which is wholly owned and controlled by Mr. Hengyang Zhou, executive president of Beijing Funtalk Century Technology Group Company Limited, an indirect wholly owned subsidiary of the Company, and Trend Focus Limited, which is wholly owned and controlled by Mr. Francis Kwok Cheong Wan, senior vice president of corporate investor relations of the Company ("Trend Focus", together with ARCH, Capital Ally, GM, Sinowill, Harvest and Kingstate, the "Consortium Members" or the "Consortium"). Merger Sub is a newly-formed exempted company with limited liability incorporated under the laws of the Cayman Islands and a direct wholly owned subsidiary of Parent. The Consortium Members currently own, in the aggregate, 46,458,314 ordinary shares, or approximately 77.09% of the outstanding shares of the Company (excluding outstanding warrants and options of the Company).
In connection with the Transaction, PAG Asia Capital ("PAGAC"), Parent and the Consortium Members have entered into a subscription agreement pursuant to which PAGAC has agreed to subscribe for equity-linked securities of Parent, subject to certain conditions, the proceeds of which shall be used in part to provide financing for the Transaction.
Under the terms of the agreement, the Company will be the surviving entity in the Transaction as a wholly owned subsidiary of Parent. In the Transaction, each ordinary share of the Company issued and outstanding immediately prior to the effective time of the Transaction will be cancelled in exchange for the right to receive US$7.20 per share in cash without interest, except for the ordinary shares beneficially owned by Parent, Merger Sub, the Consortium Members and any direct or indirect wholly owned subsidiary of the Company which will be cancelled without receiving any consideration.
The Company's Board of Directors, acting upon the unanimous recommendation of the Independent Committee formed by the Board of Directors, approved the definitive agreement and resolved to recommend that the Company's shareholders vote to approve the definitive agreement. The Independent Committee, which is composed solely of directors unrelated to any of Parent, Merger Sub, the Consortium Members or any of the management members of the Company, negotiated the terms of the definitive agreement with the assistance of its financial and legal advisors.
The Transaction, which is currently expected to close before the end of the third quarter 2011, is subject to the approval of the definitive agreement by an affirmative vote of shareholders representing two-thirds or more of the shares present and voting in person or by proxy at a meeting of the Company's shareholders which will be convened to consider the approval of the definitive agreement, as well as certain other customary closing conditions. If completed, the Transaction will result in the Company becoming a privately-held company and its ordinary shares will no longer be listed on the NASDAQ Global Market.
Bank of America Merrill Lynch is serving as financial advisor to the Independent Committee. Skadden, Arps, Slate, Meagher & Flom LLP is serving as U.S. legal advisor to the Independent Committee, and Maples and Calder is serving as Cayman Islands legal advisor to the Independent Committee. Latham & Watkins LLP is serving as U.S. legal advisor to the Company. Shearman & Sterling LLP is serving as U.S. legal advisor to Bank of America Merrill Lynch.
Citigroup Global Markets Asia Limited is serving as financial advisor to the Consortium. Cleary Gottlieb Steen & Hamilton LLP is serving as U.S. legal advisor to the Consortium, and Conyers Dill & Pearman is serving as Cayman Islands legal advisor to the Consortium. Weil, Gotshal & Manges LLP is serving as U.S. legal advisor to Citigroup Global Markets Asia Limited. Simpson Thacher & Bartlett LLP is serving as U.S. legal advisor to PAGAC.
Additional Information about the Transaction
The Company will furnish to the Securities and Exchange Commission (the "SEC") a report on Form 6-K regarding the transaction, which will include the definitive agreement related to the Transaction and related documents. All parties desiring details regarding the transaction are urged to review these documents, which are available at the SEC's website (http://www.sec.gov).
In connection with the proposed Transaction, the Company will prepare and mail a proxy statement to its shareholders. In addition, certain participants in the proposed transaction will prepare and mail to the Company's shareholders a Schedule 13E-3 transaction statement. These documents will be filed with or furnished to the SEC. INVESTORS AND SHAREHOLDERS ARE URGED TO READ CAREFULLY AND IN THEIR ENTIRETY THESE MATERIALS AND OTHER MATERIALS FILED WITH OR FURNISHED TO THE SEC WHEN THEY BECOME AVAILABLE, AS THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE COMPANY, THE PROPOSED TRANSACTION AND RELATED MATTERS. In addition to receiving the proxy statement and Schedule 13E-3 transaction statement by mail, shareholders also will be able to obtain these documents, as well as other filings containing information about the Company, the proposed Transaction and related matters, without charge, from the SEC's website (http://www.sec.gov) or at the SEC's public reference room at 100 F Street, NE, Room 1580, Washington, D.C. 20549. In addition, these documents can be obtained, without charge, by contacting the Company at the following address and/or phone number:
Funtalk China Holdings Limited21/F, Block D The Place TowerNo. 9 Guanghua Road, Chaoyang DistrictBeijing, China 100020Tel: +86-10-5709-1100
The Company and certain of its directors, executive officers and other members of management and employees may, under SEC rules, be deemed to be "participants" in the solicitation of proxies from our shareholders with respect to the proposed Transaction. Information regarding the persons who may be considered "participants" in the solicitation of proxies will be set forth in the proxy statement and Schedule 13E-3 transaction statement relating to the proposed Transaction when it is filed with the SEC. Additional information regarding the interests of such potential participants will be included in the proxy statement and Schedule 13E-3 transaction statement and the other relevant documents filed with the SEC when they become available.
This announcement is neither a solicitation of proxy, an offer to purchase nor a solicitation of an offer to sell any securities and it is not a substitute for any proxy statement or other filings that may be made with the SEC should the proposed Transaction proceed.
About Funtalk China Holdings Ltd.
The Company is a retailer and distributor of wireless communications devices, accessories and content in 30 provinces in China. The Company has branch offices and regional distribution centers, operates a chain of mobile phone retail stores and has an internet retailing platform.
Safe Harbor and Informational Statement
This press release includes forward-looking statements that involve risks and uncertainties. Forward-looking statements are statements that are not historical facts. The words "anticipate," "believe," "estimate," "expect," "intend," "may," "plan," "predict," "project," "will," "would" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. The Company may not actually achieve the plans, intentions or expectations disclosed in the forward-looking statements, and investors should not place undue reliance on the forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements made by the parties as a result of a number of factors, some of which may be beyond the Company's control. These factors include the risk factors detailed in the Company's filings with the Securities and Exchange Commission. Further, the forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures, collaborations, dividends or investments made by the Company or other parties. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Yongye International Inc ( NASDAQ: YONG ), company announced that company's chairman and CEO Mr Zishen Wu, to purchase common stock of worth $3 million. Stock jumped as much as 50 % in the premarket trade. Volumes are quiet stronger and stock move will be considered as a breakout.
Below is the Press Release:
 |
| Yongye International Inc |
Yongye International, Inc. (NASDAQ: YONG), a leading agricultural nutrient company in China ("Yongye" or the "Company"), announced today that Mr. Zishen Wu, Chairman and Chief Executive Officer of Yongye International, intends to purchase up to $3.0 million worth of shares of the Company's Common Stock in open market transactions.
Yongye is in the process of setting up a Rule 10b5-1 plan. The purchases will be made subject to restrictions on price, volume, timing, applicable legal requirements, and other factors. Transactions under this plan will be disclosed publicly through filings with the Securities and Exchange Commission.
Mr. Wu commented, "This share purchase program demonstrates my confidence in Yongye International and reflects my commitment to increasing shareholder value. I believe that our Company's shares are currently undervalued, and I am planning to invest my own funds to support this belief."
According to news from AP, Ashland will buy International Specialty Products for about $3.2 billion, the company said Tuesday.
Ashland is just the latest entity to snap up a high-margin specialty chemical company, following Berkshire Hathaway's $9 billion acquisition of Lubrizol, and Dow Chemical's $15 billion buyout of Rohm & Haas.
The latest deal, expected to close before the end of the fourth quarter, should immediately add to Ashland's earnings per share. The transaction is expected to save Ashland about $50 million by the second year after the acquisition's closing by eliminating redundancies and making operations more efficient.
The deal "broadens Ashland's presence within attractive growth areas like skin, hair and oral care, which are large and fast-growing segments of the $5-billion-plus personal care specialty ingredients market," said Chairman and CEO James O'Brien.
The company will more than double the size of its our highest-margin functional ingredients business, O'Brien said.
The Covington, Ky., chemical company plans to use available cash and committed financing from several banks including Citi, The Bank of Nova Scotia, Bank of America Merrill Lynch and U.S. Bank National Association.
If financing falls through, ISP could require Ashland to pay a $413 million termination fee.
The deal requires U.S. and European Union regulatory approvals.
ISP, based in Wayne, N.J., had about $1.6 billion in sales for the year ended March 31.
© 2011 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Tuesday, Fitch has downgraded credit rating of Cyprus to A- from AA- due to mainly its exposure to Greece assets and debts.
“The downgrade reflects the severity of the crisis in neighboring Greece and the risk this poses for the Cypriot banking system and consequently the public finances of Cyprus," said Chris Pryce, Director in Fitch's Sovereign Group.
The small island of Cyprus has a substantial banking system equivalent to approximately nine times its gross domestic product.
Its exposure to neighboring Greece is “a significant source of vulnerability” according to analysts at Fitch, who have had it on Rating Watch Negative since January 2011.
The island, officially known as the Republic of Cyprus and a member of the euro zone, has been historically the focus of dispute between Greek and Turkish Cypriots, with the majority population of Greek Cypriot origin.
Roughly one third of the Cypriot banking system's assets are booked as Greek exposure, including that of Greek subsidiaries based in Cyprus, including almost 14 billion euros ($20.1 billion) of Greek sovereign bonds and an estimated 5 billion euro of Greek bank bonds, according to Fitch.
Cypriot-owned banks, particularly the three major lenders, Bank of Cyprus, Marfin Popular Bank and Hellenic Bank, have also lent significant amounts to Greek companies and households through their substantial networks in Greece.
Government Support
Fitch believes that these banks are relatively well placed to absorb the impact of a sovereign debt crisis in Greece that would cut 50 percent from the face value of Greek government bonds.
If this happens, the agency estimates that the cost of recapitalizing the banks to a tier one capital ratio of 10 percent would be around 2 billion euros, or 11 percent of GDP, only part of which might have to be met by the state.
In a more severe stress test, where a Greek sovereign default led to non-performing loans rising to 25 percent, Fitch estimates that the cost of recapitalizing the banks could rise to 25 percent of GDP, which would have to be supported more by the state.
Fitch believes that the Cypriot government would be able to provide effective support to Cypriot banks in a stress test of this magnitude.
At 61 percent of GDP, Cypriot general government debt is not high by euro area standards although it exceeds the Maastricht-imposed limit by one percentage point.
The cost of providing financial sector support could materially alter the government's debt profile and drag down its sovereign ratings.
Fitch does not rule out additional funding pressures arising for banks, including subsidiaries of Greek banks. However, the agency believes that the European Central Bank would provide liquidity support in such an environment, thereby preserving financial stability in Cyprus.
TAIPEI (Reuters Life!) - Though Asian girl bands such as Japan's AKB48 and South Korea's Wonder Girls are gaining fame around the world, Taiwanese performer Shara Lin goes them one better -- she is her own band, playing violin, zither and piano.
Now her musical multi-tasking is on global display in a training video of her performing Taiwanese artist Jolin Tsai's song "Dancing Diva" that has racked up more than 4 million views on YouTube within three weeks.
Lin, a 25-year-old actress who has a music degree, put the performance together within five days for a blend of classical and Taiwanese pop music that has her tucking the violin under her chin and stretching out as needed to both piano and zither.
"I think the toughest part is to play the piano and the zither simultaneously. We tried many times to figure out this position for my left hand to play the piano, and right hand to play the zither," Lin said.
"When I have to look at both the piano and the zither, I really wished my eyes could grow wider apart. If I have to play (them) together, I must play by feel."
Lin started to play the piano at age three. Her interest in music soon expanded into other instruments including the violin, zither, guitar, jazz drums and harmonica.
Lin said she is willing to try other creative performances in the wake of her YouTube success.
"After people saw this video, they suggested that I can play the drum with my foot and also add the harmonica," she said.
"I said okay, I will consider that."
Now her musical multi-tasking is on global display in a training video of her performing Taiwanese artist Jolin Tsai's song "Dancing Diva" that has racked up more than 4 million views on YouTube within three weeks.
Lin, a 25-year-old actress who has a music degree, put the performance together within five days for a blend of classical and Taiwanese pop music that has her tucking the violin under her chin and stretching out as needed to both piano and zither.
"I think the toughest part is to play the piano and the zither simultaneously. We tried many times to figure out this position for my left hand to play the piano, and right hand to play the zither," Lin said.
"When I have to look at both the piano and the zither, I really wished my eyes could grow wider apart. If I have to play (them) together, I must play by feel."
Lin started to play the piano at age three. Her interest in music soon expanded into other instruments including the violin, zither, guitar, jazz drums and harmonica.
Lin said she is willing to try other creative performances in the wake of her YouTube success.
"After people saw this video, they suggested that I can play the drum with my foot and also add the harmonica," she said.
"I said okay, I will consider that."
( Source: Reuters )
Indian Oil Corp (IOC), country's biggest refiner, may raise petrol rates again by Rs 1.35 per litre as the fuel is still being sold below market rates, chairman RS Butola said after announcing that the company's net profit in the last fiscal year fell 27% because of low state-set fuel prices.
At 10 am, shares of Indian Oil Corporation were trading 1.08% up at Rs 323.20 on the Bombay Stock Exchange .
State-run Oil & Natural Gas Corp (ONGC), which is forced to sell crude at a discount to help state refiners sell fuel cheap, also suffered last year, particularly in the last quarter, when its profit dipped 26% to Rs 2,791 crore.
Both companies are expected to gain if fuel prices are raised again. The IOC is now considering raising petrol prices soon.
"Our desired price increase is Rs 1.35 per litre. Very soon we will have to take a view on raising the price," Butola said.
IOC's fourth-quarter net profit fell 30% to Rs 3,905.16 crore, despite government subsidy payments and mandatory discounts from upstream firms such as the ONGC.
"Our profit would have been higher by 3,200 crore for the fiscal year if government had given us subsidy equivalent to the previous year," RK Goyal, IOC's director for finance told reporters.
The company is allowed to raise prices of all fuels except diesel, kerosene and cooking gas, but IOC could not raise petrol prices to the extent it wanted because of political pressure, causing it a loss of about Rs 1,000 crore, IOC officials said.
The IOC also hopes to gain from higher state-set diesel rates. The empowered panel of ministers, which decides diesel, kerosene and cooking gas rates, is scheduled to meet on June 9, and consider raising the prices of regulated fuels prices for the first time in nearly one year. According to an IOC estimate, from Tuesday the company's revenue loss in diesel will be about Rs 12.64 a litre. It will lose Rs 25.85 a litre on kerosene and Rs 380.57 on a cooking gas cylinder.
The ONGC, which has also declared its annual results for 2010-11, had to pay the highest ever Rs 24,892 crore upsteam discounts to three state-run oil marketing firms - IOC, BPCL and HPCL - to keep them profitable.
"We paid Rs 12,136 crore in fuel subsidy compensation in Q4 compared to Rs 4,999 crore in the same period the previous fiscal," ONGC acting chairman & managing director A K Hazarika told reporters.
Despite higher subsidy burden the company reported a 13% growth in its net profit for 2010-11 at Rs 18,924 crore, he said. But for the subsidies, ONGC's net profit should have been higher by Rs 14,247 crore in the full fiscal.
ONGC director for offshore operations, Sudhir Vasudeva said the company was expected to ramp up its crude oil production by 3.5 million tonne in 2013-14. The company's crude oil production had marginally declined at 24.42 million tonne in 2010-11 from 24.67 million tonne in the previous year due to ageing oil fields. But its gas output was almost flat at 23.09 billion cubic meter.
Who will bell this cat
Much bigger than the A Raja-Kalaignar TV kickback is the Rs 700 crore that the Maran brothers got from Maxis. Ashish Khetan traces the money trail with Raman Kirpal
IN CASES of corruption involving a nexus between public servants and private persons, investigating agencies always look for evidence of quid pro quo — the private player bribing the public servant, in cash or kind.
In January, the CBI traced out a money trail between real estate tycoon Shahid Usman Balwa and Kalaignar TV. After Balwa's company Swan Telecom was granted precious 2G spectrum, he had transferred Rs 200 crore to the TV channel owned by Karunanidhi's family. The agency thought it qualified as adequate evidence to nail Kanimozhi, Karunanidhi's daughter and owner of 20 percent equity in the channel.
"It was not a genuine business transaction but in the nature of illegal gratification paid in lieu of the UASL (Unified Access Service Licences), valuable spectrum and other undue benefit given by accused public servants to Swan Telecom," the CBI concluded in its supplementary chargesheet filed on 26 April.
According to sources, the CBI has now trained its guns on a strikingly similar deal — though the quantum is almost four times that of the Balwa-Kalaignar transaction — between Sun TV Group, owned by the family of Union Textiles Minister Dayanidhi Maran, and Malaysian business conglomerate Maxis Group and owner of 74 percent direct equity in Aircel Group, the country's seventh biggest telecom operator.
In November 2006, then Telecom Minister Maran granted 14 (UASL) for Aircel. The licence, along with the startup 2G spectrum, was awarded at the same price at which later Raja gave away 2G licenses to Swan, Unitech and a host of other players in 2008 — Aircel paid Rs 1,399 crore for 14 telecom circles, the price was arrived at through an auction process in 2001 when the telecom industry was in its nascent stage.
The telecom licences to Aircel were awarded after about two years of 'unwarranted' delay on the part of the DoT headed by Maran at the time. Aircel's applications for new circles were pending since Maran's takeover as minister for communications and IT in May 2004. According to the report prepared by the one-man committee of Justice (retired) Shivraj Patil constituted to examine the appropriateness of procedures followed by DoT in issuing licences during the period 2001-2009, the DoT kept raising 'irrelevant', 'vague' and 'unwarranted' queries about different aspects related to Aircel and kept the applications pending (Patil submitted his report to present Telecom Minister Kapil Sibal on 31 January).
It was only after March 2006, when Malaysian business tycoon T Ananda Krishnan, whose parents were Sri Lankan Tamils, bought 74 percent stake in Aircel, that its file gained momentum. Until then the company was owned by C Sivasankaran, the chairman of Siva Group (earlier known as Sterling Infotech Group). Krishnan paid Rs 3,390.82 crore for 74 percent equity in Aircel. Today, Aircel is the seven biggest telecom operator in the country with its net worth valued in the range of $7.5-$8 billion.
Six months after Ananda Krishnan's takeover of Aircel, the ministry granted Aircel the much-vaunted licences in 14 cash-rich circles. This took Aircel from a small regional player to a pan-India operator. If the CAG (Comptroller and Auditor General) valuation of 2G licences is taken as a yardstick, the value of Aircel licences cleared by Maran would amount to approximately Rs 22,000 crore. But Aircel paid just Rs 1,399 crore.
And in a curious coincidence, in February 2007, four months after the licences were granted to Aircel, Ananda Krishnan through one of his group companies, South Asia Entertainment Holding Ltd (SAEHL) invested $150 million (roughly Rs 600 crore) in a phased manner in Sun Direct TV Pvt Ltd by acquiring 20 percent equity in the company owned and run by Dayanidhi's brother Kalanidhi and his wife Kaveri Maran. The equity investment was cleared by the Cabinet Committee on Economic Affairs.
Almost simultaneously, the Maran family was allotted about 12.6 crore additional equity shares in Sun Direct TV to maintain their total equity at 80 percent. But unlike the staggering rate at which the Maxis Group picked up the Sun Direct shares, the allotment to the Marans was made at par value of Rs 10 per share without charging any premium.
Was Sivasankaran of Siva Group, a $3 billion conglomerate with diverse interests, harassed by Maran? Was he pressurised into selling Aircel to Ananda Krishnan?
One could argue that either the Maxis investment was overvalued, in which case the Marans were the ultimate beneficiary as they were the majority stakeholders and the Maxis deal brought the much-needed cash for the expansion of Sun Direct TV's business operations. Or the fresh equity allotment to the Marans was undervalued, which again makes them the real beneficiaries. Also, the DTH company was running in losses at the time of this deal. The annual report of Sun Direct TV for the year 2007- 08 showed their aggregate revenue as Rs 61.16 crore while its losses amounted to Rs 73.27 crore.
Between February 2008 and July 2009, the Maxis Group invested Rs 100 crore more in another Maran family-owned company named South Asia FM Ltd which owns Sun FM radio network. Maxis Group subsidiary South Asia Multimedia Technologies Limited (SAMT) invested Rs 50 crore in equity of South Asia FM Ltd and Rs 43.9 crore in preference shares of SAFL.
The million-dollar question is, do Maxis- Sun TV and Maxis-Sun FM deals qualify as quid pro quo on similar lines as the Rs 200 crore Balwa-Kalaignar deal? Both the deals materialised soon after the respective telecom companies were granted the UAS licences and with it the precious 2G spectrum. And in both the cases it's the companies owned by the extended Karunanidhi family that benefited.
In fact, while A Raja and his family had zero stake in Kalaignar TV, Dayanidhi Maran's brother Kalanidhi and his wife Kaveri owned 80 percent stake in Sun Direct TV. At first sight, as far as the suggestion of give-and-take is concerned, the dots connect clearer in the case of the Marans than they do in Raja's.
Unmistakably, the chain of events preceding the grant of licences to Aircel raises a stink about Maran's policies.
On 5 March 2004, when NDAwas in power and Arun Shourie was telecom minister, Dishnet Wireless Ltd (a sister concern of Aircel owned by the same parent group, Siva Ventures Ltd) applied for grant of UASL for eight areas including Madhya Pradesh. Until then Aircel had cellular operations in just two circles—Chennai and Tamil Nadu.
Just one month after the application, the DoT issued the letter of intent (LoI) for all the eight areas. But licences were signed for seven service areas, leaving out Madhya Pradesh. Aircel Ltd was the company holding the licence to operate in Tamil Nadu circle and was also the holding company of both Aircel Cellular Ltd, which held the licence for Chennai circle and Dishnet Wireless Ltd, which held the licence for the other circles. All three companies operated their telecom services under brand Aircel. Aircel Ltd was wholly owned by C Sivasankaran's Sterling Infotech Group (now known as Siva Group).
On 21 April 2004, Dishnet made applications for UASLs for UP (East) and UP (West).
Though for Madhya Pradesh, LOI had already been issued, on 5 May 2004, for the first time, the DoT raised queries about the aspects of funding and Dishnet's net worth. As a result, Dishnet's licence for Madhya Pradesh and its applications for other service areas were withheld.
On 26 May 2004, Maran took over as telecom minister.
In June 2004, Dishnet sent a detailed submission clarifying all the issues raised by the DoT.
On 8 July 2004, Secretary, DoT endorsed a proposal for issuing LoI for UP (East) and UP (West) service areas and also for extending time for signing licence for Madhya Pradesh. The proposal was then put up before Maran for his approval.
On 24 August 2004, the personal secretary to Maran put up a note that he had been directed to seek clarification as to financial and equity holdings between Dishnet and its sister concerns holding licence elsewhere, particularly in Tamil Nadu and Chennai; status of newspapers reports regarding sale of Dishnet or its sister concerns; verification whether Dishnet or its sister concerns had sold licences to another company and legal implications of allegation of company having violated certain licence conditions. Based on the same a notice was issued to Dishnet, who submitted a detailed clarification.
For the next four months, different sections within DoT raised various legal issues. Subsequently, the file was submitted to the Legal Adviser but was withdrawn on 17 December 2004.
On 1 March 2005, Dishnet applied for licences in four more circles — Haryana, Kerala, Kolkata and Punjab.
On 30 March 2005, a note was put up by Secretary, DoT that "As discussed with the minister (read Dayanidhi Maran) the files of the applicant were being returned with a direction that Director should ascertain all the show-cause notices or advisory letters issued to the applicant or its group companies."
The Sterling Group are intrigued by the attitude of the DoT and we, who have been dealing with the DoT for a whole decade and more, have never had this kind of frozen feeling. Unable to fathom why there is a complete lack of response from the DoT we brought the issues to your notice. We also followed up our first letter with a reminder to you on May 3, 2005. Yet there has been no progress in our matter, nor is any difference seen in the attitude of the DoT.
In this situation we cannot help to conclude that some powerful element in the Ministry/Government seems bent on stifling matters relating to the Sterling Infotech Group. This is our apprehension. We request you call for our records and examine them and satisfy yourself or have them examined by an impartial official so that the government gets proper advice on the issues relating to the group.
With equity interest of 74% in Aircel (comprised of 65% direct interest and 9% indirect interest) and 100% subscription of cumulative redeemable non-convertible preference shares in Deccan Digital Networks Private Limited ("Deccan"), the joint venture company incorporated in the Republic of India, this effectively gives the group 99.3% economic returns from the investment in Aircel.
You may kindly recall my meeting with you on 1 February 2006 when we had, inter alia, discussed the issue of the Group of Ministers relating to the vacation of spectrum by the Defence. You had kindly assured me that the Terms of Reference of the GoM would be drawn up exactly the way we wanted, which was to focus only on the issue of vacation of spectrum. I am, however, surprised to note that the GoM as constituted has much wider Terms of Reference, some of which I feel impinge upon the work normally to be carried out by the Ministry itself.
I shall be grateful if you could kindly instruct the concerned to modify the Terms of Reference as suggested by us, which are enclosed.
Dishnet's file moved around between different sections in DoT without any decision being taken. In the meantime, the FDI cap in the telecom sector was increased from 49 percent to 74 percent.
In October 2005, Malaysia-based Maxis Group approached Sivasankaran to acquire Aircel.
On 14 December 2005, DoT announced new UASL guidelines for grant of UAS licence stipulating that there would be no restriction on the number of entrants in any service area and no single company, either directly or through its associates shall have a substantial equity holding (10 percent or more) in more than one telecom company in the same service area.
On 30 December 2005, the acquisition agreement between Aircel and Maxis was signed. Dishnet's pending applications now acquired urgency in the ministry.
In a letter dated 2 January 2006, Dishnet was asked to furnish information as per the new guidelines, which it did in 17 days.
On 12 January 2006, Aircel applied for UAS licenses in four new circles — Karnataka, Rajasthan, Mumbai and Maharashtra.
On February 2006, the start-up spectrum for Bihar, which was pending since May 2004, was allotted to Dishnet (subsidiary of Aircel).
On 3 March 2006, Aircel applied for three more telecom circles — Delhi, Andhra Pradesh and Gujarat.
On 13 March 2006, the spectrum for Himachal Pradesh was allotted. This too was pending since Maran's takeover as telecom minister.
In March 2006, T Ananda Krishnan informed shareholders that the company has completed the deal to buy 74 percent equity in Aircel from Sivasankaran's Sterling Infotech Group.
On 19 April 2006, a senior DoT official put ups a note enquiring about the status of the showcause notices, as he says the same has to be submitted to the minister.
On 22 May 2006, Dishnet submitted a revised equity structure, FIPB approval, etc.
It was only after March 2006, when Malaysian business tycoon T Ananda Krishnan bought a 74 percent stake in Aircel, that its file gained momentum
On 1 November 2006, the grant of issuance of Letter of Intents for 14 circles including Madhya Pradesh was approved. Within a fortnight, all the 14 licences are issued. Aircel paid Rs 1,399.47 crore for these 14 licences and from a small regional player it became a pan-India operator.
Justice Shivraj Patil in his report has come down hard on Maran's delaying tactics. He has observed: "The clarifications sought (in the case of Dishnet on different occasions) besides being vague, were also irrelevant for consideration of application for grant of UASLs." Justice Patil has also remarked that on several occasions Maran deviated from the laid down procedures. He said, "Ascertaining of showcause notices/advisory letters was again not warranted in terms of the laid down procedure."
Was Sivasankaran Arm-twisted into selling Aircel to malaysia-based Maxis group?
So was C Sivasankaran, the chairman of Siva Group (erstwhile known as Sterling Infotech Group), a $3 billion conglomerate with interests in realty, telecom, shipping, energy and software, harassed by Maran? Was he pressurised into selling his telecom company, Aircel Ltd, to Malaysian billionaire Ananda Krishnan? Sivasankaran got $800 million for selling his company to Maxis. At the time of the sale, Aircel was operating in only nine circles while its applications for seven circles were lying in limbo. Also, it is reliably known that Aircel wanted to apply for more circles but didn't do so simply because their old applications were still lying in abeyance. If Aircel was sold after these licences were granted, the company's net worth would have increased and thus Sivasankaran could have got more money from the sale. Today, Aircel is a pan- India operator, thanks to the 14 licences given by Maran, and is valued in the range of $7.5-$8 billion.
On 1 June 2005, while Maran was in the saddle, Sivasankaran wrote him a letter alleging that his applications for new licences were being sabotaged by "some powerful element in the ministry". Though he refrained from putting the blame on Maran, he wrote: "The Sterling Group are intrigued by the attitude of the DoT and we, who have been dealing with the DoT for a whole decade and more, have never had this kind of frozen feeling. Unable to fathom why there is a complete lack of response from the DoTwe brought the issues to your notice…. Yet there has been no progress in our matter, nor is there any difference seen in the attitude of the DoT."
The letter further read: "In this situation we cannot help to conclude that some powerful element in the Ministry/Government seems bent on stifling matters relating to the Sterling Infotech Group."
While Maran was minister, DoT not only delayed the issuance of new licences to Aircel, it also delayed the allotment of spectrum for the licences that had already been issued before Maran became the minister. Justice Patil's report has called this delay as unjustified.
Dishnet was awarded licenses for Bihar and Himachal Pradesh circles (besides five more circles) in March 2004 (during the NDA regime). But it was not allocated the start-up spectrum, which comes with the licence, in Bihar till February 2006 and in Himachal Pradesh till March 2006. Justice Patil in his report has laid out Maran's delaying tactics in detail.
In his report, Justice Patil says: "On 09.06.2005 a proposal for earmarking 4.4. + 4.4 MHz for Dishnet in Bihar circle was put up for approval within DoT. However, on 14.06.2005 Member (Technical), DoT desired to know if the case was approved by the minister."
Maximum moolah Malaysian tycoon Ananda Krishnan is said to be the moneybags behind the deals
This note goes on to state that despite the spectrum being available for allocation to Dishnet in Bihar, the DoT bureaucrats did not clear the allocation because there was no go-ahead from Maran.
The report says: "Wireless Adviser (who works within DoT) put up a note on 16.06.2005 directing that the approval had to be decided at the level of Special Secretary… the case again having been put up for approval Secretary, DoT on 26.07.2005 desired to know the stage of network planning and identification of sites for main switching centres. Subsequently, several notes were put up for verification of the said aspects and it was only on 4.02.2006 that allotment of initial spectrum was approved." There was no justification for delay in approval of allotment of initial spectrum despite availability, Justice Patil concluded.
SOMETHING AS small as the request for name change made by Sivasankaran was also not cleared by Maran. On 4 April 2005 Sivasankaran wrote to Maran: "Consequent to change in the name of the company from Dishnet DSL Ltd to Dishnet Wireless Ltd, we have made a request for effecting the change of the name of the company in UAS licence. This is pending for the last eight months. Such a request is normally cleared at the lowest levels in the administration and instantly."
In the same letter, Sivasankaran further wrote: "I am bringing these unusual occurrences to the Hon'ble Minister's notice only to show how there appears to be some unspoken convergence in the delays and denials."
However, Sivasankaran's repeated pleas made no difference to his prospects as far as DoT's approvals were concerned. In October 2005, he received an 'unsolicited offer' from Malaysia-based Maxis Communications to acquire Aircel. Since the cap on FDI in telecom sector was 74 percent, the remaining 26 percent was picked up by Reddys of Apollo Hospital. On 30 December 2005, Maxis and Aircel signed the agreement.
So was Sivasankaran arm-twisted into selling his company to Maxis Group? So far, Sivasankaran has not levelled any allegation against Maran. In fact, after selling off Aircel, Siva Group formed another telecom company named S-Tel, which was granted licences for six circles by A Raja in 2008. S-Tel is now being investigated by the CBI for suspected illegal gains.
When contacted by TEHELKA, Sivasankaran refused to comment on these issues.
Maxis buys out Aircel; the Company's fortunes do a Turn-around
In March 2006, Maxis invested an aggregate amount of Rs 7,880.82 crore in Aircel. While Maxis picked up the 65 percent direct equity through its 100 percent subsidiary Global Communication Services Holdings Ltd, it picked up 9 percent equity through another company named Deccan Digital Private Ltd in which Maxis owned 26 percent equity. As per the FDI norms in telecom sector, a foreign company can hold a maximum of 74 percent equity in a telecom company. The amount invested by Maxis through direct equity was Rs 3,390.82 crore ( Rs 3,379 crore + Rs 11.82 crore). However, Maxis invested another Rs 4,490 crore in Aircel by the way of preference shares. The total investment thus amounted to Rs 7,880.82 crore. The remaining 26 percent equity in Aircel was picked up by the Reddy family of Apollo Hospital fame (See the chart on Maxis Investment in Aircel).
The question that arises is that whether such a massive investment done by Maxis in Aircel ( Rs 4,490 crore in preference shares and Rs 3,390.82 crore in equity) gave it virtually full control over the telecom company and was thus a violation of the FDI rules? Compared to Maxis' Rs 7,880.82 crore of investment, the Reddys merely invested 34.17 crore for their 26 percent indirect equity in Aircel. Reddys invested Rs 34.17 crores for their 74 percent equity in Deccan Digital Pvt Ltd, which in turn held 35 percent equity in Aircel. Deccan Digital picked up the 35 percent equity in Aircel for Rs 1,685 crore, out of which Rs 1,644 crore was financed by Maxis through preference share route (See the chart on Maxis Group Holding Structure in Aircel).
In a filing to the Malaysian stock exchange, Bursa Malaysia in March 2006, which was soon after the Maxis-Aircel deal was completed, Maxis made a selfdeclaration of having control of 99.3 percent over the economic returns from their investment in Aircel. Maxis stated: "With equity interest of 74 percent in Aircel (comprising 65 percent direct interest and 9 percent indirect interest) and 100 percent subscription of cumulative redeemable non-convertible preference shares in Deccan Digital, this effectively gives the group 99.3 percent economic returns from the investment in Aircel."
So have Maxis and their Indian partner, the Reddys of Apollo Hospital, violated FDI guidelines? What was the criterion on which Maxis picked up Reddys as their Indian partner? Certainly financial strength and potential investment that Reddys would bring to Aircel was not a criterion, given the fact that the latter merely invested Rs 34.17 crore in a holding company of Aircel. Were Reddys just a frontman for somebody powerful who could not have directly come into the fray? (Dayanidhi Maran's father Murasoli Maran underwent prolonged treatment at Apollo Hospital in Chennai in 2003. It is widely believed that Reddys took good care of Murasoli during his hospitalisation and ever since the Maran family and Reddys have become good friends.)
These are the questions for which the CBI is trying to find answers. Pursuant to Supreme Court's order dated 8 December 2010 instructing the CBI to widen its ongoing 2G probe beyond Raja and include all the licences and spectrum allotments done since 2001, the CBI had registered a Preliminary Inquiry against unknown persons to look into possible criminal aspects in the telecom policy since 2001. According to sources, the inquiry is now close to completion and the CBI will soon decide whether they have enough evidence to register another FIR in the ongoing 2G probe against new players.
In a written statement emailed to TEHELKA, Suneeta Reddy, Director of Apollo Hospitals has stated: "We inform that the Apollo Hospitals and Dr Prathap C Reddy do not have any investments in the telecom sector. We further state that the Sindya Securities and Investments Pvt Ltd promoted by Mr P Dwarakanath Reddy and Mrs Suneeta Reddy have investments in Aircel Entity and this is a strategic investment in telecom sector, which was a growing business opportunity… We therefore state that the investments of Sindya Securities and Investments Pvt Ltd in Aircel Ltd have been in compliance with applicable laws of India and all regulatory consents/approvals, wherever required, have been sought and duly granted by the relevant authorities." Both Dayanadhi and Kalanidhi Maran did not respond to the detailed questionnaires sent by TEHELKA.
Maxis picks up a substantial equity in Maran family-owned Sun Direct TV and Sun radio
As detailed above, after Maxis' takeover of Aircel, not only applications for seven circles that were pending for more than two years were cleared, Aircel's applications for seven new telecom circles that were made after the acquisition were also swiftly given the go-ahead. Aircel paid a total of Rs 1,399 crore for these 14 licenses. As per the CAG's valuation of 2G licences, these 14 licences could have fetched the government over Rs 22,000 crore, if they had been auctioned in a competitive bid.
In March 2007, which was three months after the award of licences, a Maxis Group company, Astro All Asia Networks through its wholly owned subsidiary South Asia Entertainment Holdings Ltd, announced a joint venture with Sun Direct TV to provide DTH services in India.
On 2 March and 19 March 2007, Foreign Investment Promotion Board and Ministry of Information and Broadcasting gave Astro the required approvals to acquire 20 percent interest in Sun Direct.
On 10 December 2007, Astro completed the subscriptions of 39,677,420 new shares in Sun Direct for a total cash consideration of Rs 315.71 crore. Following the completion of the subscription, Astro had a shareholding interest of 20 percent in Sun Direct.
During the period February 2008-January 2009, Astro subscribed for a further 29,319,882 new shares in Sun Direct for a total cash consideration of Rs 233.3 crore. The new shares were subscribed proportionately with the Maran family's shareholding in Sun Direct, so Astro's shareholding remained at 20 percnet equity interest in Sun Direct as before.
On 5 December 2009, Astro subscribed for 6,283,775 additional shares of Rs 10 each in Sun Direct at a total cash consideration of Rs 50 crore at a subscription price of Rs 79.57 per subscription share. Subsequent to the above subscription, the holding of Astro in Sun Direct stood at 20 percent.
On 28 February 2008, a Maxis Group company Astro through its wholly owned subsidiary South Asia Multimedia Technologies Ltd acquired 6.98 percent equity interest in South Asia FM Ltd (SAFL), a FM company owned by the Maran Group, which had licences to own and operate 23 FM radio stations in India, for a total cash consideration of Rs 14.92 crore.
In July 2009, changes to the foreign direct investment (FDI) regulations in the radio industry allowed Astro to increase its direct stake in SAFL to 20 percent in July 2009 in the following manner:
Subscription of 1,922,854 new SAFL equity shares at par at a total subscription price of Rs 19.23 crore on 22 June 2009;
Subscription of 19,389,198 new SAFL equity shares at par at a total subscription price of Rs 19.39 crore on 23 July 2009;
Acquisition of 13,836,296 existing SAFL equity shares from AH Multisoft Private Ltd at par at a total purchase price of Rs 13.84 crore on 23 July 2009; and
Subscription of 43,900, 136 Compulsorily Convertible Preference Shares (CCPS) of Rs 10 each in SAFL at a subscription price of Rs 43.90 crore on 3 August 2009. Denying the allegations of suspected payoffs, Maxis Communication Berhad in a press release issued on 24 May, stated that there was no pressure exerted on Siva Group to sell its stake in Aircel. The company also asserted that there was no linkage between Maxis' investment in Aircel and that of Astro's in vestment in Sun Direct TV.
What the CBI is probing in The Maxis-Sun Direct deal?
The CBI has charged Raja for fraudulent implementation of the first-come-firstserve policy of granting licences. The CBI has not faulted Raja for not opting for the auction route, but he has been charged for not revising the 2001 entry fee for different telecom circles keeping in mind the exponential growth in the telecom sector.
According to the CBI, Raja made arbitrary and fraudulent decisions to favour companies like Swan and Unitech and gave them the licences at the 2001 rate and despite several ineligibilities in their applications. And for doing so he and Kannimozhi were allegedly paid a graft of Rs 200 crore disguised as equity investment into DMK-run Kalaignar TV (while many suspected overseas payoffs are also under investigation, so far the CBI has brought only Rs 200 crore Kalaignar deal on record).
The question that arises is whether Maran was also guilty of a fraudulent implementation of first-come-first-serve policy in his alleged bid to favour Aircel, post Maxis buy-out? Or were his dealings with Aircel completely overboard and the apparent give-and-take between Marans and Maxis Group a mere co-incidence?
The CBI in its supplementary chargesheet against Kanimozhi and others have listed as many as 14 reasons to buttress their claim that the Rs 200 crore equity investment/ loan in Kalaignar TV was not a genuine business transaction. The main reasons listed being, I) there was no original shares subscription and shareholder agreement between Cineyug Films Pvt Ltd (Balwa had transferred the money to his subsidiary company Kusegaon Fruits and Vegetable which in turn passed it onto Cineyug and from there it came to Kalaignar TV, II) while Kalaignar and Cineyug claimed that the money was transferred for picking up a 20 percent equity in Kalaignar TV, Kalaignar TV's balance sheet for year ending 2009 showed a part of this money, Rs 25 crore under head 'Sundry Creditors and others', III) in the balance sheet for year ending 2010, Kalaignar TV, the amount of Rs 25 crore was regrouped as unsecured loan, IV) finally the entire amount was not converted into equity but instead shown as loan and was returned, V) the money was returned only after A Raja was asked to join the investigation at CBI headquarters in December 2010.
Arm-twisted Chairman of the Sterling Group C Sivasankaran, who was forced to sell Aircel
Will the Maxis-Sun Direct TV and Maxis- Sun Radio equity deals pass the CBI's litmus tests or will the agency be able to find enough illegalities to prove that these deals were also quid pro quo, along the lines of Balwa-Cineyug-Kalaignar deal?
While the CBI is holding its cards close to its chest, Justice Patil in his report submitted to Telecom Minister Kapil Sibal on 31 January this year, has found Maran lacking on many counts.
Besides the unjustified and unwarranted delay in dealing with Dishnet-Aircel's applications, the report enumerates a few more instances of Maran's ad hocism and arbitrariness.
The report says that Idea Cellular was given an extension of one year to rectify the discrepancies in its UASL application (Idea had applied for UASL for Mumbai service area on 3 August 2005). The extension was given without the approval of Member (Finance).
The existing guidelines stipulated that the time for rectifying discrepancies in application could be extended by maximum 30 days and that too with the approval of Member (Finance). But Idea Cellular was given an extension in a clear 'deviation from laid down procedure', according to Justice Patil, and was finally issued an LoI on 20 November 2006.
On 14 December 2004, Essar Spacetel Pvt Ltd made applications for grant of UASLs for Assam, Bihar, Himachal Pradesh, Jammu & Kashmir, Northeast, Odisha and Madhya Pradesh. On 12 January 2005, DoT wrote to Essar Spacetel pointing out deficiencies in its equity structure. The correspondence continued till 18 May 2006. "The information was sought and discrepancies were pointed out in a piecemeal manner," noted Justice Patil in his report, hinting at Maran's dubious policies. Letter of Intent was finally issued to Essar on 20 November 2006 for all service areas except Madhya Pradesh. For Madhya Pradesh, LOI was issued on 5 March 2007.
How Maran kept spectrum pricing out of the Finance Ministry's purview?
Apart from listing the unjustified delay in dealing with Dishnet-Aircel applications and ad hocim shown by Maran in various other licensing related decisions, Justice Patil has also recorded in detail as how Maran kept the critical issue of spectrum pricing out of the Finance Ministry's purview.
On 23 February 2006, with the approval of Prime Minister Manmohan Singh, a Group of Ministers (GoM) comprising the Minister for Defence, Minister for Home Affairs, Minister for Finance, Minister for Parliamentary Affairs and Telecom Minister was constituted to look into various issues concerning effective and optimum usage of spectrum. The terms of reference also included suggesting a spectrum pricing policy.
If the CAG valuation of 2G licences is any yardstick, the value of Aircel's licences cleared by Maran would amount to Rs 22,000 crore. But it paid just Rs 1,400 crore
But on 28 February 2006, Maran wrote a letter to Manmohan Singh and asked spectrum pricing to be kept out of GoM's purview. He wrote: "You may recall my meeting with you on 1st February 2006 when we had inter-alia discussed the issue of the Group of Ministers relating to the vacation of spectrum by Defence. You had kindly assured me that the Terms of Reference of the GoM would be drawn up exactly the way we wanted, which was to focus only on the issue of vacation of spectrum. I am however surprised to note that the GoM as constituted has much wider Terms of Reference some of which I feel impinge upon the work normally to be carried out by the ministry itself. I shall be grateful if you could kindly instruct the concerned to modify the Terms of References suggested by us which are enclosed."
The PM obliged and the term related to spectrum pricing was deleted in the revised Terms of Reference issued on 7 December 2006. But six months later, on 6 June 2007 (Maran was replaced by Raja on 13 May 2007), the Ministry of Finance sought inclusion of spectrum pricing in the Terms of Reference of GoM. But Secretary, DoT, declined any modification. Thus the precedent set by Maran was continued by Raja. All decisions related to UASL and spectrum pricing were taken by DoT without the concurrence of Finance Ministry that was required under Government of India (Transaction of Business) rules.
Also both the ministers kept the issue of spectrum pricing out of Cabinet and Group of Ministers' purview. Shockingly, nobody in the government including the PMO raised a flag.
Maran's three-year-old stay at Sanchar Bhawan was marred by a spate of controversies. He shared an extremely strained relationship with Ratan Tata, chairman of Tata Sons. It was widely speculated that Maran brothers wanted to buy a substantial take in Tata Sky but when Tata spurned them, the DOT started putting roadblocks in Tata Teleservices' expansion plans. The Niira Radia-Ratan Tata tapes which got their way in the media in mid 2010, confirmed Tata's deep-seated dislike towards Maran and his preference for Raja over Maran as telecom minister.
In his report, Justice (retd) Shivraj Patil came down hard on Maran's delaying tactics. He has also remarked that on several occasions, Maran deviated from procedures
"The only concern I have is that Maran is going hammer and tongs for Raja. And I hope Raja doesn't trip or slip," Ratan was famously heard telling Radia in a phone conversation which happened on 7 July 2009 and which later got leaked in the media.
In February this year, former Telecom Minister Arun Shourie made further dent in Maran's reputation by blaming him for the genesis of 2G scam.
"It was in Maran's time that one sentence was put into the guidelines that there shall be no cap on the number of operators in a circle. Such a change could only come in the form of a Telecom Regulatory Authority of India (TRAI) recommendation," said Shourie.
"This (change) comes in the guidelines of 2005 whereas the TRAI did not recommend it till 2007. So by what horoscope did Mr Maran anticipate these recommendations — two years ahead? That is how some operations were planned that could not go through and then Mr Raja acted on them."
So, did Maran really lay the foundation of the 2G scam? Was the Aircel-Maxis-Sun Direct TV deal the prototype of payoffs that Raja later followed on a much larger scale? The answer lies in hard evidence and this is where the CBI will be tested.
