Glaxo, SmithKline in merger talks
Britain's two leading drug companies - SmithKline Beecham and Glaxo Wellcome - are in talks for a $163.1-billion merger to create the world's largest pharmaceutical company. This proposed merger will see the formation of the largest pharmaceutical company in India with a combined market share of about 8.6% and almost insignificant overlaps in product portfolios.
Reserve Bank relaxes NBFC deposit, NPA classification norms
The Reserve Bank of India (RBI) has substantially relaxed the deposit-taking norms for non-banking finance companies (NBFC). It has allowed equipment leasing and hire-purchase companies with a minimum investment grade rating to access public deposits, enhanced the ceiling on the quantum of public deposits and extended the deadline for regularising public deposits by two years.
Hoechst Marion Roussel merger vote
The shareholders of Hoechst Marion Roussel voted on the amalgamation of the company with Roussel India on January 31. As per the scheme of amalgamation, the former, which currently holds 66.67% of the paid-up capital of Roussel India, will acquire the remaining 2,09,280 equity shares of Rs 100 each from Roussel Labs, UK. The poll results are expected to be available by February 2.
Urban Land Ceiling Act to be scrapped soon: PM
The Prime minister IK Gujral has assured that the government's decision to scrap the Urban Land Ceiling and Regulation Act would be soon be implemented. However, some "technicalities and bureaucratic procedures" have to be adhered to before it is abolished.
HLL plans VRS on regular basis to improve viability of units
Hindustan Lever plans to introduce voluntary retirement schemes (VRS) on a regular basis to improve the viability of various production units across the country. The company, which had introduced a social security and resettlement package (SSRP) in 1989 to induce staff to retire, recently reintroduced the package with improved benefits.
Call rates go down to eight per cent as liquidity returns to the system
The overnight call rates dipped to 8% on Saturday and prices of government of India securities went up as liquidity came into the system after the Reserve Bank of India's intervention in the forward market cooled the call market. The call rates had zoomed to a record high of 140% following the apex bank's tight money policy. It has now dipped below the psychologial 10% barrier.
