He also iterated that ITC does not recognise any legal liability regarding the trading outfit, and Global itself should meet the outstanding liabilities worth around $50 million.

But, Deveshwar said, ITC was prepared to go "half-way" in resolving the dispute subject to approvals from ITC shareholders, the Reserve Bank of India and the government.

"We believe that we will earn goodwill by adopting this approach," he added.

He added all Global creditors should agree to ITC's offer, and that the claims of all creditors -- including ITC itself -- should be ranked pari passu. According to ITC's annual report for 1997-98, Global owes its former parent Rs 35 crore (around $9 million).

Deveshwar was hopeful thatITC would be able to settle the dispute with a payout of $20-25 million.

He said ITC had no plans for another trading company like Global, but is looking for partners. It is negotiating with big names in international trading.

Commenting on the performance of various ITC divisions, he said the hotels business had been affected by the "downturn" in tourist arrivals last year. But the company continued to maintain its leadership at all its hotel locations. The printing and packaging business was doing well and all expansion opportunities would be exploited, he asserted.

The paper business was hit by recession and the reduction in custom duties to 20 per cent last year which was done faster than what the World Trade Organisations norms warranted.

Deveshwar said ITC would continue to support ITC Bhadrachalam Paperboard Ltd, pointing out that Rs 40 crore out of ITC-BPL's loss of Rs 49 crore came from that company's finance subsidiary.

Deveshwar announced that the company was looking for strategicalliances in speciality paper and international trading which would boost the company's export earnings. Cigarette tissue, which forms a substantial part of the speciality paper business segment, is likely to benefit from value addition in the form of a financial or technical collaboration with an international partner. The shortlist of probables is ready and a deal is expected in the near future, Deveshwar said.

On financial services and edible oils -- two out of the three business that ITC has decided to quit -- Deveshwar said "the exit from financial services has been managed substantially and we will take a view on the remnants in due course."

The company had already handed over control of ITC Agro to Conagra of the US, which now has a 51 per cent stake. "Our share of 17 per cent will continue, as part of the agreement with Conagra, till the lock-in period is over. At that stage, we will decide whether to exit or not," he commented.

In ITC Zeneca, the seeds business and the third that ITC has quit,Deveshwar said ITC's stake has been sold to ITC Agro.

On the bourses, the ITC scrip gyrated in a confusing pattern with an early dip to Rs 795, recovery to Rs 810 and a final bow to Rs 798 at close. Later at the kerb, the scrip was reportedly trading at Rs 803-804. The traders were yet to figure out the actual provision made on account of ITC Classic.

Since the actual provisioning of Rs 53.5 crore is much less than the market had anticipated, analysts opined that the scrip was likely to settle at current levels in the short term as the results have been more than fully discounted by the market.