MUMBAI: Bank of Baroda (BoB) on Friday took over IBU International Finance, a deposit-taking company in Hong Kong, by buying out the stakes of Indian Bank and Union Bank of India. BoB has bought the stakes of the two banks -- 33 per cent each -- for Rs 72 crore. It has paid a 55 per cent "goodwill" premium to buy the stakes. The move to buy out the banks' stakes was triggered by the Hongkong Monetary Authority's decision not to allow a multi-parent financial institution in Hong Kong. The Reserve Bank of India persuaded BoB to pick up the stakes of the banks and turn IBU International into a wholly owned subsidiary, the sources said. Banking analysts, however, question the deal's pricing. "IBU Hongkong has posted losses. The bank could have picked up the stakes at a cheaper price," a senior analyst said.

Balmer, IBP to withdraw from JVs

NEW DELHI: The government today permitted State-owned IBP Co Ltd and Balmer Lawrie and Co Ltd (BLL) to withdraw from theirrespective joint ventures by selling their equity to their foreign partners. The decision, taken at the meeting of the Union cabinet here, was aimed at enabling BLL to pursue the marketing of lubricants and greases independently and IBP to avoid further losses in the joint venture. As part of the restructuring, Balmer Lawrie would sell its 50 per cent holding for Rs 21.25 crore at Rs 70 per share (face value Rs 10 per share) to the partner company Fuchs Petrolub AG in the lube marketing company Balmer Lawrie Fuchs. IBP, on the other hand, would sell 49 per cent of its holding in loss making joint venture IBP Caltex Ltd to its partner Caltex Oil Corporation for Rs 19.6 crore at Rs 10 per share.