Source: Economic Times

Almost a year after upending the mobile-phone world with its first wireless handset, the iPhone, Apple unveiled a souped-up second version of the device, the iPhone 3G. ( Watch )

Introduced by Apple (AAPL) CEO Steve Jobs in a June 9 keynote address in San Francisco, the iPhone 3G will sell for $199 for an 8GB version and $299 for a 16GB version. The new prices represent a departure from a year ago when the first devices sold for $599 on the upper end. The iPhone 3G will be available in 22 countries beginning July 11, and will eventually be sold in 70 countries in all.

The new phone derives its name from the faster Internet downloads available on advanced, or third-generation (3G), wireless networks. Jobs told the audience the new iPhone downloads Web pages as much as 36% faster than comparable phones from Nokia (NOK) and Palm (PALM). The new phone also sports a feature that lets users know their location using GPS satellites. Phones that run GPS technology are able to access an array of location-aware applications, including mapping within address books. Other improvements over the original device include improved audio quality on phone calls.
Improvements to the first version of the iPhone—the lower price in particular—will likely generate greater demand for one of Apple’s most successful products to date. “If anyone needed proof that Apple was ready, willing, and able to go after lots of mobile-phone users, they got it today,” says Gartner (IT) analyst Mike McGuire. “Apple is showing itself to be really serious about the phone market.” Apple has sold 6 million units since the iPhone was introduced at the end of June, 2007. “More people desired to buy it, but they couldn’t afford it,” Apple Chief Operating Officer Tim Cook says.

Demand for the iPhone also stands to benefit the wireless carriers on whose networks the device runs—although Cook says the lower price reflects a subsidy that will be absorbed by the service providers. The official iPhone provider in the U.S. is AT&T (T). “The launch of 3G iPhone will be another opportunity for [Apple's] exclusive providers to boost [revenue per user] and market share gains, continuing what 2G iPhone started,” UBS (UBS) analyst John Hodulik wrote in a research report.

Source: Economic Times

MUMBAI: The weekend saw no let-up in the latest round of the seemingly unending and relentless war between the Ambani brothers, with both sides readying their heaviest legal artillery. After the initial shock and awe of RIL’s sudden intervention, Anil Dhirubhai Ambani Group (ADAG) officials have adopted an aggressive posture.

However, RIL has shown no signs of yielding, with company officials claiming that MTN would have to consider the legal implications of acquiring RCOM. Seemingly undeterred by the controversy, an MTN team arrived in Mumbai on Saturday to start due diligence on RCOM.
A senior ADAG executive told ET on Sunday that Reliance Industries (RIL) can make an open offer if they are keen on buying RCOM. The executive is involved in structuring the proposed $70 billion mega-merger deal between RCOM and South African telecom giant MTN.

“If they want, they can make an open offer to buy RCOM or go to court. They will not do so or go to court because they are not interested in buying RCOM; their only interest is to sabotage our efforts to create a global telecom giant stretching from Asia to the Middle East and Africa with a subscriber base of 116 million,” said the executive.

“Besides, what is hurting RIL is that if the deal goes through, EBITDA of the combined RCOM and MTN for 2009 would be Rs 45,000 crore, 50% more than RIL’s EBITDA of Rs 30,000 crore. Our deal is on track,” said the executive.

When asked for comments on RIL making an open offer to buy RCOM or going to court to enforce its right of first refusal, RIL’s official spokesperson declined to comment, saying RIL has not officially received any response from RCOM or MTN for its letter. “It’s interesting that they have not responded to us even after 48 hours. As far as MTN is concerned, their board and all bankers involved will have to take note of concerns expressed by India’s largest private sector company,” an RIL source said.
In a statement issued to media on Friday, RIL had said: “RIL, has in good faith, notified both Anil Dhirubhai Ambani Group and MTN Group of the stipulations contained in an agreement, the validity of which has never been questioned so far by ADAG.”

When asked if RCOM has received any communication from MTN seeking clarifications on RIL’s letter, the RCOM executive said: “MTN was quick enough to respond to RIL’s letter. Within a couple of hours, the MTN spokesperson had said that nothing has really changed and talks with RCOM were on as per the 45-day exclusive talks agreement.” MTN officials could not be reached for their comments.

The issue came into the limelight after RIL wrote to MTN on Thursday threatening legal proceedings to enforce its claimed right of first refusal in the Bombay High Court, in which case MTN would also be one of the defendants.

RIL’s letter to MTN was addressed to Cyril Ramaphosa,(non-executive chairman) and PF Nhelko (group president and CEO). The letter, a copy of which is available with ET said: “As you will note, we have already notified to ADAG that we shall adopt legal proceedings against them in the Bombay High Court, in which we shall necessarily add MTN as one of the defendants….Please note that any agreement of the nature contemplated above between MTN and ADAG will result in MTN procuring a breach of the agreement, which shall entitle RIL to make a claim for exemplary damages against MTN,” said the letter.

NEW DELHI: Anil Ambani’s Reliance Communications may opt for a secondary listing in London of the new entity after the planned takeover of the South African telecom firm MTN to increase liquidity of shares in the global market.

At present, Reliance is in exclusive talks with MTN with respect to a potential combination of their businesses. The exclusivity talks period of 45 days started on May 26. The due diligence is currently in the final stages and is likely to be concluded anytime.

Industry sources said MTN top brass including Azmi Mikati, the chief executive of the investment unit that is MTN’s second-largest shareholder and Phuthuma Nhelko, the chief executive of MTN are positively inclined to have LSE listing of the merged entity.

However, the combined entity would continue to be listed in Johannesburg through MTN and in Mumbai through Reliance.
Sources said currently both the companies are working out the swap ratio and it is understood that Ambani wants to exchange his 66 per cent stake in Reliance Communications under a mechanism yet to be agreed for a 34.9 per cent stake in MTN.

The broad contours of the final agreement between them regarding share swap, modalities are likely to be finalised in the next 10 days, said industry sources. MTN’s talks with RCom started after Bharti Airtel pulled out of negotiations with MTN.

Although the value of that MTN stake has yet to be agreed, it could constitute one of the biggest investments by an Indian company overseas, alongside Tata Steel’s about USD 12 billion takeover of Corus last year.

Source: Economic Times

Source: Economic Times

 NEW YORK: Billionare financier Carl Icahn, who launched a proxy battle in May to replace the board of Yahoo Inc in the wake of its failed deal to be acquired by Microsoft Corp, said on Sunday the subsequent deal Yahoo forged with Google “might have some merit.” “While the Google deal is not the same as an offer of $34.375 per share for Yahoo, I am continuing to study it, and it might have some merit,”

Icahn said in his first public comments since Yahoo disclosed the Google ad-sharing deal on Thursday. Icahn declined to comment on whether he would continue to press his proxy battle to replace the board of Yahoo in light of the fact that the company has done a deal with Google. The pact comes with extensive “change of control” provisions that allow Google or Yahoo to terminate the deal in the event that Yahoo is acquired or if a majority of its board is replaced at its upcoming annual shareholders meeting in August.

Thus, if Icahn wins his proxy battle and changes the board of Yahoo, Google has the right to walk away from a deal that Icahn favors as an alternative to an all-out acquisition. Ichan hinted that the change of control provision might be sufficient reason to pull back on his campaign to replace the Yahoo board. Alternatively, Icahn could accept minority board representation which may not prompt Google to walk away.

The investor, who holds about 59 million shares, or more than 4 percent of Yahoo, said that a Google deal was preferable to having Microsoft take control of Yahoo’s search operations as the software company proposed after Yahoo rejected its $47.5 billion bid to acquire the whole company. “I continue to be extremely disappointed with the Yahoo management, but the Google deal might have some merit and seems to be better then the alternative deal proposed by Microsoft,” said Icahn in a telephone interview.  

Source: Economic Times

Source: VCCircle.com

The key highlights of the Ranbaxy- Daiichi deal

1) Daiichi Sankyo will acquire the entire shareholding of the Sellers in Ranbaxy and further seek to acquire the majority of the voting capital of Ranbaxy at a price of Rs 737 per share with the total transaction value expected to be between $3.4 to $4.6 billion (currency exchange rate: US$1=Rs43). On the post closing basis, the transaction would value Ranbaxy at $8.5 billion.

2) Daiichi Sankyo is expected to acquire the majority equity stake in Ranbaxy by a combination of (i) purchase of shares held by the Sellers, (ii) preferential allotment of equity shares, (iii) an open offer to the public shareholders for 20% of Ranbaxy’s shares, as per Indian regulations, and (iv) Daiichi Sankyo’s exercise of a portion or all of the share warrants to be issued on a preferential basis. All the shares/warrants will be acquired/issued at a price of Rs 737 per share.

3) The acquisition is expected to be completed by the end of March, 2009. Upon completion of the transaction, Ranbaxy is expected to become a subsidiary of Daiichi Sankyo.

4) The deal will be financed through a mix of bank debt facilities and existing cash resources of Daiichi Sankyo.

5) This purchase price represents a premium of 53.5% to Ranbaxy’s average daily closing price on the National Stock Exchange for the three months ending on June 10, 2008 and 31.4% to such closing price on June 10, 2008.

6) It is anticipated that the transaction will be accretive to Daiichi Sankyo’s EPS and Operating income before amortization of goodwill in the fiscal year ending March 31, 2010 (FY2009).

Shahrukh Khan seems to have gotten the better of established businessmen like Mallya and Ambani over here. [...] the KnightRiders look to have turned in a neat profit of Rs 11 Crores! And they didn’t even qualify for the semis! Even the low-cost Rajasthan Royals, who have the added benefit of having a winning streak are not going to make a profit![...]Mallya has spent exorbitantly, with the cheerleaders and laser shows and what not, and has no sponsors or co-sponsors for the Royal Challengers team. That is going to mean a staggering loss of 43 crores this year!