Anil Ambani’s telecoms empire is slipping away 3 Oct 2017 Now that a merger of its mobile unit has failed, the Indian tycoon is running out of options to keep control of his flagship Reliance Communications while reducing its $7 bln of debt. One creditor has already petitioned for insolvency. Others may soon run out of patience too.
Charmed life for Indian IPOs may be short 28 Sep 2017 Huge inflows of domestic cash and a lack of healthy financial stocks have helped two insurers float at punchy valuations. At this rate, India is on track for a record year for new issues. But foreigners are selling and the economy looks shaky. Would-be issuers need to move fast.
India walks tightrope with “black money” fight 27 Sep 2017 Premier Narendra Modi has unleashed a raft of initiatives to root out income obtained illegally or hidden from the taxman. The cost has been a sharp slowdown in growth. The potential prize is a big uptick in India’s ability to spend – and an easier path for Modi to re-election.
Agarwal’s Anglo wager is risky way to plot breakup 21 Sep 2017 The Indian billionaire is doubling down. Paying as much as 1.5 billion pounds to raise his stake in the UK-listed miner to 20 pct may be a way of trying to force a breakup. But unpredictable commodities prices and South Africa’s volatile politics could scupper any such plans.
Tata Steel deal crystallises overseas M&A pain 20 Sep 2017 The Indian group’s deal with ThyssenKrupp will shore up the ailing business it bought in 2007. But the joint venture will assume just a quarter of the European unit’s 9.5 bln euros of liabilities. That’s bad for Tata Steel shareholders. At least its rich parent is supportive.
Tata Steel JV pays ThyssenKrupp four dividends 20 Sep 2017 A historic joint venture with India's Tata will unshackle the German group from the fickle, capital-intensive steel industry. Lower pension liabilities, a share of synergies worth 3 bln euros and a more robust balance sheet are further benefits. Workers will fare better too.
Fosun beats the odds with revamped Indian deal 18 Sep 2017 The Chinese conglomerate’s drug unit will buy a smaller 74 pct of KKR-backed Gland Pharma for $1.1 bln. That shows Beijing is still open to sensible foreign deals. And despite a recent border spat, India is open to Chinese money, especially if deals are carefully structured.
Review: India’s rock star governor reclaims stage 15 Sep 2017 Raghuram Rajan was silent on India for a year after leaving the central bank. Now he calls for a rescue of bad lenders, and criticises its banknote ban. His truncated reflections in “I Do What I Do” leave the reader wanting more, but are awkward for his lower-key successor.
Ericsson reaches for India’s new creditor weaponry 14 Sep 2017 The Swedish telecoms equipment maker has filed a bankruptcy petition against Anil Ambani's Reliance Communications. It is the first high-profile foreign outfit to use a new insolvency code to try to force a settlement. This shows creditors are becoming more powerful in India.
Rajan throws down fiscal gauntlet for New Delhi 8 Sep 2017 The ex-governor of the central bank has broken his silence on India. Raghuram Rajan says New Delhi should sell stakes in state firms to fund a bank bailout. He’s right: borrowing more would give up the credibility India has won in markets with its healthy finances.
Cheap data feeds Murdoch’s Indian cricket pitch 7 Sep 2017 Rupert Murdoch-backed Star India is paying $2.6 bln for IPL rights, outbidding new rivals like Facebook. The huge sum highlights the sport’s rapid rise and a rush to secure local content. Cheap mobile data could help lure the viewers and advertisers needed for this to pay off.
China-India spat signals last hurrah for BRICS 4 Sep 2017 The duo stepped back from a border dispute in time for a smooth summit of the emerging markets bloc. But Beijing’s focus on Belt and Road, its ambitious global infrastructure push, has it and India marching in opposite directions. That looks toxic for the alliance.
India’s big-cash call generates surprise dividends 30 Aug 2017 Nearly all $242 bln of high-value notes scrapped nine months ago were turned in to banks. It also led to an unexpected jump in reported suspicious transactions. That gives the taxman a useful paper trail that may lead to benefits from this unorthodox monetary experiment.
India’s tax attack on Li Ka-shing is a bad call 30 Aug 2017 New Delhi wants to wring the same taxes out of buyer and seller in an old telco deal. Slapping a $5 bln demand on Hong Kong’s CK Hutchison, while also chasing Vodafone, is farcical. If India really wants to end “tax terrorism” it should change its law and rein in bureaucrats.
Infosys founders get second chance on succession 25 Aug 2017 Nandan Nilekani will return to chair the IT firm he helped found. That is less than ideal - but could calm investors after its first outside CEO quit. The reputation of the king of Indian fintech now rests on bringing in new faces and leaving a firm that won't crash again.
McDonald’s ain’t loving the local Indian recipe 22 Aug 2017 The U.S. burger chain is taking the nuclear option, shutting 169 stores as a spat with a partner boils over. It's one reason McDonald's has fallen behind rivals in a huge potential market. Partnerships are always vulnerable but India's byzantine legal system raises the stakes.
Three steps to an Infosys reboot 22 Aug 2017 The $31 bln Indian IT giant is in a mess after its CEO quit. To restore confidence, it needs fewer bosses and to find a strong outside CEO. Publishing a report into whistleblower claims would also help draw a line under a founder's complaints of mismanagement.
Founders’ coup leaves a void at Infosys 18 Aug 2017 Vishal Sikka delivered three years of outsize returns. Now the Indian outsourcer's first professional CEO has resigned, against the board's wishes, after criticism from founder shareholders. Finding a solid outsider who can put up with the backseat driving will be challenging.
Financial flirtation complicates China-India spat 14 Aug 2017 A tussle over territory between the Asian nations is more consequential given deepening economic ties. Beijing wants access to the Indian consumer; New Delhi cannot be picky about foreign capital. The mutual financial embrace is a new reason for both sides to keep the peace.
M&A leaks further erode Asian markets’ credibility 11 Aug 2017 India, South Korea, Japan and Hong Kong were the leakiest M&A markets last year, a survey suggests. That is embarrassing given Asia is already a corporate governance laggard. Regulators can work harder to alter the risk-reward tradeoff, but a complete cleanup is near impossible.