Stocks

ANOTHER DOWN C I R C U I T. .

Posted by : aakiurs

Dear Gold finger and other dreamers of Austral coke.

Check out NSE data and bulk deals that happened last week. Major promoter, Shri Hanuman Investments has sold lakhs no of shares.

They are offloading and poor retail investers are buying in dreams of thousands turning into lakhs.

Another case of pyramid saimira.

Big Money for Alok industries through land Deal

Posted by : aarun

Dear Jagishar, How are Alok Industries and Alok Realtors linked or related. Will it effect share movement of Alok Industries and in waht way. Please reply.

PRATIBHA IND. AND SOME BULLISH STOCKS

Posted by : amresh_1973

very very thanku rupesh

RIL offer an alternative to recast’

Posted by : bhusbhac

Source: The Economic Times dated 23rd November, 2009

RIL offer an alternative to recast’


‘IT APPEARS clear that recourse to the LyondellBasell balance sheet is unlikely given its already huge debt burden, which placed it in bankruptcy in the first place,’ said Darshan Desai, managing partner of Euromax Capital, a London-based investment banking firm.
One banker familiar with international transactions by Indian companies said it was likely that Reliance would raise money overseas. The actual acquisition, the person said, could be executed by a subsidiary located in a major overseas financial centre such as Singapore or London or even New York. Reliance may support the subsidiary by way of guarantees, or even a letter of comfort, a document in which the parent company pledges to back a subsidiary. The banker emphasised that he was not aware of the details of this particular transaction, but said recent major overseas acquisitions, such as Tata Steel’s purchase of Corus, had been carried out in this fashion.
’Also, the initial debt is likely to be raised internationally. But later, Indian banks are likely to be called upon to refinance the debt. That’s been the recent pattern,’ the banker said. There are also imponderables such as whether LyondellBasell will be merged with RIL. Such confusion may mean the stock markets may not react immediately as investors wait for more information to emerge.
In a statement issued on Saturday, LyondellBasell said the RIL offer could serve as an ‘alternative’ to a reorganisation plan the company had filed in a New York bankruptcy court in September. LyondellBasell said it would ‘continue to work with all parties to design an approach that maximises value for the company’s creditors through the pursuit of a confirmable plan of reorganisation and enhanced the financial strength of the reorganised company’. It kept mum on the size of the RIL offer.
The current reorganising plan hands over Lyondell-Basell to some of its secured creditors, referred to as senior lenders, in exchange for getting rid of US$ 17 billion of debt. The reorganisation plan also includes a US$ 2.5-billion rights offer to help the company out of bankruptcy, led by a group, including private equity funds such as Apollo Management, Ares Management and KKR.
LyondellBasell is privately owned by ProChemie GmbH, a JV of Access Industries and ProChemie Holding. The company suffered a net loss of US$ 7.3 billion on sales of US$ 50.7 billion in 2008. It filed for bankruptcy in January. The company’s unsecured creditors have challenged the bankruptcy process. An attempt to resolve differences between secured and unsecured creditors by way of mediation is on.
Analysts believe that RIL may not find it difficult to fund the purchase of LyondellBasell, although the target firm is 50% bigger. Mr Desai, the managing partner at Euromax Capital, a London-based investment banking firm, said the deal could be in the region of US$ 10-12 billion. ‘The size of the transaction appears to be in the range of US$ 10-12 billion. Reliance has ample funds for an acquisition of the size of LyondellBasell.’ It had recently raised about US$ 660 million in a share sale and is sitting on US$ 8 billion in treasury stock that can be sold, if required. Also, RIL has more than US$ 4 billion in cash. If RIL wants to double its current net debt-to-equity of 0.35, it can borrow another US$ 10 billion or around Rs 45,000 crore.
But acquisition of a bankrupt US company may be time consuming, said Akil Hirani, managing partner at Majmudar & Co. ‘It may lead to counter-offers by some creditors which will be a time-taking affair. Secondly, employee unions may pose problems. LyondellBasell has operations in over a dozen countries, including the EU where unions are strong. Also, the pension liabilities and environmental liabilities will be crucial,’ he said.
’RIL’s plan will have to get the US bankruptcy court order in such a way that it can sell off the non-core businesses of LyondellBasell, if required, as going concerns. RIL will have to deal with the non-productive units and it needs to get fresh lines of credit to infuse in LyondellBasell to turn it around. RIL should push for no riders attached to the deal,’ Mr Hirani suggested.
The LyondellBasell spokesperson told ET that the RIL offer would be presented to the committee of creditors as a potential alternative to the reorganisation plan. The next step would be to file an amended reorganisation plan and a disclosure statement, which would deal with creditor classes. This amended plan will have to be approved by creditors, he added.

ANOTHER DOWN C I R C U I T. .

Posted by : jingu

Still there is no news on AusCoke Hmmm..
Expect another down circuit today.

G L & H I.

ANOTHER DOWN C I R C U I T. .

Posted by : GOLD FINGER

I have committed a sum of Rs.35,000/- for investment in Austral Coke. Made investments at various levels. Till it gets exhausted, I will continue buying at various levels.

If Austral coke collapses, I loose 35,000/-.

But if Austral Coke turns out to be a winner, I see my investment of 35,000/- becoming 35 Lakhs.

MEGA BID !!!!

Posted by : rvk41

Mukesh Ambani, the richest Indian and chairman of Reliance Industries, is dreaming one of the biggest-ever deals by an Indian entrepreneur . Will he stand out as he has been in the past? Or will he join the club of Vijay Mallya, Ratan Tata, Kumar Mangalam Birla and Tulsi Tanti of Suzlon who burnt their fingers with global acquisitions? Reliance’s past record in global acquisitions is not inspiring either.

As Reliance sets out to make what could turn out to ber the biggest acquisition by an Indian firm, the mood among bankers who peddle deals and analysts is one of caution, and not of elation. “Corporates moving overseas is the right thing. But they need to be selective,” says Uday Kotak, a consummate dealmaker and executive vice-chairman of Kotak Mahindra Bank.

Indian companies such as Suzlon, Tata Motors , Ranbaxy Laboratories took on billions of dollars debt to buy international companies as they were carried away by the globalisation hype during the five years of dream stock market rally up to 2008 January. Most of them are now struggling to repay the debt and some are selling family jewels to stay afloat.

In 2006, Tata Steel acquired Anglo-Dutch steelmaker Corus for $12.2 billion, the largest overseas acquisition by an Indian company till date. The deal catapulted Tata Steel to the fifth position in the global pecking order of steel producers , but the group is struggling with the mountain of debt. In the following year, Hindalco, the flagship company of Kumar Manglam Birla, swallowed Canadian firm Novelis for $6 billion. And its position is no different from the Tatas.

These were followed by a series of acquisitions — White and Mackay was bought by United Spirits and JLR was snapped up by Tata Motors. “Some of these acquisitions were done at the peak of the valuation cycles, which made them difficult to justify. More importantly, the global recession made these businesses unviable in the short term,” says the chief investment officer of a leading foreign fund, who asked not to be named. And Reliance has its own set of lessons learnt from the past. In 2004, Reliance acquired Trevira , a German textile firm, for about 80 million euros . In June this year, Trevira applied in a German court to start insolvency proceedings.

Experts say acquisitions also need to be viewed through the prism of strategic rationale and over a longer term horizon to be labeled as successes or failures.

“It would be a mistake to judge the success of a large acquisition over the short term as the market typically does. Industrialists’ time scale for measuring success is different from that of the market. They are looking at the impact over decades, whereas the market is only looking at the next two to three years,” said Frank Hancock , managing director, advisory, Barclays Capital . Ashok Wadhwa, managing director of Ambit Corporate Finance, for instance notes that United Spirits’ decision to acquire White & Mackay for $1.1 billion gave it much needed stock of old Scotch Whiskey. “The acquisition has given it (United Spirits) the ability to bring these brands to India, which will have huge accretive impact on the company,” says Wadhwa.

However, experts feel that the ability of acquisitions to sustain business cycles is important. Citing the case of Suzlon’s acquisition of RE Power for $1.7 billion and Wockhardt’s overseas acquisitions, one banker said there were some cases where Indian promoters embarked on aggressive acquisitions that were beyond their ability to digest. “These acquisitions were made at the peak of their valuations. The subsequent global downturn made the entire business case more difficult as they had not factored the downturn, which made financing costlier,” the banker added.

Sanjay Agarwal, MD of Deutsche Bank (investment banking) says that the payback period of these acquisitions has increased because of the unexpected recession in the west. India Inc needs to weather this downturn, as in the long term the deals will be financially accretive and viable propositions.

Source E T,with regards
rvk41

ANOTHER DOWN C I R C U I T. .

Posted by : GOLD FINGER

I have committed a sum of Rs.35,000/- for investment in Austral Coke. Made investments at various levels. Till it gets exhausted, I will continue buying at various levels.

If Austral coke collapses, I loose 35,000/-.

But if Austral Coke turns out to be a winner, I see my investment of 35,000/- becoming 35 Lakhs.