Tata Steel

Helping Indian Industrialists, Mr. Prime Minister

Posted by : Kalidas

It is well known that India’s best breed of industrialists Tata (of TISCO and Tata Motors) and Birla (Hindalco) for over 5 decades are in serious trouble while taking up expansion overseas. Yes, they made serious errors and in normal course, they may not have deserved the help for their follies.

Charity begins at home. India as nation must help these two outstanding businessmen. They may not long for Bharat Ratna, Padma Vibhushan, Padma Bhushan or similar khitabs. They need material help at the time of their acute distress.

If Indian Forex Reserve does not come to the help of India’s best industrialists, what is the use? Should we allow our Forex reserve for the use of Americans who have been simply wasting all resources and using them to create toxic waste.

Indian FOREX Reserve belongs to the Indians and must be used for Indians first and others later.

And I do not suggest that you give them free money. Give them the amount required as under after due scrutiny.

1. Assess their requirements and be wetted by top financial institution.
2. Work out how much amount they need
3. Give them @ 5% in foreign currency non subordinated Convertible Bonds secured by the floating pari pasu charge on their respective enterprise.
3.a Such bonds may carry conversion rights at last 6 months average prices of their respective shares, exercisable only after 5 years.
3,b It may have buy back clause at 8% premium per year for the life of 15 years. This will help these guys to buy back the bonds when they are comfortable without diluting their equity stakes when the things improve.
3.c If the Government wishes, it may sell these bonds in the market with huge profit (because current stock prices are very low), after giving respective companies to buy back the bonds.
4. When the things improve, they can raise the capital from the market to buy back these bonds.
5. Give them loans repayable in 15 years due to depression prevailing all over the world.
6. Ask them to pay special tax @ 3% after initial 5 years so as to relieve the interest burden during early phase of management. National exchequer may also be benefited for help rendered.
7. Ask them to give India at least 5 hospitals and 5 Technical Institutes with full management rights vested with the respective group companies on purely voluntary basis. (we can trust them)
8. Ask them to adopt at least 5 villages to make them into model town in next 15 years on voluntary basis. (again, we can trust them)
9. Indian tax payers are not affected with this help. Their advance is fully secured and given to the industrialists they trust most.
for more details, see my blog http: // anilselarka.wordpress. com/

Kalidas, Hong Kong
18-Nov-2008

Helping Indian Industrialists, Mr. Prime Minister

Posted by : Kalidas

It is well known that India’s best breed of industrialists Tata (of TISCO and Tata Motors) and Birla (Hindalco) for over 5 decades are in serious trouble while taking up expansion overseas. Yes, they made serious errors and in normal course, they may not have deserved the help for their follies.

Charity begins at home. India as nation must help these two outstanding businessmen. They may not long for Bharat Ratna, Padma Vibhushan, Padma Bhushan or similar khitabs. They need material help at the time of their acute distress.

If Indian Forex Reserve does not come to the help of India’s best industrialists, what is the use? Should we allow our Forex reserve for the use of Americans who have been simply wasting all resources and using them to create toxic waste.

Indian FOREX Reserve belongs to the Indians and must be used for Indians first and others later.

And I do not suggest that you give them free money. Give them the amount required as under after due scrutiny.

1. Assess their requirements and be wetted by top financial institution.
2. Work out how much amount they need
3. Give them @ 5% in foreign currency non subordinated Convertible Bonds secured by the floating pari pasu charge on their respective enterprise.
3.a Such bonds may carry conversion rights at last 6 months average prices of their respective shares, exercisable only after 5 years.
3,b It may have buy back clause at 8% premium per year for the life of 15 years. This will help these guys to buy back the bonds when they are comfortable without diluting their equity stakes when the things improve.
3.c If the Government wishes, it may sell these bonds in the market with huge profit (because current stock prices are very low), after giving respective companies to buy back the bonds.
4. When the things improve, they can raise the capital from the market to buy back these bonds.
5. Give them loans repayable in 15 years due to depression prevailing all over the world.
6. Ask them to pay special tax @ 3% after initial 5 years so as to relieve the interest burden during early phase of management. National exchequer may also be benefited for help rendered.
7. Ask them to give India at least 5 hospitals and 5 Technical Institutes with full management rights vested with the respective group companies on purely voluntary basis. (we can trust them)
8. Ask them to adopt at least 5 villages to make them into model town in next 15 years on voluntary basis. (again, we can trust them)
9. Indian tax payers are not affected with this help. Their advance is fully secured and given to the industrialists they trust most.
for more details, see my blog http: // anilselarka.wordpress. com/

Kalidas, Hong Kong
18-Nov-2008

Helping Indian Industrialists, Mr. Prime Minister

Posted by : kadiyali

As per the suggested proposal, issuer can buy back bonds any time during 15 years life of the bond at premium of 8% per annum. At the same time, holder has a `right` of conversion at average price of share ruling during last 6 months (before issue of such bonds) after 5 years. If before 5 years the issuer does not buy back, and if after 7 years from the issue date, share price goes to 1000, the issuer will be able to raise equity from the market at 900, to buy back bonds even at 56% premium (8x7). For the holder, conversion will be advantgeous considering the share price of 1000. At this stage, whose right will supersed the other?

Helping Indian Industrialists, Mr. Prime Minister

Posted by : vkk43

If there is a conversion right for the bondholder and a buy back right for the bond issuer, then why it cannot curn concurrently. If I want to continue with the bond, I need not surrender the bonds for buy back offer and hold it till conversion. On the other hand, if I am interested to offer my bonds in buy back scheme, I can still do that. Kindly clarify your views. Thanks.

Helping Indian Industrialists, Mr. Prime Minister

Posted by : kadiyali

Regarding point 3a & 3b, conversion rights for the bondholder, and buy back rights for the bond issuer cannot run concurrently.

Helping Indian Industrialists, Mr. Prime Minister

Posted by : Kalidas

It is well known that India’s best breed of industrialists Tata (of TISCO and Tata Motors) and Birla (Hindalco) for over 5 decades are in serious trouble while taking up expansion overseas. Yes, they made serious errors and in normal course, they may not have deserved the help for their follies.

Charity begins at home. India as nation must help these two outstanding businessmen. They may not long for Bharat Ratna, Padma Vibhushan, Padma Bhushan or similar khitabs. They need material help at the time of their acute distress.

If Indian Forex Reserve does not come to the help of India’s best industrialists, what is the use? Should we allow our Forex reserve for the use of Americans who have been simply wasting all resources and using them to create toxic waste.

Indian FOREX Reserve belongs to the Indians and must be used for Indians first and others later.

And I do not suggest that you give them free money. Give them the amount required as under after due scrutiny.

1. Assess their requirements and be wetted by top financial institution.
2. Work out how much amount they need
3. Give them @ 5% in foreign currency non subordinated Convertible Bonds secured by the floating pari pasu charge on their respective enterprise.
3.a Such bonds may carry conversion rights at last 6 months average prices of their respective shares, exercisable only after 5 years.
3,b It may have buy back clause at 8% premium per year for the life of 15 years. This will help these guys to buy back the bonds when they are comfortable without diluting their equity stakes when the things improve.
3.c If the Government wishes, it may sell these bonds in the market with huge profit (because current stock prices are very low), after giving respective companies to buy back the bonds.
4. When the things improve, they can raise the capital from the market to buy back these bonds.
5. Give them loans repayable in 15 years due to depression prevailing all over the world.
6. Ask them to pay special tax @ 3% after initial 5 years so as to relieve the interest burden during early phase of management. National exchequer may also be benefited for help rendered.
7. Ask them to give India at least 5 hospitals and 5 Technical Institutes with full management rights vested with the respective group companies on purely voluntary basis. (we can trust them)
8. Ask them to adopt at least 5 villages to make them into model town in next 15 years on voluntary basis. (again, we can trust them)
9. Indian tax payers are not affected with this help. Their advance is fully secured and given to the industrialists they trust most.
for more details, see my blog http: // anilselarka.wordpress. com/

Kalidas, Hong Kong
18-Nov-2008

Helping Indian Industrialists, Mr. Prime Minister

Posted by : Kalidas

It is well known that India’s best breed of industrialists Tata (of TISCO and Tata Motors) and Birla (Hindalco) for over 5 decades are in serious trouble while taking up expansion overseas. Yes, they made serious errors and in normal course, they may not have deserved the help for their follies.

Charity begins at home. India as nation must help these two outstanding businessmen. They may not long for Bharat Ratna, Padma Vibhushan, Padma Bhushan or similar khitabs. They need material help at the time of their acute distress.

If Indian Forex Reserve does not come to the help of India’s best industrialists, what is the use? Should we allow our Forex reserve for the use of Americans who have been simply wasting all resources and using them to create toxic waste.

Indian FOREX Reserve belongs to the Indians and must be used for Indians first and others later.

And I do not suggest that you give them free money. Give them the amount required as under after due scrutiny.

1. Assess their requirements and be wetted by top financial institution.
2. Work out how much amount they need
3. Give them @ 5% in foreign currency non subordinated Convertible Bonds secured by the floating pari pasu charge on their respective enterprise.
3.a Such bonds may carry conversion rights at last 6 months average prices of their respective shares, exercisable only after 5 years.
3,b It may have buy back clause at 8% premium per year for the life of 15 years. This will help these guys to buy back the bonds when they are comfortable without diluting their equity stakes when the things improve.
3.c If the Government wishes, it may sell these bonds in the market with huge profit (because current stock prices are very low), after giving respective companies to buy back the bonds.
4. When the things improve, they can raise the capital from the market to buy back these bonds.
5. Give them loans repayable in 15 years due to depression prevailing all over the world.
6. Ask them to pay special tax @ 3% after initial 5 years so as to relieve the interest burden during early phase of management. National exchequer may also be benefited for help rendered.
7. Ask them to give India at least 5 hospitals and 5 Technical Institutes with full management rights vested with the respective group companies on purely voluntary basis. (we can trust them)
8. Ask them to adopt at least 5 villages to make them into model town in next 15 years on voluntary basis. (again, we can trust them)
9. Indian tax payers are not affected with this help. Their advance is fully secured and given to the industrialists they trust most.
for more details, see my blog http: // anilselarka.wordpress. com/

Kalidas, Hong Kong
18-Nov-2008

Helping Indian Industrialists, Mr. Prime Minister

Posted by : sambala

Stocks rally on report Geithner will head Treasury
U.S. equities finish week in the red, but scale back losses after late surge

NEW YORK -- U.S. stocks on Friday surged on a report President-elect Barack Obama would nominate New York Federal Reserve President Timothy Geithner as Treasury secretary. The leap higher in the final hour of trade came on the heels of a two-session freefall and halved the market`s weekly decline.

After a volatile session, equities rocketed higher in the wake of an NBC report that Obama would appoint Geithner to head the Treasury Department. The network also reported Obama had picked New Mexico Gov. Bill Richardson for secretary of the Commerce Department, while the New York Times reported Hillary Clinton has decided to accept the nomination for secretary of state.

Of the trio, Geithner is "the one people in the market wanted to see," said Owen Fitzpatrick, head of the U.S. equity group at Deutsche Bank. The choice is particularly important in light of Treasury Secretary Hank Paulson`s comments earlier in the week "of being done with Tarp," said Fitzpatrick of the Paulson`s decision to let the next administration decide how to spend the remaining roughly $350 billion of $700 billion bailout package.
"The comfort level is there with Geithner," said Fitzpatrick.

Helping Indian Industrialists, Mr. Prime Minister

Posted by : sambala

World`s largest economy may recover in 2010

WASHINGTON: The US economy`s weakness will stretch well into next year, a Federal Reserve official warned Friday.

"We likely are in for a protracted period of poor economic performance,`` said Charles Evans, president of the Federal Reserve Bank of Chicago.

The economy lurched into reverse in the summer as worried consumers slashed spending. Many analysts believe the economy will continue to shrink through the rest of this year and into the next, more than meeting a classic definition of recession.

"The US economy is now clearly in the midst of a substantial downturn,`` Evans said in a speech to economists in Indiana. ``Given the magnitude of the problems that we face, we could see activity remaining quite sluggish through much of 2009.``

A recovery is expected to take hold ``more firmly`` in 2010 and 2011, but ``at this time, it is very difficult to judge how long the downturn might last and how deep it ultimately will be,`` he said.

Jeffrey Lacker, president of the Federal Reserve Bank of Richmond, in separate remarks, sounded a bit more optimistic about the timing of a recovery

``Looking ahead, many analysts expect the U.S. economy to regain positive momentum sometime in 2009,`` Lacker said in a speech in Maryland. ``That strikes me as a reasonable expectation.``

The Fed officials` remarks come just days after the Federal Reserve sharply downgraded projections for economic activity this year and next, which will drive unemployment higher. The nation`s unemployment rate zoomed in October to 6.5 percent, a 14-year high.

A trio of crises housing, credit and financial have badly damaged the economy.

To ease some of the pain, the Federal Reserve on Oct. 29 slashed its key interest rate to 1 percent, a level seen only once before in the last half-century. Many economists predict the Fed will lower rates again at its last meeting of the year on Dec. 15-16.

Besides cutting rates, the Fed has taken a flurry of unprecedented actions to ease the financial crisis and break through a credit clog so that banks will lend money more freely. The government also is rolling out a $700 billion financial bailout package and taking other steps to restore financial stability.

Helping Indian Industrialists, Mr. Prime Minister

Posted by : sambala

Citi shows door to 37 senior execs

MUMBAI: Citigroup is giving sleepless nights to its employees. A day after the US bank said that its worldwide job cuts would have little impact here, Citi India has sacked around 37 officials, mostly senior executives.

Once regarded as the smartest player in retail banking, Citi has handed pink slips to a string of veterans in the retail team. Investment bank, treasury and global transaction business are some of the other divisions where people have been asked to go.

The bank has given a three-month notice and a month’s salary for every completed year of service as compensation to these employees. It’s happening at a time when Citi India chief Sanjay Nayar has quit to join the private equity firm KKR, and Mark Robinson, an expat, is stepping into his shoes.

But these job losses could look insignificant compared to a possible shakeout that could be in store. According to the US media, the bank is looking at options, including selling parts of the company or a merger with another firm, after its stock fell 50% this week.

According to Mr Nayar, who is the CEO for Citi South Asia, the number would still be “minimal for India”. “The number of people who will be laid off for poor performance would be lower than last year’s. We are also hiring around 45 students from IIMs and other institutes this year,” he said.

However, what has rattled Citi India officials is the exit of senior officials, particularly in retail banking. “Many of them are in the rank of vice-presidents and above,” said an official.

It’s learnt that another 25 officials would be asked to leave in the next quarter. Also, Citi Financial, the group’s non-banking finance arm in India, may go for a downsizing exercise in the coming months. The subsidiary has pruned its workforce by 600 so far this year.

Some of the other MNC banks planning to trim their India operations are Morgan Stanley and Barclays. Morgan laid off more than 10 people in India in the past few days and is believed to have shut down its structured finance business here.

“The firm is resizing its cost base and headcount to match current opportunities in the marketplace,” said a Morgan Stanley spokesperson.

Barclays has put on hold roll out of auto loans business. Its personal loan disbursements have dipped from a peak of Rs 400 crore a month to a little over Rs 100 crore.

Barclays GRCB MD (India & Indian Ocean) Samir Bhatia said: “We would like to highlight that Barclays GRCB piloted a small project on auto loans, but has chosen not to explore this segment currently. Also, we have tightened our criteria on our credit card business as per the current market conditions.”

Helping Indian Industrialists, Mr. Prime Minister

Posted by : sambala

Citigroup chief blames rumours for stock slide

Vikram Pandit, Citigroup’s chief executive, today blamed the bank’s plunging share price on "rumour mongering" and reiterated that its capital position is "very strong".

However, he failed to halt the stock’s decline amid the growing expectation of a government bailout that would dilute investors’ ownership.

Helping Indian Industrialists, Mr. Prime Minister

Posted by : sambala

Citigroup Inc

52 Week High: 35.290
(12/11/2007)

52 Week Low: 3.050
(11/21/2008)

Citigroup says commercial real estate bigger issue now for banks

(Reuters) - Commercial real estate is becoming a bigger issue for U.S. banks after the Treasury decided that funds under the Troubled Asset Relief Program will not be used to buy troubled assets, Citigroup said.

Banks experiencing the highest delinquency/nonaccrual loan levels are Fifth Third Bancorp, Huntington Bancshares, National City, and Regions Financial, analyst Keith Horowitz wrote in a note to clients.

"Despite weakening fundamentals, we believe lack of major commercial real estate over supply, as seen in the late `80s and early `90`s will help prevent the current credit cycle from being as severe as then," Horowitz, however, said.

Horowitz also said though lack of commercial mortgage backed securities issuance puts pressures on the banks, he does not see the size of CMBS maturing as unmanageable.

Helping Indian Industrialists, Mr. Prime Minister

Posted by : sambala

Nationalisation helped us weather meltdown: Sonia

Congress president Sonia Gandhi took a potshot at those who had mocked Indira Gandhi’s decision to nationalise banks in 1969. She said that the late prime minister’s prudence and wisdom in doing so has now saved the country`s banking system from the adverse effects of global meltdown.

``If you allow me the liberty of showing what is to you the proverbial ``red flag to the bull’’, Let me take you back to Indira Gandhi’s much reviled bank nationalization of 40 years ago. Every passing day bears out the wisdom of that decision. Public sector financial institutions have given our economy the stability and resilience we are now witnessing in the face of the economic slowdown,’’ she told the Hindustan Times Leadership Summit on Friday.

Speaking on the subject of ``Ambitions for a New Century’’ Sonia underlined this would have to await awhile as the country grapples with the latest crisis to come upon it after zooming oil prices and proliferating food shortages.

``While nationalizing banks, Indira Gandhi had said that the banking system only benefits a select few and not the common man. This went against the concept of a welfare state.’’ recalled veteran Congressman Bishm Narain Singh who later joined her cabinet. He added that her decision stands vindicated today with the UK opting for bank nationalization.

Even as in her speech, Gandhi virtually unveiled her party’s Lok Sabha manifesto with her emphasis on protecting vulnerable sections through ``collaborative partnership’’ of sectors, peoples and institutions, by referring to Indira Gandhi’s vision she also sought to counter the Left`s claim of saving the country’s banking system by blocking the UPA’s banking reforms. Gandhi however did not name the Communists or the BJP. Nor did Prime Minister Manmohan Singh whose denunciation earlier of ``competitive’’ politics, ``divisive’’ agenda and ``extremist’’ ideologies left little doubt who he was alluding to.

Providing the party`s foil to the government’s perspective, Gandhi focussed on best to mitigate the effects of the latest crisis. She ruled out a return to the era of controls but maintained that things also cannot be allowed to spin out of control. Her prognosis: liberalization will continue but it will be tempered by sensible--and not heavy handed regulation---to ensure social justice and protect the vulnerable who are victims of the crisis through no fault of theirs.

``Collaboration is imperative because we are all in this together,’’ she said, referring to the problems of small enterprises and unorganized labour looking for a safety net. She also wanted public systems to be ``more efficient and responsive’’ while focusing on the Congress’s pro-poor commitment reflected in initiatives like the rural employment guarantee and mid day meal schemes.

Gandhi’s ill-health may have allowed her to only make a speech---and not take questions this time--but it did not douse her sense of humour.

``Let us surprise Professor Amartya Sen by giving up our favourite trait of being ` unendingly argumentative’ and for a change, let us be ``effectively collaborative,’’ she said as the audience of prominent personalities cheered.