SATURDAY, 19 FEBRUARY 2011 24 PAGES IN 2 SECTIONS MUMBAI (CITY) `6.00 Volume XV Number 163 Published simultaneously from Ahmedabad, Bangalore, Bhubaneswar, Chandigarh, Chennai, Hyderabad, Kochi, Kolkata, Lucknow, Mumbai, New Delhi and Pune. SENSEX 18211.52 Ô 295.30 www.business-standard.com NIFTY 5458.95 Ô 87.50 Business StandardWEEKEND NIFTY 5453.65 Ô 5.30 FUTURES* DOLLAR `45.21 `45.35# Page 16 WEEKEND I: Separate Section EURO `61.32 `61.48# YEN `54.18 `54.25# IPL SCORES OVER WORLD CUP HAS ANALJIT SINGH, THE (100 Yen) GOLD `20430 Ò `60 IN AD SPEND, AS PREVIOUS PERENNIAL START-UP MAN, (10 gm) # Prev day’s close RESULTS HAUNT SPONSORS FOUND HIS GROOVE? * (February) Discount on Nifty Spot [IN BRIEF] SCAM-SPOOKED MARKETS AWAIT NEXT TWIST IN PROBE APRIL 1 MAY SEE Essar Energy set to acquire SOME MFI NORMS RBI may implement some CBI RAIDS OFFICES recommendations made by Shell refinery for $350 mn the Malegam Committee on regulating the microfinance S KALYANA RAMANATHAN sector from April 1. +9 OF KALAIGNAR TV London, 18 February Indo-Malaysia pact BS REPORTERS sation erode amid fears that fur- ssar Energy today announced that India and Malaysia signed a Delhi/Mumbai/Chennai, 18 February ther arrests could follow. “The M-CAP LOSSES it has entered into an exclusive agree- Comprehensive Economic scam and its repercussions have Since A Raja’s arrest, BSE E ment with Shell UK for the proposed Cooperation Agreement, to rissons went through instilled a sense of apprehension (Feb 2-18) ` crore purchase of an oil refinery and other as- boost bilateral trade to $15 Delhi, Mumbai and in the market and rumour mon- sociated assets at Stanlow, near Ellesmere billion by 2015. +5 Chennai as the gov- gers are having a field day,” said R-ADAG Port in Cheshire, for $350 million in cash. ernment got cracking Nirmal Jain, chairman & man- The deal brings Essar Energy and Shell Fiscal discipline on the 2G spectrum al- aging director of Mumbai-based to the penultimate stage of two-year ne- FM Pranab Mukherjee said Flocation scam. IIFL (India Infoline). gotiations that also saw a brief hiatus last the government will return The Central Bureau of Inves- Shares of Reliance Anil Dhirub- year, only to be revived after Essar Ener- to fiscal discipline in the tigation (CBI) raided the Chennai hai Ambani Group companies fell gy completed its $1.3-billion IPO and subseq- coming Budget. +5 offices of Kalaignar TV, report- between 5-8 per cent on the Bom- uent listing on the London Stock Exchange. edly owned by family members of bay Stock Exchange (BSE) on Fri- The deal will be the third largest by Multi-brand retail Tamil Nadu Chief Minister and day. Reliance Communications lost an Indian group in the UK, following Tata’s Commerce Minister Anand United Progressive Alliance ally 6.80 per cent at `93.15, while Re- -12,464.54 acquisition of Corus ($8.1 billion in 2006) Sharma said talks to open M Karunanidhi, late Thursday night liance Infrastructure declined 5.60 and Jaguar Land Rover ($2.3 billion in 2008). up multi-brand retail to and early Friday morning. per cent. The CBI had questioned Successful conclusion of the deal, even Royal Dutch Shell’s Stanlow oil refinery in Ellesmere, UK. PHOTO: BLOOMBERG foreign investors were at an The chatter in Delhi suggest- R-ADAG Chairman Anil Ambani SUN TV NETWORK at the current capacity utilisation of around advanced stage. +5 ed irreversible damage had been on Wednesday in connection with 75 per cent, should give Essar an addition- done to the alliance between the the 2G scam. -3,316.18 al $7-8 billion in revenues at current crude Deal size could touch $1.3 billion Marico acquisition Congress and the Dravida Munnetra Major Essar group companies prices, said Essar Group CEO Prashant Ruia, Marico has acquired 85 per Kazhagam. But it was clear that nei- – Essar Shipping and Essar Oil – in a telephone interview from Mumbai. here was some confusion about the actual size of the proposed Essar En- cent stake in Vietnamese ther political party was ready to end lost more than 5 per cent each ESSAR GROUP He said the company would continue to ergy-Shell deal for the Stanlow refinery in the UK. While Essar said it firm International the partnership just yet, although on Friday to close at `83.05 and keep its strategies open for further acqui- Twas paying $350 million, the Shell website stated, “Shell today confirmed Consumer Products for an the chill in ties was palpable. `106.45, respectively. The CBI had sitions in the oil sector, provided there is it has received an offer from Essar Energy to buy its 272,000 barrel-per-day Stan- undisclosed sum. +3 Simultaneously, industrialist questioned Essar Group CEO -3,028.55 a clear fit in its scheme of operations. low refinery and associated local marketing businesses in the UK for a total and DB Realty promoter Shahid Prashant Ruia on Thursday. Essar According to the new deal, Shell has expected consideration of some $1.3 billion.” Simplified IPO forms Usman Balwa was sent to judicial is alleged to have held a stake in granted Essar Energy exclusivity to the ac- Frantic calls between Mumbai and London helped clarify that the deal size If Sebi’s thrust on primary custody in the Delhi’s Tihar jail. Loop Telecom in violation of cross- UNITECH quisition until April 1, 2011. Essar Ener- is in fact only $350 million, which is the price Essar will be paying for the re- market reform continues, This, along with the anticipation holding norms. DB Realty fell 5.94 gy has the option until March 31, 2011 to finery assets. The balance, which Shell at this stage believes to be $900 million, one could see a common that several top industrialists would per cent to `129.10. Unitech, whose -2,891.01 enter into an asset purchase agreement. is for the inventory lying on site, including crude, work in progress and fin- form for Asba and non- be called for questioning by the Managing Director, Sanjay Chan- If by that date Essar Energy decides not ished products. “You don’t expect us to buy a working refinery drained of its Asba applicants. +9 CBI, saw the markets turn jittery. dra, was questioned by the CBI on to proceed with the acquisition, it will inventory, do you,” asked a senior Essar executive in Mumbai. Some of the companies asso- Tuesday, lost 6.94 per cent at `34.20. ANANT RAJ INDS pay Shell a break fee of $50 million. Sim- A Shell spokesperson here later confirmed that the $1.3 billion it is claiming Cairn on deadline ciated with the 2G spectrum scam Turn to Page 16 ilarly, Shell has agreed to pay Essar En- to be the deal size includes the inventory along with the refinery assets that Es- Cairn Energy, which propo- have seen their market capitali- Related report on Page 7 -724.47 ergy a break fee of $10 million if it choos- sar plans to buy. “Beyond this, I cannot say anything,” said the spokesperson. ses to sell 60% stake in Cairn es not to go ahead with the sale. India, will not seek an exten- In a statement issued here, Essar said sion of the April 15 deadline R-Infra writes to Intelligence Bureau DB REALTY that the acquisition of the Stanlow re- improvements to optimise the facility and Ruhr Oel refinery in Germany sold to Ros- to conclude the deal. +3 -578.96 finery, which is the second-largest in enhance production.” neft in 2010 for $3,376 a barrel and To- eliance Infrastructure has written to the Intelligence Bureau the UK, will give it direct access to the UK Essar Energy said it is acquiring the tal’s Vlissingen refinery in the Netherlands Hassan Ali Ralleging that a bear cartel has been hammering the stock market. Naresh Nayyar, Essar Energy's Stanlow refinery at a competitive price, sold to Lukoil in 2009 for $8,439 a barrel. Stud farm owner Hassan Ali prices of infrastructure companies, including those owned by TOTAL LOSS chief executive, said, “Stanlow fits very compared with other recent similar trans- With the completion of the acquisition, Khan appeared before I-T of- Anil Ambani. The letter named market operator Sharad Shah well with our strategy of providing op- actions. The price of $350 million for the Essar will also take on board 960 workers ficials for alleged tax evasion, (aka Sharad Bobada) as primarily responsible for these activi- -23,003.71 tions for the export of high-quality prod- 296,000-barrels-a-day plant translates to at Shell’s Stanlow refinery. In the first six the penalty on which could ties. The letter, signed by R-Infra Company Secretary Ramesh M-Cap losses of ucts from our Vadinar refinery in India. $1,182 a barrel of daily throughput, com- months of 2010, the facility reported earn- run to `40,000 crore. +7 Shenoy and addressed to IB Director Nehchal Sandhu alleged After completion, we look forward to work- pared with BP’s Coryton refinery sold in ings before interest, tax, depreciation and six groups % the bear cartel had led to a market capitalisation loss of more vis-a-vis BSE loss 43 ing closely with the refinery management 2007 to Petroplus for $8,140 a barrel, To- amortisation (Ebitda) of $62.7 million and a China reserve ratio than `3 lakh crore. +2 and employees to develop the business tal’s Milford Haven refinery sold to Mur- gross refining margin of $4.90 a barrel.