THE TIMES OF INDIA, BANGALORE

18 TIMES BUSINESS TUESDAY, AUGUST 17, 2010

TI COMPLETES 25 YEARS IN BANGALORE

Big deal doesn’t mean EXECUTIVE DIGEST

July inflation down to

big bucks for investors
Madhu T | TNN
single digit at 9.97%
New Delhi: Inflation for July slid back in
single-digit to 9.97% after a gap of five
months, on account of moderating food and
non-food prices, raising hopes that it would
Mumbai: If Dalal Street pundits decline further in the coming months. The
are to be believed, shareholders of inflation based on wholesale prices had
Sesa Goa and Cairn India have very entered double digits in February and
little to cheer about the Vedanta declined 0.58% last month, from 10.55% in
deal. Only a handful believe that the June, as the prices of potatoes, onions and
Satellite dishes London-listed company’s plan to ac- cement moderated. AGENCIES
(above) being quire around 51-60% stake in Cairn
unloaded at Texas India could be beneficial for the
shareholders in these two compa- Aspen Pharmacare Holdings agreed to buy
Instruments’ first the drugs unit of Melbourne-based Sigma
nies. Sesa Goa will hold 20% in
office on Miller’s Pharmaceuticals for A$900 million ($806
Cairn India in the long term. But
Road in 1985 the Street always takes the talk of million) in cash to gain assets from a
long term with a pinch of salt as was company thats lost about half its value in the
amply reflected in the share prices past year.
of Sesa Goa and Cairn India on Mon- Dell Inc, the world's third-largest personal-
day — they were down 8.9% and computer maker, agreed to buy 3Par Inc for
6.4% respectively. about $1.15 billion, gaining equipment and
“I don’t see any immediate ben- software to bolster its growing corporate
efit to these two stocks. The imme- NO IMMEDIATE BENEFIT data-centre business.
diate impact is negative for Sesa Goa Hewlett-Packard's Mark Hurd surprised the
as it is spending money on some- apparent that the offer price would fers a contrarian view. “This is a good board by settling a sexual-harassment claim
thing unrelated to its core business. be around Rs 355. deal. The price seems attractive and before directors could learn more about the
Cairn India may benefit from the “We think even at the current lev- we believe the Vedanta management incident, a final breach of trust that
quality of management, but that el, the Cairn India stock is expen- would be much more efficient than contributed to his ouster as CEO, two people
would take a while to reflect in the sive. Once the buyback offer ends, the earlier one. Cairn Energy was familiar with the decision said.
numbers,’’ says an analyst with a there could be selling pressure and more into investing and monetising
broking firm who refused to be we think the stock can even touch later, but the strategy of Vedanta Facebook Inc and rival operators of social-
named. “The shareholders of Cairn Rs 300. We think investors should Group is different. They are getting networking websites will see advertising
India are getting a price which is sell the stock,’’ says Ambarish Bali- into oil and gas now and later they sales rise 29% next year as marketers
lower than expected and if they ga, vice-president, Karvy Stock are likely to enter the gold space. become increasingly drawn to their
Employees of Texas Instruments India celebrating the company’s 25th anniversary in Bangalore choose to stay, they would see the Broking. “We are asking people to They want to be a major player in the audiences, according to an estimate from
last week. Murasoli Maran had once said if the M G Ramachandran regime in 1985 had been prices going down further,’’ he adds. sell both shares since we don’t see natural resources space. I think their EMarketer Inc.
more accommodating towards Texas Instruments, then Chennai, and not Bangalore, would have Investors were hoping that their any positive impact from the deal,’’ efforts would be felt immediately in Arun Thiagarajan has been appointed part-
emerged the Silicon Valley of India. May be it was Bangalore’s luck, maybe technology was shares would be bought at around says another broker, who doesn’t the bottomline of companies,’’ he time chairman of ING Vysya Bank for three
already in Bangalore’s DNA, but the US semiconductor company chose Bangalore and brought Rs 400, close to Rs 405 Vedanta is pay- want to be named. adds. As for the Cairn India scrip hit- years. Thiagarajan, who was with ABB,
global attention to the city’s technology capabilities. The rest, as they say, is history. The ing the promoters, but they were However, Deven Choksey, MD, KR ting Rs 300, he says it’s a very good Wipro and Hewlett-Packard, succeeds K R
company is planning an year-long celebration of its Silver Jubilee sorely disappointed when it became Choksey Shares and Securities, of- price for long-term investors. Ramamoorthy.