July 29, 1994

15% stake for Tatas in Tisco

Shareholders of Tata Iron and Steel Company (Tisco) on Thursday unanimously approved a special resolution to raise the stake of Tata companies in Tisco from eight to 15 per cent by an issue of .warrants... Mr. Ratan Tata, Chairman of Tisco, said such an allotment, would be a “positive move” as it would inject Rs. 700 crores to the company from Tata companies. The share price at Rs. 242 works out to a 15 per cent discount to the market price. The Tata companies have agreed to make an upfront payment of five per cent (Rs. 35 crores) in a month’s time of allotment with a lock in period of 10 years.

World Bank holds back $750-111 power loans

The World Bank has decided to withhold $750 millions worth of power loans to India saying that it cannot lend into such mismanaged State electricity sectors. This was announced by Mr. Heinz Vergin, World Bank Director In-Charge for India. One of the losers of loan is power-starved Karnataka whose Chief Minister, Mr. Veerappa Moily, recently met bank officials but failed to convince them that it was safe to lend the $250 millions to $300 millions it had asked for.

Swraj Paul takes over Pittsburgh Steel

The London-based Indian industrialist, Mr. Swraj Paul, announced on Thursday that he was acquiring a major American steel plant, with an annual turnover of $400 millions. Mr. Paul, who has taken over several companies in the West since settling down in Britain in 1967, said that the letter of agreement for his acquiring the plant, located at Pittsburgh, was signed at St Louis. The Pittsburgh plant is his single largest takeover yet. The industrialist declined to disclose how much the takeover had cost him

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