The buzz over a possible overseas acquisition by India’s largest private sector banking major ICICI Bank is growing, with senior bank officials stating that the bank is being presented with several opportunities across the globe. The move comes at a time when most of the bigger global players have been hit by massive write-downs and losses of over $400 billion, which have led to sharp erosion of market cap of most players. Bankers feel that the situation is likely to continue in the near future too. Indian banks like ICICI Bank and State Bank of India have till date done only small acquisitions compared with large-scale acquisitions by Indian corporates, especially the Tata Group. Speaking to ET, ICICI Bank joint MD Chanda Kochhar said, “At this point of time, there are opportunities coming our way. We are not actively going out to look at these opportunities. However, at this point, there is nothing specific that we are looking at. To most of the opportunities, we are saying ‘no’.” She added, “We are getting these opportunities from everywhere.” ICICI Bank currently has operations in 18 countries across the globe. The bank has a total asset of Rs 3,99,795 crore as on March 31, 2008 while its profit after tax was Rs 4,158 crore. “We are only looking at something which fits with our plans. It has to be something with a large-deposit base.   more »

Budget airline SpiceJet seems to have made some headway in its talks with the American turnaround investor Wilbur L Ross for infusion of capital in the form of equity. A source close to the development said the budget airline is considering issuing fresh equity in the name of the billionaire’s company —- WL Ross & Co. The source said that the airline board will meet on Wednesday to clear the proposal. “They (SpiceJet) are looking at issuing preferential shares to Ross & Co. The board will be meeting on Wednesday (to clear the proposal),” said the source. The price of the preferential share will be worked out on the basis of the Securities and Exchange Board of India (Sebi) formula —- 26 weeks average share price or the average share price over the last 14 days, whichever is higher, the source said.   more »

The latest industry buzz is that a deal between Anil Ambani’s Reliance Communications (RCom) and South Africa’s MTN may be announced on Sunday, July 6, which is the death anniversary of Dhirubhai Ambani. The speculation has gained currency because, in 2006, Anil Ambani had announced his interest in acquiring a controlling stake in Hutch Essar on the birth anniversary of his father. The 45-day exclusivity period for talks between RCom and MTN ends on July 8, and therefore, an announcement (either yes or no) could be announced anytime by then, sources pointed out. An extension of the exclusivity period, by as much as 30 days, cannot be ruled out either. Following the feud between the Ambani brothers, the deal structure is believed to have been changed between MTN and RCom, as first reported in this newspaper on June 27. Instead of a proposed merger between the two, RCom is now looking at acquiring below 35% stake in MTN, sources said. RCom may tie up with investors, including sovereign wealth funds, to buy a stake in MTN.   more »