Beating takeover threats

P.R.S. Oberoi is looking at consolidating his hold on East India Hotels EIH by buying out UTI8217;s 3.66 per cent stake in the hotel majo...

P.R.S. Oberoi is looking at consolidating his hold on East India Hotels EIH by buying out UTI8217;s 3.66 per cent stake in the hotel major. The deal valued at Rs 80 crore, observers think, tries to pre-empt any possible hostile takeover bid.

The tycoon, however, refuses to agree and maintains that he is only cashing in an opportunity that came his way because of UTI8217;s decision to offload its stake. Post the acquisition, Oberoi now has 46.27 per cent stake in the hospitality major and appears eager to raise his stake beyond the magic 50 per cent mark.

The tycoon8217;s mega expansion plans also seem to be quite in line with the emerging opportunities coming through in different cities. Over and above the 437-room Rs 650 crore Bandra Kurla Project, the tycoon is also looking at a new Super Deluxe hotel in Bangalore. With all this in the pipeline, does ITC have to do a rethink on their portfolio managers buying Oberoi shares?

Media wars

After Anil Ambani, it8217;s the turn of Ratan Tata to be hit by the convergence bug. Ratan wants to extend his telecom arm into the media and entertainment arena too. So, Videsh Sanchar Nigam Ltd. VSNL has worked out a strategic tie-up with the Paris-based Thomson group to explore new opportunities in managing and delivering content for third parties including broadcasters and content providers. Through the JV, the tycoon can also offer high quality and skilled services to VSNL8217;s Indian media and entertainment customers from optimised satellite transmission to content management and even distribution solutions for digital cinema. It8217;s difficult to say as to how much of a trigger Ambani8217;s decision to acquire Manmohan Shetty8217;s Adlabs Films has been for Tata8217;s move into the convergence space, but its obvious that smart men think alike.

Observers feel Tata8217;s recent move is going to heat up the scene for Ambani, for the former, backed by foreign technology, will surely be quite a competitor in the same space.

Food for thought

The grapevine insists and the family denies that the Rs 100 crore Delhi-based food chain Nirulas is really and truly up for sale. The owners of the 70-year-old chain have apparently appointed a merchant banker to look at a valuation 8212; something that usually precedes a sale.

The sudden development apparently has nothing to do with the business as such. The fact that most of the Generation Next Nirulas happen to be females who are not enthusiastic about the business appear to be at the heart of it all. With the only male member of the new generation Samir Kuckreja having already left to pursue other interests in the food space, only makes the rumours grow.

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The list of prospective buyers apparently includes both Indian and foreign players. While Jollibee Foods, a Philippines-based company, which gives MacDonalds a run for its money in Philippines, is showing keen interest in picking up majority stake in the company, the Delhi-based tycoon Ravi Jaipuria considers himself as a front-runner for the same. Jaipuria happens to be a franchisee glutton with Pizza Hut, Cream Bell and Costa Coffee already under his belt.

But the Pizza Hut connections might prove to be a hurdle for him, since they may insist on a non-compete clause, before it allows Jaipuria, to even contemplate taking control over Nirulas.

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