Bizbits

ZURICH: UBS chairman Mathis Cabiallavetta and three other top officials at Europe’s biggest bank will step down in the wake of big losses it suffered by investing in Hedge fund long-term capital management, UBS said today.

Contrite UBS officials said they hoped the top-level shakeup — which had been the subject of intense speculation in the markets — would revive investors’ confidence in its ability to act prudently and restore thebank’s tarnished image.

Its shares opened more than nine per cent higher as the market hailed the news, but then retreated in volatile trading. UBS shares were down seven Swiss francs at 268 around 0845 GMT. "The conviction that I am doing the right thing for my bank has prompted me to take this step," Cabiallavetta said in a statement issued by the bank.

Vice-chairman Alex Krauer, who took over the top job on an interim basis, praised Cabiallavetta’s decision, which officials said he made on Tuesday as UBS shares were sliding. "Mathis Cabiallavetta’s very responsible stance deserves our respect," he said in a statement.

Cabiallavetta became chairman of UBS when the banking giant arose this year from the merger of Union Bank of Switzerland and arch-rival Swiss Bank Corp. He had been chief executive at Union Bank.

Share buy-back

NEW DELHI: Federation of Indian Chamber of Commerce and Industry (FICCI) today called for allowing corporates to buy back their own shares through an ordinance andremove restrictions on their inter-corporate investment and loans. “It is quite some time that law relating to buy-back of shares was on cards, but so far nothing has been done in this regard,” FICCI said in a statement here.

It said buy-back should be permitted for re-issuance as recommended by the working group on Companies Act 1956. The group had provided for suitable safeguards regarding buy-back for treasury operations by recommending that such shares will not be issued for 24 months after the date of last buy-back and will have no voting and dividend rights till the time they are held by companies.

FICCI observed that several countries allow buy-back as a treasury function where shares bought back are in effect treated as investment. “This has been found useful particularly by companies when their share prices become unduly low and are an attractive buy,” FICCI statement said.

BRPL MoU with IOC, OIL

GUWAHATI: Bongaigaon Refinery and Petrochemical Limited has signed a memorandum ofunderstanding with the Indian Oil Corporation Limited and the Oil India Limited for import of crude by 2001.

The MoU also proposed to set up a joint venture company with a downstream oil major for marketing and distribution of petroleum products, the BRPL chairman and managing director, B K Gogoi, said at the recent annual general meeting of the company. The meeting approved a dividend of 10.20 per cent for the year 1997-98 and achieved a profit of Rs 67.99 crore during the year, he said.

Omega Interactive

MUMBAI: Omega Interactive Technologies Ltd, a turnkey solutions provider in emerging technology areas of electronic commerce and databases has made successful foray into the international software development market.

Leveraging on its strength as a cost effective quality software solutions provider, the company entered into a strategic alliance with Markovska & Jobs Kommunication of Denmark for executing web and e-commerce solutions for the European market, specially Scandinavia. This regionalready has one of the highest internet penetration as a percentage of the population and presents a rapidly growing market for absorption of web technologies. The alliance will serve as a conduit for building Omega Interactives operation in Europe.

Jardine Fleming

MUMBAI: Jardine Fleming has announced the appointment of R Srinivasan as resident director and head of New Delhi office. Srinivasan will be principally responsible for Jardine Fleming’s activities in New Delhi and Northern India, as well as a senior relationship role India wide.

Canbank Factors

MUMBAI: Canbank Factors Ltd has posted a turnover of Rs 468 crore and a profit after tax of Rs 5.50 crore (Rs 5.03 crore) for the year ended March 1998. The present paidup capital of the company is Rs 20 crore and the reserves Rs 11.42 crore. The NPA level of the company is at a very negligible level.

Prince Plastoware

MUMBAI: Prince Plastoware, the leader in plastic houseware market, has diversified and opened up a newstrategic business unit (SUB -II) for moulded furniture. The SUB-I has been doing well in the domestic market and has an export house status, meeting the demands of the western world. The new product, Prince Accord, has been launched recently.

IMCI batch

MUMBAI: The first batch of management consultants will be formally certified in the country by the end of October 1998, enabling them to practice in other countries.

According to Hiru Bijlani, President, the Institute of Management Consultants of India (IMCI), the apex body of management consultant professionals, consultants from India would be able to practice in countries like Europe, South East Asia, USA, Japan and Australia which demand certification.

“The government and industry would do well to circulate information about their needs with regard to consulting services to the members of IMCI. This would enable them to broad-base their choice of consultants and assure them of acceptable service standards,” he said. He said IMCI hasdeveloped a rigorous system for certifying consultants which is a self imposed measure aimed at ensuring that clients get a service in line with world standards.

He said the 8th National Convention of IMCI will be held in Pune on October 27 and 28. Dr P Bavadekar, IMCI executive council member, pleaded that the service tax on management consultants should be abolished as there were no benefits for exporting consultancy.