Bizbits

The deal, which is expected to close by the fourth quarter of 1999, will be accounted for as a pooling of interests. The banks expect the merger to boost earnings per share at Firstar by 8.5 per cent this year and10.7 percent in 2000. The banks also said they expect pre-tax merger-related and restructuring charges of 428 million through the end of 2000.

Rs 15,000 cr needed to purify deisel
New Delhi: Reducing sulphur content in diesel, the chief cause of carcinogenic suspended particulate matter SPM in vehicular exhaust, from the existing 0.25 per cent to 0.05 per cent would cost the government a whopping Rs 15,000 crore, the government has informed the Supreme Court.

Additional solicitor general Kirit N Raval appearing for the central government said 0.25 per cent sulphur content diesel was being supplied to Delhi, three other metros and Taj Trapezium area while for the rest of the country, diesel with 0.5 per cent sulphur content was supplied. Before the court passed the order banning registration of vehicles without Euro-II emission norms in the national capital region from April 1, 2000, Raval pointed out that the government had spent Rs 6000 crore on modification of refineries to bring downsuplur content from 1 per cent to 0.5 and 0.25 per cent.

OVL looking for strategic partners
New Delhi: ONGC Videsh Ltd OVL, an overseas arm of state-owned Oil and Natural Gas Corporation ONGC, is scouting for strategic Indian partners to make it financially and technically competitive in international market. quot;We have to strengthen OVL to compete with international oil majors. For this ONGC is planning to sell some of OVL8217;s equity in the market or have strategic Indian partners including financial institutions,quot; ONGC chairman BC Bora told reporters here today.

ONGC, already a strategic alliance partner with another state-owned Indian Oil Corporation IOC, would also explore possibility of roping in the marketing giant as a partner to OVL. quot;We are exploring various options for restructuring OVL to make it globally competitive and a decision on it would be taken in the next six months,quot; Bora said. The ONGC board has recently approved to raise OVL8217;s authorised capital to Rs 500 crore. Atpresent, the company has a paid-up capital of Rs 100 crore only which has to be enhanced, he said.

KEC profit up 22 pc
Mumbai: KEC International Ltd has recorded a net profit of Rs 29.11 crore for the year ended 1998-99, registering a growth of 22 per cent over the previous year8217;s profit of Rs 23.85 crore. The RPG group company reported an increase in turnover by 45 per cent to Rs 1009.8 crore, while the total expenditure amounted to Rs 921.40 crore as against Rs 649.03 crore last year.

Exports of 200 million accounted for 75 per cent of sales during the year under review, the company said. KEC posted a gross profit after interest and before depreciation and taxation of Rs 46.85 crore, up by 26 per cent. Profit before taxes showed a rise of 21 per cent over the previous year at Rs 32.11 crore. As on March 31, 1999, the company had an order book position of Rs 1800 crore, out of which Rs 1600 crore were orders in US dollars.

Deepak Nitrite
PUNE: Deepak Nitrite has announced aspecial dividend of 20 per cent for the year ended March 1999 taking the total dividend to Rs 4.50 per share. Last year, the company had paid dividend of 18 per cent, while in 1996-97, the company had skipped it. This was the result of a 92 per cent spurt in earnings. A spurt in exports had pushed up the net profit from Rs 5.83 crore to Rs 11.22 crore.

All the company plants located in Baroda, Pune and Taloja are working at the rated capacity. Sales were, however, modestly higher at Rs 159.85 crore, compared with Rs 153.69 crore the previous year.