Tata, Donnelley likely to split

MUMBAI, AUG 20: The United States-based R R Donnelley and Tata Donnelley Ltd are in discussion' for a possible split after the American ...

MUMBAI, AUG 20: The United States-based R R Donnelley and Tata Donnelley Ltd are in discussion8217; for a possible split after the American publishing company8217;s new policy of focusing on its domestic market and a few other high-volume, high growth and profitable markets, Tata Donnelley chairman X S Desai said here yesterday.

8220;The two principal shareholders 8211; Tata group and R R Donnelley each having 25 per cent equity stake 8211; are in discussion with each other on the future of R R Donnelley in the company,8221; he said.

The discussions are expected to be concluded soon in an amicable manner and in the best interests of the three parties involved, including Tata Donnelley itself, Desai told shareholders at the annual general meeting. R R Donnelley had obtained 25 per cent shareholding in September 1995 in the then Tata Press Ltd and subsequently a change in the name of the company was effected.

Desai said there has been a significant contraction in R R Donnelley8217;s active involvement in operational matters overthe past year or so, attributable to its newly formulated policy. A formal announcement on the decisions arrived at will be made at an appropriate time8217;, he said.

In 1998-99, Tata Donnelley reported a 12 per cent growth in sales to Rs. 79.80 crore and a 14 per cent rise in profit to Rs 10.46 crore. In the first quarter of 1999-2000, sales were up by 18 per cent to Rs 17.63 per cent and profit before tax by 18 per cent to Rs 1.72 crore compared to corresponding quarter of last year.

Meanwhile, sources say IBM and the Tatas have yet again decided to tie the knot with a focus on software business. The two erstwhile partners have decided to forge an alliance to market integrated voice recognition systems IVRS developed by the information technology division of Tata group auto major Telco, which has been hived off into a separate company, Speech amp; Software Technologies India.

The division, along with subsidiary Tata Technologies, used to provide Telco with its IT requirements and is being hived off aspart of the auto company8217;s strategy to strengthen its core competence.

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Tata Finance to sell equityMUMBAI, AUGUST 20: Tata Finance Ltd is negotiating with foreign firms and mutual funds to sell a part of its equity through a private placement, said managing director Dilip Pendse on Friday.

quot;We are talking to international companies, investment banks and FIIs foreign institutional investors,quot; Pendse said. quot;We expect to close the deal in 60-90 days.quot; He said the company had shareholders8217; approval to issue equity up to 20 per cent of its paid-up capital.

American International Group Inc and the Indian unit of Merrill Lynch amp; Co were holding talks with Tata Finance for acquiring an equity stake. quot;I can8217;t either confirm or deny the names,quot; Pendse said, adding that the company was talking to many firms.