Tatas face Rio challenge for Oz co

MUMBAI: It appears to be a replay of the bidding war which took place in the winter of 2006, when Tata Steel had to battle a global rival's challenge to protect its interest on a foreign asset.

Four years ago when Tata Steel made a $7.6-billion takeover bid for Corus, it faced a challenge from Brazil's CSN. What followed was a protracted battle to buy out the British steel company, resulting in Tata Steel's victory on a final price of $13 billion.

The story is now being played out at Riversdale Mining, in which Tata Steel is the largest shareholder with a 24% stake. The Australian company has received a tentative $3.5-billion takeover offer from global miner Rio Tinto, which opens up a fresh challenge for the Indian steel giant to guard its turf. The other significant shareholders of the Australian stock exchange-listed Riversdale are CSN with a 16% stake and Passport Capital with a 17% holding.

Though Tata Steel, the world's seventh largest steel company, is keeping its cards close to the chest, sources said that the company doesn't rule out making an open offer for Riversdale Mining, which has assets in Africa.

In a statement, Tata Steel said, "Tata Steel views Riversdale Mining as a valuable strategic investment and continues to be interested in developing the tenements of the company. Tata Steel will continue to monitor the situation and will take appropriate action as deemed necessary."

Following the Rio Tinto development , shares of Tata Steel, part of the $72-billion Tata Group, jumped during trade hours on Monday and finally closed at Rs 635, up Rs 21 on Bombay Stock Exchange.

For Tata Steel, its interest in Riversdale is crucial to secure raw materials for its European steel operations, Corus . Tata Steel has been investing in coal and iron ore projects—key raw materials to make steel—in Africa, Australia and Canada.

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Rupee moves 10 paise up against dollar in early trade

MUMBAI: Carrying forward its gains for the sixth straight session today, Indian Rupee today climbed by 10 paise to Rs 44.84 against the US dollar at the Interbank Foreign Exchange market in the morning trade.

Dealers said sustained dollar selling by exporters and banks coupled with mixed trend in other Asian currencies against the dollar kept the rupee sentiment firm.

The rupee had gained 16 paise to close at Rs 44.94/95 against the US currency in the previous session.

Meanwhile, the Bombay Stock Exchange index Sensex fell by 46.68 points or 0.23% to 19,934.63 in the opening trade on Tuesday.

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Sensex down 46 pts on profit-booking, weak Asian cues

MUMBAI: The Bombay Stock Exchange benchmark Sensex fell by over 46 points in the opening trade today, on profit-booking amid weak trend on the other Asian markets.

The 30-share barometer, which had gained 14.38 points in yesterday's session, moved down by 46.68 points or 0.23 per cent to 19,934.63 points, with a decline in banking, realty and auto sector stocks.

Similarly, the wide-based National Stock Exchange index Nifty declined by 13.40 points or 0.22 per cent to 5,978.85 points.

Brokers said profit-booking in select heavy-weight stocks coupled with weak Asian bourses following overnight losses at the US markets, weighed on the trading sentiment here.

Besides, banking stocks were also subdued following rise in deposit rates, which put pressure on their interest margins.

In other markets in Asia, Hong Kong's Hang Seng index was trading lower by 0.31 per cent, while Japan's Nikkei shed 0.14 per cent in early trade today.

In the US, Dow Jones Industrial Average ended 0.17 per cent low at yesterday's close.


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India wants more say for General Assembly in selection of UNSG

UNITED NATIONS: India on Monday said General Assembly must have a greater say in the process of selection and appointment of the United Nations Secretary General.

"The (General) Assembly must have a greater say in the process of selection of the secretary general," India's permanent representative to the UN Hardeep Singh Puri said in his address to the United Nations General Assembly on the revitalisation of its work.

"The continued circumscribing of the Assembly's role and responsibilities in the process of selection and appointment of the secretary general needs to change in the interests of the United Nations system in general and the Assembly's prerogatives in particular," he said.

Observing that the issue of its revitalisation has assumed particular significance in recent years, Puri said India firmly believes this can only be achieved when position of General Assembly as the chief deliberative, policy-making and representative organ of the United Nations is respected both in letter and in spirit.

"The General Assembly should take the lead in setting the global agenda and restoring the centrality of the United Nations in formulating multilateral approaches to resolving transnational issues," Puri said.

He said that it is critical to establish a proper relationship of respect for respective mandates between the General Assembly and the Security Council in the spirit of the UN Charter.

Notably, India is set to join the UN Security Council as its non-permanent member after a gap of 19 years.

It is important that UN Security Council does not encroach upon the mandate of the General Assembly through extremely wide and permissive interpretations of what constitutes a threat to international peace and security, breaches of the peace and acts of aggression, he said.

"As we prepare to join the Security Council, after a gap of 19 years, it is clear that the Council's agenda is, to say the least, overburdened because it has anointed itself with the responsibility of dealing with issues, though seemingly important, which leave it with less time to deal with the real hotspots that constitute the real threats to international peace and security," Puri said.

As it was the General Assembly which limited its own role, it will have to be the General Assembly that claws back its rightful place in the process of selecting the Secretary-General, he said.


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Support for India’s UNSC bid

NEW DELHI: What took years for the United States comes easily to France. Offering again a full-throated endorsement of India’s desire to be a permanent member of the United Nations Security Council (UNSC), French President Nicolas Sarkozy said it would be good not just for India, but for ‘equilibrium’ in the world.

In November, during an address to Indian Parliament, US President Barack Obama had backed India’s bid for the permanent UNSC seat. “India is about to join the ranks of the non-permanent members of the Security Council for the next two years. Are we going to ask India to stand down after that?” he asked.

An Indo-French joint statement recorded the sentiment and also noted that France had just begun the presidency of the G-20.

The statement said France favoured full membership of India on export control regimes such as the Nuclear Suppliers Group, Missile Technology Control Regime and Australia Group.

Sarkozy said France would support India in becoming the member of ‘any nuclear fora it wishes to be (in).’ He also offered France’s unlimited cooperation in combating terror.

“After the 26/11 attacks, France stood shoulder-to-shoulder with Indian democracy,” he said.

The French President appreciated Delhi’s restraint during the 26/11, and said France shared India’s view that ‘Pakistan must develop and live in peace with its Indian neighbours.’ “Pakistan should fight terrorism with determination,” he said.

France and India also expressed concern at the ‘continuing existence of safe havens and sanctuaries for terrorist groups beyond Afghanistan’s borders.’ On the Iran nuclear issue, the two countries expressed commitment to diplomacy to resolve the issue.