The Economic Times News from 18-22 October reported on several major business deals and developments: 1) Private equity firms Carlyle, KKR, and Warburg Pincus are likely to acquire a 15-18% stake in Hero Honda Motors through a transaction completed in two phases. 2) IndianOil is planning to raise about 19,000 crore rupees through an IPO in January, which would be the largest equity offering in India. 3) The Future Group and Everonn Education have formed a joint venture to provide retail industry training programs to 3,000 students initially and 25,000 students next year.

1. THE ECONOMIC TIMES NEWS
18TH OCT- 22ND OCT

2. PE STARS MAY TEAM UP TO BUY 18% IN
HERO HONDA
 Carlyle, Kohlberg Kravis & Roberts (KKR) and Warburg
Pincus—are likely to acquire an effective stake of 15-18% in Hero
Honda Motors
 The transaction is expected to be completed in two phases, with
 Hero buying out Honda’s stake through the SPV in the first leg with bridge
loans taken from banks.
 the private equity firms will buy shares of the SPV, and the funds raised
from this purchase will be used to repay the bridge loans.

3. INDIANOIL MAY HIT STREET IN JAN WITH
19,000-CRORE OFFER
 Big-bang IndianOil & SAIL offerings to set Dalal Street on fire in
the New Year as Coal India & SBI promise to light up debt &
equity markets this Diwali
 Likely to raise about 19,000 crore, making it the largest-ever
equity offer in the country

4. FUTURE GROUP TIES UP WITH EVERONN
TO WOO YOUNGSTERS TO RETAIL TRADE
 KISHORE Biyani's Future Group and Chennaibased education company
Everonn Education have joined hands to provide training in organised retail.
The 50-50 joint venture between Future Human Development (FHDL)
 This partnership will help create frontline workforce for the retail industry
where there's a growing requirement of skilled people
 RETAIL MANTRA
 Training programmes will focus on year-long courses on visual merchandising, supply
chain management & other short courses on warehousing, housekeeping, home furnishing and
beauty & wellness
 While the Future Group will offer its domain knowledge in retail and will offer the course
methodology, Everonn Education will manage the content and provide reach through its VSAT
connectivity across all the centres
 JV will start with 3,000 students and plan to train about 25,000 next year.

5. HYUNDAI LAUNCHES THE SANTA FE!
 After selling over 2 million globally, Hyundai has finally brought
in its third SUV offering to India, priced between Rs 20.95 and
22.95 lakh ex-showroom
 The new biggie is expected to go up against other urban
softroaders like the Honda CR-V, the Toyota Fortuner and the
Chevrolet Captiva.
 It's the widest SUV in its class which means seating three full size
adults will hardly be a chore in the Santa Fe

6. INDIA SLOW IN LAP OF LUXURY:BAIN
 The luxury shopper of this decade is more likely to be Chinese, more
likely to be male, and more likely to be young. Brands that meet the
needs of these new segments will be in the best position to keep growing
in a new decade
 CLASS APART
LUXURY GOOD MARKET
 BRAZIL
€ 1.5 billion Key city: Sao Paolo 2008-09: +20% ‘09-10 Estimated: +15-20%
 RUSSIA
€ 4.5 billion Key city: Moscow 2008-09: -5% ‘09-10 Estimated: +5-10%
 INDIA
€ 0.8 billion Key city: Mumbai 2008-09: 0% ‘09-10 Estimated: +4-5%
 CHINA
€ 7.1billion Key city: Beijing 2008-09: 20% ‘09-10 Estimated: +30%

7. VODA TO SPEND $500 M ON 3G
EQUIPMENT
 The company will fund it through bank loans and by issuing some
new shares to its existing shareholders
 In May, Vodafone Essar — India’s third-largest telecom operator
by subscribers — paid 11,618 crore for spectrum, or radio
frequency, in nine services areas
 The end objective of these tie-ups will be to allow customers to
seamlessly experience 3G across the country
 In India, data users make up less than 10% of the company’s
existing consumer base and are expected to increase as 3G usage
will be an upgrade from voice calls and not in its place. Only 2%
of Vodafone’s global 3G consumer base uses video calling, a trend
that may find only lower numbers in India.

8. GM INDIA TO COME OUT WITH ELECTRIC
CAR NEXT YEAR
 In a joint collaboration with China's SAC (Shanghai Auto Car),
GM will bring three "value-package
 It would soon be commissioning the power train facility in
Talegaon, making the first flexi-engine plant for GM globally
wherein both petrol and diesel engines are going to be
manufactured together
 The company inaugurated a LNG facility at its factory premises
at Halol for supplying gas to its car manufacturing plant, and
has also ramped up production at its Halol and Talegaon plants.
 Vice-President (Sales-marketing-aftersales) Sumit Sawhney
said GM has invested over USD 1 billion (Rs 4,500 crore) in
India till date, and is deeply committed to this market.

9. I-T DEPT RAISES 11,000CR TAX DEMAND
ON VODAFONE
 Supreme Court to take final call on dispute; ruling to influence
pricing & structure of all future cross-border deals
 TAXING TANGLES $11b Size of Vodafone-Hutch deal in 2007 30
Days Vodafone has to comply
 Breathing Space : The SC, which will resume hearing the case on October
25, will decide whether Vodafone will have to pay the tax or not.
 Key Case :The pricing and structure of all future cross-border M&A deals
will depend on the outcome of the tax dispute.
 Tax Claims :The tax department says since the business sold, Hutch Essar,
was based in India, it has the jurisdiction on the M&A deal. Also, since
Vodafone had failed to deduct the tax while paying Hutchison, the tax
liability falls on it. It also claims that Vodafone was informed in advance
about the possible tax liability.
 Voda's Views :The telecom major feels since it was the acquirer it has made
no gain on the transaction. Also, the transaction had happened offshore
between two nonresidents. ‘Vodafone informed in advance’