Cabinet likely to decide on FDI in pharma, housing today

 
New Delhi: With serious concerns being raised from various departments regarding the acquisition of Indian drug firms by global multinational entities, the government is likely to consider reducing the foreign direct investment cap in the pharma sector.

According to reports, the Cabinet is likely to take up the decision Monday to reduce the FDI cap in critical areas of the pharma sector to 49 percent.

Led by DIPP, several departments have raised concern about the continuous acquisition of Indian drug firms by foreign firms.

The Cabinet is also expected to relax FDI norms in the housing sector.

"The Cabinet will review the FDI policy in pharmaceutical and housing tomorrow (Monday)," an official said on Sunday.

With the current FDI cap in pharma sector at 100 percent, the Department of Industrial Policy and Promotion (DIPP) has proposed to reduce it to 49 percent in the "rare or critical pharma verticals".

Cairn India to spend $1 billion on buyback: Report

Bangalore: Cairn India Ltd, oil and gas unit of London-listed Vedanta Resources, is set to spend about USD 1 billion to buy back shares, Bloomberg reported on Sunday citing two people familiar with the matter.

The share purchase will include buying back Cairn Energy Plc's 10.3 percent stake in the company, Bloomberg said citing one of the sources.

Mining conglomerate Vedanta, controlled by billionaire Anil Agarwal, acquired a majority stake in Cairn India for almost USD 9 billion in 2011. Since then, Cairn India played a pivotal role in boosting revenue and production even as Vedanta's mining business in India faced regulatory hurdles and mining restrictions.

The plan may help Sesa Sterlite Ltd and Agarwal's other subsidiaries increase ownership in Cairn India to more than 65 percent from 59 percent, the source told Bloomberg.

Cairn India's board is expected to meet on November 26 to consider a buyback.

Vedanta and Cairn Energy could not immediately be reached for a comment outside regular business hours.

Earlier this month, Vedanta said Cairn India was on track to hit its 2014 production target, previously put at 225,000 barrels of oil equivalent per day.

Sensex recovers 109 points in early trade

Mumbai: The BSE benchmark Sensex recovered by almost 109 points in early trade on Friday on emergence of buying by funds and retail investors in realty, capital goods, banking and metal sector stocks.

The 30-share index, which had lost 661.77 points in the previous two sessions, rose by 108.91 points, or 0.54 percent, to trade at 20,337.96.

The National Stock Exchange index Nifty gained 29.95 points, or 0.50 percent, to trade at 6,029.00.

Brokers said fresh buying by funds, tracking a firming trend on other Asian bourses after the US Dow Jones closed above the 16,000 level for the first time on the back of a slew of upbeat economic data, influenced the trading sentiments here.

Among other Asian markets, Hong Kong's Hang Seng index was up 0.52 percent, while Japan's Nikkei gained 1.23 percent in early trade today.

The US Dow Jones Industrial Average ended at a new record high by gaining 0.69 percent yesterday.

Nokia hands over headquarters to Microsoft

 
Helsinki: Finnish telecom equipment maker Nokia said on Thursday it would hand over its headquarters outside Helsinki to US software giant Microsoft, which has acquired the group`s mobile business.

The building is located in Espoo, a suburb of the capital.

According to Nokia, most of the staff in the building work for the mobile division, which explains why it will house the Microsoft offices after the transaction is completed.

The employees who remain at Nokia, now focused on the telecom business, will be transferred to other buildings in Espoo.

Nokia`s headquarters, a symbol of Finnish economic success in the 1990s and 2000s, will now also be a reminder of the fall of what was once the world`s biggest mobile phone maker.

Dubbed the "Nokia House", the building was built by the Baltic Sea in the 1990s, at a time when the booming mobile phone market seemed to grant the company a promising future.

In December last year, loss-making Nokia sold it to a real estate company, but agreed to lease it back on a long-term basis.

On Tuesday, Nokia`s shareholders approved the sale of the mobile phone business to Microsoft for 5.44 billion euro (USD 7.30 billion), hoping that the deal will get the company back on the profit track.

US jury awards Apple $290 mn in retrial Vs Samsung

New York: A US jury awarded Apple Inc about USD 290 million in a damages retrial against Samsung Electronics Co Ltd, restoring a large chunk of a historic verdict the iPhone maker won last year.

After a week long trial, the jury deliberated for nearly two days before reaching a decision on Thursday in a San Jose, California federal court. Apple had requested USD 379.8 million, while Samsung argued that it should have to pay USD 52.7 million.

Apple and Samsung have been fighting in the courts for over two years. Apple was awarded over USD 1 billion last year after it convinced a jury that Samsung copied various iPhone features - like using fingers to pinch and zoom on the screen - along with design touches like the phone's flat, black glass screen.

Earlier this year U.S. District Judge Lucy Koh upheld nearly USD 640 million of that verdict but ordered a retrial on the rest, ruling that the previous jury had made some errors in its calculations. Combined with the retrial verdict of USD 290.5 million on Thursday, Apple has now been awarded USD 929.8 million in the case.

Apple called its marketing chief Phil Schiller to testify during the trial. Samsung did not call any senior executives, a fact hammered on by Apple attorneys during closing argument. Juror Barry Goldman-Hall, 60, said the six-woman two-man jury discussed the disparity.

"We felt like we had way more information from Apple and we were left wondering why we hadn't gotten other information from Samsung," said Goldman-Hall, a therapist.

Samsung spokeswoman Lauren Restuccia said the company is disappointed by the verdict, especially because one of the patents in the case has been recently deemed invalid by the U.S. Patent and Trademark Office. Apple is contesting that finding.

Apple spokeswoman Kristin Huguet said it was grateful to the jury for imposing costs on Samsung, though she said the case has been more about protecting innovation than winning money.

Samsung manufactures phones that use the Android operating system, which is developed by Google (GOOG.O). In addition to the fight over money, Apple is seeking a permanent injunction against several older Samsung phones. Koh had previously rejected such a sales ban, but earlier this week the U.S. Court of Appeals for the Federal Circuit ordered her to reconsider.

Nick Rodelli, a lawyer and adviser to institutional investors for CFRA Research in Maryland, said injunctions are much more important in these legal battles than monetary awards. Still, he said, the verdict shows that Apple's narrative was persuasive to a second jury drawn from Silicon Valley.

"A jury award on the high end of the range is a modestly positive signal for Apple," Rodelli said.

Colleen Allen, the jury forewoman, said Apple did not enjoy a home field advantage from having the trial so close to the iPhone maker's headquarters in Cupertino. Both companies are global players, she said, and while Apple engineers may be based in Northern California, its products are manufactured overseas.

The jurors based their decision on the evidence, said Allen, a 36-year old nurse.

"Samsung could've come up with a little more evidence," Allen said.

The case is likely to drag on as Samsung appeals both verdicts, said Brian Love, a professor at Santa Clara Law in Silicon Valley.

"Litigation between the parties is far from over, and there is no end in sight," Love said.

The case in U.S. District Court, Northern District of California is Apple Inc vs. Samsung Electronics Co Ltd, 11-1846.