Iceland near to Icesave debt deal

Iceland's Prime Minister Johanna Sigurdardottir says a deal, with the UK and Netherlands, is near over savings accounts frozen when its banks failed.

She said agreement is being negotiated on the Icesave accounts of Landsbanki, which collapsed with other main Icelandic banks in October.

The deal would give Iceland seven years to reimburse the frozen savings.

The total debt owed on the accounts is estimated at about 640bn Icelandic crowns ($5.28bn: £3.2bn).

The money would be repaid at 5.5% interest, Ms Sigurdardottir said.

"This is a much more agreeable solution than we were looking at in the winter," she said.

"The interest rates are lower, we'll have longer time to pay out and last, but not least, it means the assets of Landsbanki in the UK will cover most of the debt."

Tech Mahindra makes changes in Satyam open offer

IT firm Tech Mahindra has extended the date for approaching the shareholders of Satyam Computer regarding its Rs 1,154-crore open offer for the purchase of a 20 per cent stake in the scam-hit firm, a move which comes days after market regulator SEBI cleared the open offer.

In a filing to the Bombay Stock Exchange, Satyam Computer said the last date by which letter of offer will be dispatched to the shareholders has been revised to 9th June, from the earlier scheduled date of 3rd June.



Further, the last date of withdrawal by shareholders has also been revised to 26th June, from the earlier 27th June.



"Dates for all other activities of the schedule remains unchanged," the filing added.



The Securities and Exchange Board of India (SEBI) had received the open offer for its consideration on May 6, and issued its 'observations' on May 27.



Through Venturbay Consultant, its acquisition vehicle for the Satyam Computer purchase, Tech Mahindra had announced an open offer on April 22 for buying an additional 20 per cent

from the shareholders of the IT firm.



The open offer was made pursuant to Tech Mahindra buying a 31 per cent stake in Satyam for Rs 1,756 crore through the issue of preferential shares after an auction process conducted by the government-appointed board of Satyam.

Sensex, Nifty hit 10-month highs as bourses progress rapidly

Indian bourses progressed rapidly with key indices Sensex and Nifty hitting nearly ten-month highs as investors were heartened by new UPA Government's economic agenda, unveiled by President Pratibha Patil in the week under review.

The markets achieved new highs in sustained volatility and the Sensex closed past the 15,000-psychological level for the first time since 2nd September, 2008.


Accentuated interest of investors in second-line stocks pushed up the Smallcap and Midcap indices by a whopping 7.88 per cent and 6.98 per cent, respectively, outperforming the bellwether Sensex.


In the week to 6th June, the 30-stock BSE barometer ended the week at 15,103.55, a net rise of 478.30 points, or 3.27 per cent, over the week.


Investors were virtually confident that the economic reforms will get a strong push in the first year in the light of a political stability in the country.


Addressing Parliament on 4th June, Patil disclosed that the Government would focus on revival in economy which has already showed signs of recovery with a good expansion in the manufacturing activity in May 2009.



Patil said the government will focus on reforms in financial and infrastructure sectors as also disinvestment of public sector undertakings while sticking to fiscal prudence.


India's infrastructure sector output grew 4.3 per cent in April, indicating a gradual economic recovery.


Inflation, too, remained low at 0.48 per cent for the week ended 23rd May.


The broader 50-share Nifty of the National Stock Exchange advanced by 137.95 points, or 3.10 per cent, to end the week at 4,586.90 from its previous weekend's close.


Foreign Institutional Investors, the principal market moving factor, remained consistent net buyers in equity.



Hence, the capital inflows in equity stood at USD 427 million in the initial four days of the week.


Analysts said the market is strongly bullish and may witness a pre-Budget rally.



The full Budget is likely to be presented on 3rd July by Finance Minister Pranab Mukherjee.


Sectorial indices such as the BSE Consumet Durables Index soared by about ten per cent and the BSE Capital Goods index by 8.40 per cent.


The trading volume for the week was high at Rs 1,30,005 crore on the NSE and Rs 45,288 crore on the BSE compared to Rs 1,11,845 crore and Rs 36,674 crore respectively.