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Telecom giant Verizon acquires AOL for $4.4 bn

Verizon is paying $50 per share for AOL, a premium of 17.4 percent over the stock's closing price of $42.59 on Monday

 

Telecom giant Verizon Communications Inc. said it was acquiring digital content provider AOL Inc. for $4.4 billion.
 
Verizon is paying $50 per share for AOL, a premium of 17.4 percent over the stock's closing price of $42.59 on Monday.
 
"Verizon's vision is to provide customers with a premium digital experience based on a global multi-screen network platform," Verizon chairman and CEO Lowell McAdam said on Tuesday.
 
"This acquisition supports our strategy to provide a cross-screen connection for consumers, creators and advertisers to deliver that premium customer experience."
 
AOL is a leading provider of digital content and advertising, and one of the pioneers of the Internet age.
 
AOL chairman and CEO Tim Armstrong is staying on after the deal closes and will run the unit, Verizon said.
 
"Verizon is a leader in mobile and OTT connected platforms, and the combination of Verizon and AOL creates a unique and scaled mobile and OTT media platform for creators, consumers and advertisers," Armstrong said.
 
"The visions of Verizon and AOL are shared; the companies have existing successful partnerships, and we are excited to work with the team at Verizon to create the next generation of media through mobile and video."
 
The acquisition will be financed with cash on hand and the issuance of debt, Verizon said.
 

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Reliance Jio to raise $750 mn from Korean company

In a statement, the company said the facility for Reliance Jio was the second round of financing from the Korean giant and the third overall for the group

 

Reliance Industries on Wednesday said its broadband arm has signed up for a $750-million loan, backed by Korea Trade Insurance Corp, to primarily finance the procurements for its infrastructure roll-out from Samsung Electronics and Ace Technologies Corp.
 
In a statement, the company said the facility for Reliance Jio was the second round of financing from the Korean giant and the third overall for the group. 
 
It also marks the largest such deal for the Korean company in India.
 
"It has a door-to-door tenor of 12 years, including a two-year availability period and a 10-year repayment period thereafter," said the statement, adding it was being funded by nine top bankers of Reliance.
 
These include The Hongkong and Shanghai Banking Corp, Australia and New Zealand Banking Group, Banco Santander, The Bank of Tokyo-Mitsubishi, JPMorgan Chase Bank, Mizuho Bank, Sumitomo Mitsui Banking Corp, ING Bank and DZ Bank.
 
Reliance Jio Infocomm is setting up a pan-India telecom network for 4th generation Net services, communication services and other digital services in areas like education, healthcare, security, financial services, government-citizen interfaces and entertainment. 
 
In under a year, the number of professionals on its toll has risen from 700 to 10,000 now.
 

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Nifty, Bank Nifty, Sensex to weaken a bit – Tuesday closing report
The uptrend that started on Friday suffered a severe setback today, but chance of recovery is high, as long as Nifty stays above 8,000 
 
We had anticipated that NSE’s Nifty may move higher, but the major indices suffered an intense selling from the word go and gradually moved lower during the day.
 
The S&P BSE Sensex opened at 27,503 while Nifty opened at 8,326. They hit their intra-day highs at the opening and moved lower to hit a low 26,837 and 8,115. Sensex closed at 26,877 (down 630 points or 2.29%), while Nifty closed at 8,127 (down 198 points or 2.38%). Bank Nifty which opened at 18,194 moved to the low of 17,598 and closed at 17,629 (down 571 points or 3.14%) NSE recorded a volume of 71.90 crore shares. India VIX rose 10.31% to close at 20.5450.
 
Overall market in Asia and back home were weak due to negative US closing and insufficient progress on talks between debt-strapped Greece and its creditors. On the macro front, the Indian government is scheduled to unveil data on inflation based on the consumer price index (CPI) for April 2015. 
 
The Index of Industrial Production (IIP) data for March 2015, stands at 197.3, which is 2.1% higher as compared to the level in the month of March 2014. The cumulative growth for the period April-March 2014-15 over the corresponding period of the previous year stands at 2.8%. Reports indicated that the government is likely to refer the Land Acquisition Bill, which was introduced in Lok Sabha Monday to a joint committee of both Lok Sabha and Rajya Sabha. Investors may perceive this as a setback for the Modi government.
 
In the light of the Finance Minister's announcement, officers dealing with International Taxes have been advised that no coercive action be taken for recovery of demand already raised by invoking provisions of MAT in the case of foreign companies particularly FIIs. Issue of fresh notices for reopening of cases as also completion of assessment should also be put on hold unless the case is getting barred by limitation, the Ministry of Finance said yesterday. But the damage to India’s credibility in the international markets is already done.
 
A closely watched forecast by Japan today reportedly confirmed El Nino's return this year. A strong El Nino will roil economies that are heavily dependent on agriculture, particularly India, which is already reeling from bad weather.
 
The recent rally in oil prices was 'premature', given the continuing oversupply situation, Goldman Sachs said on Tuesday, reasoning that it would put the brakes on a rebalancing of the market.
 
The Indian Prime Minister's Office (PMO) has asked the Coal Ministry to expedite the process of third round of mines auction. Gujarat Gas (7.47%) was the top gainer in the ‘A’ group on the BSE. It hit its 52-week high today and closed at Rs845.50.
 
UCO Bank (8.22%) was the top loser in the ‘A’ group on the BSE. It hit its 52-week low on the announcement weak March 2015 result. The stock closed at Rs56.95.
 
Hero MotoCorp (3.18%) and Dr Reddy’s (3.08%) were the only two gainers in the Sensex 30 pack while Tata Steel (6.29%) was the top loser.
 
US indices closed Monday in the red. 
 
Asian indices showed mixed performance. Shanghai Composite (1.56%) was the top gainer while Hang Seng (1.12%) was the top loser.                  
 
China's economic growth was within "a reasonable range" in April, but the government still needed to work hard to keep growth steady going forward, the National Bureau of Statistics said on Tuesday. 
 
European indices were trading sharply lower. US Futures too were trading deeply in the red.
 
In Europe, the Bank of England (BOE) Monday kept interest rates unchanged. The BOE held its benchmark interest rate at a record low of 0.5%, where it has stayed since March 2009.

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