Cover Story

India Inc. On a Shopping Spree

- - Amit Singh Sisodiya and , Swati Gulati

Call it the reversal of role. India Inc. is on the prowl for foreign turfs. After more than a decade of opening up of the Indian economy, the hitherto vulnerable India Inc. is finally latching on to the M&A bandwagon to find a global footprint. So far, they have gobbled up 50 companies abroad, shelling out a staggering $1.05 bn (Rs. 48.13 bn) during the year 2002-03. Joining the M&A party are not just the domestic IT companies, but a host of companies from new and old economy sectors (from pharmaceuticals to auto to aluminum to steel). What is driving this phenomenon?

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Financial Markets

NYSE's woes Governance solution

- - Indu Prasad

The unceremonious exit of Richard Grasso, the former CEO of New York Stock Exchange, exposes the chinks in the system of governance at America's 211-year-old exchange.

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Participatory Notes Unlawful entry

- - Swati Gulati

The growing abuse of Participatory Notes by banned Overseas Corporate Bodies expose serious flaws in the regulatory system.

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Corporate

TOYOTA - David in Detroit

- - Anupama Chowdary

Despite being small, Toyota like David is challenging Goliath's of Detroit namely General Motors, Ford, and DaimlerChrysler for their market share in the automobile industry.

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Time Warner MINUS AOL - What's in a name?

- - D G Prasuna

AOL Time Warner has rechristened itself as `Time Warner' recently. Is this move a precursor to AOL's spin-off?

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Corporate Strategy

General Electric - Jack to Jeff

- - D G Prasuna

Jeffrey Immelt took over as the CEO and Chairman of the world's most admired and respected company two years ago. What are GE's prospects under his leadership?

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Bank of America-Fleet Boston merger Pros and cons

- - Amit Singh Sisodiya and Swati Gulati

The merger between Bank of America, the No. 3 bank by assets in the US, and Fleet Boston, the No. 7 bank, gives birth to a banking giant which will have an asset size of $933 bn and will be ranked second, next only to Citigroup.

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Financial Services

Rating agencies Inducing competition

- - A Sowdeepti

Enron and other corporate meltdowns have put a big question on legendary reliability of credit rating agencies. Consequently, regulation of these unregulated private players that more or less operate like quasi-governmental bodies looks imminent.

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Swiss Banking Losing its USP?

- - Priyanka Sugandhi

Switzerland, the leading offshore money manager, manages about one-third of the cross-border wealth in the world. Its secrecy laws and tax practices have been threatened by the EU's withholding tax proposal. Is this `money-haven' losing its sheen?

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ICICI BANK - Globalization road map

- - Anupama Chowdary

ICICI Bank is investing $100 mn in its first phase of international banking operations. This is the bank's next big growth strategy after having established itself in consumer finance business. Where will this global push take the bank?

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By invitation

Indian Insurance Industry - Changing equation

- - B.Anand, CEO, Bimaonline, Hyderabad

Liberalization of this sector has helped in bringing about several positive developments including the expansion of the market size, introduction of new products and development of new channel distribution in the market, says B Anand, CEO, Bimaonline, Hyderabad.

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US budget deficits - The way out

- - Dimitri B, Papadimitriou, Economist, Levy Economics Institute, US.

The danger of adopting deficit rules is that deficits are not permitted during recessions, thereby adding to the recession, says Dimitri B, Papadimitriou, Economist, Levy Economics Institute, US.

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Monetary Policy 2003-04 - Implications

- - Dr. N Nagarajan, Chief Economist, Indian Banks' Association.

The absence of any specific measure to increase the total credit flow is in conformity with the absence of any measure to make an impact on the liquidity in the system, says Dr. N Nagarajan, Chief Economist, Indian Banks' Association.

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Wall Street - Capital inefficiency

- - Richard J Wayman, President, Researchstock.com, US.

As the crisis of confidence has played across the headlines everyday, it has overshadowed the structural changes in the US financial system that has created the `Crisis of Capital Inefficiency' says Richard J Wayman, President, Researchstock.com, US.

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Business Environment

Quarterly Results Sustained growth

- - Nidhi Joshi

The second quarter results of Indian companies are out. They continue the trend of sustained growth.

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Bullion Trade : Evolving marketplace

- - Phulvinder Kaur

The fight has come to an end after four decades. In the upcoming `bullion market' in India, gold will be traded by wholesalers and retailers to earn profits apart from adornment purposes.

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Research Summary

International Asset Swaps

- - Nidhi Joshi

International asset swaps, used to achieve international diversification, are constrained by various regulatory issues, collateral considerations, accounting, and reporting rules. The Focus is on various policy implications that could make the portifolio more intersiting for domestic investors.

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