On Thursday, NBC’s news division staged an elaborate presentation for advertisers, seeking to sell commercial time in NBC’s news programs over the next year. All the members of MSNBC’s prime-time lineup spoke at the lunch with one exception: Keith Olbermann, the network’s biggest star.
For the last several weeks, Mr. Olbermann and the network have been in negotiations to end his successful run on MSNBC, according to executives involved in the talks who requested anonymity because the talks were confidential. The deal was completed on Friday, and Mr. Olbermann made the announcement on his final “Countdown” hours later.
Friday’s separation agreement between MSNBC and Mr. Olbermann includes restrictions on when he can next lead a television show and when he can give interviews about the decision to end his association with the news channel.
The executives involved in the discussions confirmed that the deal carries limitations for Mr. Olbermann in terms of when he can next work on television, though he will be able to take a job in radio or on any forum on the Internet. The deal also prohibits the host from commenting publicly on the deal, the executives confirmed.
Mr. Olbermann did not respond to requests for comment Friday or Saturday. None of the executives who discussed the deal would reveal the exact length of the restrictions.
The decision was completed one year to the day from the last time NBC decided to end a relationship with an on-air star: Conan O’Brien. Mr. O’Brien agreed in the deal not to start up a new television show for nine months, and not to grant interviews for five months. The executives involved in the discussions with Mr. Olbermann said his agreement was not dissimilar to Mr. O’Brien’s.
Many of Mr. Olbermann’s fans responded to the decision by accusing Comcast, the incoming owner of NBC Universal, of forcing him out for political reasons. Several of Comcast’s top executives have been financial supporters of Republicans; Mr. Olbermann is largely credited with establishing MSNBC’s liberal voice.
Comcast issued an official statement Friday denying any involvement in the decision, saying it had no operational control of the company yet, and adding: “We pledged from the day the deal was announced that we would not interfere with NBC Universal’s news operations. We have not and we will not.”
But the company is still drawing criticism for the move. Marvin Ammori, a law professor at the University of Nebraska, said in an e-mail Friday, “Keith Olbermann’s announcement tonight, the very same week that the government blessed the Comcast-NBC merger, raises serious concern for anyone who cares about free speech. Comcast proved expert in shaking down the government to approve its merger. Comcast’s shakedown of NBC has just begun.” Professor Ammori is a former adviser to the nonprofit group Free Press, which opposed the Comcast-NBC deal.
Months before Comcast was expected to gain control of NBC Universal, Comcast officials were worried about the perception that they might interfere with MSNBC for political reasons.
One executive, who asked not to be identified because Comcast had instructed employees not to speak about the situation, said the company dreaded the prospect of being blamed if Mr. Olbermann were to quit soon after the takeover.
Mr. Olbermann had butted heads with his superiors long before the Comcast deal, including Phil Griffin, the top MSNBC executive. According to several senior network executives, NBC’s management had been close to firing Mr. Olbermann before, most recently in November after he revealed that he had made donations to several Democratic candidates in 2010 — one of them, coincidentally, was Representative Gabrielle Giffords, who has been the subject of many of his recent shows after being shot in an assassination attempt.
Mr. Griffin said the donations had violated NBC News standards. Mr. Olbermann was suspended.
Saturday, January 22, 2011
India May Decide on CounteIndia May Decide on Countering Rio's $3.9 Billion Riversdale Bid Next Weekring Rio's $3.9 Billion Riversdale Bid Next Week
India may decide next week whether to counter Rio Tinto Group’s A$3.9 billion ($3.9 billion) offer for Riversdale Mining Ltd., said a group of state-run companies asked by the government to consider putting forward a proposal.
International Coal Ventures Ltd., combining government-run metal and energy companies, may consider a bid for the Sydney- based coal producer with mines in Mozambique at a board meeting in New Delhi on Jan. 27, Chairman C.S. Verma said.
“Our bid price for Riversdale will be higher than Rio Tinto’s if it is to be a viable bid,” Verma said in an interview in Kolkata today, declining to elaborate.
Indian companies are seeking coal mines overseas to secure raw material supplies for making steel and generating power as international costs increase. Rio Tinto, which has offered A$16 a share, yesterday said it received unconditional approval from the Australian Treasurer to buy Riversdale. The Riversdale board has recommended the offer to shareholders, Rio said Jan. 10.
Tata Steel Ltd., which holds 24.2 percent of Riversdale according to data compiled by Bloomberg, said on Dec. 27 it had no “discomfort” with Rio’s offer.
Coal India Ltd. holds about 28 percent of ICVL. Steel Authority of India, the nation’s second-biggest producer of the metal, also has 28 percent, while NTPC Ltd., its largest power generator, NMDC Ltd., its top iron-ore producer, and steelmaker Rashtriya Ispat Nigam Ltd. own about 14 percent each.
“Once the proposal goes through, funding will not be a problem because all of us have money,” Coal India Chairman Partha Bhattacharyya said today.
International Coal Ventures Ltd., combining government-run metal and energy companies, may consider a bid for the Sydney- based coal producer with mines in Mozambique at a board meeting in New Delhi on Jan. 27, Chairman C.S. Verma said.
“Our bid price for Riversdale will be higher than Rio Tinto’s if it is to be a viable bid,” Verma said in an interview in Kolkata today, declining to elaborate.
Indian companies are seeking coal mines overseas to secure raw material supplies for making steel and generating power as international costs increase. Rio Tinto, which has offered A$16 a share, yesterday said it received unconditional approval from the Australian Treasurer to buy Riversdale. The Riversdale board has recommended the offer to shareholders, Rio said Jan. 10.
Tata Steel Ltd., which holds 24.2 percent of Riversdale according to data compiled by Bloomberg, said on Dec. 27 it had no “discomfort” with Rio’s offer.
Coal India Ltd. holds about 28 percent of ICVL. Steel Authority of India, the nation’s second-biggest producer of the metal, also has 28 percent, while NTPC Ltd., its largest power generator, NMDC Ltd., its top iron-ore producer, and steelmaker Rashtriya Ispat Nigam Ltd. own about 14 percent each.
“Once the proposal goes through, funding will not be a problem because all of us have money,” Coal India Chairman Partha Bhattacharyya said today.
State Bank of India Net Increases 14%, Beating Estimates, on Loan Demand
State Bank of India, the nation’s largest lender, posted third-quarter profit that beat analysts’ estimates as accelerating economic growth boosted loan demand.
Net income rose to 28.3 billion rupees ($619 million) for the three months ended Dec. 31, from 24.8 billion rupees a year earlier, the Mumbai-based bank said in an e-mailed statement. The profit compared with the 27 billion-rupee average of 29 estimates compiled by Bloomberg News.
The profit gains may help Chairman Om Prakash Bhatt meet a target of 18 percent credit growth for the year ending March 31, when his five-year term at the helm ends.
Analysts at brokerages including Macquarie Research’s Suresh Ganapathy said the earnings were better than expected, but sustaining the growth will be difficult.
“On both margins and asset-quality fronts, the bank has positively surprised,” Ganapathy said by telephone today.
The lender, which accounts for almost a fifth of India’s banking assets, plans to raise 200 billion rupees from a rights offer by March 31 as it seeks more funds to lend to companies.
The bank’s shares rose 2.4 percent to 2,596.9 rupees yesterday.
Deposit Growth
Net interest income, or revenue from borrowers after deducting interest paid to depositors, widened 43 percent to 90.5 billion rupees from 63.2 billion rupees a year earlier. The net interest margin, a measure of lending profitability, grew to 3.4 percent from 2.56 percent.
State Bank’s deposits climbed 14 percent to 8.79 trillion rupees from 7.71 trillion rupees a year earlier. The lender has increased the interest rate it pays for the funds four times since August.
The bank posted a pretax loss of 7.25 billion rupees from trading in bonds and currency in the quarter, compared with a shortfall of 935.4 million rupees a year ago.
State Bank appears set to be able to meet the central bank’s provision for bad loans, said Sampath Kumar, an analyst at IIFL Ltd. The bank’s provisions for bad loans widened to 64.07 percent as of Dec. 31, from 62.78 percent on Sept. 30, according to the statement.
ICICI Bank Ltd., India’s largest non-state bank, reports its quarterly results on Jan. 24.
Net income rose to 28.3 billion rupees ($619 million) for the three months ended Dec. 31, from 24.8 billion rupees a year earlier, the Mumbai-based bank said in an e-mailed statement. The profit compared with the 27 billion-rupee average of 29 estimates compiled by Bloomberg News.
The profit gains may help Chairman Om Prakash Bhatt meet a target of 18 percent credit growth for the year ending March 31, when his five-year term at the helm ends.
Analysts at brokerages including Macquarie Research’s Suresh Ganapathy said the earnings were better than expected, but sustaining the growth will be difficult.
“On both margins and asset-quality fronts, the bank has positively surprised,” Ganapathy said by telephone today.
The lender, which accounts for almost a fifth of India’s banking assets, plans to raise 200 billion rupees from a rights offer by March 31 as it seeks more funds to lend to companies.
The bank’s shares rose 2.4 percent to 2,596.9 rupees yesterday.
Deposit Growth
Net interest income, or revenue from borrowers after deducting interest paid to depositors, widened 43 percent to 90.5 billion rupees from 63.2 billion rupees a year earlier. The net interest margin, a measure of lending profitability, grew to 3.4 percent from 2.56 percent.
State Bank’s deposits climbed 14 percent to 8.79 trillion rupees from 7.71 trillion rupees a year earlier. The lender has increased the interest rate it pays for the funds four times since August.
The bank posted a pretax loss of 7.25 billion rupees from trading in bonds and currency in the quarter, compared with a shortfall of 935.4 million rupees a year ago.
State Bank appears set to be able to meet the central bank’s provision for bad loans, said Sampath Kumar, an analyst at IIFL Ltd. The bank’s provisions for bad loans widened to 64.07 percent as of Dec. 31, from 62.78 percent on Sept. 30, according to the statement.
ICICI Bank Ltd., India’s largest non-state bank, reports its quarterly results on Jan. 24.
Friday, January 21, 2011
A Creator Prepares to Take the Reins at Google
SAN FRANCISCO — Things that get Larry Page excited: tossing around programming lingo with engineers, picking the brains of scientists and championing ideas that belong in science-fiction novels, like cars that drive themselves.
Things he would be happy to live without: long meetings, press conferences and a regimented schedule.
But Mr. Page, the Google co-founder, will have to get used to those things quickly as he prepares to take over the chief executive role from Eric E. Schmidt in April.
The move will test whether Mr. Page, a reserved person who thrives on intellectual challenges, has developed the skills to handle the daily grind of running a business, along with the internal politics and external showmanship that come with the job.
Google, which has proved its ability to mint money with its online advertising systems, is trying to maintain its status as an engine of innovation. Mr. Page, 38, said on Thursday that he wanted to reinject Google with the speed and nimbleness that it once had as a start-up, before it swelled to 24,400 employees and $29.3 billion in annual revenue.
The challenge for Mr. Page will be to keep that big machine humming while at the same time taking the company back to its roots. How well he does this could determine whether Google can come up with another giant hit — a feat that few successful technology companies have pulled off.
“In a good economy, the core business for Google runs itself,” said Jordan Rohan, an analyst at Stifel Nicolaus. “Expansion into new initiatives is a heavy responsibility.”
People who have worked with Mr. Page say his insatiable demand for quick decisions and innovative ideas will light a fire at Google, where product development has slowed as competition from Facebook and others has grown fiercer.
“When the founder is the C.E.O., it’s a person who usually has product sense and an appetite for making new things, as opposed to talent for selling things,” said Michael Hawley, a longtime M.I.T. professor who knows Mr. Page socially and has advised him on writing projects. “Larry is more the archetype of founder, innovator, hacker, inventor, interested in all of the magical things that digital technologies do.”
But others say that Mr. Schmidt’s two biggest job responsibilities — being the public face of the company and managing internal politics — are areas where Mr. Page has less experience.
Mr. Page, whom friends and colleagues describe as shy and private, has avoided public appearances, letting Mr. Schmidt handle speeches and interviews with reporters and analysts. Sergey Brin, Google’s other co-founder, has appeared at recent press conferences and Google events more often than Mr. Page has.
Still, Google insiders say, Mr. Page has already been playing a broader role outside the company than some people see. For instance, he has represented Google in some meetings with policy makers and regulators.
After Mr. Schmidt was hired in 2001, Mr. Page served as president for product; Mr. Brin is president for technology. Inside the company, the co-founders have long played a decision-making role, with Mr. Schmidt frequently deferring to them, former Google executives say.
A key part of Mr. Schmidt’s role was as peacemaker. This meant softening the founders’ sometimes harsh feedback to employees, carrying out their wishes and smoothing over differences when they arose, all while managing the competing demands and interests of the executives reporting to him.
The former executives, who spoke on the condition of anonymity in order to preserve relationships with former colleagues, said that a big question was whether Mr. Page would be able to play that internal management role effectively, and if not, whether he would hire a chief operating officer — which Google has not had — to handle it.
In an interview, Mr. Page said those management skills were something he observed during the decade he spent learning from Mr. Schmidt. “He’s a global statesman, all the way,” he said. “Eric’s very good at bringing people together, getting people to agree.”
In the interview, Mr. Page and Mr. Brin provided a few hints about their priorities when Mr. Page returns to the top. Mr. Page acknowledged that his role would change but said his passion was still creating products.
“Google is a product company, so there’s a number of elements obviously involved in running the day-to-day operations of Google, but at its heart, we are a product and technology company,” Mr. Page said.
The two said they wanted to focus on introducing real-time information and social networking features into their Web search products. Google has been criticized for being slow to embrace the social Web. Mr. Brin said that what Google had done so far, like incorporating Twitter posts into search results, “is really just the tip of the iceberg.”
Mr. Page said he wanted to speed up decision-making and product development inside Google. One way that might be done is cutting through big-company processes that have slowed things down.
For example, Google engineers sign up to present their projects at regular Tuesday meetings, a process started by Mr. Schmidt. But these grew so big and the wait list so long that the founders grew tired of them. They started their own technical review meetings on Fridays, with far fewer people invited, Google employees said.
But even if Mr. Page makes it easier for engineers to hatch new ideas, there is no guarantee that the next Facebook will grow out of Google. The vast majority of new tech endeavors fail — Wave, a collaboration tool that began as an independent project inside Google and was shut down last year, is one example.
Google employees said they hoped Mr. Page’s biggest impact would be in providing a jolt of inspiration. He gave a glimpse of that, along with a rare public display of emotion, in a commencement speech at the University of Michigan, his alma mater, last year.
“I think it is often easier to make progress on mega-ambitious dreams,” he said. “I know that sounds completely nuts. But, since no one else is crazy enough to do it, you have little competition.”
Things he would be happy to live without: long meetings, press conferences and a regimented schedule.
But Mr. Page, the Google co-founder, will have to get used to those things quickly as he prepares to take over the chief executive role from Eric E. Schmidt in April.
The move will test whether Mr. Page, a reserved person who thrives on intellectual challenges, has developed the skills to handle the daily grind of running a business, along with the internal politics and external showmanship that come with the job.
Google, which has proved its ability to mint money with its online advertising systems, is trying to maintain its status as an engine of innovation. Mr. Page, 38, said on Thursday that he wanted to reinject Google with the speed and nimbleness that it once had as a start-up, before it swelled to 24,400 employees and $29.3 billion in annual revenue.
The challenge for Mr. Page will be to keep that big machine humming while at the same time taking the company back to its roots. How well he does this could determine whether Google can come up with another giant hit — a feat that few successful technology companies have pulled off.
“In a good economy, the core business for Google runs itself,” said Jordan Rohan, an analyst at Stifel Nicolaus. “Expansion into new initiatives is a heavy responsibility.”
People who have worked with Mr. Page say his insatiable demand for quick decisions and innovative ideas will light a fire at Google, where product development has slowed as competition from Facebook and others has grown fiercer.
“When the founder is the C.E.O., it’s a person who usually has product sense and an appetite for making new things, as opposed to talent for selling things,” said Michael Hawley, a longtime M.I.T. professor who knows Mr. Page socially and has advised him on writing projects. “Larry is more the archetype of founder, innovator, hacker, inventor, interested in all of the magical things that digital technologies do.”
But others say that Mr. Schmidt’s two biggest job responsibilities — being the public face of the company and managing internal politics — are areas where Mr. Page has less experience.
Mr. Page, whom friends and colleagues describe as shy and private, has avoided public appearances, letting Mr. Schmidt handle speeches and interviews with reporters and analysts. Sergey Brin, Google’s other co-founder, has appeared at recent press conferences and Google events more often than Mr. Page has.
Still, Google insiders say, Mr. Page has already been playing a broader role outside the company than some people see. For instance, he has represented Google in some meetings with policy makers and regulators.
After Mr. Schmidt was hired in 2001, Mr. Page served as president for product; Mr. Brin is president for technology. Inside the company, the co-founders have long played a decision-making role, with Mr. Schmidt frequently deferring to them, former Google executives say.
A key part of Mr. Schmidt’s role was as peacemaker. This meant softening the founders’ sometimes harsh feedback to employees, carrying out their wishes and smoothing over differences when they arose, all while managing the competing demands and interests of the executives reporting to him.
The former executives, who spoke on the condition of anonymity in order to preserve relationships with former colleagues, said that a big question was whether Mr. Page would be able to play that internal management role effectively, and if not, whether he would hire a chief operating officer — which Google has not had — to handle it.
In an interview, Mr. Page said those management skills were something he observed during the decade he spent learning from Mr. Schmidt. “He’s a global statesman, all the way,” he said. “Eric’s very good at bringing people together, getting people to agree.”
In the interview, Mr. Page and Mr. Brin provided a few hints about their priorities when Mr. Page returns to the top. Mr. Page acknowledged that his role would change but said his passion was still creating products.
“Google is a product company, so there’s a number of elements obviously involved in running the day-to-day operations of Google, but at its heart, we are a product and technology company,” Mr. Page said.
The two said they wanted to focus on introducing real-time information and social networking features into their Web search products. Google has been criticized for being slow to embrace the social Web. Mr. Brin said that what Google had done so far, like incorporating Twitter posts into search results, “is really just the tip of the iceberg.”
Mr. Page said he wanted to speed up decision-making and product development inside Google. One way that might be done is cutting through big-company processes that have slowed things down.
For example, Google engineers sign up to present their projects at regular Tuesday meetings, a process started by Mr. Schmidt. But these grew so big and the wait list so long that the founders grew tired of them. They started their own technical review meetings on Fridays, with far fewer people invited, Google employees said.
But even if Mr. Page makes it easier for engineers to hatch new ideas, there is no guarantee that the next Facebook will grow out of Google. The vast majority of new tech endeavors fail — Wave, a collaboration tool that began as an independent project inside Google and was shut down last year, is one example.
Google employees said they hoped Mr. Page’s biggest impact would be in providing a jolt of inspiration. He gave a glimpse of that, along with a rare public display of emotion, in a commencement speech at the University of Michigan, his alma mater, last year.
“I think it is often easier to make progress on mega-ambitious dreams,” he said. “I know that sounds completely nuts. But, since no one else is crazy enough to do it, you have little competition.”
Hindustan Copper to Increase Production This Fiscal Year as Prices Gain
Hindustan Copper Ltd., India’s sole miner of the ore, plans to increase production by 14 percent this fiscal year, aiming to benefit from record prices.
The state-run company, which owns mines in four Indian states, expects to produce 32,000 metric tons of copper in the 12 months ending March 31, compared with 28,000 tons a year earlier, Chairman Shakeel Ahmed said in an interview today in his Kolkata headquarters. Higher output and prices should lead to a gain in full-year profit, he said.
Copper rose to a record in London yesterday on speculation demand will outpace supply as the global economy extends a recovery. The price increased an average 33 percent to $7,767 a metric ton on the London Metal Exchange this fiscal year from $5,859 a ton a year earlier.
“Our profit and sales growth will be directly proportional to an increase in copper prices,” Ahmed said. “Profit after tax for the nine months ended Dec. 31 has already crossed the full-year income of last year.”
Hindustan Copper, which plans to sell shares this year, fell as much as 1.6 percent to 276.65 rupees and traded at 280.95 rupees as of 9:44 a.m. in Mumbai. The shares have lost 15 percent this year, compared with a 7.2 percent decline in the key Sensitive Index of the Bombay Stock Exchange.
The company will spend 36.8 billion rupees over six years to increase its mine capacity from 3.2 million tons to 12.4 million tons, Ahmed said.
Buoyant Outlook
The outlook for copper prices remains buoyant this year because supply lags behind demand by almost 500,000 tons, Ahmed said. Prices are unlikely to decline to less than $8,000 a metric ton and may even reach $10,500 a ton in the next three years, he said.
India’s government, which owns 99.6 percent of Hindustan Copper, plans to sell a 10 percent stake, while the company will sell an equivalent proportion of new shares. The share sale has been delayed from September.
“I can’t comment on the date of offer and the amount we are looking at raising,” Ahmed said.
The company doesn’t expect the delay to affect its expansion because it plans to sell excavated waste rock to builders of roads and railways. Hindustan Copper has 215 million tons of rock waste that can be sold over 10 years, Ahmed said.
“The money earned from rock wastes will be used to fund our expansion,” he said. “Our expansion plan will start from this fiscal and go up to 2017.”
The state-run company, which owns mines in four Indian states, expects to produce 32,000 metric tons of copper in the 12 months ending March 31, compared with 28,000 tons a year earlier, Chairman Shakeel Ahmed said in an interview today in his Kolkata headquarters. Higher output and prices should lead to a gain in full-year profit, he said.
Copper rose to a record in London yesterday on speculation demand will outpace supply as the global economy extends a recovery. The price increased an average 33 percent to $7,767 a metric ton on the London Metal Exchange this fiscal year from $5,859 a ton a year earlier.
“Our profit and sales growth will be directly proportional to an increase in copper prices,” Ahmed said. “Profit after tax for the nine months ended Dec. 31 has already crossed the full-year income of last year.”
Hindustan Copper, which plans to sell shares this year, fell as much as 1.6 percent to 276.65 rupees and traded at 280.95 rupees as of 9:44 a.m. in Mumbai. The shares have lost 15 percent this year, compared with a 7.2 percent decline in the key Sensitive Index of the Bombay Stock Exchange.
The company will spend 36.8 billion rupees over six years to increase its mine capacity from 3.2 million tons to 12.4 million tons, Ahmed said.
Buoyant Outlook
The outlook for copper prices remains buoyant this year because supply lags behind demand by almost 500,000 tons, Ahmed said. Prices are unlikely to decline to less than $8,000 a metric ton and may even reach $10,500 a ton in the next three years, he said.
India’s government, which owns 99.6 percent of Hindustan Copper, plans to sell a 10 percent stake, while the company will sell an equivalent proportion of new shares. The share sale has been delayed from September.
“I can’t comment on the date of offer and the amount we are looking at raising,” Ahmed said.
The company doesn’t expect the delay to affect its expansion because it plans to sell excavated waste rock to builders of roads and railways. Hindustan Copper has 215 million tons of rock waste that can be sold over 10 years, Ahmed said.
“The money earned from rock wastes will be used to fund our expansion,” he said. “Our expansion plan will start from this fiscal and go up to 2017.”
Wipro Replaces Computer Services Heads After Sales Growth Misses Estimates
Wipro Ltd., India’s third-largest software exporter, replaced the co-heads of the company’s main computer-services business after posting sales that missed analysts’ estimates.
T.K. Kurien will take over as the chief executive officer of the information technology business, Wipro’s largest, from next month after Girish Paranjpe, 52, and Suresh Vaswani, 51, resigned as joint CEOs, the company said in a statement today. Billionaire Azim Premji remains chairman and managing director.
Premji promoted Paranjpe and Vaswani less than three years ago to lead Wipro through the global financial crisis. Their resignation may hurt client relationships and “disturb” Wipro’s growth momentum, said Rahul Jain, an analyst with Dolat Capital Market Ltd. in Mumbai.
“Both the CEOs quitting is a bit of a negative surprise for Wipro,” said Sandeep Muthangi, an analyst at India Infoline Ltd. in Mumbai. “Senior-management attrition has been fairly high at Wipro, and this could be a precursor for another round of high-level attrition. It also seems very abrupt to me.”
Third-quarter revenue increased 12 percent to 78.3 billion rupees ($1.7 billion), the Bangalore-based company said, missing the 80.5 billion rupee average of 47 analyst estimates compiled by Bloomberg. Profit rose 10 percent to 13.2 billion rupees, in line with estimates.
Shares Fall
Wipro fell 4.5 percent, the biggest decline in three months, to 455.95 rupees at the 3:30 p.m. close of trading in Mumbai. The company joined Infosys Technologies Ltd. in indicating that a weaker global economic recovery may undermine growth in India’s software-services market.
Vaswani worked at Wipro for more than 25 years, serving at different times as chief executive officer of Wipro’s joint venture with Acer Inc. and president of Wipro Infotech.
Paranjpe joined Wipro more than 20 years ago. He and Vaswani were promoted to joint CEOs of Wipro’s IT business in 2008. The two are also resigning from their positions on the company’s board of directors.
“It hurts the company,” said Dolat Capital’s Jain. “What’s important is who replaces them. The immediate momentum has been disturbed.”
Wipro engaged two CEOs for the IT business to get “diversity in thinking” during the “uncertain environment” in 2008, Chief Financial Officer Suresh Senapaty told reporters in Bangalore.
‘New Environment’
“Now if you go into the new environment there’s a unanimous view that there is growth, there is an uptick in IT spend and outsourcing,” he said. “From that point of view, all you need to do is drive growth, and therefore it was thought appropriate by the company that we need to have one CEO.”
The operating profit margin for the main IT division was “flat” in the quarter, Senapaty said. Wipro’s 10 percent growth in third-quarter profit was slower Infosys’s 14 percent increase and market leader Tata Consultancy’s 30 percent.
“Wipro is lacking in terms of growth,” said Jigar Shah, a Mumbai-based analyst at Kim Eng Securities India Pvt. “The company is doing well, but not as well as its peers.”
Wipro provides computer services such as designing and building software programs and back-office support to companies including BP Plc, William Morrison Supermarkets Plc and Pitney Bowes Inc. The Indian company added 36 clients in the quarter, compared with 29 three months earlier.
Forecast
Revenue from the information-technology services business may increase as much as 5 percent from the prior quarter to $1.41 billion in the three months ending March 31, Wipro said. The company derived 43 percent of the unit’s revenue from the U.S. and 21 percent from Europe last quarter.
Orders won by Wipro during the quarter included a three- year contract from Vodafone Essar Ltd. to build and manage its fixed-line phone-services business.
Wipro, which also makes soaps, light bulbs and hydraulic equipment, had a net addition of 3,591 employees at its technology unit last quarter, ending the period with 119,491 workers, the company said in the statement.
T.K. Kurien will take over as the chief executive officer of the information technology business, Wipro’s largest, from next month after Girish Paranjpe, 52, and Suresh Vaswani, 51, resigned as joint CEOs, the company said in a statement today. Billionaire Azim Premji remains chairman and managing director.
Premji promoted Paranjpe and Vaswani less than three years ago to lead Wipro through the global financial crisis. Their resignation may hurt client relationships and “disturb” Wipro’s growth momentum, said Rahul Jain, an analyst with Dolat Capital Market Ltd. in Mumbai.
“Both the CEOs quitting is a bit of a negative surprise for Wipro,” said Sandeep Muthangi, an analyst at India Infoline Ltd. in Mumbai. “Senior-management attrition has been fairly high at Wipro, and this could be a precursor for another round of high-level attrition. It also seems very abrupt to me.”
Third-quarter revenue increased 12 percent to 78.3 billion rupees ($1.7 billion), the Bangalore-based company said, missing the 80.5 billion rupee average of 47 analyst estimates compiled by Bloomberg. Profit rose 10 percent to 13.2 billion rupees, in line with estimates.
Shares Fall
Wipro fell 4.5 percent, the biggest decline in three months, to 455.95 rupees at the 3:30 p.m. close of trading in Mumbai. The company joined Infosys Technologies Ltd. in indicating that a weaker global economic recovery may undermine growth in India’s software-services market.
Vaswani worked at Wipro for more than 25 years, serving at different times as chief executive officer of Wipro’s joint venture with Acer Inc. and president of Wipro Infotech.
Paranjpe joined Wipro more than 20 years ago. He and Vaswani were promoted to joint CEOs of Wipro’s IT business in 2008. The two are also resigning from their positions on the company’s board of directors.
“It hurts the company,” said Dolat Capital’s Jain. “What’s important is who replaces them. The immediate momentum has been disturbed.”
Wipro engaged two CEOs for the IT business to get “diversity in thinking” during the “uncertain environment” in 2008, Chief Financial Officer Suresh Senapaty told reporters in Bangalore.
‘New Environment’
“Now if you go into the new environment there’s a unanimous view that there is growth, there is an uptick in IT spend and outsourcing,” he said. “From that point of view, all you need to do is drive growth, and therefore it was thought appropriate by the company that we need to have one CEO.”
The operating profit margin for the main IT division was “flat” in the quarter, Senapaty said. Wipro’s 10 percent growth in third-quarter profit was slower Infosys’s 14 percent increase and market leader Tata Consultancy’s 30 percent.
“Wipro is lacking in terms of growth,” said Jigar Shah, a Mumbai-based analyst at Kim Eng Securities India Pvt. “The company is doing well, but not as well as its peers.”
Wipro provides computer services such as designing and building software programs and back-office support to companies including BP Plc, William Morrison Supermarkets Plc and Pitney Bowes Inc. The Indian company added 36 clients in the quarter, compared with 29 three months earlier.
Forecast
Revenue from the information-technology services business may increase as much as 5 percent from the prior quarter to $1.41 billion in the three months ending March 31, Wipro said. The company derived 43 percent of the unit’s revenue from the U.S. and 21 percent from Europe last quarter.
Orders won by Wipro during the quarter included a three- year contract from Vodafone Essar Ltd. to build and manage its fixed-line phone-services business.
Wipro, which also makes soaps, light bulbs and hydraulic equipment, had a net addition of 3,591 employees at its technology unit last quarter, ending the period with 119,491 workers, the company said in the statement.
Pakistan army enlists drama to rally public
Pinned down by gunfire, Naeem Asghar kisses a grenade for luck. The Pakistani soldier is outnumbered, but staggers to his feet to mount a one-man charge. A shot rings out and he falls with a silent cry, still clutching the grenade. Credits roll.
The dramatised version of Mr Asghar’s final moments is one of the more memorable scenes in a slick new television show aimed at rallying public support for the Pakistan army’s campaign against the Taliban.
Titled Beyond the Call of Duty: Invincible Spirits, Immortal Souls, the series takes the military’s long-running propaganda war with Islamist militants into new territory with 11 episodes billed as true stories of valour.
“There’s an officer who leaves his wife in the labour room. She delivers the child, the officer kisses the child, names him then leaves for the war and comes back in a coffin,” said Colonel Syed Mujtaba Tirmizi, executive producer. “There’s not an iota of fiction in it.”
The programme, in which real soldiers serve as extras, is making its debut at a sensitive time. The army is chafing at US pressure to launch an offensive in North Waziristan, which Washington sees as pivotal to its campaign in Afghanistan.
The assassination of Salman Taseer, a prominent liberal politician, by one of his bodyguards this month has raised fears over the degree of extremist sentiment within the security forces. Suspicions linger among diplomats that Pakistan’s intelligence agencies continue to back Afghan insurgents.
The military has long produced films lionising heroes of wars with India, but its decision to hire a public relations company to portray its present-day struggle reflects a sense among officers that recent sacrifices have gone unrecognised.
After years of appeasing the Taliban in north-west Pakistan, the military launched its biggest offensive in 2009, starting in the Swat Valley before advancing into South Waziristan and other parts of the tribal areas.
The army says Mr Asghar, a volunteer from peasant stock, was one of more than 2,670 men killed battling militants since 2001. Approximately 1,460 US troops have died in Afghanistan. Pakistan says it has more than 140,000 soldiers from its half-million strong army committed to the campaign.
The stories, which air on state television on Fridays, aim to tug viewers’ heart strings in a conflict where people have often been caught between the military’s scorched-earth tactics and insurgents. Characters include a widow who lost her policeman husband and son to Taliban attacks, a reluctant teenage suicide bomber and a girl who escaped after being gang-raped and forced to marry an elderly Afghan warlord. Programmers have scheduled a pause in February to ensure audiences are not distracted by the cricket World Cup.
In spite of the rapid growth of Pakistan’s privately owned media, criticism of the military is largely off limits and the shows do not broach allegations of human rights abuses.
General Ashfaq Kayani, Pakistan’s army chief, ordered an inquiry in October after video footage appeared to show uniformed men executing civilians, lending credibility to reports of extra-judicial killings during operations. Human rights groups believe security agencies have been involved in the disappearances of hundreds of people in the western province of Baluchistan.
Officers hope the drama will show the military’s gentler side. “People think the army goes and kills everybody. It’s not that easy. We can’t start killing and bombing our own people,” said Brigadier Syed Azmat Ali. “When this programme goes out you will see half of Pakistan crying.”
The dramatised version of Mr Asghar’s final moments is one of the more memorable scenes in a slick new television show aimed at rallying public support for the Pakistan army’s campaign against the Taliban.
Titled Beyond the Call of Duty: Invincible Spirits, Immortal Souls, the series takes the military’s long-running propaganda war with Islamist militants into new territory with 11 episodes billed as true stories of valour.
“There’s an officer who leaves his wife in the labour room. She delivers the child, the officer kisses the child, names him then leaves for the war and comes back in a coffin,” said Colonel Syed Mujtaba Tirmizi, executive producer. “There’s not an iota of fiction in it.”
The programme, in which real soldiers serve as extras, is making its debut at a sensitive time. The army is chafing at US pressure to launch an offensive in North Waziristan, which Washington sees as pivotal to its campaign in Afghanistan.
The assassination of Salman Taseer, a prominent liberal politician, by one of his bodyguards this month has raised fears over the degree of extremist sentiment within the security forces. Suspicions linger among diplomats that Pakistan’s intelligence agencies continue to back Afghan insurgents.
The military has long produced films lionising heroes of wars with India, but its decision to hire a public relations company to portray its present-day struggle reflects a sense among officers that recent sacrifices have gone unrecognised.
After years of appeasing the Taliban in north-west Pakistan, the military launched its biggest offensive in 2009, starting in the Swat Valley before advancing into South Waziristan and other parts of the tribal areas.
The army says Mr Asghar, a volunteer from peasant stock, was one of more than 2,670 men killed battling militants since 2001. Approximately 1,460 US troops have died in Afghanistan. Pakistan says it has more than 140,000 soldiers from its half-million strong army committed to the campaign.
The stories, which air on state television on Fridays, aim to tug viewers’ heart strings in a conflict where people have often been caught between the military’s scorched-earth tactics and insurgents. Characters include a widow who lost her policeman husband and son to Taliban attacks, a reluctant teenage suicide bomber and a girl who escaped after being gang-raped and forced to marry an elderly Afghan warlord. Programmers have scheduled a pause in February to ensure audiences are not distracted by the cricket World Cup.
In spite of the rapid growth of Pakistan’s privately owned media, criticism of the military is largely off limits and the shows do not broach allegations of human rights abuses.
General Ashfaq Kayani, Pakistan’s army chief, ordered an inquiry in October after video footage appeared to show uniformed men executing civilians, lending credibility to reports of extra-judicial killings during operations. Human rights groups believe security agencies have been involved in the disappearances of hundreds of people in the western province of Baluchistan.
Officers hope the drama will show the military’s gentler side. “People think the army goes and kills everybody. It’s not that easy. We can’t start killing and bombing our own people,” said Brigadier Syed Azmat Ali. “When this programme goes out you will see half of Pakistan crying.”
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