News: Videocon nears Italian deal

(BS 13/02/2007) Mumbai - Even as the fate of its bid for Daewoo's electronics business hangs in the balance, the Videocon group is close to acquiring Magaldi Power, an Italian company.

Italy’s minister of international trade, Emma Bonino, who is on a visit to India, said Videocon Industries was in the final stages of negotiations with the Napoli-based company and a deal was expected to be announced soon.

Magaldi Power SPA is part of a 70-year-old Italian business house. The company deals in dry bottom ash handling systems for solid fuel-fired boilers catering to the power generating industry.

Venugopal Dhoot, chairman of Videocon Industries, refused to comment.

The deal could be announced tomorrow, as a host of Italian companies are expected to sign agreements with Indian companies in Mumbai in the presence of the Italian prime minister.

Fiat is expected to sign another agreement with the Tata Group and Italian aviation major Finmeccanica is expected to announce tie-ups with several Indian aviation companies. However, the trade minister refused to disclose details of the agreements.

Bonino told Business Standard that the Italian delegation, which included almost 400 top Italian CEOs, was extremely bullish on enhancing business ties with India.

She said the Italian government has set up a Euro 300 million “Go India” fund sponsored by a group of Italian financial institutions to help Italian small and medium businesses explore business ties with Indian companies.