RBI prepares rescue plan for Yes Bank. SBI Cards IPO subscribed over 71% on Day 2. Zomato and RBL Bank launch co-branded credit cards to focus on food experiences. Coca-Cola aims to double volumes and boost its business in India. Waymo raises $2.25bn from outside investors and Alphabet. Rajeev Suri to step down as Nokia CEO. Apple agrees to $500m settlement for slowing processor speeds of older iPhones.
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...And I Will Try to Fix You
The Government and the Reserve Bank of India (RBI) are preparing for a rescue plan for private lender Yes Bank to avoid any contingency if its proposed $2bn capital infusion gets further delayed.
A rescue plan becomes necessary considering that the collapse of a bank can have a domino effect on interlinked financial institutions and further impair economic growth.
The possible intervention could include a sale of pooled assets to public sector banks or, as a last resort, sale of a small stake to a state-run bank to pave the way for further capital raising.
This is the second such attempt by Yes Bank to raise funds since its qualified institutional placement in August when its raised ?1,930cr ($266m). [Livemint]
Two is Better Than One
The ?10,335cr ($1,425m) initial public offering (IPO) of SBI Cards and Payment Services, an SBI subsidiary, was subscribed over 71% on Day 2.
The portion set aside for retail investors is subscribed 1.07 times, while that of employees saw 1.8 times subscription, and SBI shareholders portion subscribed 1.23 times. [Moneycontrol]
Zomato has teamed up with RBL Bank to launch co-branded credit cards called “Edition Cards”. These cards will offer customers a range of benefits when they use Zomato online and offline. The key benefits of the Edition and Edition Classic Cards include Zomato credits with every use, Zomato Gold global membership, and lounge access at all major domestic airports. Tha cards are powered by Mastercard. [YourStory]
Coca-Cola took 21 years to sell 1bn cases in India. This includes its sugary sodas and drinks.
The world’s largest beverages company now plans to sell another 1bn cases – in the next five years.
To achieve its goal of making India its third-largest market from the current fifth place, the company is betting on less-sugary drinks and planning to launch products at lower price points within its existing portfolio as well outside it. [BBG Quint]
Money Money Money
Self-driving car project Waymo, which is a business under Alphabet, has reportedly raised $2.25bn in a fundraising round led by Silver Lake, Canada Pension Plan Investment Board and Mubadala Investment Company. It will use the capital raised, alongside Alphabet, to expand its team and add investors and strategic partners.
Waymo’s main focus has been testing and eventually launching its on-demand ride-hailing service called Waymo One using autonomous vehicles. In October, it began pulling safety drivers out of some of the vehicles on its Waymo One service in Phoenix, Arizona. [TechCrunch]
Free for All
To push into Tier-II and Tier-III cities in India, streaming platform Hotstar is offering select free content, including movies, television shows and news.
“The next wave of growth for OTT platforms will come from smaller cities as adoption picks up. In fact, non-metros today outstrip metros in terms of video consumption. Through this campaign, our endeavour is to engage with our audiences further in Hindi-speaking markets and take digital video consumption to new frontiers,” said Varun Narang, Chief Product Officer, Hotstar. [BS]
Coup It Be?
Twitter shares rose only 3.6% so far this year – until Monday, when they surged 7.7%. The reason behind this was a Bloomberg report that activist investor Elliot Management Corp. had taken a sizeable stake in the company and planned to push for changes – including replacing CEO Jack Dorsey.
Elliot’s main concern is reportedly Dorsey’s dual responsibilities to Twitter and mobile payments platform Square Inc. Twitter needs a CEO who can give it their undivided attention, Elliot opines, especially in a year when major news events like the US election, the coronavirus outbreak and the Tokyo Olympics are colliding. [Bloomberg]
After leading Nokia since 2014, Rajeev Suri has announced that he is stepping down as Chief Executive of the Finnish networking giant. Pekka Lundmark, the outgoing President and CEO of energy firm Fortum, has been elected as the President and Chief Executive Officer of Nokia.
Suri will vacate his position on August 31st and continue to serve as an advisor to the Nokia Board until January 1st next year to ensure a smooth transition. [TechCrunch]
Pay for Speed
In 2017, iPhone users discovered that iOS artificially limited processor speeds as phone batteries aged. While this was meant to stop real problems with performance, Apple didn’t reveal this feature’s existence, leading people to buy all-new devices to fix the problem.
The “Batterygate” controversy eventually went to court. Now, the tech giant has tentatively agreed to a $500m settlement in small payouts to iPhone owners in the US, named class members and attorneys. The deal involves the iPhone 6 and 7 lineup, took two months to negotiate, and is awaiting final court approval.
By default, Apple will offer $25 to any current or former owner of a covered iPhone. Named class members will receive $1,500 or $3,500, and around $90m will go toward attorneys. [The Verge]
Fixing the Price, then Paying It
Novartis AG ’s Sandoz subsidiary will pay a $195m criminal penalty in a generic drug price-fixing case. Sandoz admitted it was guilty of participating in several conspiracies to rig bids and fix prices on an array of generic medicines.
The conspiracies took place between 2013 and 2015, including for drugs that treated people with hypertension, cystic fibrosis and skin conditions. Affected drug sales totaled more than $500m, the US Justice Department said. [WSJ]
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