Cabinet approves BSNL-MTNL merger plan. RBL Bank share price plunges as analysts cut target by 40%. SoftBank to take over 80% of WeWork ; to infuse another $8bn in the co-working company. Mark Zuckerberg to appear before the Congress. Brexit likely to be postponed once again as MPs refuse to rush through the legislation required to implement the deal in three days.
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It's a Plan: The Cabinet today approved the merger plan for loss-making telecom PSUs BSNL-MTNL as part of a revival package that includes raising sovereign bonds, monetising assets and voluntary retirement scheme (VRS) for employees.
As part of the four-step revival package, MTNL will be merged with BSNL. Pending this, MTNL will act as a subsidiary of BSNL. ET Policy
Plunging Down: RBL Bank share price today fell c. 20%, hitting a record low of INR230 before closing at INR260.30 (-9.29%) as global analysts cut target by up to 40% following a dip in Q2 profit.
RBL Bank’s net profit slumped 73% to INR54cr vs INR205cr last year due to a sharp rise in provisions as the bank had to set aside money to cover for a rise in non-performing assets (NPAs). Moneycontrol
Racing High: Bajaj Auto share price today jumped 2% at INR3,186 as compared to a 0.44% rise in Sensex. The rise came on the back of better-than-expected Q2 earnings. The Indian automaker reported a 22% increase in net profit for Q2 at INR1,402.42cr vs INR1,152.48cr in the previous year. Business Today
We’ve Got Your Back!: Biggest investor of WeWork has struck a deal with the coworking company to infuse $5bn in new financing and issue a tender offer for another $3bn in buybacks for shareholders.
Post the infusion, SoftBank’s stake in WeWork will increase to approximately 80%.
SoftBank also said that it would accelerate an existing commitment to put $1.5bn into the company. Verge
Shares of SoftBank tanked c. 2% on the back of the announcement.
Better Days Ahead?: The announcement can mark a reversal of fortunes for WeWork, which has lost nearly $39bn of its valuation over the past five weeks, withdrawn its S1 filing and seen its Co-Founder Adam Nuemann step down as CEO.
FYI: SoftBank's shares have fallen 30% from their July peak as investor scepticism grows over the path to profitability for its cash-burning marquee investments like WeWork and publicly listed ride-hailing firm Uber Technologies. Al Jazeera
Oh Snap: Snap reported Q3 earnings that exceeded Wall Street expectations for user growth and revenue. At the same time, it predicted slightly weaker revenue for the final months of the year. Revenue rose to $446mn – up almost 50% Y-o-Y – while its user base has grown to 210mn active users. Forbes
Tweeting, Thanks to Space: Elon Musk has reportedly used an internet connection provided by SpaceX’s Starlink satellite constellation to send out a tweet declaring that he’d just done that.
Starlink is the ambitious project to provide reliable high-speed internet connectivity across the world using low-orbit satellites instead of the ocean floor cables that enable the internet today. Earlier this month, the company said it intended to build 30,000 more Starlink satellites, on top of the 12,000 already planned. TechCrunch
Hit Me SEBI, One More Time!: Markets regulator Securities and Exchange Board of India (SEBI) is probing the buildup of huge derivatives positions in Infosys stock before whistleblowers allegations of accounting malpractices against the CEO and CFO went public.
Huge derivatives positions were built up and put positions were accumulated in the November series of Infosys. Livemint
Pleading Innocent: Facebook CEO Mark Zuckerberg will testify before Congress today on the social media giant’s plan to create global digital currency, which has stirred opposition from lawmakers and regulators in the US and Europe. The Hindu
Power of the People: Hong Kong’s legislature has officially withdrawn a controversial extradition bill that would have allowed criminal suspects to be extradited to mainland China. The bill, which was introduced in April, sparked massive outrage and anti-Beijing protests on the island. Post-bill withdrawal, however, demonstrations have continued as the protests have evolved to become a larger pro-democracy movement. BBC
Déjà Vu: Brexit is set to be postponed for the third time. On Tuesday, Boris Johnson managed to secure MPs’ support for his deal. But in a follow-up vote, they refused to rush through the legislation required to implement the deal in three days. This leaves the door open for the EU to approve the previously-sent request to delay the Brexit deadline to January so as to avoid a no-deal exit – something Brussels and Westminster are averse to, but Johnson has championed. CNBC
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