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Friday, October 02, 2009
IMF sees gradual recovery for the world
The global economy will grow next year, but it will be a sluggish recovery that could lose momentum if policymakers start reversing the unprecedented stimulus measures too soon, the International Monetary Fund (IMF) said in its latest World Economic Outlook. Compared with July's outlook, the IMF sees better growth in 2010 due to strong public policies that have supported demand and all but eliminated fears of a global depression. Still, the outlook is for a subdued recovery, well below the growth rates achieved before the global crisis. There is a significant risk of a reversal, the IMF said. "The main short-term risk is that the recovery will stall," according to the latest IMF forecast. "Premature exit from accommodative monetary policy and fiscal policies seems a significant risk because the policy-induced rebound might be mistaken for the beginning of a strong recovery in private demand." Central banks in advanced economies will need to keep interest rates low for a while, the IMF said. "Fiscal stimulus needs to be sustained until the recovery is on a firm footing and may need to be amplified or extended beyond current plans if downside risks to growth materialize," it added.
Cisco to acquire Tandberg
Cisco announced a definitive agreement to launch a recommended voluntary cash offer to acquire Tandberg. Tandberg, based in Oslo, Norway, and New York, is a global leader in video communications, including a broad range of world-class video endpoint and network infrastructure solutions with inter company and multi-vendor interoperability. With this proposed acquisition, Cisco will expand its collaboration portfolio to offer more solutions to a greater number of customers, further accelerating market adoption globally. Under the terms of the agreement, Cisco will commence a cash tender offer to purchase all the outstanding shares of Tandberg for 153.5 Norwegian Kroner per share for an aggregate purchase price of about US$3bn. This represents an 11% premium to the previous day closing price of Tandberg's stock, and a 25.2% premium to the three-month volume weighted average closing price for Tandberg's stock. The proposal was recommended unanimously by Tandberg's board of directors. The acquisition is expected to close during the first half of calendar year 2010. However, the close date is subject to customary closing conditions, including regulatory review in the US and elsewhere. Cisco expects the acquisition to be accretive to Cisco's non-GAAP earnings in fiscal year 2011.
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