Videsh Sanchar Nigam Ltd, India’s Bombay-based international phone company, is preparing to re-launch its Euroissue next month under new terms that will see it offering less paper at at lower price, sources among the issue’s managers told Reuter. The Euroissue, India’s biggest ever, is being cut to $650m or $760 million from the earlier proposed $1,000m, which was withdrawn abruptly in May. Videsh will offer 17.5m shares, with a 2.5m option to issue shares in the event of more demand, the sources said. The shares will be offered in the form of Global Depositary Receipts, and the issue’s managers are Salomon Brothers, Kleinwort Benson and newcomer to the team, Jardine Fleming.
Arrow Electronics Inc’s debt is in line for an upgrade from Standard & Poor’s Corp after it agreed to aquire Anthem Electronics Inc. Standard & Poor’s is considering upgrading Arrow’s double-B-plus subordinated debt rating, saying that with the addition of Anthem’s about $700m in sales plus the August 1994 acquisition of Gates/FA Distributing Inc, Arrow has consolidated its position as the world’s largest electronic components and computer products distributor; Arrow must continue to manage its cost structure effectively to offset gross profit margin pressures attributed to very competitive industry conditions, product mix shifts to lower-margin sales and the integration of acquired operations, but the equity issued for acquisitions combined with retained earnings growth have reduced debt leverage to under 40% as of June 30 from over 60% at year-end 1991. Pre-tax interest coverage was a strong 6.5 times in the quarter to June; the two most recent acquisitions, incorporating new equity and little assumed debt, are expected to improve cash flow measures further at Arrow, it said.
