India mulls huge increase in Rafale order, may buy up to 189 fighter jets

PARIS: India could buy up to 189 of the Rafale fighter jets currently being used by France to bomb Islamist militants in Mali, sources close to negotiations on the multi-billion dollar deal have told AFP.

The possibility of an additional 63 jets being added to an expected order for 126 was raised during a visit by India's foreign minister Salman Khurshid to Paris last week, they said.

"There is an option for procurement of an additional 63 aircrafts subsequently for which a separate contract would need to be signed," a source said.

"Presently the contract under negotiation is for 126 aircraft but we are talking about the follow-up."

India's contemplation of a much bigger than anticipated extension of its airpower will inevitably cause concern in neighbouring Pakistan given the permanently simmering tensions between the two countries.

The Indian press has estimated the value of the deal for 126 Rafales at $12 billion (nine billion euros).

A 50 per cent increase in the number of planes ordered would take it to around $18 billion, in a huge boost for the struggling French defence industry, although much of the economic benefit will be shared with India.

New Delhi selected France's Dassault Aviation as its preferred candidate to equip the Indian Air Force with new fighter jets in January 2012.

Under the deal on the table, the first 18 Rafales will be built in France but the next 108 will be assembled in India by Hindustan Aeronautics Ltd in Bangalore.

"The first aircraft will be delivered three years after signature of the contract," the source added.

An industry expert said the time lag reflected India's request for two-seater jets rather than the one-seater model that Dassault currently produces.

India has insisted that the deal involves significant technology transfer and that Indian suppliers secure work equivalent to around half of the value of the contract.

"The negociations for off-sets are progressing well," the source added.

The conclusion of the deal has been repeatedly delayed, with India having initially set a target of the end of last year, which slipped to March 31, 2013, the end of the current fiscal year.

French defence sources said last week that was unlikely to be met but voiced confidence it would finally be done, a stance echoed by Khurshid on his visit to Paris.

"We know good French wine takes time to mature and so do good contracts," Khurshid said after a meeting with French Foreign Minister Laurent Fabius.

"The contract details are being worked out. A decision has already been taken, just wait a little for the cork to pop and you'll have some good wine to taste."

Dassault and the French government are hoping that India's decision will have a positive influence on other potential buyers of the Rafale, who include Brazil, which is in the market for 36 planes, Canada, Malaysia and the United Arab Emirates.

The Rafale was used in a combat situation for the first time during the French-led Nato campaign which deposed Libyan dictator Moamer Kadhafi in 2011 and they have been active in Mali since the weekend.

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Large study confirms flu vaccine safe in pregnancy

NEW YORK (AP) — A large study offers reassuring news for pregnant women: It's safe to get a flu shot.

The research found no evidence that the vaccine increases the risk of losing a fetus, and may prevent some deaths. Getting the flu while pregnant makes fetal death more likely, the Norwegian research showed.

The flu vaccine has long been considered safe for pregnant women and their fetus. U.S. health officials began recommending flu shots for them more than five decades ago, following a higher death rate in pregnant women during a flu pandemic in the late 1950s.

But the study is perhaps the largest look at the safety and value of flu vaccination during pregnancy, experts say.

"This is the kind of information we need to provide our patients when discussing that flu vaccine is important for everyone, particularly for pregnant women," said Dr. Geeta Swamy, a researcher who studies vaccines and pregnant women at Duke University Medical Center.

The study was released by the New England Journal of Medicine on Wednesday as the United States and Europe suffer through an early and intense flu season. A U.S. obstetricians group this week reminded members that it's not too late for their pregnant patients to get vaccinated.

The new study was led by the Norwegian Institute of Public Health. It tracked pregnancies in Norway in 2009 and 2010 during an international epidemic of a new swine flu strain.

Before 2009, pregnant women in Norway were not routinely advised to get flu shots. But during the pandemic, vaccinations against the new strain were recommended for those in their second or third trimester.

The study focused on more than 113,000 pregnancies. Of those, 492 ended in the death of the fetus. The researchers calculated that the risk of fetal death was nearly twice as high for women who weren't vaccinated as it was in vaccinated mothers.

U.S. flu vaccination rates for pregnant women grew in the wake of the 2009 swine flu pandemic, from less than 15 percent to about 50 percent. But health officials say those rates need to be higher to protect newborns as well. Infants can't be vaccinated until 6 months, but studies have shown they pick up some protection if their mothers got the annual shot, experts say.

Because some drugs and vaccines can be harmful to a fetus, there is a long-standing concern about giving any medicine to a pregnant woman, experts acknowledged. But this study should ease any worries about the flu shot, said Dr. Denise Jamieson of the Centers for Disease Control and Prevention.

"The vaccine is safe," she said.

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Online:

Medical journal: http://www.nejm.org

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Notre Dame: Football Star Was 'Catfished' in Hoax

Notre Dame's athletic director and the star of its near-championship football team said the widely-reported death of the star's girlfriend from leukemia during the 2012 football season was apparently a hoax, and the player said he was duped by it as well.

Manti Te'o, who led the Fighting Irish to the BCS championship game this year and finished second for the Heisman Trophy, said in a statement today that he fell in love with a girl online last year who turned out not to be real.

The university's athletic director, Jack Swarbrick, said it has been investigating the "cruel hoax" since Te'o approached officials in late December to say he believed he had been tricked.

Private investigators hired by the university subsequently monitored online chatter by the alleged perpetrators, Swarbrick said, adding that he was shocked by the "casual cruelty" it revealed.

"They enjoyed the joke," Swarbrick said, comparing the ruse to the popular film "Catfish," in which filmmakers revealed a person at the other end of an online relationship was not who they said they were.

"While we still don't know all of the dimensions of this ... there are certain things that I feel confident we do know," Swarbrick said. "The first is that this was a very elaborate, very sophisticated hoax, perpetrated for reasons we don't understand."

Mike Ehrmann/Getty Images

Tale of Notre Dame Football Star's Girlfriend and Her Death an Alleged Hoax Watch Video

Notre Dame's Athletic Director Discusses Manti Te'o Girlfriend Hoax Watch Video

MTV's 'Catfish' Series Pulls Back Curtain on Online Profiles Watch Video

Te'o said during the season that his girlfriend, Lennay Kekua, died of leukemia in September on the same day Te'o's grandmother died, triggering an outpouring of support for Te'o at Notre Dame and in the media.

"While my grandma passed away and you take, you know, the love of my life [Kekua]. The last thing she said to me was, 'I love you,'" Te'o said at the time, noting that he had talked to Kekua on the phone and by text message until her death.

Now, responding to a story first reported by the sports website Deadspin, Te'o has acknowledged that Kekua never existed. The website reported today that there were no records of a woman named Lennay Kekua anywhere.

Te'o denied that he was in on the hoax.

"This is incredibly embarrassing to talk about, but over an extended period of time, I developed an emotional relationship with a woman I met online," Te'o said in a statement released this afternoon. "We maintained what I thought to be an authentic relationship by communicating frequently online and on the phone, and I grew to care deeply about her."

Swarbrick said he expected Te'o to give his version of events at a public event soon, perhaps Thursday, and that he believed Te'o's representatives were planning to disclose the truth next week until today's story broke.

Deadspin reported that the image attached to Kekua's social media profiles, through which the pair interacted, was of another woman who has said she did not even know Te'o or know that her picture was being used. The website reported that it traced the profiles to a California man who is an acquaintance of Te'o and of the woman whose photo was stolen.

"To realize that I was the victim of what was apparently someone's sick joke and constant lies was, and is, painful and humiliating," Te'o said.

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Syrian army on offensive in Aleppo after university blast

BEIRUT (Reuters) - Syrian armed forces launched a renewed offensive in the northern city of Aleppo on Wednesday, state media said, a day after 87 people were killed in explosions at the city's university.

The state news agency SANA said the military had killed dozens of "terrorists" - a term Damascus uses for rebels trying to overthrow President Bashar al-Assad - in the new fighting.

Reuters cannot independently verify reports due to media restrictions in Syria.

"The Armed Forces carried out several special operations against the mercenary terrorists in Aleppo and its countryside, inflicting heavy losses upon them in several areas," SANA said.

Aleppo is split roughly in half between government and rebel forces. SANA said dozens of "terrorists" were killed in the rebel strongholds of Sukari, Bab al-Hadeed and Bustan al-Qasr.

Government forces also killed militants in al-Laramon, a area of Aleppo from which Damascus says two rockets were fired into the University of Aleppo on Tuesday, it added.

If confirmed, the government's report of a rocket attack would suggest rebels in the area had been able to obtain and deploy more powerful weapons than previously used.

The Syrian Observatory for Human Rights, a Britain-based monitoring group, said 87 people were killed and dozens wounded in the explosions, but it could not identify the source of the blasts. It said the toll could rise to more than 100 as there were still body parts that were unaccounted for.

State television showed a body lying on the street and burning cars. An entire facade of a multi-story university building had crumbled and cars were overturned. An interior shot of a corridor showed that the ceiling had caved in.

Amateur video footage showed students carrying books out of the university after one of the explosions, walking quickly away from rising smoke. The camera then shakes to the sound of another explosion and people begin to run.

Syria has been plunged into bloodshed since a violent government crackdown in early 2011 on peaceful demonstrations for democratic reform which turned the unrest into an armed insurgency bent on overthrowing Assad.

Each side in the 22-month-old conflict blamed the other for Tuesday's blasts at the university, located in a government-held area of Syria's most populous city.

Some activists in Aleppo said a government air strike caused the explosions, while state television accused terrorists of firing two rockets at the university. A rebel fighter said the blasts appeared to have been caused by surface-to-surface missiles.

The nearest rebel-controlled area, Bustan al-Qasr, is more than a mile away from the university.

The Observatory said rebel sources on the ground reported they were fighting with government forces in the early hours of Wednesday around Bustan al-Qasr, implying a renewed push by government forces to expel the insurgents.

(Reporting by Oliver Holmes; Editing by Jon Boyle)

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Panel makes recommendations to raise quality of financial advisory industry

SINGAPORE : Singaporeans planning to buy insurance products can look forward to paying lower costs.

This comes after the Financial Advisory Industry Review Panel made a slew of recommendations to raise the quality and efficiency of the financial advisory industry.

They include proposals aimed at lowering the distribution costs of insurance products.

The panel reviewing the financial advisory industry has recommended measures that include raising the minimum education qualification of new financial advisers.

They also propose that a website be set up to make it easier for consumers to shop for financial products.

Lee Chuan Teck, assistant managing director for Capital Markets at the Monetary Authority of Singapore (MAS), said: "The panel recommends that MAS work with the industry to develop a web aggregator that allows consumers to easily compare pricing, benefits and other features of similar products offered by different insurers."

A survey by MAS found that 80 per cent of Singaporeans are not prepared to pay an upfront fee for financial advice.

This led the panel to focus on how to lower distribution costs for insurance-based products.

It has proposed the introduction of a direct channel for consumers to buy basic insurance products directly from the insurers.

Tan Hak Leh, president of the Life Insurance Association, Singapore, said: "Any measures that lead to greater transparency would increase competitiveness and each player would then need to find ways to stay competitive in the market."

However, the financial adviser's role will not be displaced.

A financial adviser's services would still be required to sell some products.

Augustine Lee, president of the Association of Financial Advisers (Singapore), said: "Insurance (products) normally are sold and not bought, so you still need to have independent financial advisers to help you in terms of decision making and choosing the right product."

The Consumers Association of Singapore has welcomed the latest recommendations.

It said the main beneficiaries would ultimately be the consumers.

Seah Seng Choon, executive director of the Consumers Association of Singapore, said: "The issue about under insurance for Singaporeans may be addressed, now that the distribution costs can be lowered through competition."

MAS said it will consult the public on these recommendations and then decide on their implementation.

- CNA/ms

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Hyundai to hike car prices from Feb 1 by up to Rs 20,000

NEW DELHI: Hyundai Motor India will increase prices of its vehicles by up to Rs 20,000 across all models by February 1.

"On account of rise in input cost and fluctuation in currency, we will increase the prices up to Rs 20,000 by February 1, 2013 across all the models starting from Eon to Santa Fe SUV," Hyundai Motor India Ltd (HMIL) Vice President, Sales and Marketing Rakesh Srivastava said.

The company sells a range of vehicles starting from the entry level hatchback Eon priced at Rs 2.77 lakh-Rs 3.83 lakh to luxury SUV Santa Fe tagged at Rs 22.61 lakh-25.63 lakh (ex-showroom Delhi).

Rival and market leader Maruti Suzuki India has increased the prices of its different models, except the imported sedan Kizashi and SUV Grand Vitara, by up to Rs 23,000 from today.

Post the increase the M800 will be costlier by up to Rs 2,500 from its existing price of Rs 2.08 lakh-Rs 2.33 lakh (ex-showroom Delhi). Similarly, the company's hot selling model Swift will be dearer by up to Rs 5,000 from the current price of Rs 5.57 lakh-Rs 6.82 lakh (ex-showroom Delhi).

On the other hand, the company's compact sedan Dzire will see a price hike of up to Rs 10,000 from Rs 4.91 lakh-7.4 lakh (ex-showroom Delhi).

The company's multipurpose van Ertiga, currently priced at Rs 5.9 lakh-Rs 8.63 lakh, will become costlier by up to Rs 7,800. The steepest price increase of Rs 23,000 will be on the cargo version of its van Eeco, which was tagged at Rs 3.9 lakh (ex-showroom Delhi).

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ER visits tied to energy drinks double since 2007

SAN FRANCISCO (AP) — A new government survey suggests the number of people seeking emergency treatment after consuming energy drinks has doubled nationwide during the past four years, the same period in which the supercharged drink industry has surged in popularity in convenience stores, bars and on college campuses.

From 2007 to 2011, the government estimates the number of emergency room visits involving the neon-labeled beverages shot up from about 10,000 to more than 20,000. Most of those cases involved teens or young adults, according to a survey of the nation's hospitals released late last week by the Substance Abuse and Mental Health Services Administration.

The report doesn't specify which symptoms brought people to the emergency room but calls energy drink consumption a "rising public health problem" that can cause insomnia, nervousness, headache, fast heartbeat and seizures that are severe enough to require emergency care.

Several emergency physicians said they had seen a clear uptick in the number of patients suffering from irregular heartbeats, anxiety and heart attacks who said they had recently downed an energy drink.

More than half of the patients considered in the survey who wound up in the emergency room told doctors they had downed only energy drinks. In 2011, about 42 percent of the cases involved energy drinks in combination with alcohol or drugs, such as the stimulants Adderall or Ritalin.

"A lot of people don't realize the strength of these things. I had someone come in recently who had drunk three energy drinks in an hour, which is the equivalent of 15 cups of coffee," said Howard Mell, an emergency physician in the suburbs of Cleveland, who serves as a spokesman for the American College of Emergency Physicians. "Essentially he gave himself a stress test and thankfully he passed. But if he had a weak heart or suffered from coronary disease and didn't know it, this could have precipitated very bad things."

The findings came as concerns over energy drinks have intensified following reports last fall of 18 deaths possibly tied to the drinks — including a 14-year-old Maryland girl who died after drinking two large cans of Monster Energy drinks. Monster does not believe its products were responsible for the death.

Two senators are calling for the Food and Drug Administration to investigate safety concerns about energy drinks and their ingredients.

The energy drink industry says its drinks are safe and there is no proof linking its products to the adverse reactions.

Late last year, the FDA asked the U.S. Health and Human Services to update the figures its substance abuse research arm compiles about emergency room visits tied to energy drinks.

The Substance Abuse and Mental Health Services Administration's survey was based on responses it receives from about 230 hospitals each year, a representative sample of about 5 percent of emergency departments nationwide. The agency then uses those responses to estimate the number of energy drink-related emergency department visits nationwide.

The more than 20,000 cases estimated for 2011 represent a small portion of the annual 136 million emergency room visits tracked by Centers for Disease Control and Prevention.

The FDA said it was considering the findings and pressing for more details as it undertakes a broad review of the safety of energy drinks and related ingredients this spring.

"We will examine this additional information ... as a part of our ongoing investigation into potential safety issues surrounding the use of energy-drink products," FDA spokeswoman Shelly Burgess said in a statement.

Beverage manufacturers fired back at the survey, saying the statistics were misleading and taken out of context.

"This report does not share information about the overall health of those who may have consumed energy drinks, or what symptoms brought them to the ER in the first place," the American Beverage Association said in a statement. "There is no basis by which to understand the overall caffeine intake of any of these individuals — from all sources."

Energy drinks remain a small part of the carbonated soft drinks market, representing only 3.3 percent of sales volume, according to the industry tracker Beverage Digest. Even as soda consumption has flagged in recent years, energy drinks sales are growing rapidly.

In 2011, sales volume for energy drinks rose by almost 17 percent, with the top three companies — Monster, Red Bull and Rockstar — each logging double-digit gains, Beverage Digest found. The drinks are often marketed at sporting events that are popular among younger people such as surfing and skateboarding.

From 2007 to 2011, the most recent year for which data was available, people from 18 to 25 were the most common age group seeking emergency treatment for energy drink-related reactions, the report found.

"We were really concerned to find that in four years the number of emergency department visits almost doubled, and these drinks are largely marketed to younger people," said Al Woodward, a senior statistical analyst with the Substance Abuse and Mental Health Services Administration who worked on the report.

Emergency physician Steve Sun said he had seen an increase in such cases at the Catholic hospital where he works on the edge of San Francisco's Golden Gate Park.

"I saw one young man who had mixed energy drinks with alcohol and we had to admit him to the hospital because he was so dehydrated he had renal failure," Sun said. "Because he was young he did well in the hospital, but if another patient had had underlying coronary artery disease, it could have led to a heart attack."

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Follow Garance Burke on Twitter at http://twitter.com/garanceburke

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NRA Ad Calls Obama 'Elitist Hypocrite'

Pablo Martinez Monsivais/AP Photo

As the White House prepares to unveil a sweeping plan aimed at curbing gun violence, the National Rifle Association has launched a preemptive, personal attack on President Obama, calling him an “elitist hypocrite” who, the group claims, is putting American children at risk.

In 35-second video posted online Tuesday night, the NRA criticizes Obama for accepting armed Secret Service protection for his daughters, Sasha and Malia, at their private Washington, D.C., school while questioning the placement of similar security at other schools.

“Are the president’s kids more important than yours? Then why is he skeptical about putting armed security in our schools, when his kids are protected by armed guards at their school?” the narrator says.

“Mr. Obama demands the wealthy pay their fair share of taxes, but he’s just another elitist hypocrite when it comes to a fair share of security,” it continues. “Protection for their kids and gun-free zones for ours.”

The immediate family members of U.S. presidents – generally considered potential targets – have long received Secret Service protection.

The ad appeared on a new website for a NRA advocacy campaign – “NRA Stand and Fight” — that the gun-rights group appears poised to launch in response to Obama’s package of gun control proposals that will be announced today.

An NRA spokesman said the video is airing on the Sportsman Channel and on the web for now but may appear in other broadcast markets at a later date.

The White House had no comment on the NRA ad.

In the wake of last month’s mass shooting at Sandy Hook Elementary School, the Obama administration has met with a cross-section of advocacy groups on all sides of the gun debate to formulate new policy proposals.

The NRA, which met with Vice President Joe Biden last week, has opposed any new legislative gun restrictions, including expanded background checks and limits on the sale of assault-style weapons, instead calling for armed guards at all American schools.

Obama publicly questioned that approach in an interview with “Meet the Press” earlier this month, saying, “I am skeptical that the only answer is putting more guns in schools. And I think the vast majority of the American people are skeptical that that somehow is going to solve our problem.”

Still, the White House has been considering a call for increased funding for police officers at public schools and the proposal could be part of a broader Obama gun policy package.

Fifty-five percent of Americans in the latest ABC News/Washington Post poll say they support adding armed guards at schools across the country.

“The issue is, are there some sensible steps that we can take to make sure that somebody like the individual in Newtown can’t walk into a school and gun down a bunch of children in a shockingly rapid fashion.  And surely, we can do something about that,” Obama said at a news conference on Monday.

“Responsible gun owners, people who have a gun for protection, for hunting, for sportsmanship, they don’t have anything to worry about,” he said.

ABC News’ Arlette Saenz, Mary Bruce and Jay Shaylor contributed reporting. 

This post was updated at 9:32 am on Jan. 16 to reflect include comment from an NRA spokesman.

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Pakistan turmoil deepens as court orders PM's arrest

ISLAMABAD (Reuters) - Pakistan's Supreme Court ordered the arrest of the prime minister on Tuesday on corruption allegations, ratcheting up pressure on a government that is also facing a massive street protest led by a cleric who has a history of ties to the army.

The combination of the arrest order and the mass protest in the capital Islamabad led by Muslim cleric Muhammad Tahirul Qadri raised fears among politicians that the military was working with the judiciary to force out a civilian leader.

"There is no doubt that Qadri's march and the Supreme Court's verdict were masterminded by the military establishment of Pakistan," Fawad Chaudhry, an aide to Prime Minister Raja Pervez Ashraf, told Reuters.

"The military can intervene at this moment as the Supreme Court has opened a way for it."

However, the ruling coalition led by the Pakistan Peoples' Party (PPP) has a majority in parliament and lawmakers can simply elect another prime minister if Ashraf is ousted. In June, Ashraf replaced Prime Minister Yusuf Raza Gilani, who was disqualified by the Supreme Court in a previous showdown between the government and the judiciary.

Also, elections are due in a few months and President Asif Ali Zardari hopes to lead the first civilian government in Pakistan's 65 years as an independent nation that will complete its full term.

But power struggles will distract the unpopular government from tackling an array of problems - a Taliban insurgency, economic stagnation and growing sectarian tensions triggered by bomb attacks and tit-for-tat shootings.

The military, which sees itself as the guarantor of Pakistan's stability, has long regarded the PPP-led government as corrupt, incompetent and unable to prevent the nuclear-armed country from falling apart.

Pakistan's powerful army has a long history of coups and intervening in politics. These days generals seem to have little appetite for a coup but many believe they still try to exert behind-the-scenes influence.

Some politicians believe the military will try to dominate the caretaker administration that will oversee the run-up to the polls after parliament is dissolved, which is due to happen in March. An election date has yet to be announced.

The protest by Qadri and his followers has also been seen by commentators as being orchestrated by the military to add to the pressure on Zardari's government, although the military has denied any involvement.

Thousands of followers of the populist cleric camped near the federal parliament cheered and waved Pakistani flags as television channels broadcast news of the Supreme Court's order to arrest Ashraf on charges of corruption.

"We don't want any of those old politicians. They just take all the people's money," said 19-year-old student Mohammed Wasim. "We congratulate the whole nation (on the Supreme Court's order). Now we have to take the rest of the thieves to court."

BAFFLED

Government officials said they were baffled by the arrest order, which came hours after Chief Justice Iftikhar Chaudhry said elections should go ahead as scheduled.

"This was totally unexpected," an official in Ashraf's office told Reuters. "The prime minister and two or three of his friends were watching Qadri speak on television and this suddenly happened."

Pakistan's stock exchange fell by more than 500 points, or nearly three percent, on news of the court order, due to fears over fresh political turmoil, which comes against a backdrop of militant bombings and tension on the border with India.

Qadri, who played a role in backing a military coup in 1999, threatened to remain camped out near the federal parliament with thousands of supporters until his demands for the resignation of the government were met.

The fiery orator returned home from Canada less than a month ago to lead a call for electoral reforms to bar corrupt politicians from office that has made him an instant hit among Pakistanis disillusioned with the state.

In a speech from behind a bullet-proof shield in front of parliament, Qadri praised the military and the judiciary, the country's two other power centers.

"(The government) has wasted and brought a bad end to our armed forces, those armed forces who are highly sincere, highly competent and highly capable and highly professional," he said, alternating between Urdu and English.

"Even they can't do anything because the political government isn't able to deliver anything from this land. Judgments are being passed by our great, independent judiciary but the government is not ready to implement them."

Qadri is demanding that the government dissolve the legislature and announce the formation of a caretaker government to oversee the run-up to elections.

He told Reuters on Friday that the military could play a possible role in the selection of the interim administration, a stance which has sharpened fears he may be working at the army's behest. The military denies any ties to him.

One senior military officer, who said he was speaking in a purely personal capacity, said there was no appetite in the military to repeat the coups seen in Pakistan's past, but added the stand-off could be resolved if the army played a role in the formation of a caretaker government as a "moderator".

"We should try as far as possible to abide by the constitution and law in looking for change. The army chief has made this clear," the officer told Reuters.

"But things seem to be moving beyond control," the officer added. "It is totally incorrect to say the army is behind Qadri. But if he brings thousands of people to the streets and things get worse, there may be very few options."

(Additional reporting by Matthew Green and Mubasher Bukhari in ISLAMABAD and Jibran Ahmad in PESHAWAR; Writing by Michael Georgy; Editing by Raju Gopalakrishnan)

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Bidding showdown over F&N expected on Jan 21

SINGAPORE: A corporate shoot out over Fraser & Neave is expected on January 21.

The Securities Industry Council (SIC) has said the final time by which TCC Assets or OUE Baytown can revise its offer is 5.30pm on January 21. Each party will either announce any revision to their current takeover bids or walkaway from the deal.

In a statement issued on Tuesday, SIC said that "given that neither TCC nor OUE Baytown has declared its offer final, the council considers that the company's shareholders should be provided with certainty to make their investment decisions in respect of the competing offers."

If either TCC or OUE makes a revised offer on January 21, then an "auction procedure" will kick-in.

TCC Assets on Tuesday extended its S$8.88 per share offer for F&N for the seventh time to January 21, the very same day that rival bidder OUE's offer expires. A consortium led by OUE made a S$9.08 per share bid for F&N in November 2012.

This, after a first bid by Thai tycoon Charoen Sirivadhanabhakdi through his investment assets, TCC and Thai Beverage, in September.

But given that the tug-of-war has been ongoing for several months, some experts said that the Securities Industry Council will not allow for an indefinite period of market uncertainty.

Shares of F&N have been trading above the offers made by TCC Assets and OUE, indicating that shareholders are expecting higher bids.

Fraser & Neave shares ended Tuesday up 0.1 per cent at S$9.70.

-CNA/ac

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