I-T lens on 'more cross border' M&As

NEW DELHI: The income-tax department is examining a few cases of cross border mergers and acquisitions (M&A) for tax related issues, the government informed Parliament on Friday.

They include Sanofi Pasteur Holding's acquisition of Hyderabad-based Shantha Biotechnics and Barclays’ investment in business process outsourcing company Intelnet Global Services.

“A few cases relating to cross border M&A deals have been identified for further examination by the revenue department,” minister of state for finance, SS Palanimanickam said in written reply to a question in Lok Sabha on Friday.

The deal of SKR BPO Services with Barclays (H&B ) Mauritius for acquiring Intelnet Global Services is also been examined by the I-T department for possible tax implications.

Sanofi’s vaccine arm had bought ShanH, which owns 80% of Shantha Biotechnics, from the Merieux Alliance and Groupe Industriel Marcel Dassault for $784 million in 2009.

Blackstone-owned Intelnet Global Services formed a strategic partnership with Barclays Bank. As part of the partnership, Barclays has acquired a 12.75% stake in SKR BPO Services, the holding company of Intelnet Global Services.

Mr Palanimanickam also mentioned Vodafone’s $11-billion acquisition of Hutchison Essar and deal between New Cingular Wireless Services with AT&T Mauritius for acquiring Idea Cellular and also stake transfers in GE Capital International Services/Genpact India.