Processing .....please wait.. 
The article has been forwarded.... 
News >> Technology >>
Sequoia calls off Indiatimes deal
By agencies
|
Friday, 02 December 2005, 20:30 IST
MUMBAI: Sequoia Capital has called off its deal to partner WestBridge Capital in their
proposed joint investment into Times Internet that operates the Indiatimes.com portal and e-commerce service.
The VC firms had planned to pick up 15 percent of Indiatimes' equity, however the deal did not materialize beyond talks and now only WestBridge has taken a 2.9 percent stake.
Indiatimes, as a part of its plans to list on Nasdaq, was keen on the 15 percent stake sale. It felt that a network of Goldman Sachs-backed WestBridge and Silicon Valley-based venture fund Sequoia Capital would have been valuable for the company in getting a strong valuation.
However, a recent guideline by the finance ministry put a spanner in their plans. The ministry converted the guidelines for foreign currency convertible bond (FCCB) and global depository receipt (GDR) issues to align them with the Securities and Exchange Board of India guidelines on domestic capital issues which said companies listing abroad will have list first in the domestic market.