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C.    the offending news item published on 03.05.2006


CS(OS) No.1102/2006                                                                          Page 6
PLL plans $ 100 million FCCB: ADB bailout in case of redemption pressure "May 2 : The management of Petronet LNG Ltd., (PLL) is forced to conduct some tight maneuvering no picking up additional funds - to meet conditions precedent that financial closure be tied up by June 30, 2006 set by LNG supplier for its Kochi LNG Plant - without immediate placing any pressure on expanding the already high equity base - of Rs.750 crore- of the company. The management had mooted a $ 100- million foreign currency convertible bond (FCCB) issue to plug the financing gap but there were differing views - within a four member committee set up to took into the proposal - in resorting to this instrument. Finally, the Asian Development offered to help out in case FCCB redemption (expected five years after the issue. In 2011-2012) was not supported by adequate cash flows from within the company."
D. The offending news item published on 05.05.2006:
"PLL's $ 100 - million FCCB: Salient points "May 4: Petronet LNG Ltd., (PLL) proposed issue of $100 million foreign currency convertible bonds (FCCB) to finance Kochi LNG terminal saw five merchant bankers making their detailed presentations to the board members of India's largest liquefied gas importer. The salinet point of the presentation were:
. the redemption of the bonds would be guaranteed by the merchant banker, . In the event of the bonds being converted into shares, they would become zero coupon bonds. However, if conversion takes place after 5 years, the indicated yield to maturity (YTM) would be between 4.5% to 5.5% per annum.
CS(OS) No.1102/2006 Page 13 "PLL plans $ 100 million FCCB: ADB bailout in case of redemption pressure" the defendants deny that it is sensational in nature.

21. According to the defendants, the article dated 05.05.2006 (Para 5 D) "PLL's $ 100 million FCCB Salient points" was found news worthy by the entire business press. The issuance of foreign currency convertible bonds was covered on 4th May 2006 in three major Business news papers namely business line which as mentioned earlier is a part of "The Hindu Group" of new papers, and "Economic Times" which is a part of the Times of India Group of news papers and also in Financial Express which is the part of the (Express group of news papers). These clearly showed that the management of the plaintiff chose and singled out the defendants and not other bigger organizations. In fact, by its very nature the issuance of foreign currency convertible bonds falls within the realm of common commercial news.