Rediff.com India Ltd. (NASDAQ: REDF) may be an acquisition target by either Google (NASDAQ: GOOG) or Yahoo! (NASDAQ: YHOO), according to reports. Rediff, one of India's most popular internet portals, is listed on the NASDAQ exchange in the U.S. and is reportedly seeking a takeover deal from either company. I wonder if Google needs this acquisition or if it can grow organically in India? Insofar as Yahoo! is concerned, does the company want to become a major player in the India portal market outside of its existing presence there?

It's no surprise that Rediff should need a stronger brand behind the rapidly growing Indian internet market, and a partnership or purchase would go a long way to establishing it as the internet brand in India. Just like Baidu.com is in China, perhaps Rediff wants to become the largest internet brand in India? The increasing population and internet-connected portion of that growing audience must be making some giddy with delight.

What would a price for Rediff be? Speculation is hovering around $1 billion, and although Google and Yahoo! are being named as the principal suitors, possible interest from Microsoft (NYSE: MSFT) and Time Warner's (NYSE: TWX) AOL has also surfaced. For Rediff to be worth a billion dollars, though, will take some lifting by the company to any acquirer who is at least a little wise with money. Based on all the acquisition activity in the recent year, it's hard to name one, eh?

MAJOR PAPERS:

• IHOP (NYSE: IHP), of pancake house fame, is buying Applebee's International Inc (NASDAQ: APPB), the huge casual dining restaurant chain, for $2.2 billion in a deal concluded last night, reported the Wall Street Journal (subscription required).
• Vodafone Group (NYSE: VOD) is looking at a possible $160 billion bid for Verizon Communications Inc (NYSE: VZ), reported the Financial Times (subscription required).

OTHER PAPERS:

• The U.K. Times reported that Ford Motor Company (NYSE: F) is preparing to sell Volvo, the Swedish car group it bought eight years ago, in a move that could raise $8 billion.
• The Observer reported that BHP Billiton (NYSE: BHP) is lining up a £20 billion bid for Alcoa Inc (NYSE: AA), after its bid for rival Alcan Inc (NYSE: AL) was trumped by Rio Tinto (NYSE: RTP).
• Large American Internet companies, possibly including Google Inc (NASDAQ: GOOG) and Yahoo Inc (NASDAQ: YHOO), are considering snapping up Rediff.com India (NASDAQ: REDF), which runs one of India's most popular consumer Internet portals, reported the Hindustan Times.