Sterlite Industries India Ltd. (NYSE: SLT), which is already the largest copper and zinc producer in India, is getting bigger. That is, the company has agreed to purchase Asarco LLC (based in the U.S.) for about $2.6 billion. With the deal, Sterlite will get an estimated five million tons of copper reserves.

Basically, it's easier to mine for copper on Wall Street (with acquisitions) instead of digging into the ground. As a result, there were four suitors for Asarco (which, by the way, is in bankruptcy and is dealing with complex environmental liabilities).

Furthermore, with the surge in copper prices, there is definitely enough firepower to get deals done -- at high valuations.

This deal also points to another interesting theme: the aggressive M&A of Indian firms. For example, Tata Motors recently purchased Jaguar and Land Rover from Ford (NYSE: F). There was also Tata Steel's $12 billion acquisition of Corus Group.

And, it's a good bet we'll see a lot more deal-making. Simply put, India needs to snag more natural resources to facilitate its torrid growth rate.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates MergerBook.com.

Shares of Ford Motor Co. (NYSE: F), which are down about 11% this year, are trading close to a 52-week low. Anyone with a pulse knows why: the auto industry stinks.

But let's look at this from another vantage point. At $5.98, all of the bad news may have been factored into the stock price. The company is cutting costs by selling Jaguar and Land Rover to India's Tata Motors for $2.3 billion. While it is a fraction of the price it paid for the luxury automakers, Ford is lucky to have found a buyer at all. The money will at least help put a dent in the $15.3 billion in losses the automaker has incurred over the past two years.

This is a good deal for shareholders since Ford will continue to supply parts to Jaguar and Land Rover and provide financing services for their dealers for up to 12 months.

"Jaguar and Land Rover are terrific brands," said Ford CEO Alan Mulally in a press release. "We are confident that they are leaving our fold with the products, plan and team to continue to thrive under Tata's stewardship. Now, it is time for Ford to concentrate on integrating the Ford brand globally, as we implement our plan to create a strong Ford Motor Company that delivers profitable growth for all."

Under Mullaly, the company is headed in the right direction. Several new models including the Ford Flex do look promising, and Ford seems serious about stemming the losses in North America. I am not suggesting that the company is near solving its many serious problems. But even the tiniest bit of progress will boost the stock from its current levels.

For investors with an iron constitution, this stock may be worth a look. The faint of heart need not apply.

Freelance writer Jonathan Berr edits the blog Ketchup and Eggs.

MAJOR PAPERS:

• Northrop Grumman Corporation (NYSE: NOC) won a $40B contract to turn Airbus jets into "flying gas stations" for U.S. military aircrafts, the Wall Street Journal reported, breaking The Boeing Company's (NYSE: BA) lock on the market.
• Royal Bank of Canada (NYSE: RY) is expected to launch the first covered bond from the country next week, the Financial Times reported. The bank is targeting a benchmark-sized issue worth $1.4B-$4.2B.
• The Financial Times also reported that Indian conglomerate Tata has concluded an agreement with Virgin Mobile USA Inc (NYSE: VM) to launch a cellular phone brand in India. The brand, called Virgin Mobile in India, would target young Indians under a franchise agreement with Tata Teleservices.

WEB SITES:

• Bloomberg reported that former JP Morgan Chase & Co (NYSE: JPM) Vice Chairman Donald Layton is expected to be named E*Trade Financial Corporation's (NASDAQ: ETFC) new CEO. In an interview, Layton said he may consider a sale of the troubled online brokerage if it "made sense" for shareholders.

Ford (NYSE: F) will probably sell its Jaguar and Rover units to India's Tata Motors (NYSE: TTM). But the U.S. car company wants to go beyond that and build its own presence in the huge country. Ford will put up $500 million to increase its manufacturing operations in India between now and 2010. It will also develop a small car for sale in the country.

"This new investment highlights the significance of India's role in our continued expansion and overall strategy for the Asia-Pacific and Africa region," John Parker, executive vice president of Ford for Asia-Pacific and Africa, told Reuters.

While India's car market is growing fast, Ford may find that it is a little late to a very competitive game. Large rivals from Europe, GM (NYSE: GM), and Toyota (NYSE: TM) all want a piece of the same market, and India has its own car companies protective of their turf.

GM announced that it hopes to have 75% of its sales overseas in 10 years. Ford probably has similar goals because the U.S. car market is both competitive and slow-growing. But that means that a number of companies are all trying to get share in the same markets -- India, China, Russia, and South America. Ford would not seem to have any big advantage in this race, and its fairly weak balance sheet is not likely to help it expand.

Douglas A. McIntyre is an editor at 247wallst.com.

Earlier today, Ford Motor Company (NYSE: F) announced that it had chosen to move into more "focused" talks with India automaker, Tata Motors Ltd. (NYSE: TTM) over a possible sale of its Jaguar and Land Rover units.

Ford, which sold its controlling stake in its Aston Martin unit last year for $931 million in cash and stock, has been searching for the right suitor for Jaguar and Land Rover. Although there are no details on the Tata discussions being made public, last month people close to the talks stated that the bids were running between $1.5 billion and $2 billion.

Ford spent a combined $5.2 billion for Jaguar and and Land Rover when it first took over the units.

Before the bell: Futures slide again on economic worries

Take-Two Interactive Software Inc (NASDAQ: TTWO) reported results after the bell on Tuesday. While its quarterly net loss was cut in half, forecast and sales outlook fell short of expectations. In after hours trading, TTWO shares fell 4%, although indication so far this morning is choppy.

Discount brokerage TD Ameritrade Holding Corp (NASDAQ: AMTD) raised its outlook for first-quarter earnings on Tuesday to 39 cents per share, up from its previous forecast of 27 cents to 33 cents. This is above the 32 cents per share analysts expect. The broker also said average daily trades per client rose to a record in November. Could it be that many try to actually time their trades in this volatile market?

Darden Restaurants Inc (NYSE: DRI) shares are down 8.5% in premarket trading after reporting a nearly 30% drop in quarterly net earnings after the bell on Tuesday. The parent of the Olive Garden and Red Lobster restaurant chains saw fewer customers, hurting sales just as food and acquisition costs rose.

MAJOR PAPERS:

• The Wall Street Journal's "Heard on the Street" reported that analysts believe investors should take a look at some Indian pharmaceutical stocks, including two of the subcontinent's biggest generics makers, Dr. Reddy's Laboratories Limited (NYSE: RDY) and Cipla Ltd.
• According to the Wall Street Journal's "Heard in Asia," shares of India's three largest tech and outsourcing companies by sales, Infosys Technologies Limited (NASDAQ: INFY), Tata Consultancy Services and Wipro Limited (NYSE: WIT), may be worth a look by investors despite some near-term volatility.

OTHER PAPERS:

• David Letterman is seeking his own deal with the Writers Guild of America which would allow his show to return to air on CBS Corporation's (NYSE: CBS) CBS station in early January even if the strike is continuing, the New York Times reported.
• According to the UK Times, Ford Motor Company (NYSE: F) is expected to name Tata as the preferred bidder for its Jaguar and Land Rover units.

Finding a buyer for Jaguar and Land Rover has taken a long time. But, it appears that Indian car company Tata now has the poll position to buy them from Ford Motor Co. (NYSE: F). The price will be about $2 billion. According to The Sunday Times, "sources close to the negotiations say an announcement could come in the next fortnight, bringing to an end a six-month auction."

Even with its need to fund a new health care pool for the UAW, it is not clear that the move is a good idea.

Ford is being hurt by a falling market share in the U.S., and the total car market here is also falling. Higher fuel prices and a damaged housing market are likely to take a further toll on the auto industry in 2008.

In Jaguar and Rover, Ford has two premium, global brands. As a strong middle class emerges in China and Russia, these are the kind of cars that are likely to sell well. Ford only has modest operations in these countries.

Selling the two brands may end up being very short-sighted.

Douglas A. McIntyre is an editor at 247wallst.com.

MAJOR PAPERS:

• Countrywide Financial Corporation (NYSE: CFC) announced another 900 job cuts as the company slashes costs in the face of a drop in lending volumes and rising defaults, The Wall Street Journal reported.
• Barron's Online's "Inside Scoop" section reported that CVS Caremark Corporation (NYSE: CVS) chairman Edwin Crawford sold 120K shares worth $45.4M Friday and Tuesday after exercising the same number of options for $2.8M.

OTHER PAPERS:

• Italian carmaker Fiat (OTC: FIATY) is negotiating with India's Tata Motors Limited (NYSE: TTM) on a joint bid for Ford Motor Company's (NYSE: F) Jaguar and Land Rover divisions, reported the Telegraph.
• British mobile telecom company Vodafone Group (NYSE: VOD) has received a $2B tax bill from the Indian government, reported the U.K. Times.
• The Economic Times reported, citing a source close to the development, that Ranbaxy has joined the bidding on Bradley Pharmaceuticals Inc (NYSE: BDY) by placing a preliminary non-binding bid on the company.

Ford Motor Co (NYSE: F) signed an agreement with the UGT Union in Spain today, according to the Associated Press. The agreement will allow Ford to build three new small- and mid-sized cars in its Almussafes plant in Spain, with an annual production target of 350,000 cars. The union has agreed to keep labor costs low in effort to keep the plant competitive with its European rivals.

The announcement comes at a time when automakers are doing everything they can to expand their global operations outside of the United States.

Honda Motor Co (NYSE: HMC) is increasing its capacity by 15% in North America to keep up with the growing demand for its fuel-efficient cars. According to the Associated Press, President Takeo Fukui told reporters that annual production will hit 1.62 million vehicles by 2008, up from 1.4 million. A new auto plant will be built in Indiana, Honda's seventh in North America, and is slated to begin production in late 2008, Fukui said.

Overall, demand has been healthy for Honda's cars in America. Honda has a reputation for good mileage at a time when gas prices are reaching record levels. In comparison, American carmakers are fighting a losing battle against Honda and other foreign carmakers to regain its once-superior positioning. As a group, the market share of Detroit's Big Three slid in June to 50.2% from 56.1% a year earlier.

The Big Three are suffering from a problem they chose nearly a decade ago: focus on inefficient sport-utility vehicles and pickup trucks, instead of fuel-efficient cars.

MAJOR PAPERS:

• The Wall Street Journal reported that XM Satellite Radio Holdings Inc (NASDAQ: XMSR) is being sued by members of the National Music Publishers Association over XM receivers with the XM+MP3 service, which allows listeners to store songs they hear on XM onto their players. The suit is charging XM with "unlawfully reproducing and distributing copyrighted music without paying appropriate royalties."
• The Wall Street Journal speculated that the most plausible course of action for Cadbury Schweppes ADS (NYSE: CSG) confectionery operations would be a merger with Hershey Company (NYSE: HSY), which the article said would be "tasty for investors."
• General Electric Company (NYSE: GE) said it would launch a $1.14B takeover bid for leasing firm Sanyo Electric Credit, marking a potential windfall for major shareholder Goldman Sachs Group Inc (NYSE: GS). Sanyo Credit agreed to the offer which will run from Monday to May 9, reported the Financial Times.

OTHER PAPERS:

• According to India's Economic Times, Google Inc (NASDAQ: GOOG) is open to acquiring Indian technology companies with "interesting technologies." The company already said it would invest in two Indian early stage venture capital funds last month.
• The Economic Times also reported that Tata Group is in talks about buying a stake in Deutsche Telekom ADS's (NYSE: DT) business unit, T-Systems, citing a report from German business weekly Focus Online.

MAJOR PAPERS:

• A full page advertisement by CVS Corporation (NYSE: CVS) in this morning's Wall Street Journal (subscription required) warned Caremark Rx Inc (NYSE: CMX) shareholders that their "[investments] would be at risk" under Express Scripts' (NASDAQ: ESRX) proposal and recommended the CVS/Caremark merger. Also in the Journal:
• Investors at Clear Channel Communications Inc (NYSE: CCU) believe they are being short changed and have started a showdown with private equity buyers.
• The NYSE Group Inc (NYSE: NYX) and the Tokyo Stock Exchange are expected to announce an alliance.
• US Airways Group (NYSE: LCC) may increase its offer for Delta Air Lines (OTC: DALRQ).
• The Financial Times (subscription required) featured articles on News Corporation (NYSE: NWS) and Corus Group ADS (NYSE: CGA).
• News Corp's MySpace is close to launching local versions in Canada and Mexico.
• Tata Steel is expected to top CSN's offer for Corus Group at a takeover auction on Tuesday.

OTHER PAPERS:

• USA Today wrote that two years ago, Verizon Communications' (NYSE: VZ) Verizon Wireless turned down the opportunity to be the exclusive distributor of the iPhone in the U.S. because of Apple Inc's (NASDAQ: AAPL) financial terms and other demands.
• Investor's Business Daily's "New America" column mentioned Universal Stainless & Alloy Products (NASDAQ: USAP) positively, writing that Universal is looking to expand abraod with little foreign competition. The specialty steel products company focuses on the aerospace and power industries and named Boeing Company (NYSE: BA) as a key customer.