9:45AM New York – Ingersoll-Rand agrees to pay $10 billion to purchase Trane Inc.

Ingersoll-Rand Company Limited has agreed to acquire Trane Inc for cash and stock valuing the company at $10.1 billion or $47.81 per share. Trane, manufacturer of indoor climate control systems is expected to generate revenue of $7.4 billion and with the acquisition Ingersoll revenue is estimated at $17 billion in the year 2008.

Trane Inc, formerly American Standard Companies Inc was recently spun-off as an independent company on November 28, 2007. Trane (TT: chart) employs 29,000 people and generated $6.8 billion in sales in the year 2006.

Under the terms of the merger agreement, which has been approved by the Boards of Directors of both companies, Ingersoll Rand will acquire all outstanding common stock of Trane. Holders of Trane''s approximately 200 million common shares will receive a combination of $36.50 in cash and 0.23 Ingersoll Rand shares of common stock per each Trane share. The total value for this transaction was $47.81 per Trane share based on the closing price as of December 14, 2007. The transaction which is expected to close late in the first quarter or early in the second quarter of 2008, is subject to approval by Trane shareholders, regulatory approvals and customary closing conditions.

Fred Poses, Trane chairman and chief executive said, ""On a combined basis, Ingersoll Rand''s climate control operations are projected to have revenues of approximately $11 billion in 2008 and will have a significant presence in all major segments of the associated industries worldwide. It is anticipated this combination will produce annual pre-tax cost and revenue synergies exceeding $300 million by 2010. Anticipated synergies include purchased material savings through supplier rationalization and procurement leverage, improvements in manufacturing costs, and lower general and administrative costs. Longer term, we will benefit from synergies related to cross selling and service revenue expansion.""

8:00AM New York, 6:30PM Mumbai – Nearly 4% decline in Sensex led the Asian market correction on the inflation worries in the U.S.

The Bombay Stock Exchange benchmark index Sensex fell 3.8% or 769 to 19,261.35 on renewed concerns of rising inflation in the U.S. might make it difficult for the Federal Reserve to make another rate cut.

The 30-share index had moved in a range of 19,177 to 20,032 levels. Heavy selling was noticeable in metals, real estate, and oil and gas stocks.

DLF and NTPC topped the decliners in Sensex index with the stocks sliding over 7.3% each. Tata Steel, HDFC, ONGC, Tata Motors and Hindalco Industries also lost over 5.7 per cent each.

Among the shares on the BSE, 972 advanced, 1,932 stocks retreated, and 23 remained unchanged. Of the 30 index stocks, 29 surged and one fell.

Total turnover on the BSE stood at 9,524 crore rupees and on the NSE was 20,427 crore rupees.

In the broader markets Nifty registered its biggest one-day loss of 4.5% or 270. The 50-share index touched a low of 5,740 levels before closing at 5,777.

Of the NSE-50 stocks, Idea Cellular, Sterlite Industries, SAIL, Nalco, Suzlon and Reliance Petroleum were some of the leading decliners with each losing more than 6%.

Asian markets were subdued on Monday with most of the indices losing over 1.4%. India led the decliners in the region with a loss of 3.8% followed by more than 3% losses in Australia, Singapore, in Taiwan, and Hong Kong.

The India-Sri Lanka: Trade and Investments conference seeking to enhance trade between the two countries opened in India on Monday. The conference which was organised by Observer Research Foundation in conjunction with Confederation of Indian Industries and the Sri Lankan deputy high commission, will also focus on industrial and investment climate and trade related issues.

India and Sri Lanka signed a Free Trade Agreement nine years ago which saw the bilateral trade doubling from $557 million in 1999 to $2.7 billion in 2007.

Of the BSE shares, Reliance Industries declined 3.86% to 2,777.5 rupees, Tata Steel shed 6.2% to 823.85 rupees, Sterlite Industries slid 8.5% to 976.15 rupees on news that the company plans to enter the equipment manufacturing business to profit from the boom in the domestic steel sector.

National Aluminum Company was down 6.9% to 418.50 rupees and Hindalco Industries retreated 5.7% to 200.70 rupees.

Reliance Communications fell 5.6% to 717.80 rupees. The company announced on Monday that it has completed the acquisition of U.S.-based Yipes Holdings that would give the company access to global enterprise data market.

Bharat Heavy Electricals declined 5.3% to 2,425.25 rupees. Bhel announced during the trading hours that it has signed a joint venture agreement with NTPC for establishment of engineering company.