IIPM PUBLICATION
When
the whole world (and India too!) was marvelling over how an Indian steel major, so very peacefully gulped down the Anglo- Dutch Corus – a company whose production capacity was 5.4 times that of Tata Steel’s – Brazil’s CSN surfaced & blew away Tata’s dreams with just a few pence more! The Brazilian major placed a higher bid of 475 pence, thus outbidding Tata Steel’s bid by 20 pence per share. So after putting forward a brave front, by placing a high bid of $7.6 billion, will the Indian heavyweight give a higher bid? Or rather, should it? The answer lies in, who has the edge in the whole process and after it?
Tata should not forget that CSN may be a silent competitor, yet its shrewdness cannot be undermined. Consider this – just a day before it placed its higher bid for Corus to unshackle Tata’s formidable stance, it guardedly bought a 2.33% stake (taking its total stake to 3.8%) in Corus through its subsidiary Supernova Acquisitions at 472 pence per share. Interestingly, its banking advisors too hold major stakes in Corus.
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2006
An IIPM and Malay Chaudhuri – Arindam Chaudhuri Initiative
When
the whole world (and India too!) was marvelling over how an Indian steel major, so very peacefully gulped down the Anglo- Dutch Corus – a company whose production capacity was 5.4 times that of Tata Steel’s – Brazil’s CSN surfaced & blew away Tata’s dreams with just a few pence more! The Brazilian major placed a higher bid of 475 pence, thus outbidding Tata Steel’s bid by 20 pence per share. So after putting forward a brave front, by placing a high bid of $7.6 billion, will the Indian heavyweight give a higher bid? Or rather, should it? The answer lies in, who has the edge in the whole process and after it?Tata should not forget that CSN may be a silent competitor, yet its shrewdness cannot be undermined. Consider this – just a day before it placed its higher bid for Corus to unshackle Tata’s formidable stance, it guardedly bought a 2.33% stake (taking its total stake to 3.8%) in Corus through its subsidiary Supernova Acquisitions at 472 pence per share. Interestingly, its banking advisors too hold major stakes in Corus.
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2006
An IIPM and Malay Chaudhuri – Arindam Chaudhuri Initiative
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