India being emerges as one of the big market for (M&A) Mergers and acquisitions, in the last decade. The market for M&A is expected to grow at a very rapid pace and sooner we may see many hostile bids by the Indian companies, as they are very uncommon in India. Hostile takeovers must be recognized as manifestations of a market for corporate control. Advanced economies regulate M&A activities only from competition angle.
Private equity continuing to invest capital into India Inc, Hope that there would be some hostile takeovers because that is something Indian market badly needs to ensure good value creation for the shareholders.
Few of the cases which I can recall for hostile take over in India are Abishek Dalmia on Gesco and Arun Bajoria on Bombay Dying. Both were medium-sized barons outnumber their bigger peers, and follow quite different paths when it comes to running their businesses – owning substantial stakes in their business and thus less vulnerable to takeover. Continue reading “Hostile Takeovers in Indian Market”
The world’s largest spirits company Diageo Plc decided to hike its stake in United Spirits (USL), a company it acquired in 2012 and try to take its stake to 55%.
Diageo has launched an open offer on Tuesday morning to acquire an additional 26% in the company. Currently Diageo holds 29% stake in the company via one of its international arms Relay BV and has been trying to gradually acquire more shares in Vijay Mallya’s flagship distillery from the open market.
The motive of the offer, if successful, aimed at better strategic control, will give Diageo a higher direct ownership in the business. Tender offer in the Indian market is a rare phenomenon comparing to the global markets. Continue reading “Has the Motive for M&A changed with the Time ?”
Last weekend I have been reading lot of literature and news about the deal between Facebook and Whatsapp. Most of the people have challenged it on the Value and Pricing Perspectives. Have taken some extracted thoughts from prof Aswath Damodaran and they looks very interesting:
Following in the footsteps of my favorite baseball general manager, Billy Beane, its time to play some Moneyball, where we let the data drive our actions, rather than our intellects. Here is what I take out of these numbers:
- If you are an investor, stop trying to explain price movements on social media companies, using traditional metrics – revenues, operating margins and risk. You will only drive yourself into frenzy. Continue reading “WhatsApp Facebook’s Deal”
In the past years my posts on 14th February some way or the other have been in conversations between Love and Finance, my last post in 2013 on Feb 14th was a kind of open proposal expression through the priceless charts Love you by Finance Market Professional : Valentine day! , also today my blog turned-up 6 years old, and my first ever post was on the Mergers and Acquisitions in India! and the government policies .
Getting back to the topic for today A few years ago, somebody asking this question on market timings would have been dismissed as a nit-picking nerd, but today that question has become extremely important. Last week, the Wall Street Journal’s Money Beat blog ! carried an interesting story about how this difference cost a trader $100,000. Continue reading “At What Time the Market closes 4:00:00 PM or 4:00:01 PM”