Hey guys
So Tata has bagged Corus by piping the Brazilian giant CSN at the post. With a bid of 608 pence a share, Indian corporate giant Tata Steel outsmarted CSN's 603 pence a share offer during the night-long auction process. This effectively means that, as far as steel producing companies are concerned, Tata has screamed ahead from a distant No. 56 before to No. 5 position currently. This is a huge jump one would say. This also marks the biggest acquisition by an Indian company ever. With this win, clearly Tata steel has entered the big league or the “premier league” of steel producing companies. This comes just after the Mittal Steels takeover of Arcelor, though Mittal Steels is not an Indian company and LN Mittal doesn’t have any sizable amount of investments in India.
So things are happening for the global Indian it seems. It seems it is India’s turn to bask in glory. So guys what do you think, finally is India shining, or the farmer suicides taking the shine away.
Also there is mention about how the bid seems to be overpriced at $ 12 billion. I saw a newspaper article that listed out all the things that you could do or buy in $12 billion, and might I add, the list was mind-boggling to say the least. Boy, it does sound like a lot of money.
Please respond with your views.
4 comments:
well, i was actually waiting 4 Poojaa's comments!
Hey common now........ dont pick on her......
Post your views yaar.....
Sorry 2 have posted my comment so late. Seems like some ppl were waiting 4 me to put my comment.
Yes, I and Rahul had discussed at length about this topic and I feel India is moving slowly but steadily towards becoming a global superpower. The takeover of Corus by Tatas is another feather in the cap. We are the third largest investor in UK. The acquisition by Birlas in North America for US $ 6 billion shows that we are ready to take the risk or for that matter we have become confident. Also the fact that ppl are ready to invest in India shows the belief they have in the Indian Economy.
As far as the pricing of the bid goes it is a leveraged buyout. The share prices tumbled immediately after the buyout but they are because of the shortsightedness of the retail buyers. In the long run this surely is gonna be seen as a milestone.
Kudos Vivek 4 drawing our attention 2 such a topic. It was a quick realization that we are doing our MBA and we need to discuss more of this(?)
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