Wednesday, June 18, 2008

Win-win situation

The Economic Times (12 April 2008)

Win-win situation

This refers to your edit ‘Who is afraid of takeovers?’ (Edit, April 10). India does not have a history of hostile takeovers. Due to the correction in the stock markets, many companies, especially, medium & small ones are trading at attractive valuations. Because of this, cash rich financial institutions, & private investors will be tempted to target companies with good business models, having low promoter holding. This is a win-win situation for all as such moves will also benefit small & large investors in these companies, as well as, the promoters, who are willing to give up management control, in favour of an equally competent investor for a price.

Ketan R. Meher

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