india going global.indd - The IIPM Think Tank

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RESEARCH Mode of payment of the deals As in the acquiring firm, the acquired firm can decide upon an agreed swap ratio or can agree upon some amount of cash consideration. Example: The offer made to Ambuja cement eastern by Gujarat Ambuja cement was: Offer of four GACL equity shares of Rs 2 each for every five ACEL equity shares of face value Rs 10 each. Mode of Payment The preferred mode of payment in the acquisitions from 2001-2006 Conclusions: • Consolidation is the primary strategic objective behind the corporate acquisitions, followed by the vertical integration, diversification. • In total there are about 10 primary strategic objectives discussed in the research paper. • The majority of the deals were settled on the basis of Stock considerations. • In case the acquisition is of the merger type then the preferred mode of payment through stock (swap ratios) and in case the acquisition is of the type takeovers then the preferred mode of payment is cash. • There are no significant changes seen in the abnormal returns around the date of the announcement of the corporate announcements. Limitations: • The time period considered in the research paper is from 2001-2006 only. • The acquiring companies considered in the data sample are actively trading on the stock exchanges in India. • The study revolves around the Indian economic changes • Cross- Border deals during 2001-2006 have been included. • The market adjusted approach in the only basis for the calculations for the abnormal returns. • A 5 trading day window was chosen for calculating returns. • In all the banking sector acquisitions or in the financial institutions takeovers, mergers have been excluded. • Only the primary strategic objectives have been considered and an assumption that these objectives are mutually exclusive has been made. Bibliography: 1) www.envestindia.com 2) http://www.investopedia.com/university/mergers/ 3) The Bombay Stock Exchange (www.bseindia.com) 4) Christopher B. Kummer “Country-Specific Factors that Indian Companies are attracted by to Pursue Cross-border Mergers & Acquisitions (M&A)” 5) The Economic Times 6) The Hindu Business Line 7) The Business Standard 8) The Securities and Exchange Board of India (SEBI, www.sebi.gov.in) 9) The Reserve Bank of India (RBI, www.rbi.org.in ) 68 Need the Dough July-October - 2007
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IIPM Planman Hyderabad Campus New D
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M A K E W E A L T H W H I L E O T H
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Editor’s Page Dear reader, Prasoo
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PANORAMA A“M&A”ZING INDIA 8
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PANORAMA The year gone by has seen
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PANORAMA MERGERS AND ACQUISITIONS :
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PANORAMA the Public Announcement, i
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PANORAMA DERIVATIVES A Critical Ass
Page 18 and 19: PANORAMA Competitive impact: This f
Page 20 and 21: GLOBAL PERSPECTIVE A BIG RICH INDIA
Page 22 and 23: PANORAMA a patriarchal system, whic
Page 24 and 25: TRENDS Jet Airways - Air Sahara mer
Page 26 and 27: TRENDS report stated that the gover
Page 28 and 29: TRENDS THE SURGING TSUNAMI - MERGER
Page 30 and 31: TRENDS established giants of the in
Page 32: TRENDS The FII funds inflow for the
Page 35 and 36: MERGERS & ACQUISITIONS The golden b
Page 37 and 38: MERGERS & ACQUISITIONS effect on th
Page 39 and 40: MERGERS & ACQUISITIONS Ltd, tractor
Page 41 and 42: MERGERS & ACQUISITIONS sector worth
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Page 45 and 46: P LANMAN TECHNOLOGIES KNOWLEDGE . I
Page 47 and 48: MERGERS & ACQUISITIONS Baffled Cons
Page 49 and 50: MERGERS & ACQUISITIONS or unlisted.
Page 51 and 52: MERGERS & ACQUISITIONS company, cou
Page 53 and 54: MERGERS & ACQUISITIONS Introduct
Page 55 and 56: MERGERS & ACQUISITIONS ing, rather
Page 57 and 58: MERGERS & ACQUISITIONS capital and
Page 59 and 60: MERGERS & ACQUISITIONS The Value Of
Page 61 and 62: RESEARCH βQ = 0. (12) Finally, a C
Page 63 and 64: RESEARCH Tabel 3 Test of Structural
Page 65 and 66: MERGERS & ACQUISITIONS The Main Ide
Page 67: MERGERS & ACQUISITIONS D) Multinati
Page 71 and 72: MERGERS & ACQUISITIONS An abundance
Page 73 and 74: MERGERS & ACQUISITIONS ber 2006, Qa
Page 75 and 76: MERGERS & ACQUISITIONS Kravis Rober
Page 77 and 78: MERGERS & ACQUISITIONS percent abov
Page 79 and 80: MERGERS & ACQUISITIONS The Current
Page 82 and 83: D A R E T O D R E A M : S T R A T E
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