Taking our business is a usual business practice. How big companies do it in a prudent way can''t be explained in a word or two. There''s a need for following requisite procedures to avoid unnecessary complications in future.So, go ahead and get the
takeover implemented. Systematic planning is of utmost importance. Failing to follow the required norms will lead to complications. Necessary precautions at initial stage can help a lot to execute the take over plan in a phased way. India Inc has been on an aggressive acquisition spree overseas, but here’s one that will be the mother of all takeovers if it goes through. Tata
Steel is said to be eyeing Anglo-Dutch steel producer Corus Group. Even as Tata Steel has officially denied any takeover plans, there is mounting speculation that the Tatas are in talks to acquire a majority holding in the company for anything between $8-9 billion (Rs 36,000 crore-41,000 crore). Goldman Sachs and UBS Warburg are reportedly working at raising the funds for Tata Steel. Others interested in buying out Corus are Russia’s Severstal and Ervaz. Severstal was locked in an intense battle with L N Mittal a few months ago when it bid for control of European steel giant Arcelor. That round went to Mittal. If this deal goes through in favour of the Tatas, it will mean several things.Corus is currently one of the
largest steel producers in the world with 18 million tonnes of production
capacity spread across the UK, the Netherlands, Germany, France, Norway and Belgium. With Tata Steel’s own capacity at seven million tonnes, the combined entity could potentially be the fifth largest steel producer in the world after Nippon Steel and Posco. What’s more, in Europe, Corus is a household name. We need to consult senior financial experts to execute the takeover plan
step by step. This will help to satisfy shareholders'' needs.
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