ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

mergers and acquisitionsSubscribe to mergers and acquisitions

Hostile Takeovers

The number of mergers and acquisitions has boomed in India since liberalisation, but few hostile takeovers have succeeded, primarily because of the concentration of promoter shareholding in companies and because takeover regulations favour promoters. Hostile takeovers would facilitate M&A growth, and the success of hostile takeovers is essential to facilitate corporate competence and foster capital market development. To be effective, the anti-takeover mechanisms in India should be practised as a protectionist measure and the takeover regulations must adopt a lenient approach towards hostile takeovers, as in the United States.

The Next Internet Bust?

Facebook's recent colossal acquisition of WhatsApp is yet another sign that we are now in the middle of a new internet bubble. This bubble is different from that of the late 1990s in that it is being driven by excess liquidity in the system and the search for the "next big thing" like Google and Facebook.

Indian Companies in an Open Economy

The deed is done and the clock cannot be put back. Competition has come into almost all sectors of Indian industry and will increase. It is making the economy more efficient in using resources. A new breed of entrepreneurs and new industries are emerging who are able to operate successfully in this changed environment. This process must accelerate. It is in the interest of the country's growth and competitiveness that the old companies which do not wish to change and reform themselves become extinct.
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