Tag: Mergers and Acquisitions
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Micro..hoo: A New Twist
This new development on the international M&A front is worth briefly noting on this blog. We had all expected to see a highly-contested battle for control of Yahoo! panning out over the next few months. A hostile bid by Microsoft was keenly on the cards. But, it all ended last weekend turning out to be
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New Merger Norms for Telcos
The Indian telecommunications industry has witnessed significant consolidation over the last few years, with several large scale investments and mergers having occurred in this space. The Department of Telecommunications (DOT) has now issued Guidelines for intra-circle merger of licencees, which seek to strengthen DOT’s control and oversight of such mergers. While these guidelines incorporate several
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Consolidation in the Indian Financial Sector
The financial services sector in India (both in the banking and non-banking finance industry) has witnessed consolidation over the last few years through various mergers & acquisitions. This trend will perhaps continue in the future as well. A recent speech by V. Leeladhar, Deputy Governor of the Reserve Bank of India contains a good overview
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Tata-JLR Acquisition: The Legal Team
Legal Week has a news report on the law firms that advised on the transaction. They are Hogan & Hartson (for Ford), Herbert Smith (for Tatas) and Allen & Overy (for the consortium of banks). The report, however, does not mention about the involvement of any law firms on the Indian side. (In case you
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Fairness Opinions: Art or Science?
It has been said that valuation of a company is more of an art than a science. This has manifested again in the Bear Stearns transaction that is currently hogging limelight among legal circles. In this case, Lazard issued a fairness opinion when JP Morgan’s transaction with Bear Stearns was first announced that a stock
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Bear Stearns: Some Legal Complications
JP Morgan Chase yesterday increased its bid for Bear Stearns to $10 per share from its previous bid of $2, fearing a refusal by shareholders to approve its takeover of the beleaguered broking entity. Several large shareholders of Bear Stearns had expressed disappointment at the initial offer price put out by JP Morgan Chase. As
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Special Purpose Acquisition Companies: On the Rise
Special Purpose Acquisition Companies (SPACs) that are also known as “blank check companies” are gradually acquiring prominence in the Indian markets. It is worth briefly examining these entities and their advantages as well as the risks surrounding them. SPACs are essentially shell entities with no business operations, and which raise funds from the public through
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India Business: A Few Updates
1. Indian Acquisitions in the United StatesOne of our regular readers, Mohit Gogia, who is a lawyer currently based in New York, brings to our attention a report titled “US-Bound Acquisitions by Indian Companies” that has been prepared by Virtus Global Partners. This report contains a snapshot of Indian acquisitions of US companies, both quantitatively
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Hostile Takeovers & Embedded Defences
The Financial Times reported last week in the context of EADS (the maker of the Airbus aircraft) that “France and Germany are finalising changes to EADS’ corporate by-laws to prevent foreign investors building significant stakes in – or even taking over – Europe’s flagship aerospace and defence company.” The plan is to restrict any investor
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Competition Act and Merger Regulation
Today’s Economic Times carries a column by Jaishree Vyavaharkar & David Jacobs of Baker & McKenzie analyzing the provisions of the Act and the recent draft regulations on business combinations, with specific reference to implications on foreign investors. Here are some excerpts: “A fundamental concern for foreign investors was the lack of domestic nexus in
