Skip to main content


Showing posts from August, 2009

Defence against hostile takeovers

Every group is potentially subject to takeover.  There will be a price at which the shareholders may be induced to sell their shares. If the bid is received, then the directors may consider and recommend accepting the offer to the shareholders. A problem arises when a publicly quoted company receives an unwelcome bid with a clear objective of buying the group at a price below the value that the management put on it. How to defend against hostile takeover - Strategies Pac-Man defence A defensive tactic used by a targeted firm in a hostile takeover situation. In a Pac-Man defence , the target firm turns around and tries to acquire the other company that has made the hostile takeover attempt. This term has been accredited to Bruce Wasserstein, chairman of Wasserstein & Co. Poison Pill   The target company attempts to make its stock less attractive to the acquirer. There are two types of poison pills: 1. A "flip-in" allows existing shareholders (except the acquirer)

An Agenda for MCA - Accounting bodies India

Dear Mr. Rahul Roy, director, Ernst & Young India Pvt. Ltd . I refer to your article "An agenda for MCA" on Business Standard and agree with your views on Independent regulator with oversight over the profession, Quality Review Board, amendment to Acts on ICAI, ICWAI and ICSI and Indian accounting body being represented in the global regulatory body. I have a different view on merging the accounting bodies in India for administrative reasons and cutting costs. Having a single accounting body may its own advantages, but the question is it in public interest? The questions that comes to mind are Should we have One University in India that provides all courses ? One car company that can provide cars on economies of scale ? One telecom company for the country Single party for democracy and governance. Should the accounting and internal audit department be merged to save costs. During pre-liberalisation era, when things we