Tata or Mittal?
Yashwants comment is like Indian proverb – After hearing the entire Ramayan, the listener asks who was Sita.
We are definitely proud of Mittal who turned around loss making Steel Plants across the globe with own money and resources. Tatas on the other hand is capitalizing on the business developed over a century by his forefathers and funded by Indian shareholders.
I try to be very brief covering the entire issue in just one or two pages. If Yashwant has not understood than I think he is like the listener of Ramayan who asked in the end- who was Sita.
Bankruptcy of good story in such is such that almost every day we talk of 8% growth when actual could be 5% or 6% and have very little else to tell the world, outflow from India of $4b to $8b by a company to finance a foreign company becomes great news; this amount is almost equal to two years FDI in India.
When a British Company (Tata Steel UK) executes the take over, all the taxes will go to British government. So it translates in to a fact that INR 15,000 crores to INR 30,000 crores shall go out of India in to UK and approximately INR 2000 crores annually shall go in to British accounts as taxes. Lets see GOI clear this take over.
Malaiya didn't read my message, we should welcome inward FDI but are foolishly celebrating out flow of billions. Some friends report Indian deposits in foreign secret accounts in excess of $250b. Such out flows will become a routine and flight of capital will be through open as well as hidden channels from now on.
It is atrocious to compare Tata & Mittal.
Mittal's takeovers were not funded by poor India. Let remind that over 50 crore people in India don't have electricity, when India is critically short of capital for essential infrastructure Tatas adventure of flying out $4b or more- the deal is not yet closed- is most unfortunate.
Tata or Ambanis were always "Commission Agents". The capital outflow could have installed 4000 MW to 8,000 MW capacity and taxes to finance 500 MW unit every year.
I don't blame Malaiya, misfortune India is that Manmohan Singh finds nothing wrong in flight of $4b to $8b and annual taxes going in to British account.
We don't expect people working under Manmohan Singh or ABV to smart and intelligent, only dumb minds could tolerate daily doze on nonsense.
Ravinder Singh October22, 2006
Posted by: "YMalaiya" ymalaiya@yahoo.com
Sat Oct 21, 2006 2:55 pm (PST)
We are proud of you, Ratan Tatas and Lakshmi Mittals.
Go forth and take over the world.
Yashwant
R Singh <corruptionfree04@ yahoo.com> wrote:
Go forth and take over the world.
Yashwant
R Singh <corruptionfree04@ yahoo.com> wrote:
Corus Group Takeover In London
When I read the news of ninth ranked Corus take over by 56th ranked Tata Steel, first thing that struck me was that majority of the business for the merged company shall be from Europe and this new entity may be required to pay most of the taxes in Europe.
On searching the sites and studying the Corus press release many startling information was uncovered not disclosed by our press.
[The Acquisition will be made by Tata Steel UK, a wholly-owned indirect subsidiary of Tata Steel, and will be implemented by way of a scheme of arrangement under section 425 of the Companies Act 1985.]
1. Wholly owned Tata Steel UK would buy Corus Group, not Tata India. So it is not an Indian take over but a British company taking over another British company. Money will be pumped into TS UK from India and it shall pay all taxes in UK.
2. Takeover process in unfinished. Shareholders of Corus Group have raised objections and may like more money than presently agreed.
3. Tata Steel UK subscribing to UK laws means foreign nationals will acquire shares in it so hold majority or near majority.
>> This is just one illustration of why I rate Manmohan Singh as Quack and idiot. I repeatedly opposed the India takeover code in 1995-6 formulated by Bhagwati Committee.
India allowed only 1% acquisition of shares by NRIs in a year and collectively all NRIs could take 5% share in an Indian company. In just one transaction $8 billion is pumped in to UK economy.
Manmohan Singh and ABV governments made takeovers very difficult for NRIs and foreign companies. Thus India has lost opportunities to invest and induct bulk infusion of capital and technologies over 15 years in India.
Wouldn't it been better if Corus Group invested $4b to take over Tata Steel in India and pay all taxes in India also?
As GOI he ought to have preferred inflows of capital and with it technology and marketing resources. Take over Reliance Petroleum or even Maruti etc. would have inducted well over $100b to $200b in to Indian economy over 15 years accelerating development, boosting exports, creating jobs and generating taxes to the government.
Manmohan Singh Government is not governing India but is governed by Ambani's and Tatas.
Ravinder Singh October21, 2006
[The Acquisition will be made by Tata Steel UK, a wholly-owned indirect subsidiary of Tata Steel, and will be implemented by way of a scheme of arrangement under section 425 of the Companies Act 1985.]
14. Financing
[The Acquisition will be funded by a cash contribution by Tata Steel to Tata Steel UK to the extent of £1,836 million. In addition, Standard Chartered Bank has provided subordinated debt financing to the extent of £196 million to Tata Steel UK. To finance the balance of the consideration due under the Acquisition, Tata Steel UK has in place senior, mezzanine bridge and working capital loan facilities of a total aggregate amount of £3,300 million (comprising senior term loan facilities of £1,600 million, a £350 million senior revolving credit facility and a £1,350 million mezzanine bridging loan facility), which have been jointly arranged and fully underwritten by Credit Suisse, ABN AMRO and Deutsche Bank. These debt facilities will also be used to refinance the majority of the existing debt of the Corus Group (including, it is currently anticipated, the existing public debt), provide working capital for the Corus Group after completion of the Acquisition and pay certain fees and expenses associated with the Acquisition.
ABN AMRO and Deutsche Bank, as joint financial advisers to Tata Steel and Tata Steel UK, are satisfied that sufficient resources are available to satisfy in full the consideration payable to Corus Shareholders under the terms of the Scheme. Further information on the financing of the Proposals will be set out in the Scheme Document.
Under the agreement for the provision of the debt facilities, Tata Steel UK has agreed, save as may be required by the Panel or the Court, not to waive, amend, withdraw or agree not to enforce any material term or condition of the Scheme in any material respect without the prior consent of the agent for each debt facility agreement.]
[The Scheme will be governed by English law. The Scheme will be subject to the applicable requirements of the Takeover Code, the Takeover Panel, the London Stock Exchange, the UK Listing Authority and the Amsterdam Stock Exchange.]
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