4-11 - 4-11-2011 International Acquisitions Emerging Market...

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Unformatted text preview: 4-11-2011 International Acquisitions Emerging Market Bidders/ Tata CaseReadings: Tata Case, How emerging giants are rewriting the rules of M&ABefore 2000, BRIC were only 2% of global activity but now 15%-20% of targets acquired but really BIC countries (now make up more than half of bidders)Tata Groupo139 years old, run by Ratan TataoFunctions as a holding conglomerate companyoWhen Ratan took over, consolidated into 7 sectors and 96 companies (from approx 300 companies)Strengthened and centralized company (charged for brand name Tata) and with that money, marketed the Tata brandTata group owned little of organizations so increased Tata share to at least 26% share to have at least some powerCompanies have to be economic value added (EVA) positivemust cover cost of capital every year after factoring the hurdle rate: EVA=profit (cash flow)/total invested capitaloHe wants companies to go global via acquisitionsoTrying to combine buying power of different companies but still working on it because some...
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This note was uploaded on 03/05/2012 for the course BUSI 599 taught by Professor Ravenscraft during the Spring '10 term at UNC.

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4-11 - 4-11-2011 International Acquisitions Emerging Market...

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