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The mergers and acquisitions, or M&As, game in India may change for ever |
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The mergers and acquisitions, or M&As, game in India may change for ever with a Securities and Exchange Board of India, or Sebi, appointed panel likely to raise the shareholding threshold that triggers open offers from 15% to 35%. According to two people close to the development, the panel is inclined to do this though it has received some suggestions to make it 30%.
At present, if a company acquires a stake of at least 15% in another firm, it is required to make a mandatory open offer to buy at least another 20% of the second company’s shares from the market.
With the increase in the threshold to 35%, the mandatory open offer limit too will be raised.
If that happens, it will significantly increase the cost of acquisitions in India .
11th Mar 2010
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