Sunset on Corus Deal by Jan 30,2006

UK's Takeover Panel wants to settle the siege as Corus has indefinitely postponed its EGM beyond December 20, coupled with prolonging uncertainity of the deal. It set the deadline as Januray 30,2006 for making or withdrawing offers by Tatas or CSN, who are in the race to acuqire the Anglo-Dutch steelmaker Corus. If the bidding crosses the deadline date, an auction conducted by Panel will decide the winner.

I hope Indian government is listening to this as India does not have any panel like UK's The Panel on Takeovers and Mergers, which is an independent body, established in 1968, whose main functions are to issue and administer the City Code on Takeovers and Mergers and to supervise and regulate takeovers and other matters to which the Code applies. Its central objective is to ensure fair treatment for all shareholders in takeover bids.

Present scenario is apt to establish such Panel as many corporates are taking the retail investors for a ride even in take overs on in mergers and acquisitions. As more and more Indian companies are shopping abroad for acquisitions, lack of detail;ed information regarding these deals, a watchdog is necessary to superwise such delas. To protect the interest of small and medium shareholders during the hostile or other take over bids, India should establish a regulatory body on the lines of Takeover Panel of UK, with sufficient powers to see that the small shareholders get their due economic advantage arising out of takeovwrs, mergers or acquisitions.