solve this question as soon as posibble, Strategic Management

Tangy spices Ltd, the countries’ biggest spices marketer has decided to launch a hostile bid for Italy’s major spice marketer Chilliano. This is a rare case of an Indian company making an unsolicited hostile bid for a foreign company. The Tangy Spices Ltd. Has competencies in Indian spices. The major destination markets for the Tangy spices Ltd. exports have been the Europe and America. The competencies of Chilliano lie in Italian herbs and spices. The Indian with the takeover wishes to synergies its operations in the world market. It also wants to take advantage of the reach enjoyed by the Italian company in several countries where its products are not being sold presently. The move of hostile takeover follows Chilliano’s rejection to an agreement entered a year back. At that time Chilliano was suffering losses and it offered majority shares at
a price of € 2.25. A total of 20% shares were transferred at that time. In one year Chilliano was able to turnaround its operations and the company made handsome profits in the last quarter. The promoters who have residual holding of 35% in the company are reluctant to transfer the shares now. They have rejected the agreement with a plea that the earlier offer price was not sufficient. Tangy spices Ltd. has revised its offer to € 2.95 By this lucrative offer some of the large shareholders of Chilliano reveal their interest for selling their stakes. On the other hand, promoters maintained their position on this matter. Through the process of buying of shares in the market the Tangy spices Ltd. gradually consolidated its holding in Chilliano to 45%. Being a major shareholder they were ready for a takeover. At the same time, Tangy spices Ltd. was trying hard to improve their position so that they do not leave any space for Chilliano’s promoters in future.
Read the above case and answer the following questions:
(a) What strategic alternative followed by Tangy spices Ltd?
(b) Is the hostile takeover by an Indian company appropriate?
(c) Why the Tangy Spices Ltd. is interested in this takeover?
(d) Why the promoters are reluctant to transfer the shares after the agreement?
Posted Date: 1/31/2013 1:04:45 PM | Location : USA







Related Discussions:- solve this question as soon as posibble, Assignment Help, Ask Question on solve this question as soon as posibble, Get Answer, Expert's Help, solve this question as soon as posibble Discussions

Write discussion on solve this question as soon as posibble
Your posts are moderated
Related Questions
Recommended process to develop a performance measurement system  1. Senior management need to determine a clear vision of the change that will be required and demonstrate comm

Would you recommend changing to the optimal order interval?

Your assignment is to write a memo or email based on the case below.Dropthe completed and final assignment in the assignment dropbox on Slate and bring a hard copy to next week's c

Recommendation for future strategies, Strategic Management. Conclusion

Q. Recommended process to develop a performance measurement system  1. Senior management need to determine a clear vision of the change that will be required and demonstrate c

Explain What still matters in strategic management lies in the value of planning? Ans) There is an old saying that if you fail to plan, you are planning to fail. By acting on th

ZEZ Company is in the business of designing and printing bottle labels for soft drinks distributors. The company is, at present, facing very difficult times as recessionary economi

explain strategy as an organisational process

Question: (a). With the help of appropriate examples of your choice explain the different types of personalisation systems? (b). Distinguish between the micropayments and

Question 1: Explain the concept of core competencies and its main characteristics. Describe the different ways by which core competencies can be developed in an organization.