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
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

Fixing the Knowledge Gap: Planning  Now commence the 'Fixing knowledge gap' phase by identifying the broad nature of the solution required, as follows:  a)  Wherever you h

i want to know the BCG matrix of MCB bank pakistan?

What Is Strategy & Why Strategy Is Important? Managers at all companies facade three innermost questions in view strategically concerning their companies' current circumstances

Q. Financial perspective for not-for-profit organisations? The primary objective is profit for most organisations, but for an NPO they are non-profit making. Value for money (V

a) develop a schedule for executing a strategy plan in an organization. b) Make appropriate dissemination process to gain commitment from stakeholders in an organization. c) Desi

Question 1: (i) Why should stategic issues involve all stakeholders for a product or/and service? (ii) What are the objectives of strategic formulation and implementation

how has quantitative analysis changed the current scenario in the management world today?

Product innovation rates are a: a. A goal-based measure. b. A corporate goal. c. A productivity measure. d. An external factor.

Q. What do you mean by Shared service centres? Shared service centres "consolidate" one or more back-office operations for numerous divisions of same group to use e.g. head off