no stultifications... no hypocrisy...
no hypocrisy? why Rutam, i dont agree with you here.
when LNM makes some money he denounces India and lives in Londonm, HQ in Netherland (why? because of less corporate tax?). Then the moment the Arcelor controversy comes up, he runs back to indian politicians, and cries foul, wants to deal on the grounds of WTA et al. Brings race into the picture. Meets politicians.
And all the while India has been opposed to WTA.
You talk about fairness? India wants US to do away with American farm subsidies. Indian farmers get Tax Free income and Free Electricity and Water. Isnt that subsidy?
Mittal is the world’s largest steel producer and we feel proud of his global empire and his wealth (he is supposed to be the third-richest man in the world); although he has carefully stayed way from India after a default to Indian financial institutions several decades ago.
Aren’t we also being hypocritical about Foreign Direct Investment? We expect Europe not to look at business in ‘national’ terms. But we don’t practice what we preach. So much so that FDI in the retail sector did not even find mention in the Budget speech even though Indian acquisitions abroad in the technology space have made frequent headlines. FDI in the print media is also blocked under pressure from some ‘nationalist’ media barons.
When Arun Bajoria attempted a raid on Bombay Dyeing by acquiring a 14 per cent stake, it caused Ratan Tata and Keshub Mahindra to rush to Nusli Wadia’s aid; they even met the Sebi chairman to plead his case. The worry then was that Bajoria was backed by a big industry house.
Will Manmohan Singh and Kamal Nath take a consistent stand if a French or American company were to bid for Grasim (Birla holding is officially below 25 per cent)? Here, one must remember that the BJP government has given Indian companies plenty of opportunity to shore up the promoters’ holding and protect ownership.
A quick look at the history of Indian hostile takeovers would show that none of them have succeeded against an entrenched, family-owned company. It is politicial muscle alone that has kept BAT out of the management of ITC Ltd inspite of being its largest shareholder. So much so, that the UTI Specified Undertaking held on to a crucial 10 per cent stake to block BAT acquiring management control, instead of collecting a handsome premium by selling the shares. BAT had no say in ITC’s change in business profile from a cigarette maker to a hotel, FMCG and agro-based company. ITC has also blocked BAT from taking a 51 per cent stake in VST.
Neither those newspapers nor the government is embarrassed at our diametrically different attitude when it comes to domestic policy. If our official stand on the Lakshmi Mittal bid leads to a reconsideration of domestic policies, the global Indian would have made an important contribution. He has already shown that the fear of foreigners is completely unwarranted now that Indians are ready to take on the world.
To the EU crowd, Arcelor isn’t merely a company. It’s the symbol of an integrated Europe.
The Coal and Steel Community fathered by Jean Monnet in 1954 was the genesis of what became the European Union, and for a good reason. The French and Germans battled in 1870 and again in 1914-1918 for control of the grim smelting cities of the Moselle, deemed the strategic key to the Continent.
As a marriage of French, Belgian, Luxembourg, and Spanish components, Arcelor is exactly what the EU is supposed to be in the French political mind: a way of fostering industrial champions that bind Europe together and are big enough to give France leverage and clout on the world stage.
Jean-Pierre Masseret, president of the Lorraine region, called Mr Mittal an asset-stripper bent on gutting France’s heavy industry.
"Mittal is lying when he says he won’t close any of Arcelor’s operations. He is buying a rival and could perfectly well destroy Europe’s steel industry, which he doesn’t need. The powers that be must take action to stop a stock-market raid that threatens Europe’s vital interests and its strategic future," he said.
Mr Mittal has already shown his true by colours by shutting down Irish Steel’s operations in Cork as soon as his five-year guarantees elapsed, sacking all 450 workers and leaving the Irish state with a £21m clean-up bill for waste.
Sacked another 800 workers in South Africa.
