jan 31st, 2007
the indian investor has said a loud 'no!' to the acquisition, beating tata steel stock down 11%, no doubt troubled that tata paid too much. which may well be true. bidding wars are bad business.
but tata steel has come through some seriously rough times mostly based on the fact of tata's integrity and sense of purpose. they have got the employees -- in almost japanese style -- to get with the program and be partners rather than the usual striking malcontents steelworkers are often stereotyped as.
i think the jury is out on this one, although tata was forced to pay a very hefty premium indeed. for a conservative company, this is a big one. the benefit is that it got tremendous brand exposure, although that may or may not be something they wanted. if it falls flat on its face, the tata brand will survive, but it will have some egg on its face. however, we had doubts about tata's ability to build a small car, and they sure showed us, didn't they?
i have a lot of respect for tata's ethics and integrity. this is one good company. and the good guys do win now and then.
something more general about the rise of india