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1 – 2 of 2S.R. Vishwanath and Vijaya L. Narapareddy
The case highlights a $1.4 billion fraud committed by the founder of a NYSE listed, Information Technology Services firm in India. In response to the crisis, the Indian government…
Abstract
Case description
The case highlights a $1.4 billion fraud committed by the founder of a NYSE listed, Information Technology Services firm in India. In response to the crisis, the Indian government appointed an interim board to find a strategic investor in the company. The case traces the events leading to the fall of the company. Students are asked to analyze the governance and intermediation failures, assess the financial position of the company and to estimate the intrinsic value of the company from an acquirer's perspective.
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Keywords
V.K. Nangia, Rajat Agarawal, Vinay Sharma and K. Srinivasa Reddy
corporate policy and strategy – mergers and acquisitions.
Abstract
Subject area
corporate policy and strategy – mergers and acquisitions.
Study level/applicability
Post graduation (MBA and other management degrees). It includes courses on Strategic Management, Business Environment and International Business.
Case overview
Markets are becoming highly connective, accessible and communicative and reaching maturity at a very high phase. Acquisition is a choice to enhance the emerging and diversified markets. This case paper presents insights on Vedanta – Cairn India cross-border acquisition deal in Indian oil and exploration industry. This case synchronizes the gap between strategic planning and outcome of actions. The study exclusively evidences the reaction of stocks of all attached parties against acquisition announcement and compares with market performance.
Expected learning outcomes
Strategic mapping of business negotiations, while in-organic choices, further the impact of economic, political, legal and regulatory factors on cross-border mergers and acquisitions (M&A), deliberate deal financing mechanism and leadership diplomacy. It proposes from the viewpoint of corporate in-organic alternatives and to strengthen the upcoming research field of strategy & policy.
Supplementary materials
Global M&A market, shareholding pattern, income statement and balance sheet of Cairn India Ltd, financial figures of Vedanta Resources, tabular data on stock and index performance, deal structure and teaching note.
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