2.  Left Parties and Opposition together Prevented
Congress to Pass Banking ,Insurance and Pension
fund reforms in Parliament.
 As a result companies like AIG, Citi Group,
Merrill lynch, Lehman Brothers, Bear Sterns,
Bank of America, Wachovia, RBS and many
others were restrained to acquire stakes in Indian
banks and Insurance Companies.

3. • If foreign banks had been allowed to take over 74
per cent interest in Indian banks, our banks would
have collapsed.
• If pension funds had been privatized, crores of
employees would have been ruined.
• Similarly, if the insurance cap had gone up to 49 per
cent, the collapse of American Insurance Group
(AIG) would have made Tata-AIG far more
vulnerable.

6. Leads to Over Valuation
Bullish Stock Market

7. 5th largest steel producer in the world

8. •A premium of 68.7% on Corus’s share price of 360.5 pence
•The deal size implies a multiple of 7-9 times that of EBITDA
•Tata Steel’s share price declined by 11.35%.

9. The deal involved transaction of $5,982 million

11.  In the year 1994, Quaker Oats purchased Snapple
Beverage Co. for a total cost of $1.7 billion

12. DIFFERENCE IN WORKING CULTURE
For a loss
of $1.4
billion.

13. WORTH $37 billion

14. deal worth only 21.5%
$7.4 billion
total acquisition value!

15. 100
million
tonne
steel
 L. N. Mittal became……..

17.  net income in billion dollars
$0.05
$0.55
$1.05
$1.55
$2.05
$2.55
$3.05
Year 2006 Year 2007
Net Income
Net Income
$2.9 billion
$2.3 billion

18.  Earnings per Share
$0.05
$0.55
$1.05
$1.55
$2.05
$2.55
Year 2006 Year 2007
EPS
EPS

19.  P/E Ratio
5.0
5.2
5.4
5.6
5.8
6.0
6.2
6.4
6.6
6.8
Year 2006 Year 2007
P/E Ratio
P/E Ratio

20.  Vodafone paid a smashing $190 billion for
Germany’s Mannesmann.
 Biggest operator in the whole of Europe.

21.  World’s fourth
largest company
overnight.
 Combined entity
was valued at
$365billion.

22.  On July 24, 2008
$203.6 billion, a fall of 53%!
Vodafone has become the
biggest loss making company
ever in the history of mankind!
The loss: $86 billion!

24.  $140 billion merger

26.  The companies had a combined value
of $247 billion at the time of the deal.
 Today, the combined entity is worth a
mind numbingly low $58 billion.

28.  At the time of the merger of Alcatel and
Lucent, the entity had a share price of
$15.4 (March 31, 2006).
 July 24, 2008, the price is $6.09
 Patricia Russo, CEO Alcatel-Lucent, has a
history of destroying shareholder wealth.

30.  CEO Meg Whitman,
who ensured eBay
bought Skype.
 Also ensured eBay’s
price fell from close
to
$40 Sep 9, 2005
$25 Jul 24, 2008

31. MURDERS & AQCUSITION

32.  Studies reveal that approximately 40% to 80% of
mergers and acquisitions prove to be
disappointing. The reason is that their value on
the stock market deteriorates afterwards.

33.  According to J. Thunuguntla, Head
(Equity) at NexGen Capital,
 “Around 70-80% M&As still erode
shareholders wealth .