In eight of 10 occasions, the share prices of firms that spent billions buying marquee assets have underperformed the broader market after acquisition
Big-ticket acquisition by India Inc in the past two decades has not translated into good returns to shareholders.
Only two of the 10 biggest acquirers in the Business Standard sample — Hindalco Industries and Bharti Airtel — became market outperformers. Even then, in the case of the two, it’s doubtful if their recent outperformance on the bourses is due to domestic factors or the gains from acquisition overseas....
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Via business-standard.com
