VRITTAM (22 SEP 2013 - 28 SEP 2013)

THE WEEKLY FINANCIAL NEWS  RBI now against 0% EMIs for consumer goods, banks withdraw finance schemes; festive sales likely to be hit  RBI feels consumers have been fooled by zero per cent or discounted interest rate schemes into Believing that bank funding comes for free, and wants them stopped. Consumer durable manufacturers offer the zero per cent facility mostly on high-value products such as smartphones, LED...

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PAC-MAN DEFENCE

Today's word: PAC-MAN DEFENCE Theme for this fortnight: MERGERS & ACQUISITIONS   A strategy of survival in the takeover game, named after a popular game in the US in the early 1980s, in which a character which does not swallow its opponents is itself consumed. In a typical Pac-man defence a target company in the takeover bid will threaten to take over the acquirer and start buying its shares. &nbs...

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GOLDEN PARACHUTE

Today's word: GOLDEN PARACHUTE Theme for this fortnight: MERGERS & ACQUISITIONS   An employment contact offered to company directors and senior management which guarantees to pay extensive benefits if the executives is made to leave the company. Such contacts are offered to make unfriendly takeovers expensive. &nbs...

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DAWN RAID

  Today's word: DAWN RAIDTheme for this fortnight: MERGERS & ACQUISITIONS   A takeover attempt by an individual or a company in which instructions are given to buy all available shares of the target company at current market price as soon as stock exchange is opened for business on a particular date. With this base the bidder makes an attractive offer to the other sharesholders in order to make a full takeover bid. &...

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VRITTAM (15 SEP 2013 - 21 SEP 2013)

THE WEEKLY FINANCIAL NEWS   Draft Company rules mandate rationale for high salaries, hikes The government has proposed to limit the number of investors in private placement schemes to 200 persons with a minimum investment size of Rs 50,000 each in a financial year, the rules suggest that it should be made mandatory for listed companies to give their rationale behind salaries and hikes given to top management personnel vis-a-vis...

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SLEEPING BEAUTY

Today's word: SLEEPING BEAUTYTheme for this fortnight: MERGERS & ACQUISITIONS             In relation to mergers and acquisitions (M&A), a sleeping beauty is a company that is "sleeping;" that is, one that is ripe for takeover to achieve its full potential. A sleeping beauty might be a new company that has great potential but has not yet been noticed, or it could be an established...

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SANDBAGGING

Today's word: SANDBAGGINGTheme for this fortnight: MERGERS & ACQUISITIONS             A tactic used to hide or limit expectations of a company's or individual's strength in order to produce greater than anticipated results. Sandbagging, in business, is most often seen when company managers temper the expectations of superiors or shareholders by giving guidance below what they know...

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