Indian sale makes Bain Capital rare buyout hero

November 27, 2015

The U.S. firm has sold its remaining $116 mln stake in Hero MotoCorp four years after investing in the world’s largest motorbike maker. In rupee terms, Bain doubled its money in four years. As private equity pours into India, it’s a reminder that getting money out remains harder.

Asian online giveaways echo past internet follies

November 23, 2015

The drug firms are shrugging off Uncle Sam’s latest attempt to prevent mergers predicated on relocating to low-tax jurisdictions. The largest-ever inversion, at some $150 bln, ought to raise pressure on lawmakers to find more comprehensive fixes to the great M&A tax dodge.

Coal India offers cheap and dirty play on reform

November 19, 2015

A sale of another 10 pct of the lumbering state monopoly could raise $3 bln. It’s an appealing bet on Prime Minister Modi’s reform drive, since shaking up the power sector should lift coal demand. At current prices, a decent valuation and a fat dividend would help too.

Bankruptcy overhaul could tame India’s tycoons

November 18, 2015

A proposed insolvency code aims to tackle troubled firms swiftly, stop large shareholders from stripping assets, and limit the role of the stagnant courts. While India will need to build institutions to implement the overhaul, the days of moguls trampling creditors are numbered.

Hadas: The BRICs are dead. Long live the BRICs!

By Edward Hadas
November 11, 2015

Goldman Sachs coined the acronym in the 2000s when Brazil, Russia, India and China promised the greatest economic shift in a century. Now Goldman is closing its flailing BRIC fund. But poor countries are still gaining on rich ones, and their base for growth is getting more solid.

Modi chooses awkward time for UK rock star welcome

November 9, 2015

India’s prime minister will address a crowd of 60,000 at London’s Wembley Stadium this week. Courting the diaspora makes sense. But the rapturous welcome is out of tune with UK-India business ties and a big local election defeat at home, where Modi mania is definitely over.

D-day nears for Tata Steel as Europe woes grow

November 6, 2015

The Indian steelmaker has written off another $1.3 billion at its ailing European division. Under pressure from cheap Chinese imports, the unit’s EBITDA has turned negative. Tata will need to make tough choices about the business it bought in 2007 sooner rather than later.

StanChart shakeup turns screws on India’s tycoons

November 5, 2015

The lender plans to offload some of its share of loans worth $3.5 bln to Essar Global. The steel-to-ports conglomerate backed by the Ruia brothers is one of India’s most indebted. It’s an overdue warning to the country’s tycoons that suppliers of cheap credit are becoming rare.

Indian telco M&A calls for closer Ambani ties

November 3, 2015

Anil Ambani’s Reliance Communications is buying the Indian unit of Sistema, giving the country’s fourth mobile operator extra spectrum. That makes indebted RCom a more attractive partner for an upstart led by brother Mukesh. A deeper alliance would seal the siblings’ truce.

European crisis will bend but not break Tata Steel

October 6, 2015

The Indian steelmaker’s net debt of $9 bln is three times its market value. Its European business, acquired in 2007, is suffering from cheap Chinese imports. Yet last year’s timely refinancing and support from its parent means Tata Steel can avoid the fate of British rival SSI.