A Takeover Battle - Grasim vs. L&T

            
 
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To download A Takeover Battle - Grasim vs. L&T case study (Case Code: FINC024) click on the button below, and select the case from the list of available cases:

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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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Case Details:

Price:

Case Code : FINC024 For delivery in electronic format: Rs. 400;
For delivery through courier (within India): Rs. 400 + Rs. 25 for Shipping & Handling Charges

Themes

Finance : Merger and acquisition takeover
Case Length : 19 Pages
Period : 2002 - 2003
Pub. Date : 2005
Teaching Note : Available
Organization : Grasim, L & T, SEBI
Industry : Financial Services
Countries : India

Abstract:

The case examines how Grasim, a leading Indian business conglomerate, gained control over the cement business of another business group, L&T through stock market mechanizations. It discusses the rationale for Grasim's acquisition of stake in L&T and also examines the acquisition tactics adopted by Grasim to increase its share in L&T. It covers the role of India's stock market regulatory authorities in the issue with respect to insider trading at L&T, the open offer chaos and takeover code violations by Grasim. The case critically examines L&T's decision to demerge the cement division to prevent a takeover by Grasim. The case explores the moves and counter moves adopted by both the companies in this tussle. Finally, it details the settlement plan accepted by both the parties.

Finance | Case Study in Management, Operations, Strategies, Finance, Case Studies

Issues:

Stock market deals influence corporate decisions at the strategic level

Contents:

  Page No.
A Bitter Corporate Feud 1
Background Note 2
Beginning of the War: Exit Reliance, Enter Grasim 3
The Open Offer 5
A Tug of War 6
A Twist in the Tale - CDC Steps in 6
Exhibits 11

Keywords:

Grasim, Indian business, conglomerate, cement business, L&T, stock market, mechanizations, acquisition, stake, L&T, India's stock market, regulatory authorities, insider trading, takeover code, demerge, moves, counter move

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