Tata Corus Deal – Uncovering The Mystery Of The White Knight

Following the 2008 Financial Crisis notable financial institutions worldwide were severely hit. Many had to be taken over or merged with another financial institution, others nationalized by a government or central bank rest declared insolvent or liquidated. The only problem was there wasn’t enough liquidity in the markets. The not so lucky ones were gobbled up by the Chinese.
There has been a marked increase in Outbound Merger and Acquisitions (M&A) by India Inc. as well. Outbound M&A means, the Companies which has origin in India making an initiative in investments in the foreign based companies.
A major landmark was booked by Tata Steel Limited by acquiring the UK based Anglo-Dutch company, Corus Group for a whopping amount of $12.2 billion. For the deal $1 billion was loaned out by SBI in just 5 minutes. Similarly for the Jaguar Land Rover deal another Rs. 1300 crore was loaned out by SBI. The money for these deals was mostly raised through loans from Indian public sector...