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 banks like State bank of India and others.

When asked by reporters SBI Chairperson Arundhati Bhattacharya refused to disclose the quantum of loans to the Tata companies. The disclosures of Cyrus Mistry and Nusli Wadia have further only substantiated our arguments.

Now in a recent twist of events Tata’s former managing director Jamshed J. Irani has claimed that there was a foreign company involved in influencing the Tata Steel leadership to takeover the Anglo-Dutch company Corus but refused to name the company only calling it the ‘White Knight’.

“The white knight was not an Indian company and it did not appear (after the deal) because of the government,” Irani said. Irani would not name the company that might have comforted the Tata Steel leadership into taking the plunge. “It is a boardroom detail that I would not share,” he said.

The identity of this White Knight is still a mystery but not so difficult to discern.

Mystery Of The White Knight

Ratan Tata is a close friend of a former Israeli intelligence operative Arnon Milchan who reportedly set up a company Blue Sky International in 2008 following a frantic phone call from his close friend Ratan which has come under investigations by Israeli prosecutors. The company was setup in association with Australian casino magnate James Packer.

Mr Milchan is also a Hollywood producer who has produced close to 140 films including The Big Short, Fight Club and Under Siege, and has such a close relationship with Mr Netanyahu that the Prime Minister would leave meetings to take his calls.

The 2008 terror attack in Mumbai led to the security partnership between Tata, Milchan and the Israelis. These included company chairman Ze’ev Feldman, an accountant (Milchan’s, too) and an old friend of Jacob Weinroth – who is also Sara and Benjamin Netanyahu’s lawyer in their criminal investigations. This and many other cases are going on against Netanyahu and these details are only emerging out in the open because Mossad and the Israeli security establishment wants to replace him as Prime Minister in the next elections.

Now what is interesting is that during the 300 days between 2007 and 2009 Ratan Tata was mostly in Israel when Nira Radia was updating him about her lobbying with Indian politicians, public figures, corporate officials and journalists. After an anonymous letter was sent to the finance ministry claiming that Nira Radia was  a covert operator of a foreign government the income tax department tapped Radia’s phones which came out in the public domain as Radia Tapes.

 The Rothschild has a strong influence over Israeli policies and Mossad as well. The Rothschilds got the British Government in 1917 to promise them Palestine in exchange for getting US to enter WWI on the side of Britain and thus ensure Britain’s victory over Germany. Thus the Balfour Declaration was created, which is an official letter from the British Government Foreign Secretary James Balfour to Baron Rothschild. It states that: “His Majesty’s government view with favour the establishment in Palestine of a national home for the Jewish people, and will use their best endeavours to facilitate the achievement of this object.”

This is the kind of influence that the Rothschild exercise on Israel and Mossad as well. As we have explained in our Foreign Countries Dictating India Series for most of these M&A deals talked about above there is only one company that advises everyone including the Government of India itself – N M Rothschild & Sons, one of the controlling families of the East India Companies. It is most likely that Rothschild-Mossad duo is the White Knight.

Whatever be the case after engaging in a bidding war with Brazil’s CSN, Tatas ended up paying 33.6 per cent more (608 pence a share) as opposed to the initial offering of 455 pence a share for Corus. Ultimately Corus was bought at top valuation and experts still wonder why.

How much of these loans are paid back is still a mystery. And on top of that a number of Tata companies are on the verge of default and unable to pay the loan and classified in banking books as Non-Performing Assets (NPAs). In simple terms, an asset is tagged as non-performing when it ceases to generate income for the lender, meaning these loans became unrecoverable bad loans. But wait, when the companies themselves are making good profits how could their loans be termed NPAs?

According to the Comptroller and Auditor General (CAG) of India Shashi Kant Sharma a significant part of NPAs amount to fraudulently obtained advances and a large part of these loans may now be irretrievable as they are likely to have been transferred abroad.

Now for these deals nationalistic sentiments were aroused in the media in favor of the deals. Why? Because it was public money that was being used to bailout US-EU multinational companies. For those of you who still didn’t get it bailout is an act of giving financial assistance to a failing business or economy to save it from collapse. Simply put it was the hardworking Indian taxpayers’ savings that was loaned out to India Inc. by the Indian PSU banks to bailout foreign companies.

It is because of these patriotic loans turned bad loans becoming NPAs being wrote-off in massive amounts the Indian banking industry came into a crisis of liquidity. Simply put part of the Global (mostly North-Atlantic) Liquidity Crisis was now transferred to Indian banks courtesy of India Inc. This is the background under which an attack on cash was launched through Demonetization; this is how the Global War on Cash reached India.

Understand Demonetization from a Geoeconomic perspective. Read our exclusive research by Shelley Kasli on the global #WarOnCash with an impact study on India’s demonetization drive with a push towards a Cashless society published in the Apr-Jun 2017 Demonetization issue of GreatGameIndia – India’s only quarterly magazine on Geopolitics and International Affairs.

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