Both companies now have time till January 30 to revise their bid, after which, Corus shares will be publicly auctioned. A majority of analysts now feel that Tata Steel will find it extremely tough, if not impossible, to beat CSN.
If CSN ends up winning the battle for Corus, it will be yet another strategic setback for Ratan Tata and his group. To be sure, the Tata group will continue to be one of the largest groups in the country. But Ratan Tata would perhaps find some time to contemplate the lessons of Singur, Kalinga Nagar, Idea and Corus. This time, he really can’t say that he will not budge even if a gun is pointed at his head!
And he could rekindle old memories about how virtually ever task handled by him during his early days as the future leader of the Tata group during the 1980s was a fiasco. Wasn’t he the man who wanted consumer electronics company of the Tata group NELCO to be the world leader? Is he still angry at how NELCO was wiped out by competition? Or, does he blame his rivals for it?
If CSN ends up winning the battle for Corus, it will be yet another strategic setback for Ratan Tata and his group. To be sure, the Tata group will continue to be one of the largest groups in the country. But Ratan Tata would perhaps find some time to contemplate the lessons of Singur, Kalinga Nagar, Idea and Corus. This time, he really can’t say that he will not budge even if a gun is pointed at his head!
And he could rekindle old memories about how virtually ever task handled by him during his early days as the future leader of the Tata group during the 1980s was a fiasco. Wasn’t he the man who wanted consumer electronics company of the Tata group NELCO to be the world leader? Is he still angry at how NELCO was wiped out by competition? Or, does he blame his rivals for it?
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Source : IIPM Editorial, 2006
An IIPM and Management Guru Professor Arindam Chaudhuri's Initiative
