I was feeling like this and it was just my opinion. What Mr Ani*l Amba*ni was doing during MS bidding. He spent almost 9000cr for 3G what he is getting output?. He is suffering for getting profit. If he would have spent even 5000cr to acquire satyam, his prosperity might be different. the share value might be different today.
Sir even ur own example shows that in the longer run a better ratio for msat holders benefits them AS IT SHOULD based on performance of msat . When the combined entity rate improves every quarter after the merger u will get more for ur msat equivalent than u would now based on present ratio. For example combined entity price at 1200 will give u 1.20 lac at present but 1.65 lac with the improved ratio.
A better merger ratio in favour of msat holders will reflect reality and benefit msat holders in the longer run vis a vis techm holders for in the ultimate analysis the share price of the combined will be reflecting the combined results. In the present case it does not reflect reality of performance of the two entities and is therefore loaded in favour of techm shareholders INSPITE of everyone knowing that the combined entity PERFORMANCE is and will depend to a large extent on msat performance and not techm performance. Techm has also been around for donkeys years without any glamour or great performance barring a couple of years and that too bec of BT patronage. TECHM here is a like a player who stood 4th and is declared the winner ignoring the first 3 winners as participants to spur the 4th place winner
Reducing merger ratio will also not have any significant impact on MS rates because if the ratio is reduced TM rate will correct substantially and MS will settle down accoring to TM rates after that. In the end every investor in MS will get TM shares which has appreciated more than 60% on back of strong MS working. 850 shares of MS today will give 100 shares of TM equvilent to approx Rs 1 Lac. Suppose merger ratio is reduced to 6:1 and TM rate corrects to 750/-. You will get 142 shares of TM for Rs 1.05 lac. This may be the reason for other large investors/ institutions not opposing the merger ratio.
Reposted about 228 days 22 hrs 54 min 26 sec ago by carya1
What u say is the general norm and it is tough to beat it without a sympathetic court hearing. The path is made tougher by virtue of lic, l/t etc not raising any objection to merger ratio and hence court will be inclined to believe that ratio is fair. What needs to be attacked in any petition in this case is that msat management itself had said that it is an icu patient and will come out of icu after 3 years and hence financials after the three years period alone should be considered for merger purpose in the interest of fairness and natural justice principles