Friday, December 22, 2006

Tata, front runner to control KPC-Arutmin

Tata, BHP, and Mitsubishi are competing to acquire 30% shares of KPC and Arutmin. But Tata is reportedly the strongest candidate. May be it's not USD1 billion. "It's way too expensive for 30% of both coal mining companies. It's a kind of prop-up share price," one analyst at local brokerage firm said. "But, it's depend on the side agreements, let say on coal off-take. It could USD1 billion if the buyer will have control over marketing or such off-take agreement," another analyst said.

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Anonymous Anonymous said...

One can imagine some very interesting discussions when they find out the actual size of the debtors for both companies and possible perilous state of equipment.

Due diligence in this deal would be a mine field. Anywhere else the whole organisation would be subject to government oversight and investigation.

December 25, 2006 6:50 PM  

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