Investors react badly to Hindalco's bid for Novelis
The $6 billion Novelis acquisition by Kumar Mangalam Birla company Hindalco evokes a mixed response from analysts and shareholders.
Indian companies are on an MA spree and the stakes are getting bigger and bigger. On Sunday February 11, Kumar Mangalam Birla announced that Hindalco Industries would takeover Novelis of Canada in an all cash deal at an enterprise value of $6 billion. Investors responded on Monday by pushing the share price down by 14%.
The deal includes the assumption of $2.4 billion worth of debt, of which $1 billion is term debt and the balance is high-yield...
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