Mittal issue: It's a hostile bid | india | Hindustan Times
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Mittal issue: It's a hostile bid

This concerns Vir Sanghvi's aritcle titled Liberalisation Vs Globalisation. He seems to be looking at Mittal-Arcelor bid in a very twisted way. Firstly, this is a hostile bid. I can't recall any such bid being welcomed by the target. Gujarat Ambuja deal was a friendly one. Both party agreed to the price. The reaction here represent the dynamics of hostile bid. Don?t read too much into it.

india Updated: Feb 23, 2006 17:19 IST

You are looking Mittal-Arcelor bid in a very twisted way.

Firstly, Mittal steel's bid for Arcelor is a hostile bid. I can't remember any hostile bid being welcomed by the target. Gujarat Ambuja deal was a friendly deal. Both party agreed to the price and the deal was done. With Arcelor the deal is completely different. I would have preferred if you compared Mittal-Arcelor deal to ITC-BAT (British American Tobacco) deal.

Yogi Deveshwar was hailed as a star when the deal didn’t go through. Remember, method he used to block BAT takeover would not have been allowed in any western country. The reaction to Mittal–Arcelor represent the dynamics of hostile bid. Don’t read too much into it.

Additionally, India is a net beneficiary of globalisation. We need to go a long way to come close to western countries in term of liberalisation. Please don’t equate election talk with official policies. You and I both know election talk means nothing.

How open we are to foreigners working in India? We hate poor Bangladeshi’s trying to earn an honest living and label them as terrorists. If you want to compare the degree of globalisation just see how much we restrict FDI. No western country as any restriction (except for defence) imagines a reaction to Nippon Steel mill’s hostile bid for SAIL. Would you think the deal would go through?

It is quite unfair to say our economic policies are more liberal than west. It is absolutely false. I believe liberalisation is the way to go and we need to go a long way to catch the west.