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Promoter holding of 51 per cent vital -- Bajaj
Subhadip Sircar
Mumbai, Oct 16: Hostile takeovers are here to stay, especially in this era of globalisation," Bajaj Auto chairman Rahul Bajaj said. Speaking to The Financial Express, before participating in a discussion on `Managing radical change: What Indian companies must do to become world-class' organised by the Indian Merchants' Chamber on Monday, Mr Bajaj said: "FIs must not favour people but must play a neutral role in this regard." According to him, "companies in which the management does not have a 51 per cent shareholding or where the share prices quote below the book-value, are those that are most susceptible to hostile takeovers in this liberalised era."In the case of Bajaj Auto, the promoters' stake is high at 42.65 per cent.Mr Bajaj, who has supported for a "level-playing field" for Indian firms in the past, however, declined to comment specifically on the Bajoria-Bombay Dyeing row, as, he said, "there are many close friends involved." With regard to the role of the government, Mr Bajaj stressed that there should be no political interference and that the government should support long-term good managements. "The regulatory body (Sebi, in this case) should provide a level-playing field," he said. Mr Bajaj, however, defended that while he was not a "protectionist", he emphasised: "Don't sell your country short." "Changes start as a trickle and often come up as a flood. We must be ready to face the challenges and threats, as also inculcate attitudinal changes and ability to admit mistakes," Mr Bajaj later said at the discussion. Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.
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