M & A failures

From FE : Over 80% of M&A deals in India do not actually fructify. According to a study by international M&A deals tracking firm mergermarket, India has emerged as Asia-Pacific's second-biggest target after China in terms of official or unofficial intentions expressed for takeover deals from across the world this year.

However, the conversion rate, measuring the proportion of news headlines actually converting into deal announcements, is the second-lowest for the country in the region. India was the target for as many as 561 potential merger and acquisition deals in the first seven months of 2007, trailing China with 824 potential deals. This translates into a daily average of about four deals in China and 2.6 deals targeting India during the 212 days between January and July this year.

However, the study says the number of final deals was just 95 for Indian companies (one deal in more than two days), giving a conversion rate of just 17%- the second-lowest in Asia-Pacific after 15% for Taiwan.


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