Benjamin Graham once said "when there's a choice between great business & great management,choose great business" & Mr.Kampani is in great business & luckily also is good management, if not great. & to be parting from Morgan Stanley is the right decision. The MNCs operating in India later on always want 100% control of their companies. I would like to quote a few examples, Syngenta India, DSP Merill Lynch, Wartisila, Cadbury,Ingersol Rand,Reckitt Benkinser,Digital Equipment,Bayer Diagnostics & many more to quote. It takes years to build up such a company like JM & Morgan Stanley wanted to swallow it in one go & Mr.Kampani did the right thing. Indian investors are becoming wise now, as they dont tender their shares in open offers easily now, as mostly they are always undervalued. The vested interests who wants to delist the company keeps the share prices subdued & makes the performance of the listed company worst & transfer the main business into 100% subsidary & then approach the shareholders for delisting. But times are changing now. Companies like Cadbury & Reckitt Benkinser would have found difficult to get delisted in the current market senerio, where more knowledge based investors are present then they were before. Thanks.
