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RE:The author is an Idiot.
by Aniruddha on Feb 04, 2007 12:04 AM

dear dear. looks like ur knowledge of finance is a little weak. Tata's have struck the deal as an LBO( u check google/wikipedia for detailed explanation). It means they have financed it with debt. now when companies have huge debts, they have huge interest payments and they take tax shields for these interest payments. so initially all the money from the venture wil go to Investment Banks who gave debt to Tata's and also to Tata shareholders.


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