The purchase of controlling stakes in companies in India will become more expensive and tougher under radical changes proposed by regulators for the country's merger and acquisition rules.
India's takeover panel yesterday said that investors who want to buy more than 25 per cent in a company would be forced under the proposed rules to make a mandatory bid for all remaining shares in the target.
This means that a buyer, who wants to acquire only a 26 per cent stake in a group, runs the risk of buying 100 per cent of the target company, making the takeover more expensive, said analysts in Mumbai.
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