IDBI’s $5.5 Billion Sale Draws Strike Call and Valuation Fight
IDBI workers called for a nationwide strike against Fairfax’s proposed takeover as India’s government defended the valuation and its privatization plan.
Fairfax Financial Holdings’ proposed $5.5 billion takeover of IDBI Bank faces a nationwide strike call and political opposition over valuation and public ownership.
Fairfax Financial Holdings’ proposed $5.5 billion takeover of India’s IDBI Bank faces opposition on two fronts: employees want the privatization stopped, while a dispute over valuation is challenging the government’s case for the sale.
The proposed transfer of more than 60% of the state-owned lender would put a strategic investor in control of its next phase of growth. The government described the transaction on Oct. 14 as the largest foreign direct investment deal in India’s financial sector, making the argument over price consequential beyond the bank itself.
The bid price is not the only valuation question
Fairfax offered 81 rupees per share, above the average fair value set at 75.99 rupees. IDBI shares opened at around 79 rupees on Monday. Those figures place the offer above both the stated valuation and...