Good investing reading – 10 May 2013

Good investing reading

Fresenius Kabi Oncology’s OFS and delisting – minority shareholders skewered

Companies where promoters had a stake that was higher than 75% had to satisfy SEBI’s norms of promoter stake being not more than 75% by June 2013. There are 2 options for promoters. Either buy the remaining stake from the minority shareholders as per delisting guidelines or reduce their stake to 75%.

Fresenius Kabi Oncology was in a similar situation. What they did is legal as per the letter of the law but does not seem proper in spirit.

Fresenius plans to delist 7 months after OFS, raises concerns over Sebi norms ‘violations’


An FII fights to protect its investment in Coal India

The Children’s Investment Fund (TCI) is a well-known activist shareholder. They have been at loggerheads with Coal India’s management and board of directors for not doing enough to protect the rights of the shareholders of Coal India.

Here is an interview where Chris Hohn, Fund Manager, TCI speaks his mind about the corruption in the coal sector in India.

Coal India losing $20bn, corrupt cos gaining: TCI’s Hohn


Warren Buffett and Charlie Munger Annual Meeting 2013 Q&A

You should not miss reading this Q&A with the famous duo behind Berkshire Hathaway. This is from the annual meeting with shareholders in 2013.

Buffett and Munger Annual Meeting 2013 Q&A (Complete)


FII money – not foreign money, only round-tripped

Whether all the FII money that comes in to India, is actually foreign money has been debated for a while now. FIIs can issue P-notes (participatory notes) to end beneficiaries. It means that even though FIIs are registered with SEBI, there are investors behind the wall created by the FIIs. Money that has exited the country through dubious routes can easily enter again through the FII route.

Most foreign investment in BRICs isn’t foreign at all

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  1. Aditya says

    I am finding your website quite interesting. I was not aware of the corruption in PSUs; no wonder such stocks have bled. It’s a real pity that in a country where infra stocks should be booming, we have such systemic problems. I was under the impression corruption was more of a trivial, under-the-table money kind; not such a massive nexus between corporates and govt.

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