Summary
With memories of Satyam Infotech $ 2 billion scam fresh in everyone's mind, it is a very wrong move by Aurobindo.
During consultations investors had asked me this very question "Corporate Governance"
My reply was, this is one thing difficult to predict.
Aurobindo which has built it's trust over decades should stay away from such moves.
Specially when the target company or the company to be bough belongs to your son!!!
Analysis
Corporate Governance has always been an issue in Emerging markets.
Aurobindo so far has enjoyed a very clean reputation.
Such acts should be avoided, there are better ways to reward your Son!!!
This author consults with leading institutions through GLG
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
