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Friday, February 18, 2005

Headless IDBI headed for a merger

It is very interesting to find IDBI, which is headed for a merger with IDBI Bank, to be without a chairman and managing director during the period! I have always believed that the merger was like a sick old man sleeping with a virgin girl to get rid of his disease. It is an age old remedy which continues to be doled out, and the result is never different - Both end up dead.
In human anatomy, a badly wounded person say with bullet wounds, is often compared to a ballon with many pin pricks. The ballon can be kept inflated for very long period of time provided adequate air is carefully pumped in. Similarly, a human being bleeding from many gun shots can be kept alive for extended time by pumping in large quantities of blood. (When Indira Gandhi was shot, the doctors , it is said, did debate whether to keep her alive in a brain dead state for 10-20-30 years till a cure is found!).
In the world of finance too, an institution which is bleeding can be kepy alive by pumping in money and providing it young, strong institutions to partner in bed, oops sorry to merge. then survival can be ensured, atleast for long periods of time. That seems to be strategy at IDBI.

1 Comments:

Anonymous Anonymous said...

aren't any successfull examples of merger in the corporate world? does all end in failure? what is the time span to judge the success or failure??
John

2:37 AM  

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