Can naresh goyal really be – sahara?

IIPM PUBLICATION

After giving it a lot of thought, we gave 'Debilitated Aspirations' as the headline for the story we did on the Jet takeover of Sahara. The story pointed out a few aspects that were being missed out in the gush of laudatory stories, about how great an entrepreneur Naresh Goyal was and how far-sighted he was. As usual, Business & Economy took a long and hard look at the deal and came to some unflattering conclusions.

First, it might have been a bad idea on the part of Goyal to buy out Sahara. As subsequent events proved, Jet did try its best to wriggle out of the deal; it is only the iron clad nature of the contract that forced Naresh Goyal back to the negotiating table.

We also contended that while the Jet takeover of Sahara may not have been wise, it was the signal for a wave of consolidation that was bound to be seen in the industry. So have Air India merging with Indian Airlines; Air Deccan and Kingfisher of Vijay Mallya forming a strategic partnership and talk of Paramount Airways trying to take over the Wadia-controlled Go Air. Way to go!

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Source : IIPM Editorial, 2007

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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