Unsuccessful sale processes, struggling lender, fund-raise and tender offer, vigorous activism, enhanced scrutiny of board responsibilities and litigation, terminated fund raise process and finally a rights issue - or, in three words, PNB Housing Finance (PNBHFL). In what could be a landmark turn of events for India, the PNBHFL saga has shown glimpses of what sophisticated M&A in the West typically entail. While there are various sub-themes to the entire episode, this piece focuses on three key questions which will arguably shape the M&A litigation sphere in the next decade - is a SEBI-prescribed historical price indicative of the fair value of a company? What are the duties of the board of directors while approving a majority sale? And finally, will PNBHFL be the starting point for the growth of appraisal rights litigation in India?
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