PNB must clarify on its deal with Carlyle
- PNB stands to lose the most by ceding control to Carlyle but the lender seems to be unfazed
- The market has prescribed a high value to the aspect of PNB ceding control at PNB Housing
About 20 years ago, Maruti Suzuki India Ltd’s plan to raise capital through a rights issue had to be stalled, because the government of India wasn’t willing to budge on its demand for a ‘control premium’. The government had planned to renounce its rights and sell them instead to some financial institutions. This, in turn, would reduce its stake and give control of the firm to the joint venture partner, Suzuki Motor Corp.