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Typically an investor of that magnitude would have pretty free access to such financial information. A failure to disclose something like this on the bank’s par
by twodave 7y ago
Typically an investor of that magnitude would have pretty free access to such financial information. A failure to disclose something like this on the bank’s part would constitute fraud, and a failure by the investor to discover this given free access would just be naive and negligent (i.e. they deserve the consequences). Maybe in India the rules are different, I’m speaking from my local experience in the US.
- _Understated_ 7y agoRegulation would likely dictate thorough investigation but I know of one example where it didn't happen: RBS purchase of ABN Amro circa 2008. I was at RBS at the time and I remember the fallout later when they realised that paying £10Bn in cash for ABN was a total disaster. I believe the term that was used was "due-diligence lite" to refer to the amount of investigation performed. Which was especially stupid given that, I believe, Barclays had already walked away from the deal.