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Context is everything.
Detailed stories on technology startups, business and economic current affairs.
Detailed stories on technology startups, business and economic current affairs.
Editor's note: Five years ago, IT services giant Cognizant was coasting. Growth in the previous decade had been heady as Nasdaq-listed Cognizant went past erstwhile market leaders like Infosys Ltd and Wipro Ltd to become the favoured stock of investors. A speedbreaker appeared when the company found itself at odds with the Securities and Exchange Commission, the capital markets regulator in the US, under the The Foreign Corrupt Practices Act and was forced to settle charges. While that may have been a blip, it was swiftly followed by another assault, this time from Elliott Management Corp., which bought a 4% stake in the company and then forced the management to make changes to its model of growth at the expense of margins. Over the next few years, Cognizant committed to a three-part Value Enhancement Plan, comprising share repurchases and dividend payouts worth $3.4 billion, along with making changes to its board as well as rejigging its high-growth model. The Cognizant stock, which over the previous decade had underperformed the S&P 500, reacted positively and two years later Elliott exited the company having …
Editor's note: Five years ago, IT services giant Cognizant was coasting. Growth in the previous decade had been heady as Nasdaq-listed Cognizant went past erstwhile market leaders like Infosys Ltd and Wipro Ltd to become the favoured stock of investors. A speedbreaker appeared when the company found itself at odds with the Securities and Exchange Commission, the capital markets regulator in the US, under the The Foreign Corrupt Practices Act and was forced to settle charges. While that may have been a blip, it was swiftly followed by another assault, this time from Elliott Management Corp., which bought a 4% stake in the company and then forced the management to make changes to its model of growth at the expense of margins. Over the next few years, Cognizant committed to a three-part Value Enhancement Plan, comprising share repurchases and dividend payouts worth $3.4 billion, along with making changes to its board as well as rejigging its high-growth model. The Cognizant stock, which over the previous decade had underperformed the S&P 500, reacted positively and two years later Elliott exited the company having …
As India prepares to throw open its nuclear sector to private players, the conglomerate is taking position. But the technology, economics and risks look far tougher than anything it has scaled so far.
Multiple institutions have failed in their duty to pursue the litany of cases against Ambani and his companies. This has facilitated a comeback that should never have been
The return to profitability and the deleveraging at Reliance Power and Reliance Infra are not what they’re cracked up to be. Plus, as their promoter, his past continues to haunt the two surviving group companies.
As India prepares to throw open its nuclear sector to private players, the conglomerate is taking position. But the technology, economics and risks look far tougher than anything it has scaled so far.
Multiple institutions have failed in their duty to pursue the litany of cases against Ambani and his companies. This has facilitated a comeback that should never have been
The return to profitability and the deleveraging at Reliance Power and Reliance Infra are not what they’re cracked up to be. Plus, as their promoter, his past continues to haunt the two surviving group companies.
