In 2001, after Tata Tea took the giant Tetley in leveraged buyouts, he was presented with a problem: there was an array of vertical integration, interaction, but the structure of leveraged buyouts, cultural differences and lack of planning means that the realization of synergies has been postponed. These difficulties are compounded by a cyclical downturn in the tea industry and increased competition from substitute products. The purpose of this case to illustrate: (1) issues related to cross-border merger integration, and (2) when the vertical integration makes sense, and when it is not, and (3) the application of PMI structures and concepts, and (4) issues related with debt repayment structure.;, (5) in the winner's curse trap "Hide
on LJ Bourgeois, Rajsaday Dutt, Avin Dwivedy Source: Darden School of Business 11 pages. Publication Date: December 13, 2004. Prod. #: UV1636-PDF-ENG