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TAFE To Buy Out American Partner AGCO’s 20.7% Stake For $260 Mn
After 65 years, this tractor company will be a fully Indian organization. Chennai-based Tractors and Farm Equipment Ltd. (TAFE) will buy out its partner AGCO Corporation of the U.S. in the company.  The American firm has 20.7% in TAFE. This will be bought for a consideration of $260 million. The two were engaged in a legal fight over Massey Ferguson brand.  The two have now hammered out a comprehensive out-of-court settlement that is sure to bring the curtain down on the spat between the two. Though TAFE holds 16.3% in AGCO, it has decided to stay out of the board and remain a long-term investor. Significantly enough, this comprehensive agreement confirms TAFE as the sole owner of the iconic Massey Ferguson brand in India and two other countries. Two things emerge out of this agreement. For one, it makes TAFE a wholly-owned subsidiary of the Amalgamation group, a 100% Indian firm at that. For another, the decision to stay out of AGCO board gives TAFE the leeway to chart its own business strategy in the international marketplace. Well, the agreement should do a world of good to both TAFE and AGCO.
tafe
TAFE Pulls A Surprise On AGCO, Gives Up Board Position
In the fast-evolving environment, the winning strategy is defined by smartness. How else could one describe this move by Tractors and Farm Equipment (TAFE).  The Chennai-based tractor company has been engaged in a legal row with its U.S. Partner AGCO Corporation. Both have cross-holding in each other. TAFE is the largest shareholder in AGCO. They have been partners for over six decades. Yet, AGCO has chosen to raise an avoidable dispute with TAFE over the ownership of Massey Ferguson brand. The U.S. company, it may be recalled, confirmed the termination of its commercial agreement with TAFE. Even as the dispute has taken a legal route, TAFE is understood to have decided that it would not nominate its representative to the board of AGCO. TAFE, being the largest single shareholder with over 16% stake, has the right to have a nominee on the board of AGCO. But, it has chosen not to have its nominee on the board. Well, this should give the Chennai-based tractor company quite an elbow-room to chalk out an independent course in the marketplace. How will this strategy play out? One has to wait and watch. In the meanwhile, TAFE has voluntarily agreed to extend its `standstill commitment’ till June this year. The agreement essentially is about freezing TAFE holding in AGCO. The termination of the commercial agreement with TAFE is interpreted as a move by the U.S. firm to force TAFE to sign a permanent `standstill agreement’. In a new normal environment, Indian firms aren’t shying away. Indeed, they are out to establish their multi-national aspiration.
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TAFE Vs AGCO : Madras HC Orders Status Quo Over Ownership Rights Of Massey Ferguson
 In the wake of escalating face-off between the Chennai-based Tractors and Farm Equipment (TAFE) and its American partner AGCO over the ownership rights of Massey Ferguson in India, a two-member bench of the Madras High Court has stepped in to direct the warring parties to “maintain status quo until the original applications are heard and disposed of by the learned single judge. “For avoidance of doubt, we hasten to add that the observations made herein are tentative and solely intended for the purpose of disposing of these appeals. We have not delved much into the various rival submissions. All rights and contentions are kept open,” the two-member bench said in its order on Monday. The relationship between TAFE, an Amalgamation group company, and AGCO Corporation of the U.S. hit a nasty bump in April last when the AGCO management terminated commercial agreements -– including the one on licensing the Massey Ferguson brand — with TAFE. The Chennai firm quickly got a stay on this from a commercial court. When AGCO subsequently confirmed the termination, TAFE filed a contempt petition in the Chennai commercial court. Separately, TAFE also moved the Madras High Court, asserting its ownership right to Massey Ferguson brand. TAFE had got a favourable interim order from the Madras High Court. TAFE had filed a civil suit before the Madras High Court against Massey Ferguson Corporation, a subsidiary of AGCO, claiming that the said trademarks are distinctive of TAFE in India and exclusively owned by it. It had sought the Madras High Court to declare that TAFE owns the Massey Ferguson brand/trademarks in India. With the HC bench asking both parties to maintain status quo, all eyes are on the upcoming proceeding before the single judge.  It is “advantage TAFE” at the moment, however.
massey ferguson
Legal Battle Between American Giant AGCO And TAFE Intensifies Over Ownership Rights
[the_ad id=”14101″] It is now turning out to be a full-blown legal face-off between the Chennai-based Tractors and Farm Equipment (TAFE) and its American partner AGCO over the ownership rights of Massey Ferguson in India. In a fresh twist to the escalating tension between the two, TAFE is understood to have got a favourable interim order from the Madras High Court. TAFE had filed a civil suit before the Madras High Court against Massey Ferguson Corporation, a subsidiary of AGCO, claiming that the said trademarks are distinctive of TAFE in India and exclusively owned by it. It had sought the Madras High Court to declare that TAFE owns the Massey Ferguson brand/trademarks in India.  It had also sought interim injunctions restraining Massey Ferguson Corporation and their representatives from interfering with TAFE’s exclusive use of the MF brands/trademarks in any manner and from representing themselves as the owner/proprietor/rights holder etc of the Massey Ferguson brands / trademarks pending disposal of the suit. Both sides standing steadfastly on their stated positions, the issue is attracting considerable attention. Far from being a dispute between two partners, the imbroglio has assumed a lot of implications for cross-border investment between the two countries. 
tafe
TAFE-AGCO 60 Years Partnership Hits Bumpy Road, Both Companies Locked In A Legal Battle
Over 60 years of partnership is a rarity in the corporate world, especially if it is one between an Indian company and an American firm. Both have holdings in each other. But their relationship appears to be coming apart now. The alliance between Tractors and Farm Equipment (TAFE), an Amalgamation group company, and AGCO Corporation of the U.S. has hit a nasty bump. The trigger for widening chasm between the two was the decision in April of AGCO – nay the management led by its Chairman and CEO – to terminate commercial agreements including the one on licensing the Massey Ferguson brand with TAFE. The Chennai firm quickly got a stay on this from a commercial court. AGCO on Monday (Sep 30) confirmed the termination. This forced TAFE to file a contempt petition in the Chennai commercial court. Separately, it has moved the Madras High Court, asserting its ownership right to Massey Ferguson brand.  TAFEs hold a little over 16% stake in AGCO, the management is pushing back the Indian investor to secure its own interest. With agency capitalism on the rise in the American corporate world, the beneficial shareholders are a marginalized lot in the U.S. The fracas between the two must be read in the context of the “standstill pact” with TAFE. That pact – in vogue for several years – was extended for a year in April this year. That pact allows for freezing of TAFE holdings. Is there a link between the termination move and the standstill pact?  Is the termination row with TAFE just a diversionary tactic by AGCO management to sweep under the carpet the nagging governance issues? Is this a case of simply checking the rise of Indian multinationals? 

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Editor’s Note: Short Post Is Here To Stay…

Time, they say, flies—and how true that is. Here we are celebrating our 5th Anniversary. Five years ago, when Covid-19 was wreaking havoc across the globe, I took a leap of faith and launched Short Post, India’s first website for Authentic Gossip. That was on January 31, 2021. I was convinced there was a clear gap in the market for gossip that was credible, sharp, and impactful—especially if told in just 250 words.

In this, I was fortunate. Scores of senior editors across diverse verticals bought into the idea and, in the process, gave wings to my dream. Quite honestly, Short Post could not have crossed these milestones without the unflinching support of its contributing editors. Like all start-ups, we have seen our share of ups and downs, but these editors have stood by us like a rock. I take this opportunity to doff my hat to them.

Thanks to their commitment, we have published close to 5,000 stories spanning politics, business, entertainment, and sports. I say this with pride: we made our mark as people who matter read us. “Small packs, big impact” truly captures the essence of Short Post.

We all know that Covid-19 has reset businesses worldwide, and the media sector is no exception. In the post-Covid era, investors have become more cautious and selective—and advertisers too. To compound matters, the entry of AI has disrupted the media landscape in equal measure. So far, we have managed to hold our ground, hopeful that some angel investors will take a shine to us.

What gives me confidence is this: AI cannot smell news—especially the gossipy kind. In other words, AI cannot churn out Short Post-type stories, no matter the prompt. That puts us in a safe zone. As someone rightly said, “AI is a co-pilot, not a pilot.”