IDBI Bank Workers Call Strike to Oppose Fairfax’s $5.5 Billion Bid

Workers at India’s state-owned IDBI Bank called for a two-day nationwide strike against Fairfax Financial Holdings’ proposed $5.5 billion takeover, adding pressure to a sale that would set a sector record if approved.

The United Forum of IDBI Officers and Employees announced the strike Sunday, Nov. 1, and urged the government to stop the privatization process. The union wants IDBI strengthened while protecting public investment and employees’ interests. It also raised concerns about the sale’s transparency and valuation.

Fairfax won the October bid for more than 60% of the bank at 81 rupees per share, above an average fair value of 75.99 rupees.

Rahul Gandhi, India’s opposition leader, backed the employee unions Thursday, Oct. 29. He argued that selling more than 60% of IDBI would conflict with past governments’ commitment to retain a 51% stake. “Public banks are not assets to be sold off, they are tools to build the nation,” Gandhi said.

Finance Minister Nirmala Sitharaman said IDBI was in poor shape when it came under government control and was revived through professionalism and prudence, along with more than 250 billion rupees ($2.6 billion) in recapitalization. The government has said a strategic investor would support the bank’s next phase of growth.