"We were late in reacting to the situation, and by the time negotiations for asset buyouts started, the currencies of the region had already started stabilising," said a leading merchant banker.

Merchant bankers say that although many Indian business houses, including the Aditya Birla group, Essar and the Thapars had shown interest in grabbing the opportunity, the initiative came a bit too late as the local currencies of the region were on a recovery path by then.

"Ideally the initiative should have come immediately after the local currencies in the region had started their free fall. But we failed to realise the importance of striking at the right time and once we started acting, it was already too late," the merchant banker added.

In fact, most currencies in the Asian region,from the Korean won to Malaysian ringgitt, have started stabilising since May -- around the time when Indian companies initiated takeover negotiations. The Thai baht, which had crashed to 60 to a US dollar in January, recovered to touch 40-42 to a dollar. Same is the case with the Korean won, which after touching a low of 1,995 to a dollar during the peak of the economic crisis, strengthened to 1,300 to a dollar.

"The south-east Asian currencies in general have been particularly bullish in recent months, except the Indonesian rupiah, which is still weak due to the political crisis," said Mecklai Financial Services senior vice-president KN Dey.

The rupiah, which reached a low of 15,000 to a dollar in January, is at present quoting at 14,500.

Merchant banking sources say that the big boys of Indian business - Essar group, Mahindra & Mahindra, the LM Thapar group and the Aditya Birla group - had been eyeing cheap industrial assets in the S-E Asian region. And the list of assets on the block covered all keysectors like textiles, petrochemicals, cement and pharmaceuticals.

Nusli Wadia flagship, Bombay Dyeing, it is learnt, had also been keen to acquire textile units in S-E Asian countries. The Aditya Birla group, which operates six units for manufacturing pulp, carbon black, synthetic yarn, and synthetic fibres across Indonesia, Phillipines and Thailand, has been planning to expand its empire in the region and make a foray into cement overseas.

Industry analysts say that even as Indian houses were keen to buy out cheap industrial assets in S-E Asian countries, many were hard pressed due to liquidity problems. "The opportunity came at a time when most business houses were facing an acute liquidity problem. Even as business groups could see the opportunities available, not many were in a position to shell out the much needed investment," said a merchant banker.

In fact, it has been a lost opportunity for merchant bankers as well. "M&A deals abroad could have come handy to shore up revenues in a difficultyear as equity business has taken a massive beating in recent times," said a merchant banker.

Although Indian companies were slow to react, international majors got over the initial `Asia shock' and moved in quickly into south-east Asia to make easy pickings before an expected economic recovery once again inflates asset prices. Some of the acquisitions have been strategic. Merrill Lynch, the investment banking major, has gone to the extent of buying out all the offices of Japanese investment house Yamaichi Securities, and has even sent letters to each of Yamaichi's 7,500 employees worldwide to ask them whether they wish to join Merrill Lynch's new expanded Japanese operations.

Similarly, Credit Suisse First Boston (CSFB) has bought out failed investment bank Peregrine's entire equity business, as well as BZW's emerging markets equity business, and is lookng at bigger Asian operations than ever before. Ford, the American car giant, has raised its stake in Japan's Mazda Motor to 17 per cent, and GM isworking out a worldwide marketing tieup with Daewoo Motors of Korea.