Insiders say that the three institutions have not ruled out the possibility of Sterlite, too, striking a negotiated deal.

The institutions, which hold a 36 per cent equity stake in Indal, have decided to invite institutional shareholders in Sterlite to take stock of the latest developments. The meeting is slated to take place in the next few days. The institutions' stake in Sterlite is pegged at 13 per cent.

By deciding to hold a joint meeting, the institutions have now roped in IDBI -- the country's largest term-lending institution -- in what is being billed as the last act in the Indal takeover drama.

Though the institutions may decide soon on whom to back in the deal, it is unlikely that they will reveal their intentionsbefore June 2, when both the offers draw to a close. The institutions are for now busy calculating the final returns on the Sterlite structured deal. "I wish Sterlite had made a straight cash offer like Alcan. This would have made our task much easier," said a institution official.

However, the institutions have rejected the contention that the Sterlite offer should be the preferred one on the basis that it will be able to absorb their entire holding. "We may not even offload the entire stake if necessary," the officials said.

The institutions have ruled out the possibilty of their going separate ways in selling out the stake.

Meanwhile, Alcan has informed institutional shareholders that it has received written permission from the Foriegn Investment Promotion Board to increase its stake in Indal.