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Corporate Economy Expressions Markets Leisure   Friday, March 20, 1998 Autoriders to harp on Saurashtra Cement "poor" management quality in offer plan  Abhinaba Das   Mumbai, Mar 19: Autoriders Finance is planning a bold gambit to grab the attention of potential respondents to its open offer for 20 per cent of the equity of Saurashtra Cement. It is planning to include in its offer document to be filed with Sebi a series of points that would dwell on the negative qualities of the Saurashtra Cement's management. The offer document is being prepared on behalf of the Patels-owned Autoriders Finance company by Ind Global Finance, the financial advisors to the takeover. Instead of sticking to the conventional public offer document, Ind Global is instead in the process of drawing up for Autoriders a document that will contain incisive criticism against Saurashtra Cement. The main points to be made in the document are the following: The non-resident Indian Mehtas have not, in the last few years, brought in substantial investment to the company, despite repeated assertions to the media that they will do so. The capacity utilisation of the company is at a lowlevel. The company has been realising a low Rs 95 per bag of cement, against an average of Rs 105-110 realised by other cement companies, implying that the company should make more money from its operations than it is currently doing. The profitability of the company is low. This new format of offer document will be filed with Sebi soon within the stipulated date by Autoriders Finance. Criticism of existing managements is emerging as one of the acquisition weapons. Last month, Sterlite Industries officials severely criticised the qualities of the Indian Aluminium management, while announcing an open offer for 20 per cent of the company's stake at a press conference in Mumbai. However, this is the first time that such a gambit is being used in drawing up the actual offer document that is to be filed with the securities watchdog. It is believed that the sum and substance of such criticism is basically aimed at the block-investors in Saurashtra Cement. Financial institutions, whoseperceptions of the existing management will be crucial in this instance, own as much as 15 per cent of the stock. The floating stock with the general public is also fairly high, at 32 per cent. Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.