New Delhi, May 3: Sterlite Industries is planning a substantial increase in its open offer price for aluminium-maker Indal. Though the company is yet to decide on the exact price, sources say Sterlite may make a fresh offer to Indal shareholders around Rs 140-Rs 150, which the financial institutions may find tempting enough. Sterlite's chief financial officer Tarun Jain refused to comment on the matter, but said "there is still enough time for making a fresh offer. Under the rules, we can revise the offer a week before the closure date." Jain said discussions are under way in the wake of the latest Alcan offer.On the other hand, sources in Indal said the management of the Canada-based Alcan, which already holds about 34 per cent in the company, was determined to take the battle till the end if Sterlite comes up with another open offer above Rs 120 per share. Though Alcan is tightlipped on its next move, in case Sterlite makes a fresh offer above Rs 120 per share, a source said: "Alcan has not fixed anyceiling for acquisition of another 20 per cent stake in Indal from the market. So let us see what Sterlite does now."
Both Sterlite and Alcan are unlikely to get 20 per cent shares each in the open offer unless financial institutions, which together hold about 40 per cent stake, decide to offload. Sources in Sterlite and Alcan said that the financial institutions continue to keep their cards close to their chest.
"The FIs have not committed anything as yet. They have not said yes nor no," a source said.
The stakes and prestige involved can be gauged from the fact that top officials of both Sterlite and Alcan have been meeting senior government officials in the ministries of finance, industry and commerce during the last few weeks.
Alcan's proposal to increase its stake by 20 per cent in Indal through an open offer is scheduled to be taken up by the core group of Foreign Investment Promotion Board next week.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
