MUMBAI, May 22: The open-offer battle for 20 per cent of Indian Aluminium's stake between Indal's single largest shareholder Alcan Aluminium and raider Sterlite Industries is poised for a crucial weekend battle, as the last date for hiking of the offer price for either side, May 25, draws close. The open offer of Sterlite Industries at Rs 115 per equity share has already been bettered by Alcan once, with an open offer of Rs 120 per share.However, it is expected that the coming weekend is crucial, and both sides are expected to up the ante further, each seeking to outdo the other.
With the SEBI takeover code stipulating that the final trigger can be pulled only till May 24, so that a public announcement of any further hike in open offer prices appear through advertisements or press releases in newspapers on May 25, the two companies are virtually staring eyeball-to-eyeball and waiting for Sunday to make their final moves, if any.
A crucial factor in the last act of what has been India's most dramaticever takeover battle so far could be which way the institutions, which have together a large block of 36 per cent stake in Indal, go on the issue. Both sides have lobbied strongly with the institutions, and claimed favourable responses from the institutions. Both have claimed to have the favour of institutions in case of a sellout.
The general public, at whom the crucial public announcement, if any, will be aimed, however, actually matter less, since the floating stock of the company barely exceeds 10 per cent. Merchant bankers on both sides preferred to remain silent on Friday on prospects of a hike in the open offer.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
