Mumbai, Dec 9: The battle for controlling and retaining GESCO Corporation is going to become hotter in the days to come. This was indicated by Mr Pranay Vakil, joint managing director, GESCO Corporation on Saturday. The company expects Delhi-based corporate raider Abhishek Dalmia to retaliate and come out with another counter offer to the Sheths-Mahindras offer for 33.5 per cent at Rs 44 per share. The possibility of another counter-offer at a higher price from the Dalmias is already being anticipated by the market as the stock of GESCO is already quoting above the revised offer price of Rs 44 by Sheths-Mahindras consortium. In tandem with market expectations, the GESCO stock increased from Rs 44.5 on the BSE on November 30 to Rs 49.85 on Friday, while on the NSE, it increased from Rs 44.75 to Rs 49.95. During this period, the share had touched its 52-week high of Rs 51 on both the bourses.The Sheths-Mahindras' offer is slated to open on December 17.Mr John Band, chief executive of ASK-Raymond James, advisor to the Dalmias in the GESCO offer, on being contacted by The Financial Express declined to comment on the issue.
Speaking to The Financial Express, Mr Vakil said, "The Sheths-Mahindras will file an offer document with the Securities and Exchange Board of India (Sebi) on Wednesday, December 13, and the possibility of a counter-offer from the rival party cannot be ruled out. The new offer document will peg the price to the price of Rs 44 per share paid to International Finance Corporation, Washington, which recently sold its 6.34 per cent share to the combine.
He, however, said there was a slight problem in filing the offer document, as Sebi had cautioned the combine about the ongoing postal strike which will become a roadblock, as shareholders may not receive the letter of offer in time. But according to Vakil, the combine has expressed its willingness to try out the services of other sources like private courier agencies for sending letter of offer to shareholders. Sebi has asked the company to wait for a while before filing the document and watch if there is a solution to the strike.
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.