Spokesperson of BAT, which is also the single largest shareholder in another Indian tobacco company ITC, said from London, that no decision had been taken on the question of making a counter offer for 20 per cent stake in VST.

"It is under consideration and a decision is expected around March 10," she said while declining to give any further details. VST Industries has two major shareholders - BAT and Mumbai-based investment company Bright Star Investments Ltd.

BAT's counter offer is in response to an open offer by Bright Star announced earlier this month for 20 per cent additional stake in VST at Rs 112 per share, which will take the latter's total holding to 35 per cent at Rs 112 per share. When contacted, ITC spokesperson from Calcutta declined to comment on the company's interest in VST.

Bright Star has mounted the open offer after acquiring 14.97 per cent in VST through open market operations, and the offer is for buying 30,88,384 shares of the Hyderabad company. Asked if ITC would give a go ahead to BAT in case the UK company decided to take stake in VST in accordance with the norms stipulated under the Foreign Investment Promotion Board (FIPB), the spokesperson again declined to comment.

As per FIPB guidelines, all foreign companies must obtain their clearance both before taking stake in an Indian company or hiking existing stake.

BAT's attempts to hike stake in VST Industries have twice hit roadblocks in the past.

Meanwhile BAT's comments also come at a time when BrightStar has locked horns with VST over the takeover issue.

While VST Industries has dubbed the offer as `unclear' and put on hold any action till a formal communication was received by it, Bright Star said the tobacco major was hiding behind ambiguity to delay any counter action.

Spokesperson for Bright Star and CEO of ASK RaymondJames, John Band, had said "the objective of the open offer is very clear. Damanis (Bright Star promoters) want to hike their stake in the company. The Board of VST is hiding behind this claim of ambiguity because they are undecided on what to do."

Mr Band said the letter of offer was unlikely to reach VSTbefore the middle of next month, and till then the company may have to suspend any counter-action.

(PTI)