MUMBAI, March 16: The promoters of Raasi Cements are confident that the takeover bid made by India Cements would be thwarted in the near future without making a counter-offer. The falling scrip price of Raasi, they say, is an indication that investors have lost interest in the company even as they promise to take the takeover to the Supreme Court.On the other hand, the promoters of India Cements led by Chairman N Srinivasan had yet another meeting with financial institutions on Monday. The meeting was convened by the FIs to talk to ICL, again, on the Raasi takeover and the steps taken by ICL management to protect the debts taken by the company. "Our presentation was well received and we expect a favourable response," sources from the ICL camp said.
"We are ready to take SEBI's takeover regulations to the highest forum as its guidelines have not given us any chance to increase our stake in the past," sources close to Raasi said. "As soon as a new government is installed in New Delhi, we will speak to thegovernment and the department of company affairs (DCA) as per the directives of the Andhra High Court," they added. In fact, prolonged litigation is going to be one of the main arsenals of Raasi Cements to ward off the threat from the Chennai-based ICL. In an interview to this newspaper, one of the main players in the Raasi takeover drama, IDBI, which has 35 per cent stake in ICL, had stated they would not get involved in any hostile takeovers where litigations are involved, thus giving a reprive to Raasi.
With the deadline for a counter-offer coming closer, Raasi promoters hope that FIs would side with them as India Cements itself has not taken the no objection from its debtors, led by IDBI.
One of the last options being worked out by the promoters of Raasi is to take help from a white knight and launch a counter offer at Rs 325 as against ICL's Rs 300. "The counter-offer is going to be our last option," said sources in Raasi. "As we are on a strong legal wicket, we will be able to thwart the takeoverbid without a counter offer," they added.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
