Addressing the AGM of Indal's shareholders on Thursday, chairman S M Datta said that Indal had a very limited role to play in the takeover bid as it was a "subject or a target company." The Indal management had suggested to the financial advisors of Alcan that they should negotiate with Sebi to arrive at a marketable lot so that the interests of the smaller shareholders of the company are protected.

The financial advisors of Alcan had then submitted a proposal to Sebi suggesting the best possible basis of acceptance of the shares in favour of Alcan.

Out of seven crore shares of financial institutions andindividuals in Indal, 1.4 crore are to be picked up by Alcan. On a pro rata basis the ratio works out to be approximately 2:5. The rest would be returned to the original shareholders.

An additional 20 per cent stake would translate Alcan's shareholding to 54 per cent in Indal, which would now become a subsidiary of the Canadian aluminium major. On the issue of whether Indal would lose its independence as a separate company, Datta said it is difficult to ascertain whether there will be a complete change in the style of management henceforth, but past records have always shown closer interaction as far as technology is concerned rather than obtrusive interference.

Alcan had reduced its stake from an original 67.75 per cent to the present 34.62 per cent over the last 60 years. Its holding stayed at around 65 per cent till 1970.