Search the Internet           Tips

Bombay Dyeing calls newsreport on peace deal with Bajoria 'speculative'

Y Siva Sankar in Bombay

Bombay Dyeing and Manufacturing Company Limited has described media reports that a "peace deal" is likely between chairman Nusli Wadia and jute baron Arun Bajoria, as speculative. It has also urged the media to practise responsible journalism.

The controversy is over Bajoria's quiet and allegedly illegal acquisition of some 15 per cent of Bombay Dyeing shares.

Market regulator SEBI, acting on a complaint from Bombay Dyeing, is investigating whether Bajoria had violated its Takeover Code.

Business newspapers in India have been agog with reports that Bajoria might agree to re-sell five per cent of Bombay Dyeing equity to the Wadias at an attractive price and bury the hatchet.

"The newspapers are merely indulging in kiteflying," a top source at Bombay Dyeing said.

The official decried that the media, in spite of failing to get any confirmation or comments from both the company and Bajoria, is obsessed with the controversy. "Business newspapers have run out of ideas. They have put this story through the ringer. Looks like the names of Wadia and Bajoria have the power to sell newspapers," the official said in a lighter vein.

When told no smoke emanates without a fire, the official shot back: "Even if there is a deal, do you think we will go to the media straightaway? We will do the deal quietly and then inform the media."

rediff.com tried to contact Bajoria at his Calcutta house; he was not available for comment.

According to the "speculative" reports, Bajoria had initially sought to offload his stake to the Wadias and their associates at Rs 250, only to lower the figure to Rs 200, following Bombay Dyeing's disinterest in the offer. The company is apparently looking at a price-band of Rs 150-160. Bajoria acquired what he said were "undervalued" shares at an average price of Rs 70.

The stock closed at Rs 108.3 on the Bombay Stock Exchange today.

SEE ALSO:

'It's a myth that we were caught napping'

'Nusli Wadia should not be scared that I am trying to take over Bombay Dyeing'

Bajoria's version to CLB soon

Arun Bajoria: The mysterious jute baron with uncanny business acumen

Bajoria's temporary 'no' for open public offer in Bombay Dyeing

Reliance rules out buying Bombay Dyeing shares

Bajoria preparing ground to face Bombay Dyeing in CLB

Money

Business News

Tell us what you think of this report