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July 16, 2001
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Money > Reuters > Report July 16, 2001 |
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Bright Star gets five per cent of VSTBright Star Investments, which launched a hostile bid for British American Tobacco Plc affiliate VST Industries earlier this year, has secured only five per cent of its targeted 30 per cent equity stake, an industry source said on Monday. The development is a boost for BAT, the world's second-largest tobacco group which owns around 32 per cent of VST, as it had opposed the offer by Bright Star. It had supported a rival bid by Russell Credit, a 100 per cent subsidiary of ITC Ltd, which is an affiliate of BAT. With the purchase of the five per cent stake, unlisted investment firm Bright Star, which offered a higher price than Russell Credit, now owns 20 per cent of VST, the source added. Details of Russell's bid could not be ascertained. Bright Star was founded by a Bombay broker and has no previous experience in the tobacco industry. It launched its hostile bid in February with an offer of Rs 112 per share for a 20 per cent stake. It then owned 14.97 per cent of VST, which it bought on the open market. Russell Credit countered the bid with an offer of Rs 115, triggering a series of bids and counter bids. Bright Star finally pipped its rival with a bid of Rs 151 in June for a 30 per cent stake but that was not enough to attract VST shareholders. The offers of both Bright Star and Russell Credit closed on June 13, but details of the bids received were delayed due to a petition filed against the offers in a regional court. The petitioner had wanted the offers blocked, but an Indian court threw out the case on July 6 and allowed the two companies to proceed with their offers. YOU MAY ALSO WANT TO READ:
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