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Reliance, IOL among IBP bidders

The first major privatisation of an oil company received an enthusiastic response with at least seven companies including Royal Dutch Shell, Kuwait Petroleum Corporation, Reliance and Indian Oil putting price bids to acquire management control in petro retailer IBP Co Ltd.

Other companies which submitted financial bids for acquiring 33.58 per cent government equity in IBP Co Ltd include Bharat Petroleum Corporation and Hindustan Petroleum Corporation, but Essar, which is coming up with over 10 million tonne refinery in Gujarat, was a surprise absentee from the total of 10 shortlisted bids, informed sources said.

Reliance put in two bids through Reliance Industries and Reliance Petroleum.

Financial bids for sale of 33.58 per cent government stake and management control in IBP closed Thursday and the oil PSU is likely to be privatised in a month's time.

The government would take the bids to inter-minister group on Friday after evaluating the bid prices before approaching the Cabinet Committee on Divestment on Feburary 5 for selecting the strategic partner.

"We have got a very good response for IBP and we are evaluating the bids. We will meet the IMG tomorrow (Friday) and CCD on February 5 to finalise the partner," divestment secretary Pradeep Baijal said.

While refusing to give the names of the bidders who filed their financial bids, Baijal said price bids for ITDC and Hotel Corporation of India properties received earlier this month would also be taken up for decision at the CCD meeting on February 5.

The government holds 59.58 per cent stake in the oil marketing company.

IBP, which has a retail chain of over 1500 outlets, commands close to 6 per cent market share in the 102 million tonnes petroleum product sector in India.

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