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AP high court dismisses plea to block VST open offers

The Andhra Pradesh high court on Friday dismissed a petition seeking to block two open offers made for shares of cigarette maker VST Industries by a British American Tobacco affiliate and investment firm Bright Star Investments.

Judge A Gopal Reddy of the Andhra Pradesh High Court also said there would be no extension of the last date of the open offers, which was June 13.

In his ruling, he said that the two VST shareholders who had petitioned the court had not sufficiently demonstrated that blocking the offers was in the public interest.

BAT and its Indian affiliate ITC have been trying to fend off a hostile bid for another BAT affiliate, VST Industries, by Bright Star Industries.

The final bids of both sides were made on June 3 and June 13 was the last day for shareholders to accept the offers.

British American Tobacco owns about 32 per cent each in ITC and VST.

Bright Star's final offer was for 30 per cent of VST at Rs 151 a share while the ITC subsidiary's final bid was for 20 per cent of VST at Rs 125 a share.

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