Partner Channels: Bill Pay | Health | IT Education | Jobs | Technology | Travel
June 8, 2001
|
|
|
|
|
|
||
|
Channels: Astrology | Broadband | Contests | E-cards | Money | Movies | Romance | Search | Wedding | Women Partner Channels: Bill Pay | Health | IT Education | Jobs | Technology | Travel |
||
|
|
||
|
Home >
Money > Reuters > Report June 8, 2001 |
Feedback
|
|
|
Counter bid for Modi Rubber mootedInstitutional shareholders have "threatened" to launch a counter offer for 35 per cent of Indian tyre maker Modi Rubber Ltd to wrest control from the company's founders, an Indian financial daily reported on Friday. The daily, in an unsourced report, said institutional shareholders were dissatisfied with the revised offer of Rs 81.50 per share announced last month by the Modi family and its group companies for a further 35 stake in the Delhi-based tyre maker. "This is the first time that FIs (financial institutions) have threatened any promoter (company founder) to oust them from the management through the open offer route," the newspaper said. "If the FIs succeed in completing the offer and raise their combined holding over 50 per cent, then the stake can be offloaded to a strategic partner," the report said. It said that Continental AG of Germany, Ceat and JK Industries in the past were interested in acquiring the company. The Modi family, which currently owns about 24 per cent of Modi Rubber, in late March initially offered Rs 80 per share to gain majority control. The newspaper said institutional shareholders, which now own 44 per cent, consider the revised offer too low. It also said the institutional shareholders are miffed that the Modis did not increase the size of the stake sought through the open offer. "Institutions have for long been insisting that they will sell to the Modis only if the promoters pick up their entire 44 percent stake at a fair price," the newspaper said. The founder's offer would leave institutional shareholders with smaller stakes "with little market value", the daily said. Another Indian financial daily, The Business Line, reported on Friday, quoting a statement by term lender Industrial Development Bank of India, that the revised price "was not in line" with the indicative offer to the financial institutions made earlier. The financial daily said the Modis had indicated a price of Rs 90 to the institutions earlier. Officials of the financial institutions could not be contacted immediately. Modi Rubber shares were down 7.9 per cent at Rs 65.30 in morning trade at the Bombay Stock Exchange.
|
||||||
