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Sebi to decide VST open offer June 8

India's stock market watchdog will decide on Friday whether shareholders of cigarette maker VST Industries, who had subscribed to the open offer by Russell Credit, should be allowed to switch to a higher rival offer, an official said.

A bidding war for a stake in VST has been raging for the past four months between Russell, a wholly-owned unit of India's tobacco conglomerate ITC, and unlisted Bright Star Investments.

Both VST and ITC are 32 per cent owned by British-American Tobacco Plc.

Bright Star, a company of Bombay broker R S Damani, started the battle mid-February with an offer at Rs 112 per share for a 20 per cent stake in VST. Russell, in early March, launched a counter offer at Rs 115.

Bright pipped Russell with its final offer at Rs 151 per share for a higher 30 per cent stake on June 3 -- the deadline for counter bids -- beating Russell's final offer of Rs 125.

The Business Standard newspaper said the Securities and Exchange Board of India's decision was crucial as around four per cent of VST shareholders has subscribed to Russell's offer.

Shares of VST fell in early deals on Friday and were down 3.9 per cent at Rs 143.20.

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