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Bright Star shrugs off HC order on VST offer

BS Corporate Bureau

In an apparent defiance of the Andhra Pradesh high court order, ASK Raymond James, advisor to the Damanis-promoted Bright Star Investments, through a press release issued on Monday, has urged shareholders to subscribe to the open offer for VST Industries. The high court had last week stayed the open offers from both Bright Star and Russell Credit.

Bright Star is expected to publish an advertisement on Tuesday asking the VST shareholders to "act promptly" as their offer closes on June 13. John Band, CEO of ASK Raymond James, said: "We do not see any reason to postpone the open offer. Till Monday evening, Sebi did not ask us to delay the offer."

When contacted, Sebi officials said: "Though we were expecting the court order by Monday, we have not yet received it. Unless we get the order, we cannot take a decision. We will seek the advice of our legal consultants to draft the replies if necessary. Until then the status will remain the same," the officials added.

Bright Star's advertisement will highlight the merits of their offer. These will include the details about the size and price of offer by Bright Star vis-a-vis Russell Credit.

ASK Raymond James has said the case filed against it in the Hyderabad high court "is entirely without merit." Further, the affidavit filed in support of the litigation is "untruthful, defamatory and actionable," the Damanis have claimed.

The public announcement also contains details about other litigations. "There is a public interest suit in Calcutta targeted against extension of the BAT/ ITC monopoly in the Indian cigarette market," it said.

The Bright Star directors have taken legal advice and are satisfied that the company faces no difficulties under this litigation," it said.

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