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May 12, 2001
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Money > Business Headlines > Report May 12, 2001 |
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Damanis sew up VST bidAniek Paul Following the approval of the Securities and Exchange Board of India (Sebi) earlier this week, Bright Star Investments of the Bombay-based Damani brothers, has finalised its open offer for VST Industries, and will be despatching its letters of offer over the weekend. The details of the offer, however, are still being kept under wraps. John Band, CEO of ASK Raymond James, the merchant banker handling the open offer for the Damanis, said: "The letters of offer are being printed, and would be mailed to the shareholders of VST over the weekend," but refused to divulge the details of the offer at this stage. The market expects Bright Star to price its open offer above ITC subsidiary Russell Credit's counter offer price of Rs 115. Even the size of the offer may be revised by Bright Star, said market sources. Bright Star had initially priced its open offer for 20 per cent of VST at Rs 112. But following the allegations of bear hammering levelled against the Damani brothers, Sebi had held up approval to Bright Star's open offer, but gave its nod to Russell Credit's counter offer. With the Damanis' open offer hitting the streets by Monday, investors are hoping that Russell Credit would make alterations to its counter offer, which has already opened. According to the Sebi norms, Russell Credit would have to extend the duration of its open offer so that both offers close the same day. They may also have to revise the offer price and size to match Bright Star's offer. Russell Credit has been acquiring shares of VST Industries through its counter offer and in addition, picking up shares of the company from the open market along with Bright Star. The Damanis' holding in VST Industries has already exceeded 15.5 per cent, and if they pick up a minimum of 20 per cent, their holding in the country's second largest tobacco maker would exceed the holding of BAT plc in the company. Powered by YOU MAY ALSO WANT TO READ:
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