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May 16, 2001
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Money > Business Headlines > Report May 16, 2001 |
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ITC likely to hike VST offer priceG Singa Rao ITC Ltd is understood to be seriously planning to come out with a higher offer for its bid for VST shares in the wake of the Damanis putting up their offer price at Rs 3 above the price offered by ITC through its subsidiary Russel Credit Ltd. The quantum of increase will be decided by the weekend. The Damanis' offer price as of now, is Rs 118 per VST share, while that of Russel Credit is Rs 115. Russel Credit, which made a counter offer to the original one made by Brightstar of Damanis, can increase its offer price either directly or by acquiring shares in the market at a higher price up to seven working days prior to the closure of its offer. Sources at VST said the stake of ITC is much higher than that of the Damanis since VST's multinational principal shareholder, BAT, has backed the ITC offer. The Indian tobacco major seems to be anxious that its bid for a hold on VST should not be lost by default. It may also be mentioned that the VST board had made an appeal to its shareholders on March 22 to support the offer made by ITC since it is a strategic investor, while Damanis are just financial investors. VST also feels the perspective of the strategic investor is long-term and would enhance shareholders' wealth. Further revision of price may also be necessitated to make it more attractive to the institutions, since their holding in VST is 23.32 per cent. Powered by YOU MAY ALSO WANT TO READ:
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