HOW STERLITE LOST THE INDAL BATTLE
Article Abstract:
Financial institutions (FIs) finally decided to sell their 36.6 percent stake in Indian Aluminium Co (Indal) to Alcan of Canada and give it a 54 percent control. Until then the FIs had been considering Sterlite's open offer of Rs131 in cash and Rs90 in optionally convertible redeemable preference shares as better than Alcan's offer of Rs175 per share. JM Financial, Alcan's merchant bankers, bought 16,000 shares of Indal for Rs200 each on June 2, 1998. This move told the FIs that Alcan was willing to pay Rs200 for Indal's shares. Sterlite had made its first open offer at Rs90 per share in February 1998 for a 20 percent stake in Indal but Alcan made a counter-offer of Rs115 per share. Sterlite finally made a structure offer by which a part of the payment for the shares would be through preference shares. But it could not get the approval of its shareholders for this before the offer closed on June 2, 1998. (khr)
Comment:
Financial institutions finally decides to sell their 36.6% stake in Indian Aluminium to the company & give it a 54% control
Publication Name: BusinessWorld
Subject: Business, international
ISSN:
Year: 1998
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INDAL ASKS ALCAN TO PROTECT MINORITY SHAREHOLDERS
Article Abstract:
Indian Aluminium Company Ltd (Indal) has requested JM Financial & Investment Consultancy Services Ltd, the financial advisors to Alcan, to negotiate the best possible ratio with the Securities and Exchange Board of India for Alcan to buy shares tendered against its open offer. Indal wants this to be done in order to protect the interests of minority shareholders. Alcan has placed shares amounting to 50 percent of Indal's Rs71 crore equity for transfer but the Foreign Investment Promotion Board has given it permission to acquire a 20 percent stake in addition to the 34 percent that it already holds. (khr)
Comment:
Has been asked by Indian Aluminium to negotiate best ratio w/ SEBI for Alcan to buy shares tendered vs open offer
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
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