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| This was after the UB Group counsel Fali Nariman said the open offer should close after questions raised by the court were answered. |
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| In an August 8 hearing, the apex court had asked three questions: what would happen if it was found that the acquisition of 19.1 per cent of the shares in Herbertsons by Chhabria was void; whether there could be ex post facto offers, and whether the shareholders who sold the shares could be compensated? |
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| The open offer by Chhabria opened today at Rs 210.74 per share (which includes the interest payable) to acquire an additional 20 per cent stake. |
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| At present, his open offer is scheduled to close on December 3. Mallya has also revised his offer price to Rs 215 per share from the previous Rs 200 per share to acquire 45.2 per cent of its outstanding equity capital. |
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| When asked on whether, Chhabria would increase his price further, he said: "I have a lot of time to do that." |
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| Meanwhile, the bench has also issued notices to both Chhabria and Mallya on the petition filed by the Securities Exchange Board of India (Sebi) challenging the recent Securitities Appellate Tribunal (SAT) order in the ongoing tussle between the two for control of Herbertsons Ltd. |
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| SAT's order, dated August 1, 2003, had directed Kishore Chhabria to make an open offer for an additional 20 per cent stake in Herbertsons Ltd. |
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| Effectively, the SAT order recognised the 43 per cent stake held by Chhabria in Herbertsons, which Sebi had said in its order on February 19, 2002 was acquired in violation of the takeover norms. |
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| Sebi, in its February 19 order, had asked both Mallya and Chhabria to divest their stake in Herbertsons Ltd which they had acquired in violation of listing agreements and takeover regulations. |
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| The regulator had said that while Mallya and associated should bring down their equity from 30.22 per cent to 21.38 per cent through an offer of sale to the public, Chhabria would have to lower his stake in the company from 47.48 per cent to 10 per cent. |
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| The dispute originated when the Chhabrias, through companies controlled by them, acquired substantial number of shares of Herbertsons Ltd, in which United Breweries is the largest shareholder with 23.59 per cent. |
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| This acquisition was challenged in the Bombay high court by UB alleging that it was against the provisions of SEBI [Substantial Acquisition of Shares & Takeovers] Regulations. |
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| The high court held that the acquisition was void and the voting rights of the acquired 20 per cent were suspended pending the decision in the suit. |
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