The board of directors of Indian Oil Corporation (IOC), which met today, approved a proposal to note the advice of the central government, and recommended a revised swap ratio of 110:100 i.e 110 equity shares of Rs 10/- each of the company for every 100 shares of Rs 10/- each of IBP.According to a release issued by IOC to the BSE today, "it may be noted that being a government Company, prior approval of the government is necessary before any merger or acquisition."The boards of IOC and IBP had earlier agreed upon a swap ratio of 1.25:1 i.e 125 shares of IOC for every 100 shares of IBP."The government, vide their letter dated December 26, 2005, has accorded approval to the scheme with the advice that the board of directors may re-consider the swap ratio under different valuation scenarios," the release added.Click here for Business Standard story on government directive
