Alcan, the principal shareholder in Indian Aluminium Co (Indal), is forging ahead with its plan to stave off Sterlites bid for a 20 per cent stake in the company. We are serious about attaining a 54 per cent stake in Indal and have made our presentations before the FIs earlier, explaining our strength and strategy, said Alcan chief financial officer Suresh Thadani.
This clearly indicates that the Canadian major is contemplating a revision in its offer price. Sterlite is offering Rs 115 a share against Alcans offer of Rs 105 a share.
However, Thadani said, Even if the offer price is not revised, the shareholders can judge who will be good for Indal by looking at the strength of the two companies.
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The two open offers will not be discussed by the Indal board at its meeting today, said Thadani. Nevertheless, the meeting officially slated to discuss the companys accounts assumes significance in the light of the offers.
Sterlite is expected to woo Indal shareholders by citing the 41% drop in the companys profits in the first half of 1997-98. However, it remains to be seen whether the full-year results can bolster the Indal managements case.
In the first half, Indals net profit slumped to Rs 22.54 crore from Rs 38.21 crore in the same period of the previous year. Indal was hit by an increase in costs due to escalation in customs duty on metal and aluminium melting scrap, as well as power cuts and labour unrest at its Kerala plant. The company had vowed to cut costs in the second half.