The financial institutions may intervene to amicably settle India Cements hostile takeover bid for Raasi Cement.
One of the options being considered is a counter-offer at Rs 325 a share by Raasis main promoters, who have till March 16 to make a counter-bid. India Cements could sell back part of its holding in Raasi at this level.
This face-saving formula would not only enable Raasis promoters to retain control of the company, but also provide a tidy profit to India Cements, which has made a public offer for 20 per cent in Raasi at Rs 300 a share.
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However, there is some doubt over Raasis ability to raise the Rs 105 crore required to implement such a move. Ironically, India Cements had bailed out Raasi three years ago, when it faced a similar takeover threat from Reliance.
The Andhra government seems to be backing India Cements, if the Andhra Pradesh Industrial Development Corporations decision to sell its shares to ICL is any indication.
However, UTI and Life Insurance Corp, which hold a major chunk of the FIs 12.97 per cent stake in Raasi, and General Insurance Corp which has a nominal stake