The Aditya Birla group is planning to take the Larsen & Toubro executive management into confidence prior to tabling its cement demerger proposal to the board of the diversified conglomerate.
This will be the first positive step from the Birlas towards ending the tiff with the Larsen & Toubro management, which has been opposing Grasim's stand on its cement demerger plan.
AV Birla group flagship Grasim has a 15.35 per cent stake in Larsen & Toubro, and is the second largest shareholder group in the company after the financial institutions.
Company officials confirmed that the Birlas had made their presentations to the financial institutions and were now looking at winning over the Larsen & Toubro management. The officials said the Birlas would also explore the extent to which each side could climb down from its earlier stand, and where exactly the differences lay.
With the Larsen & Toubro board consisting of seven executive directors on the 17-member board (the Birlas have just two nominees), the Birlas do not want to take them by surprise with their version of the demerger proposal when it is presented.
