The stand-off between the financial institutions and the Modi family over Modi Rubber has taken a new twist with FIs, the largest shareholding block with a 44 per cent stake, deciding to shun the open offer by the promoters. Instead, the FIs may now make a counter-offer.
This is the first instance of financial institutions announcing their intention of making an open offer to counter that of an existing management.
The decision, taken at a heads of institutions meeting today, was prompted by a far lower offer price by the Modis, at Rs 81.50 a share, than what was earlier indicated to the FIs. The promoters currently hold close to 26 per cent.
The Industrial Development Bank of India, in a release, said,
