Lubricants manufacturer Tide Water Oil, an associate of Andrew Yule & Co, is confident of staving off the takeover threat from Mumbai-based Standard Greases and Specialities.
"We will thwart any attempt of a hostile takeover of Tide Water Oil, and government institutions are fully backing us", Tide Water Oil Chairman Kallol Datta told reporters here today.
On September 22, Standard Greases had made an open offer for acquisition of 26 per cent of Tide Water at a price of Rs 16,632 per share.
Standard Greases and Persons Acting in Concert (PAC) were holding 24.94 per cent of Tide Water.
Datta said although the trigger for open offer was 25 per cent of voting rights, Standard Greases had made the voluntary offer.
While the current market price of Tide Water's share is Rs 17,900 per share, the offer price was 'a teaser price', Datta said.
While Andrew Yule holds 26.22 per cent in Tide Water, United India Insurance and LIC are holding 6.88 per cent and 4.22 per cent respectively. Tide Water Employees Welfare Trust also holds 2.46 per cent, taking the block close to 40 per cent.
"The institutions have given us a written commitment that they will fully support the existing management while the department of heavy industries is also behind us", he said.
