The joint committee of the financial institutions (FIs), that has been formed to review all the current takeover issues, has appreciated the performance and strategic plans of Indian Aluminium Co Ltd (Indal) over the next few years, but has not yet given any indication of the stand to be taken by FIs, said sources in Indal.
This was the outcome of the meeting of the FIs with Indal top brass comprising Tapan Mitra, managing director and vice chairman, N K Chowdhary, director, and Parto S Datta, chief financial officer of the company, yesterday at Mumbai.
The joint committee also reviewed the strength Indal is deriving from Alcan, the Canadian major and the companys principal shareholder. FIs had also considered Indals position if Sterlite Industries happened to get a stake in the company.
The committee of independent directors has heard presentations from Sterlite Industries and Indal and have given its recommendations to the shareholders to reject the Sterlite offer. We want to ensure that FIs have the right information about the company and we want to apprise them of various other details, said a company source.
Corporate watchers are keenly waiting for the stand to be taken by the FIs on Sterlites open offer to acquire 20 per cent stake in Indal at Rs 90 per share. This is because with 36 per cent stake in Indal, FIs will play a very crucial role in the whole issue.
Industry sources are surprised at the fact that FIs have not yet announced their intention. Contrary to the expectations that FIs will lend a firm support to Indal, the financial institutions are still evaluating and reviewing Indals performance before announcing their commitment.
However, one positive signal coming from the FIs was that their representatives on the Indal board did not object to the boards recommendation to the ordinary shareholders to reject the Sterlite offer. A unanimous decision was taken in this regard at the companys last board meeting on March 12.
