The Raasi Cements board yesterday decided to appoint Lazard Credit Capital to defend it against India Cements hostile bid for a 20 per cent stake in the company, at Rs 300 a share. Lazard is now expected to work out a counter-offer to foil the takeover bid.
A statement released by the company said the board unanimously and unequivocally reposed its confidence in Raasi Cements chairman B V Raju and managing director K V Vishnu Raju. It said the India Cements bid was in the interests of neither the company nor its shareholders. The boards meeting in Secunderabad yesterday was its first after the announcement of India Cements open offer on February 26.
Meanwhile, sources close to India Cements said, Raasi could get into legal wrangles because the promoters have been buying Raasi stocks before making an open offer as is required by Sebi guidelines. India Cements has been in touch with the financial institutions and is trying to convince them of the advantages of its offer.
The FIs are expected to meet today to discuss their stand on India Cements offer for Raasi Cements. India Cements CMD N Srinivasan met key FIs in Mumbai yesterday. He is expected to meet UTI officials next week. UTI is a shareholder in India Cements too. It is a matter of concern for UTI if the offer price is too high, a senior UTI source said.
