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Counter-bid for Forbes Gokak within norms: SEBI

Our Bureau

MUMBAI, Nov. 5

THE counter-offer by Man-Made Fibers Pvt Ltd for Forbes Gokak Ltd is within the norms of the SEBI takeover code, according to SEBI officials.

SEBI officials said the question of disqualifying the counter-bid does not arise since it is made within the time required under the SEBI takeover regulations. Further, the counter-bid will help benefit minority shareholders to get a better price, SEBI o fficials said.

The counter-bid by Mr Pawankumr Sanwarmal at a price of Rs 88.50 per share may force the original bidder, the Shapoorji Pallonji Mistry group, to revise the price (Rs 80 per share) offered by them for acquiring 20 per cent stake in Forbes Gokak. Any upwa rd revision, as a consequence of the counter-bid, in the offer price by the Mistry group may also benefit small shareholders, SEBI officials feel.

According to the SEBI takeover regulations, the counter-bid has to be made within 21 days of the original bid and the counter-bidder should make an announcement two working days before the expiry of 21-day period.

In the case of Forbes Gokak, the original bid was made by the Mistry group for acquiring 24.9 lakh Forbes Gokak shares at a price of Rs 80 per share on October 15. The 21-day period expired on November 5 and the notice by Man-Made Fibres for a counter-bi d was made on November 2 which is well within the required time limit under the regulations.

The Mistry group, through its investment firms, Sterling Investments Corporation Pvt Ltd in concert with Shapoorji Pallonji & Co Ltd and Cyrys Investments Ltd, made an open offer for 24.9 lakh shares representing 20 per cent of the paid-up capital of For bes Gokak at Rs 80 per share. Man-Made Fibres' counter-bid at Rs 88.50 per share is for buying 25.04 lakh shares of Forbes Gokak representing 20.11 per cent of the target company's paid-up capital.

The offer by Mistry group opens on November 28 and is scheduled to close on December 27. The counter-offer by Man-Made Fibres opens on December 12 and closes on January 10, 2002. Since the counter-offer closes on January 10, the original bid by Mistry gr oup will also close on the same day as per the regulations.

Mistry group acquires more shares: The Mistry group has informed the Bombay Stock Exchange that its investment firms -- Sterling Investments Corporation and Cyrus Investments -- have purchased additional shares of Forbes Gokak Ltd from the open market.

Sterling Investments and Cyrus Investments have informed BSE that they have purchased 14,068 shares at an average price of Rs 72.91 on November 2 and another lot of 56,183 shares at an average price of Rs 78.96 on November 1. Our Bureau