The Hindu Business Line : LIC sole bidder for Harshad's ACC shares?

LIFE Insurance Corporation of India, the largest single shareholder in Associated Cement Companies Ltd with a stake of 16.17 per cent, is believed to be the sole bidder for the 1.63 crore shares in ACC being auctioned by the Custodian appointed by the Special Court hearing the Harshad Mehta case. The shares work out to around 9.5 per cent of the equity capital of ACC Ltd.

Bids for the shares (that belonged to the Harshad Mehta group) of ACC as well as Snowcem Ltd were opened today at the branch office of the custodian in Mumbai, which was the last day for submission of bids as well. They were opened by the Disposal Committee constituted under the orders of the Special Court.

"The bids will be sent to the Special Court in a couple of days' time," said Mr D.K. Tyagi, Custodian, as he left the custodian's office after the opening of the bids. The Honourable Special Court, according to the public notice inviting bids, reserves the right to accept or reject any of the offers or bids that my be received for the purchase of the said shares.

Sources said LIC was the sole bidder for the ACC shares; however, it could not be officially confirmed from the Corporation. It is not known at what price LIC put in its bid either. Analysts said it would very likely be lower than the current prices.

ACC closed at Rs 213 today on the BSE.

However, should LIC be the sole bidder and should its bid be finally accepted as well, it would hold around 25 per cent stake in ACC Ltd, a far higher stake than the next biggest stakeholder Gujarat Ambuja Cements, whose stake in ACC is 14.43 per cent.

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