The Hindu Business Line : Colour Chem case: SEBI files review petition before SC <br> Overseas acquirers asked to wait till final verdict

THE Securities and Exchange Board of India has filed a review petition before the Supreme Court against the apex court's verdict, pronounced on August 25, 2004, on the Colour-Chem Ltd (CCL) case.

The regulator's latest move will have a bearing on the acquisition effort by the overseas parents. The open offer for 20 per cent stake in CCL will now be subject to the review by the apex court.

Mr R.S. Loona, SEBI Executive Director (in charge of legal affairs), confirmed to Business Line today that the regulator has indeed moved Court on the matter.

Mr Umesh Mehta, one of the original petitioners in the case, has also sought a separate review before the court. UTI, third of the original petitioners, is also believed to have filed a review petition, according to law sources.

SEBI in its petition, seeking to protect the interest of the retail shareholders, argued that the apex court's judgment discriminated a section of the minority shareholders against another.

The order by the three-judge bench of the apex court had restricted the payment of interest on the open offer price only to those who continue to hold CCL shares from February 24, 1998 to the offer closing date of December 3, 2004.

SEBI has asked HSBC Securities and Capital Markets, the manager to the open offer by EBITO Chemiebeteiligungen AG (the acquirer of Colour-Chem), Clariant AG and Clariant International (persons acting in concert with the acquirer), to put on hold the acquisition exercise till the apex court reviews the petitions or rejects it.

The acquirers had gone ahead with an open offer of 20 per cent stake in CCL for 23,30,000 equity shares of Rs 10 each at a price of Rs 318 per share following the Supreme Court order.

The interest payable on the offer price, computed up to June 21, 2003 (@10 per cent from March 22, 1998 after deducting dividends paid), is Rs 117 per share.

The offer was to open on November 3, 2004. The acquirers had planned to complete the whole exercise by December 30, 2004.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
UTI Mutual to focus on urban market keenly

Templeton declares 35% on Prima Fund

Tata MF launches Dividend Yield Fund

Bulls prevail

SSI Ltd loses 70 pc in single day of trading

Talk of price drop weakens Gujarat Ambuja Cement

Outlook could turn positive for Tata Steel, Oriental Bank

SEBI fiat on mandatory UIN

Colour Chem case: SEBI files review petition before SC
Overseas acquirers asked to wait till final verdict

Tech stocks prop up Sensex; metals slump

NTPC issue subscribed 12 times

Panel to fix PSU share price band