The Hindu Business Line : Dunlop, Falcon EGM to seek shareholders' view on open offer

THE Ruia Group controlled management at Dunlop and Falcon is planning to call an extra-ordinary general meeting (EGM) by end January or early February seeking shareholders' views on a special resolution regarding an open offer.

According to company insiders, Dunlop and Falcon need not go in for an open offer provided the required majority of shareholders uphold a special resolution on these lines.

Sources said that after a detailed study of the SEBI guidelines, legal advisors to the company felt that since the twin acquisition was made through an indirect route, open offer was not mandatory provided it was approved through a special resolution of the company's shareholders.

Earlier, the Ruia Group had acquired the Singapore-based holding company of Dunlop Rims and Wheels in Mauritius. The latter was the holding company of Dunlop and Falcon controlling 68 per cent and 74.5 per cent shareholding in the two companies, respectively.

"We are currently in the final stages of drafting the special resolution," a senior company official said, adding that the date of the EGM would be finalised in another week or two.

Meanwhile, the Dunlop management has decided to approach the Bombay Stock Exchange (BSE) for resumption of trading of the company's shares. Trading of Dunlop shares was suspended at the BSE in April 2002.

"According to information available in the company records, the BIFR permission is required to resume trading at the BSE. However, we are not convinced with the argument and will be taking up the issue with all sincerity. We want trading to resume at the earliest," the official said.