The Hindu Business Line : TCG rejects compromise formula on Haldia Petro

Tussle for stake
The Chatterjee Group refuses the proposal saying WBIDC's offer was not clear
West Bengal Government also opposes the CLB formula saying TCG's intention on IPO of HPL was not clear

New Delhi , April 13

The Chatterjee Group (TCG) seems to be gearing up for a long drawn battle with the West Bengal Government over the issue of Haldia Petrochemicals Ltd (HPL). In the Company Law Board (CLB) hearing recently, TCG rejected the compromise formula indicated by the West Bengal Government.

To amicably resolve the ongoing tussle over acquiring a majority stake in HPL, the State Government had suggested to the CLB in the last hearing that West Bengal Industrial Development Corporation (WBIDC) fix a price beyond Rs 28.80 per share with the option to TCG to either buy the entire shares of WBIDC at that rate or sell its entire holding to WBIDC. TCG, however, refused to sell its stake to the West Bengal Government.

The CLB Chairman, Mr S Balasubramanian, had earlier suggested a compromise formula, which would enable TCG and the West Bengal Government to amicably resolve the issue on HPL. As per the formula, TCG gets to retain the largest share in HPL.

Earlier, when West Bengal Government had offered to buy rival TCG's entire holding in HPL at a price not lower than Rs 28.80 per share, the CLB had asked TCG to convey its response by April 12.

During the proceedings on Wednesday, TCG refused the proposal saying WBIDC's offer was not clear and there was no clarity on the price. At the hearing, while giving a go ahead to HPL to convene its board meeting, CLB asked both parties not to raise any "contentious issues" during the meeting.

The CLB Chairman also urged both the parties to respond to the compromise formula proposed by him earlier. ``I am not accepting the formula. I would rather want to argue the matter,'' TCG said.

The West Bengal Government also opposed the CLB formula and said TCG's intention on the initial public offering of HPL was not clear as it had backtracked several times in the past.

Mr Balasubramanian had earlier proposed that all agreements between TCG, the WBIDC and the West Bengal Government relating to transfer of shares held by the latter to the former would stand cancelled. Besides, whatever part-payment has been received by WBIDC from TCG would be refunded. It also proposed that TCG not contest the allotment of shares worth Rs 150 crore of HPL already made to Indian Oil Corporation and also not object to the allotment of shares worth Rs 135 crore made to IDBI in terms of a corporate debt restructuring package.