Financial Daily from THE HINDU group of publications
Saturday, Apr 22, 2006
Financial Daily from THE HINDU group of publications Saturday, Apr 22, 2006 |
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Corporate
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Open Offers Markets - Stocks Our Bureau
Mumbai , April 21 With the coming Monday being the closing day of Swiss major Holcim's offer for Gujarat Ambuja Cements Ltd (GACL), the market is wondering just how successful it can possibly be. The stock closed at Rs 119.75 on the BSE on Friday well above the offer price of Rs 90.64. Over the day it gained 2 per cent, as though in defiance of the open offer, closing Rs 2.35 above Thursday's close. Monday will determine how well the open offer goes, the bulk of responses to open offers usually happening on the closing day. In fact, the stock had crossed the open offer price in early March this year and has only risen ever since. Holcim acquired 14.8 per cent stake in GACL earlier this year at Rs 105 per share from the promoters of the company. This included a premium of Rs 15 per share for a non-compete assurance, something that had caused some heartburn in retail investor circles. Holcim's open offer for The Associated Cement Companies last year did not fetch the multinational a majority stake in the company although it clearly made it the single largest stakeholder. The ACC offer, which was for 36.4 per cent stake, got Holcim an additional 20 per cent stake so that Holcim ultimately acquired about 34 per cent stake in ACC instead of the targeted 50-plus per cent stake. In that case some of the financial institutions as well as FIIs tendered small stakes in the open offer which closed around this time last year, ACC's market price then being a little lower than the open offer price.
More Stories on : Open Offers | Stocks | Cement | Gujarat Ambuja Cements Ltd
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