Financial Daily from THE HINDU group of publications
Wednesday, Apr 26, 2006
Financial Daily from THE HINDU group of publications Wednesday, Apr 26, 2006 |
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Markets
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Open Offers Our Bureau
Mumbai , April 25 Swiss major Holcim has received a lukewarm response to its open offer for Gujarat Ambuja Cements Ltd, according to sources close to the companies. The exact response has not yet been quantified, the open offer having closed only on April 23, but there was very little response, said the sources. But the response was only expected, given that the open offer price of Rs 90.64 was far lower than the current market price. Holcim had 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. Holcim will probably raise its stake in both companies through the creeping acquisition route, said market observers.
More Stories on : Open Offers | Cement | Gujarat Ambuja Cements Ltd
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