• PAGE ONE
• INDEX
• HOME

Modi Rubber may defer board meet again

K.R. Srivats

NEW DELHI, July 25

THE crucial board meeting of Modi Rubber Ltd (MRL) convened for July 28 is set to be deferred once again, following the significant changes in the course of events since July 16 and its impact on the outcome of the open offer made by the Modi Brothers' - - Dr B.K. Modi and Mr V.K. Modi.

``A meeting on 28th is out of question now even though a meeting has to be held for consideration of quarterly results. There have been lot of developments since July 16 like the LIC matter which is still before the Court,'' Mr Panduranga Rao, Chairman, Modi Rubber, told Business Line over telephone from Hyderabad.

Meanwhile, company sources said that the July 28 board meeting was to be a ``regular meeting'' for consideration of ``routine matters''.

The Mumbai High Court is expected to soon take up for consideration the petition filed by LIC, seeking the repudiation of the ``unauthorised and illegal'' move of two of its employees to participate in the open offer made by the Modi Brothers'.

Mr Panduranga Rao, however, declined to comment on whether a recast of the board is imminent in the near future in the wake of the likely changes in shareholding pattern after the completion of the open offer. ``I really do not know whether a restructuri ng or a recast of the board is imminent in the near future. Any board restructuring cannot happen overnight. It takes time.... the LIC matter is still before the Court,'' he said.

LIC's move to tender its shares in MRL on July 16 baffled the other financial institutions (FIs) -- UTI, GIC, IDBI and IFCI -- which, according to sources, refrained from participating in the open offer.

In fact, a ``special'' board meeting convened for July 17, a day after the extended open offer was to have closed, was also deferred on account of yet another extension of the closing date of the open offer to July 23.