Bangalore, Jan. 27
ABOUT nine lakh Herbertsons Ltd shares may have to be returned to shareholders after McDowell & Co Ltd and Phipson Distillery Ltd rejected the discovered price today.
According to a BSE notification, the acquiring company (Kingfisher Radio) had issued the announcement in concert with the two companies.
Mr Ravi Nedungadi, President and CFO, UB Group, though did not reveal the price, told
Business Linethat it had rejected the offer price and now there were two options before the company. Either they sell and bring down their stake to below 75 per cent or increase the capital to achieve the same.
The board would meet `soon' to discuss the issue, he said.
In September 2005, the board of Herbertsons Ltd had approved the merger with McDowell & Co. The board had also announced a merger ratio of two McDowell shares for every three Herbertsons shares held. In March 2005, the UB Group acquired Herbertsons Ltd taking into its fold brands such as Bagpiper whisky and Honeybee brandy.