Gic Calls For Russell & #39;S Financials

General Insurance Corporation (GIC), the state-owned insurance company, has asked ITC subsidiary Russell Credit to furnish balance-sheets and other relevant documents to establish its track record, while both GIC and Life Insurance Corporation (LIC) have also asked Bright Star Investments to furnish similar documents, in the light of the offers made by both for shares of VST Industries Ltd.

This latest twist in the VST Industries takeover battle indicates that the institutions do not consider Russell Credit to be out of the race for the tobacco company as yet, though it has priced its open offer at Rs 125, which is Rs 26 lower than Rs 151 offered by Bright Star. While LIC holds 6.3 per cent, GIC and its four subsidiaries hold 9.14 per cent in VST Industries.

While Russell Credit was asked by GIC today to submit its balance-sheet, among other relevant documents, Bright Star Investments has already discussed the matter with the insurance companies.

Sources said, the insurance companies were likely to take a final call on which open offer to subscribe to, next week.

Speaking on behalf the Damanis, John Band, CEO of their merchant banker ASK Raymond James, said: "We have already had discussions with all the financial institutions having substantial holdings in VST Industries about our track record."

The subscription to Russell Credit's open offer, since the last revision by the Damanis, has predictably been tepid, sources close to the investment company said.

Russell Credit has so far picked up one per cent through market purchases, and about eight per cent through subscription to their open offer.

The support of the financial institutions which together hold 17.75 per cent in VST Industries, the country's second largest cigarette company, would be crucial.

The public held 29.55 per cent in the company as of March 31, which has diminished by about a couple of per cent with both Russell Credit and Bright Star buying one per cent apiece from the market.