Parikhs up stake to counter Emami offer

Statistics submitted to the stock exchanges show that Girish Parikh and his family member Ajay Parikh have together increased their stake in the company this week by 2 per cent, thus taking their total stake to 22 per cent.  This acquisition was made under the creeping acquisition laws, according to which a promoter is allowed to raise his stake by 2 per cent a year.  Emami, which has bought 24 per cent shares from another founding family led by Dev Kumar Vaidya, has made an open offer to buy another 20 per cent stake in Zandu at a rate of Rs 7,315 a share, which opens on July 24.  The last date to make a counter-offer to Emami's offer expires on Monday. Interestingly, the share price of Zandu has already gone up far above the open offer and closed at Rs 14,078 a share on Friday. This makes it difficult for Emami to garner shares at the rate of Rs 7,315 a share.  On June 7, Zandu's board of directors had to withdraw a plan to issue preferential allotment of shares to the Parikhs as Emami sent a legal notice, saying the company cannot issue preferential shares to its promoters at a time when an open offer is being made by Emami.  Since then, the Parikhs, who are set to lose control over the company, are looking at ways to shore up their stake in the company. At the same time, Emami also sent feelers to the Parikhs for a compromise and offered them a say in the management of the company. By increasing their stake in the company, corporate lawyers say, the Parikhs are trying to get a better bargain at the negotiating table.  Though the Parikhs had earlier claimed the first right of refusal in picking up their co-promoters' shares, Emami Director Harsh Agarwal had earlier told this newspaper that they had not come across any such agreement. Vaidya sold his stake in Zandu as the Parikhs were running the company on a day-to-day basis and there was no role for the Vaidyas.  Emami bought the Vaidya family's stake at around Rs 130 crore, paying Rs 6,900 (including a non-compete fee of Rs 100) a share. When contacted, Girish Parikh, the managing director of the company, refused to comment on the issue.