SC seeks response from Sebi

Over plea to restrain Italian oil company ENI from making an open offer to shareholders of HOEC

The Italian company had said in a filing to the Bombay Stock Exchange (BSE) that it planned to acquire about 20 per cent stake in HOEC at Rs 144.20 per share.

The open offer follows ENI's taking over of Burren Energy, which is the holding company of Burren Shakti Ltd and Burren Energy India Ltd which together own 27.12 per cent Hindustan Oil Exploration Company.

Under the Sebi regulations, acquisition of over 15 per cent stake requires an open offer to be made to public shareholders.

A bench headed by Justice A K Mathur has issued notice to the Sebi on an application by M Z Khan, an HOEC shareholder, seeking a to restrain ENI from making the open offer under the takeover code.

Khan besides filing an impleadment application has also sought to restrict the Italian company from exercising any control or voting rights pursuant to its takeover of London-based Burren group.

While stating that the interests of the shareholders of HOEC was likely to be affected, the applicant said: "The present appeal raises extremely serious issues that go beyond the commercial interests of Hardy Oil or Burren and that relate to the operation of the Takeover Code and had far reaching implications for the Indian security market as a whole."