Zuari chief undecided on next move in MCF battle

Mallya holds 22% stake in MCF, while Poddar has 16.43% stake

Deepak Fertilisers has indicated it is open to aligning with Vijay Mallya for control of Mangalore Chemicals and Fertilizers (MCF)  but Zuari Agro Chemicals’ Saroj Poddar, the other contender, is yet to finalise his stance. “I think it will take some time to come up with a final decision,” Poddar told Business Standard when asked about the outcome of the planned meeting with liquor baron Mallya.

Mallya holds 22 per cent stake in MCF, while Poddar has 16.43 per cent stake. A meeting between Poddar and Mallya, scheduled for last week, did not materialise. It is understood the two discussed the issue over the phone, though the talks remained inconclusive.

Last year, when Deepak had surprised the market by buying 24 per cent stake in MCF, Poddar and Mallya had met in London to try and decide on MCF. But then, too, nothing concrete had emerged.

Deepak, which holds 25.31 per cent in MCF, has been trying to woo Mallya to arrive at an amicable solution. Sources said Mallya had responded to Deepak and was looking to make the most of the opportunity.

Deepak’s open offer has been filed as ‘not for control’ which, according to sources in Deepak, is an indication the bid to acquire control over MCF isn’t hostile. Deepak Chief Financial Officer Somnath Patil confirmed this. This could put Deepak ahead on the MCF front and Poddar might have to revise his strategy to have a final go at a takeover. Earlier, he had announced if he didn’t get control, he would sell his stake to the highest bidder.

In April last year, Poddar bought about 10 per cent in MCF. After Deepak’s surprise entry, he raised his stake to 16 per cent. So far, all of Poddar’s moves have been in consultation with Mallya.