Deloitte May Get Mandate For Icici Reverse Merger Swap

DSP Merrill Lynch is advising ICICI on its proposed merger with ICICI Bank. Another merchant bank, JM Morgan Stanley, is advising ICICI Bank on the issue.

The two are expected to formally appoint Deloitte, Haskins and Sells to decide the valuation and swap ratios once the boards of ICICI and ICICI Bank take up the resolution on the proposed merger.

Senior ICICI executives refused to comment on the issue. However, sources said the institution has already set up a core integration committee to oversee the merger. The members of the committee include ICICI Bank managing director HN Sinor, executive directors Nachiket Mor and Chanda D Kochhar and ICICI executive directors Kalpana Morparia and S Mukherji.

The merchant bankers have started discussing the proposed merger with the foreign investors in ICICI and ICICI Bank. The FII holding in ICICI is currently around 16 per cent while the American depository shareholders have a stake of 32.65 per cent in the financial institution. In the case of ICICI Bank, FII holding stands at around 22.5 per cent while the ADS holding is pegged at 14.41 per cent. Prudential Assurance had picked up 4.99 per cent in the bank and Capital International 3.6 per cent in March this year bringing down ICICI