Amoco Moves Sat Against Sebi Foseco Fiat

BP Amoco, the UK-based oil major, has filed an appeal with the Securities Appellate Tribunal against the Securities and Exchange Board of India (Sebi) order to make an open offer for Foseco India, the chemicals company.

Sebi had on May 28 rejected BP Amoco's application seeking waiver from making an open offer. Sebi had then ordered BP to make an open offer for Foseco in 45 days.

Clyde D'Mello, associate president of BP (India), said, "We had asked Sebi to exempt us from making an open offer for Foseco as we are currently in the process of selling the company to a third party. However, having reviewed the Sebi order and in accordance with the legal advice received, BP has decided to file an appeal with the Securities Appellate Tribunal protesting the order."

Foseco, which is a subsidiary of Burmah Castrol, is currently being spun off into a separate company, as a prelude to its sale.

BP had sought six months time from Sebi to complete the spinoff of Foseco International. BP Amoco had gained indirect control over Castrol India and Foseco India when it had acquired Burmah Castrol last year.

In the case of Castrol India, BP Amoco had fixed the open offer price at Rs 311.91 per share, which was contested by Sebi, and later upheld by SAT.

Sebi had asked the company to make the open offer at Rs 350. Following this, the British oil giant has moved the Bombay High Court to contest the SAT verdict on the open offer price for Castrol India.