Dalmia Cold To Bhasin & #39;S Overture On Jaiprakash Takeover Plan

Abhishek Dalmia of Renaissance Estates, is unlikely to respond to the overtures made by Delhi-based stock broker Harish Bhasin to launch a joint takeover of Jaiprakash Gaur-controlled Jaiprakash Industries Ltd (JIL). "I don't think we will be interested," Dalmia told Business Standard.

Quoting sources from Bhasin's outfit HB Stock Holdings, news agency PTI had reported that Bhasin was understood to be keen on roping in Dalmia for the takeover of JIL.

Claiming to own a 12 per cent stake in JIL, Bhasin has in the past talked of taking over JIL. Bhasin declined to comment on the matter to the agency.

On his part, Gaur has claimed that Bhasin's stake in JIL does not add up to more than 6 per cent and, as he alongwith friends and associates owns over 51 per cent in JIL, does not face a takeover threat.

Recently, the Securities & Exchange Board had written to Bhasin to disclose his shareholding in the company.

According to Dalmia, early in the month, before he was leaving for abroad, he was approached by someone on behalf of Bhasin with the message that the broker wanted to meet him.

However, the go-between did not specify the reason for which Bhasin wanted to meet. Dalmia returned from abroad on May 25 and since then has not received any missive from Bhasin.

When asked how would he react if Bhasin makes an offer for doing a joint takeover attempt on JIL, Dalmia said that it was unlikely that he would go ahead with such a proposal.

"Though we have not taken a look at JIL, I believe it has huge debts and the company is not doing terribly well," he added.

Dalmia also said that he has never met or spoken to Bhasin before. "I only know what is publicly known of him," he said.

Dalmia had shot into the limelight last year when he had made an abortive bid to take over Mumbai-based Gesco Corporation from the Sheths.

JIL is Gaur's flagship with interests in the civil construction, cement, power and tourism industries. Its 4.2 million tonne cement business has been spun off into a fully owned subsidiary called Jaypee Rewa Cement.

The power business is vested in another two JIL subsidiaries. The company has civil construction contracts in excess of Rs 7,000 crore. JIL also owns a hotel at Mussoorie (Uttarakhand).