Itw Signode Says Kolkata Broker To Offload 5% Stake

ITW Signode India Ltd today informed the stock exchanges that a Kolkata-based stock broker Madhu Sudan Dalmia, who has 5.02 per cent stake in the company, has intended to offer his shares under the existing open offer made by the parent Illinois Tool Works Inc (ITW).

The intimation was made following the reports that Dalmia may come out with a counter offer. The company said Dalmia, responding to the reports, has clarified to ITW Signode that he had no intention of making any counter offer. It added that Dalmia also disclosed his intention of offering the shares in the existing open offer.

According to sources, Dalmia had acquired the shares of ITW Signode through open market in a price range of Rs 75 to Rs 77. They added that he bought the shares only after the announcement of open offer by ITW Inc on August 7.

They said this was with an intention to make a profit because of the spread available between the then market price and the open offer price of Rs 80.

The sources said apart from the spread, an added attraction is the 25 per cent dividend given to those shareholders who have listed their names as on September 19, 2001. The open offer opens between October 30 and November 29.