Takeover scare for McLeod Russel as Carbon Resources picks up over 5% stake

The would-be acquirer makes non-binding offer to banks to settle the bulk tea producer's dues

McLeod Russel, the largest bulk tea producer in India, is facing a takeover threat from Carbon Resources, a company manufacturing input materials for ferro alloys, aluminium and steel industries.

In a surprise move on Friday, Carbon Resources bought more than 5 per cent stake in McLeod from the open market. On the same day, it made a non-binding offer to McLeod’s lenders – in the middle of a debt resolution process – for a one-time settlement of dues.

“We sent a non-binding letter of intent (LoI) to the bankers of McLeod on Friday, saying that we would like to settle