Deutsche Bank to fund TCG's Haldia plan

The battle for the control Haldia Petrochemicals Ltd (HPL) between co-promoters The Chatterjee Group (TCG), the government of West Bengal and prospective investor Indian Oil Corporation (IOC) took a new turn.

This is after The Chatterjee Group reportedly indicated its readiness to pay the state government just under Rs 29 for its shares in Haldia Petrochemicals Ltd, backed by funds from Deutsche Bank. That is, if only the state government got Indian Oil Corporation out of Haldia Petrochemicals Ltd.

Neither The Chatterjee Group executives nor state government officials could be contacted for comments.

But sources close to the development said The Chatterjee Group had lined up funds to pay a price of just under Rs 29 per Haldia Petrochemicals Ltd share but was adamant that the government-proposed deal to sell Haldia Petrochemicals Ltd shares to Indian Oil Corporation at Rs 10 per share be shelved.

Deutsche Bank has emerged as the banker for The Chatterjee Group in the deal, according to sources.

"The government will have to get a release from Indian Oil Corporation for the deal to go through," said sources.

They also said The Chatterjee Group was ready to pay the state government within 21 to 30 days if Indian Oil Corporation was excluded.

Earlier in the day, Indian Oil Corporation Chairman S Behuria met Chief Minister Buddhadeb Bhattacharjee and said the Haldia Petrochemicals Ltd deal would have to be closed by August 18, as the cheque issued by Indian Oil Corporation for Haldia Petrochemicals Ltd shares at Rs 10 would lapse 90 days after issue.

According to vernacular news channels, Indian Oil Corporation threatened to take legal action if the deal was not consummated. Indian Oil Corporation could not be contacted for confirmation of this news.

The government was selling the family silver cheap by offering Haldia Petrochemicals Ltd shares at Rs 10 to Indian Oil Corporation, sources close to The Chatterjee Groupquoted that camp as saying. All share transactions at Haldia Petrochemicals Ltd would also require clearance from its lenders, sources pointed out.