Federal-Mogul soars 16% after SAT upholds Sebi order on open offer price

SAT also dismissed such appeals stating it didn't find enough merit in dismissing the approach taken by Sebi to arrive at a fair valuation

Shares of multinational company Federal-Mogul Goetze (India), or FMGI soared 16 per cent after the Securities Appellate Tribunal (SAT) dismissed an appeal against an order passed by the Securities and Exchange Board of India (Sebi) directing the promoters to revise upwards the open offer price.

Promoter US-based Tenneco had moved SAT challenging the Sebi directions on the open offer price. The mandatory 26 per cent open offer was triggered following change in ownership in the promoter group at the global level.

Based on independent valuation reports, the promoter of FMGI had arrived at an open offer price of Rs 400