Fis To Finalise Stand After Talks With Cos

The Unit Trust of India and the Life Insurance Corporation of India, which together hold 31.9 per cent stake in Indal, will meet the two companies, Sterlite Industries and Indal. The two FIs will finalise their stand on the issue prior to the meet. The meeting is slated either sometime late this week or early next week.

UTI chairman G P Gupta said support to the present management will be given only after examining Sterlites offer. The general policy of the company is to say that institutions are supporting the existing management. However, we will examine options, Gupta added.

The FIs are expected to discuss the positions of the two companies.

 

We will thoroughly examine the offer when it comes, and on the basis of the evaluation we will decide,Gupta told Business Standard.

LIC chairman G Krishnamoorthy confirmed that a joint decision would have to be taken on the issue by institutions.

We have been in touch with UTI on the issue. However, no concrete decision has been taken yet. We may later hold a formal meeting on the issue with UTI and other institutional investors, he said.

The UTI chairman confirmed that there has been no communication between Indal and Sterlite so far on the issue.

The LIC chairman also stated that the institution is monitoring the devolopments. UTI holds 16.5 per cent stake and LIC holds 15.4 per cent stake in the company.

The FIs stand on the issue is crucial as they hold a sizeable chunk of Indals equity and could swing the balance either way. The general publics holding is less than 10 per cent. So far, the FIs have been largely supportive of existing managements, though a situation like Sterlite-Indal is unfolding for the first time. A lot depends on the position of Alcan, Indals foreign partner.