Sterling To Make Open Offer For Bharti Telecom

The likely offer is subsequent to SHRL picking up nine per cent in Bharti Telecom. The latters board of directors has refused to transfer and register 7.5 per cent equity in the Sterling companys name.

SHRL will resort to the public offer if the Mittals continue to refuse to register the shares, sources said.

When contacted in Chennai, SHRL director A Subramanian confirmed that his company is contemplating an open offer for the Bharti shares. Yes, we are planning to make an open offer to the public at a price which will be determined under SEBI guidelines if Bharti does not register the shares in our name, he said. The decision to make an offer comes close on heels of SHRLs decision to initiate legal action if the 7.5 per cent equity of Bharti Telecom is not transferred in its name.

 

Reacting to the public offer move, Bharti executives said the company would adopt a wait and watch attitude. We are aware that he will approach the CLB (company law board) against our decision to register the (nine per cent) shares. It (the transfer of the nine per cent stake) or the public offer are not in the best interests of shareholders. We have asked for legal advice and will initiate action when necessary, a senior Bharti executive said.

The Mittals with their friends and associates control around 66 per cent equity in Bharti Telecom, while financial institutions along with foreign institutional investors hold around 5-6 per cent. Some 19 per cent was available with the public, of which SHRL picked up nine per cent. SHRL is understood to have picked up nine per cent stake (15.21 lakh shares) of Bharti Telecom over the last one year. In the last six months (April-September this year) the scrip traded between a high of Rs 101 and a low of Rs 77.50.