MUMBAI, Mar 9: In a new twist to the ongoing Indian Aluminium (Indal) takeover drama, Canadian aluminium firm Alcan on Monday threatened that they would block the technology transfer to Indal if Sterlite Industries manages to pick up any stake. "We do not want Sterlite as an industrial partner in any form. If they are allowed to get into Indal, we would review our Indian operations," thundered Suresh Thadani, chief financial officer and vice president of Alcan (the 34.6 per cent owner of the Indian company).The veiled threat from Alcan in a press briefing came as the financial institutions, holding over 37 per cent stake in Indal, has not shown till date any inclination to sell its shares to either Alcan or Sterlite. Thadani said they have already written to Sterlite that they are not welcome in Indal and reiterated that Alcan was not interested in associating in any way with Sterlite Industries.Both Thadani and Brian Sturgell, Alcan's vice-president in charge of the Asia-Pacific region, harped onIndal's strong technology tie-up with its principal shareholder and made it clear that Alcan does not want its technology to be made "widely available". "In one ship, there can not be two captains," Sturgell later added."We expect no value addition from Sterlite for Indal and think that Sterlite's participation is not in the best interest of Indal's shareholders," Thadani said."We already spoke to financial institutions and made presentations to the Unit Trust of India (UTI) and General Insurance Corporation (GIC) about our stand," he said."We have told the FIs that Indal was emerging as an international player in aluminium products and needed a partner like us for the technology to grow internationally. Hence, we think it would be in the best interest for all to let Alcan increase its stake to 51 per cent," he said, adding, ``We told FIs that Alcan continues to support Indal, its present management, and finally, we do not want Sterlite as a partner.'' "We may meet again with FIs, but the counteroffer is open for all shareholders and terms are equal for everyone," he said. The financial institutions hold key to the entire Indal takeover game as floating shares in the stock market is less than 10 per cent.Alcan had last week made made a counter offer at Rs 105 per share in retaliation to the Rs 90 per share offer made Sterlite. Sterlite now has two weeks from today to make a revised bid.When asked, Thadani refused to make any comment on how the company would respond to a possible upward revision in the price offered by Sterlite Industries.Asked on the price for the counter offer at Rs 105 per share as against Sterlite's bid, which was termed low by analysts, Thadani felt this was debatable as before the Sterlite's offer, Indal's price was ruling at Rs 65. "Some would think it is low, some would think it is reasonable," he said. Corporate sources expressed surprise over the statement of Alcan official ``to review Indian operations.'' ``Takeovers and mergers are common in other countries. Thiswill force promoters and managements to perform better. Shareholders and investors will benefit from such takeover moves. Threats will not work out in the new regime,'' said a source.
