NEW DELHI, MAY 28: Sterlite Industries has suffered a setback in its bid to take over Pennar Aluminium with Board for Industrial and Financial Reconstruction (BIFR) turning down its plea not to issue fresh bids for the takeover of the sick aluminium company.Sterlite Industries submitted before BIFR the group had given three proposals for reviving Pennar Aluminium between May 1999 and October 1999 and it should be given more time to negotiate with creditors of the sick company to improve its latest proposal.A two-member BIFR bench, comprising members N P Singh and N P Bagchee, however, turned down the plea and directed Industrial Development Bank of India (IDBI) to invite global bids for takeover of Pennar Aluminium company.Stating that no preferential treatment could be given to Sterlite, the bench said it had no locus standi since the consensus view in the joint meeting of creditors had not accepted its proposal."All parties showing interest in the Pennar Aluminiun should participate in the open bids if they were keen on pursuing their offers," the bench said. Hindalco, the largest aluminium company in the country, had earlier shown interest in reviving the company, but its proposal was not accepted by financial institutions.
