Ghanshyam gets aggressive News Archive News

The low profile Sarda is playing an aggressive game by making a conditional open offer of 30 per cent to get management control of textiles ...

Written by Dilip Cherian

August 19, 2002 12:00 AM IST

4 min read

The low profile Sarda is playing an aggressive game by making a conditional open offer of 30 per cent to get management control of textiles company BSL from the promoters Churiwal-Jhunjhunwala. Chairman of Kolmak Chemicals, Ghanshyam confirmed that this is the first offer of its kind in Eastern India and with it the Sardas have entered the club of India8217;s aggressive takeovers. What is surprising though is that the promoters who are also related, maintain that they are not even aware of the offer. Things however are being put in place by the Sardas whose initial moves were masterminded by merchant banker and local boy Amit Ghosh. SBI Capital Markets have now been appointed the Merchant Bankers and some of the other Sarda companies inducted into the consortium of acquirers. Considering the Sardas have been accumulating BSL shares over the past few months this takeover bid is a logical conclusion. However the original bosses are not to be outdone, and have not only increased their stake in the company by 3 per cent in the last three months but also inducted three new directors in order to outnumber the possible Sarda representative on the board. It is only a matter of time before the winner of this aggressive takeover battle is known.

Drizzle or Thunder?

It looks as though Gulu Mirchandani is still having growing expectations from Mirc Electronics. The latest evidence being that the Mirchandanis have hiked their stake in the company. This goes to show that Gulu8217;s faith in Mirc is on the upsurge. Off late, this electronics company has gone through a complete overhaul that has increased its strength in some ways. And so perhaps the surge of Mirchandani faith is justified. In the CTV market it is the high end that is their new focus. And there, the Mirchandani8217;s homegrown brand Onida has done well. The pick up of sales simply boils down to price cutting measures that drive up volumes. All these price-slashing measures may not go down too well with his premium market hopes. So the neighbouring rivals are may be far from envious of Gulu Mirchandani. Now with the onslaught of drought, the feel good factor still seems to evade the customer. It is to be seen if the Mirchandanis are feeling so good about the hiked up the stakes in a few months. And could at best end up purgatory.

Tailpiece

Despite being a votary of privatisation and a reluctant visitor to New Delhi, why did one of the country8217;s biggest tycoons, spend most of last week, cloistered with the high-priests of the public sector? Why was he seen tramping through the Bhavans and Blocks of New Delhi? Charming his way past one ministry after the other, the tycoon had at least two missions to complete, suggest watchers. One very clearly had to do with the massive internal problems that his group is currently embroiled in. The mess is one that involves an unholy and rather volatile mixture of accountants, employees and the stock market. The worry there is that any government fishing expedition could embroil other parts of his empire. But the other mission is obviously the one that matters more considering the fact that crucial decisions, that will be taken tomorrow, still involves governmental blessings. Moving along a carefully plotted procession of meetings, the tycoon is betting that the battles of his group8217;s recent past, will be resolved, at least in part. One advantage he had, was timing. The tycoon8217;s own trauma was overshadowed, by the bigger battles raging in Delhi.

Dilip Cherian, runs a public affairs firm Perfect Relations. He is an economy watcher and tycoon tracker. None of the people he writes about are his clients. Your insider tales are welcome at dilipcheriannow-india.net.in

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