The Birla move to acquire 20 per cent through an open offer and take over Larsen & Toubro has evoked strong protests from investor associations. National Association of Small Investors’ (NASI) president Pradeep Bhavnani said a section of Larsen & Toubro shareholders will approach the Supreme Court asking the company to increase the offer price for acquisition of Larsen & Toubro to Rs 350 per share. The Investor Grievance Forum, on the other hand, has come out against “the role played by financial institutions in handing over the company to the Birlas.” FIs supported Birlas: IGF MUMBAI: The Investor Grievances Forum (IGF) has claimed that financial Institutions played a key role in bringing Birlas on the L&T board. Kirit Somaiya, President of the Investors’ grievances Forum, disclosed that “FIs gave in writing and used their influence to call an urgent meeting of the L&T board to include Birlas on the board.” “The then chairman of General Insurancee Co asked L&T company secretary to call an urgent meeting. On refusal, GIC and LIC gave a letter in writing to the L&T before the board meeting that two Birlas should be taken on the L&T board immediately,” Somaiya said. (ENS) “In order to circumvent shareholders and market regulator SEBI, Grasim acquired over 15 per cent stake in L&T but announced an open offer for acquiring another 20 per cent through an open offer, as per Sebi guidelines, at Rs 190 per share after six months,” investors said. “I am an aggrieved shareholder of Grasim and L&T. Along with other shareholders, I have decided to move the Supreme Court against the Grasim offer to the holders of L&T shares at Rs 190 per share. This is a most unreasonable offer,” Bhavnani said.
