Raasi scouts for white knight, four possible suitors emerge

While the market appears to have discounted the scrip on this count over the past five days during which it dropped from a high of Rs 223 to Rs 150 per share, Raju was not available for comment despite repeated attempts to contact him.

However, senior Raasi officials ruled out such a possibility, considering the fact that Raasi viewed N Srinivasan as "the white knight turned black knight", and that it now treats him with a great deal ofsuspicion. Instead, the company is already talking to four companies through Lazard Capital which is negotiating for Raasi, officials said.

ICL was not one of the four companies, the officials confirmed, stating that three of the four corporates are existing cement majors with plans to expand, while the fourth had plans for making a big entry into the sector.

In a bid to make it attractive for the potential white knight, the Raasi management is willing to put together a tentative formula which includes equal control over the company, a share of the market and a possible collaboration for setting up a new cement project.

The ownership of the vast lime stone deposits of the company in the Anantapur district, which apparently is the main attraction even for ICL, is being put out as the bait for setting up the new cement plant which may have the same capacity.

However, this relationship would be for a period of up to five years only, after which the two parties will break off with their own separatemanufacturing capacities and, if necessary, separate brand names. "However, enough safeguards will be taken so that the white knight does not turn into a black knight as our experience with ICL’s N Srinivasan has been," top Raasi sources said.

The necessity for looking for a white knight outside the state, despite the muscle-flexing by Andhra Pradesh-based corporates in Raasi’s aid, has arisen considering the eight company chiefs, though offering ethical, moral and if necessary, financial support, are unable to do so as they have made it clear they are in it in their individual capacities alone.

However, the search for the saviour is fraught with uncertainty as the counter offer issue is sub-judice and the company would have to convince the court to allow it a grace period to make the counter bid even though the 21-day Sebi stipulation has expired.

While Sebi itself has remained silent on this aspect in response to a Raasi query on the matter, the regulatory body has also sought to exercise thethree-week time given by the court to file the counter offer in the case.