MUMBAI, OCT 20: Alarmed over a hostile takeover raid on its group company Gesco Corporation, the Sheths of Great Eastern Shipping have launched a buyback for its flag ship company. As per a notice sent to the Bombay Stock Exchange (BSE), GE Shipping board will consider the buyback in its next board meeting. They have also planned to make a counter offer to thwart the takeover attempt on Gesco Corporation by Delhi-based Renaissance Estates Ltd (REL). The Sheths hold a very low equity of 13 per cent in Great Eastern Shipping while the rest is owned by the financial institutions, GDR holders and small shareholders. ``As the Sheths were `surprised' at the takeover attempt on its real estate company. it seems they do not want any more surprises on Great Eastern Shipping,'' says a market analyst. GES scrip closed at Rs 32.60 on Friday as compared to yesterday's close of Rs 30 on the BSE. The buyback offer will be made as per Sebi norms specified this year, analysts say, adding that by not offering shares during the buyback, the Sheths will increase their own shareholding in the company. Meanwhile, the company was still chalking out a strategy for the takeover battle initiated by Renaissance Estates Ltd (REL), a wholly owned subsidiary of Utkal Investments Ltd (UIL), for GESCO Corporation Ltd. The Delhi firm has offered a price of Rs 23 per share payable in cash which has been already breached in the stock markets. The present promoters, the Sheths of Great Eastern Shipping have only 15 per cent stake in the company and have vowed to salvage the company from any hostile bids. The counter offer to be initiated by the Sheths will hot up the takeover scenario in the country. Bombay Dyeing chairman Nusli Wadia is waging a pitched battle to defend his company and the Oberois of East India Hotels are rankled by the acquisition of a major stake by ITC which runs the Welcome group of hotels. GESCO is also listed on the Bombay Stock Exchange. The offer, which would open on November 24 and close on December 23, 2000, is subject to necessary approval from the Reserve Bank of India for acquisition of shares from NRI shareholders. REL, which has similar operations as GESCO, and Calcutta-based non-banking finance company, UIL, are controlled by the A H Dalmia group that has been managing large cement and granite operations. Several industry bodies have asked the SEBI to increase the creeping acquisition limit from five per cent to 15 per cent. ``Today a raider can keep acquiring shares up to 15 per cent of a company equity without having to make an open offer, whereas a promoter can raise his holding in his own company by only five per cent every year through the creeping acquisition route, this is unfair,'' said Assocham president Shekhar Bajaj.
