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No revision in Nanda price offer: FMC

The two had agreed to carry out the transaction by March 31 upon a price band of Rs 205-215 per share.

india Updated: Apr 05, 2006 15:32 IST

After failing to acquire co-promoter Anil Nanda's 24.64 per cent stake in Goetze India Ltd (GIL), Federal Moghul Corporation (FMC) said on Wednesday that it was not considering a revision of its price offer even as it "reassesses strategy with respect to the company".

"We believe the offer was fair considering the performance and financial structure of GIL. We are not considering a revision of our offer," a Federal Moghul Corporation spokesperson said.

FMC had made an offer to acquire 62,30,000 equity shares of GIL from Anil Nanda by way of inter se, amounting to 24.64 per cent stake. The two had agreed to carry out the transaction by March 31 upon a price band of Rs 205-215 per share.

The deal, however, failed to materialise as the market price of GIL share at the time of the proposed transaction was above the agreed price band. According to SEBI and RBI guidelines, a stake sale to a foreign promoter if the offered price is lower than the existing market price.

FMC said it was reassessing its strategy with respect to GIL in India.

Had the proposed acquisition of stake taken place, FMC would have had majority holding in GIL with 50.10 per cent stake.