Grasim May Have To Raise Offer For CemCo

Grasim May Have To Raise Offer For CemCo
Published: 06 February 2004

India’s Grasim Industries may have to raise its offer price to acquire a stake of more than 51% in Larsen & Toubro’s demerged cement business, the Economic Times reports.    The newspaper quotes Larsen’s chairman A.M. Naik as saying it is up to financial institutions, which hold 29 per cent in the company, to decide if they want to participate in Grasim’s open offer for the cement business.  Grasim currently holds 12.6 per cent in the demerged cement business called CemCo and has made an open offer of 342.6 rupees ($1=INR45.27) per share to raise its stake to 51 per cent.  Grasim’s open offer price may have to be revised upwards if the target shareholders do not find the price attractive enough, says the report.