Themes: Mergers / Acquisitions and Takeovers
Period : 2000 - 2001
Organization : Hooghly Mills Company Ltd / Bombay Dyeing / SEBI / FICCI
Pub Date : 2001
Countries : India
Industry : Financial Services
- Arun Bajoria, on his voting rights being frozen by Bombay Dyeing, in November 2000.
- Bombay Dyeing sources in October 2000.
In October, 2000, the atmosphere at Neville House, Mumbai, official headquarters of Indian textile major Bombay Dyeing (BD) was extremely tense.
The Bajoria-BD tussle intensified over the next few days, with the Finance Minister Yashwant Sinha saying that the issue had underlined the need for amending the takeover code to make it foolproof. The controversy even divided the chambers of commerce and industry, with Meanwhile, Bajoria revealed his plans to claim a seat on the BD board and to have Nusli Wadia (Wadia), BD's Chairman removed on charges of mismanagement: "I had filed a case with the CLB under Sections 396 and 397 for mismanagement in BD by Mr. Nusli Wadia and will demand his removal from the Board." He also demanded the appointment of an external auditor to probe instances of mismanagement by Wadia.
1] SEBI was set up to protect the interests of investors in securities and to regulate and promote the development of the securities market. The takeover code allowed the promoters to raise stake in their firms through creeping acquisition of up to 5% annually. Non-promoters had to notify stock exchanges and the company within four days of picking up 5% stake before the subsequent provisions of the takeover code came into force. On reaching 15%, non-promoter investors had to make an open public offer for purchase of at least 20% of the equity at a pre-determined price.
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