Financial Daily from THE HINDU group of publications
Tuesday, Jul 23, 2002
Corporate - Open Offers
Bayer's offer for Aventis `delayed'
MUMBAI, July 22
BAYER CropScience AG today said its proposed open offer to the shareholders of Aventis Crop Science India Ltd will be "delayed" due to additional information required by the Securities and Exchange Board of India (SEBI) from Ambit International, its merchant bankers.
The open offer was to open on July 24, at an offer price of Rs 157 per share.
According to the company, the offer will be "slightly delayed" and that the offer could commence in August.
On June 19, the Chennai-based Indian Syntans Investment Pvt Ltd, which holds 4.5 per cent stake in Aventis CropScience India Ltd, had sought intervention by SEBI on the proposed open offer.
According to Indian Syntans, the offer price of Rs 157 per share is way below the negotiated price of Rs 541 per share. "We strongly feel that Rs 541 is the negotiated price for Aventis CropScience India and this should be factored in when determining the minimum offer price under Regulation 20 (2) of the Takeover Code," it said.
Bayer CropScience had announced its plan to make an open offer to acquire 32.92 per cent equity stake in Aventis CropScience at a price of Rs 157 per share.
Bayer CropScience has acquired 100 per cent of share capital of Aventis CropScience Holding SA following an agreement entered into by Bayer AG with Aventis and Schering on October 2, 2001.
The open offer follows the finalisation of merger between Bayer's crop protection business and Aventis CropScience on June 3.
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