Industry sources said that though Mallya is expected to continue to chair the Aventis Crop Science board in India, top-of-the-mind calculations indicate that the UB group's holding in the new company will come down marginally. No official confirmation could, however, be got from the UB group.

Currently, the UB group, it is believed, holds approximately 20 per cent of AgrEvo India's equity, while AgrEvo GmbH, Germany holds a 50.1 per cent stake in the company.

Analysts also expect the parent company's holding in Aventis Crop Science India to go up beyond 51 per cent post-merger, though this could not be confirmed. Both AgrEvo India and Rhone Poulenc Agro are expected to seek external assistance to undertake a valuationexercise before arriving at an exchange ratio in India. Rhone Poulenc Agro India is held 51 per cent by Rhone Poulenc Agrochemie SA, while the balance is held by Rhone Poulenc India.

Hoechst AG chairman, Jurgen Dormann, had at a May 17 press meet in Frankfurt said that the Hoechst/Rhone-Poulenc valuation ratio would be 53:47 and the merger is to take place via an exchange offer by Rhone-Poulenc to Hoechst shareholders in October 1999.

Hoechst shareholders will receive three shares in Rhone-Poulenc for every four shares they own. Subsequently, Rhone-Poulenc will change its name to Aventis SA and Hoechst shareholders will hold a 53 per cent stake in Aventis, the publicly quoted life-sciences company.

Meanwhile, AgrEvo India vice-chairman and managing director, KK Unni has been designated as the chief of Aventis Crop Science in India till early 2000. Subsequently, Unni will continue as the multinational's executive vice-chairman for another year (ie. 2001) while VS Kaushik, currently managing director atAgrEvo (Thailand) will take as the country head.

ends