The BSES example then makes it clear that while the first open offer would be necessary owing to regulations being in place, management control would only come through in such companies when a second open offer is made to make the situation amply transparent. This would make it plain to all classes of shareholders that management control was being sought, and would give them a clear exit option if so desired. The other important precedent set by BSES is that the acquirer would also be required to have a higher stake than the FIs in order to gain management control in professionally run companies. While Reliance had 44 per cent and legal opinion saying an open offer wasnt necessary, it did go ahead and make a second offer to avoid any confrontation with FIs. The management of BSES, in sharp contrast to cases like Larsen & Toubro, has also backed the Reliance bid strongly and publicly, making it clear that Reliance and the outgoing management team were talking the same language. Trade unions have also supported the change in management at the power utility. At a time when Corporate India is in a state of churning, and professionally managed companies at odds with promoter groups seeking control of some of them, the BSES case serves as an important example for both institutions and corporate groups that change is not always accompanied with unnecessary sabre-rattling and posturing.