BSES Ltd acting chairman and managing director SS Dua told FE: On the face of it, the offer looks ok for the shareholders. At least there will be some clarity now.
He added that the board will discuss the open offer and the future course of action on December 25. In the normal course, the board forms an opinion on an open offer and conveys it to the shareholders.
The grapevine suggests that the board meeting is being called to nominate a new chairman and managing director for the company as the current incumbent Mr Dua was appointed in the interim. Mr Dua is expected to retire in June 2003. However, Mr Dua denied any knowledge of this. Insiders suggest that the post of the CMD may be bifurcated. However, BSES officials said that appointment of new chairman and managing director was not on the agenda.
The offer letter for acquisition of shares from BSES shareholders states: The acquirer intends to seek reconstitution of the board of BSES. The Reliance group currently has Mr Amitabh Jhunjhunwala and Mr Satish Seth as its nominees on the BSES board.