The managing committee of Larsen & Toubro (L&T), which met on Thursday to discuss the issue of open offer by the AV Birla group, has referred the matter to the L&T board. No decision was taken at the management committee meeting. The matter will be discussed at the companys board meeting which will be convened towards the end of this month, sources said. Sources said that the managing committee meeting was a routine one, which is held every fortnight. This is the first meeting after the AV Birla group companies Grasim Industries Ltd and Samruddhi Swastik Trading and Investments Ltd announced an open offer for upto 20 per cent equity in L&T at a price of Rs 190 per share, on Sunday. L&T managing director AM Naik was out of country when the offer was announced, and was not available for comments. The open offer for 20 per cent, if fully subscribed, would cost the AV Birla group around Rs 945 crore. The offer opens on December 9, 2002 and close on January 7, 2003.
JM Morgan Stanley are acting as the transaction advisor and Mulla & Mulla and Craigie Blunt & Caroe as legal advisors to the open offer. Grasims wholly-owned subsidiary Samruddhi Swastik Trading and Investments Ltd would be acting in concert for the open offer along with Grasim.
Grasim has till date acquired 14.48 per cent stake in L&T at Rs 971 crore. Grasim had earlier acquired 10.05 per cent in L&T through a negotiated deal at Rs 306.60 per share and followed up with market purchases of another 4.42 per cent at an average price of Rs 177 per share.