Economic Times reported that the takeover bids by three steelmakers to acquire Orissa Sponge have been revived after a three year lull as Bhushan Steel & Power and Monnet Ispat & Energy have indicated their intention to acquire up to 20% in Orissa Sponge.

Recently, Bhushan Steel Limited revived their open offer, originally made in 2009 to buy up to 20% in Orissa Sponge at INR 360 a share. Monnet Ispat will also pitch for the 20% stake at INR 310 a share.

The offer price is likely to be raised as it is based on the level at which the participating companies had bought shares in 2009, in Orissa Sponge from the open market, before the process was stalled following a court directive after allegations of irregular share purchases.

In 2009, three companies Bhushan Steel, Bhushan Power and Monnet Ispat had made an offer to acquire Orissa Sponge by initiating negotiations with the promoters.

As of now, Bhushan Steel offer of INR 360 per share is the highest with Sanjay Singhal Bhushan Power and Monnet Group coming out with offers of INR 300 and INR 310 per share respectively.

Later the promoters of Orissa Sponge filed a complaint against Bhushan Steel saying that since Bhushan Steel had violated the takeover regulations, the open offer should be stalled. The court had referred the matter to Sebi.

The Orissa Sponge promoters' allegation against Bhushan Steel was that the company had bought shares in Orissa Sponge through a group company which was not disclosed amounting to violation of Sebi takeover rules.

Source - ET

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