ET reported that Sterlite Industries which holds the majority 51% stake in aluminium major BALCO may seek legal recourse after a government panel turned down its call option to obtain the residual stake in the latter.

A person privy to the development said "Sterlite Industries, which is making efforts to acquire the remaining 49% stake in BALCO for about a decade now, may seek recourse to the High Court."

While Sterlite in a filing to the Bombay Stock Exchange said that it would decide its future course of strategy, the company did not elaborate on strategy or give any timeframe. When contacted, a Vedanta spokesperson refused to comment on the issue saying "We are going through the award".

With the call option Sterlite was looking at acquiring the remaining stake in BALCO. Call option is an agreement that gives the buyer a right to buy some part of an asset at a specified price and particular timeframe.

A three member government panel, set up at the instance of the Delhi High Court for arbitration in the matter on January 25 had struck down the Vedanta Group firm call option terming it a violation of the rules and regulation.

The government would also seek legal opinion before proceeding with the divestment of its residual stake in Bharat Aluminium to garner the maximum value. Mr S Vijay Kumar Mines Secretary said "We are studying the award and taking legal opinion before proceeding on BALCO. The next step will be based on legal opinion as to how to get the best value for the residual stake."

(Sourced from Economic Times)