Amid speculation of engineering giant L&T’s, which has raised its stake in Satyam Computer to 12 per cent, bid to take over the IT major, market regulator SEBI on Wednesday said anyone can approach it to seek relaxation in the open offer pricing norms.
“Anybody can approach SEBI (with regard to relaxation in the open offer pricing norms),” Chairman of the Securities and Exchange Board of India C B Bhave said when asked whether L&T has approached the regulator for seeking relaxation in the open offer conditions.
Beyond that, Bhave said, “I have no comments.” Under the current norms, any potential acquirer which reaches 15 per cent stake in the target company is required to make an open offer to other shareholders giving an option to them to exit the company by selling their shares at a price not less than the average share price of the past six months.
L&T on Janaury 23 raised its stake in Satyam to 12 per cent from 4 per cent through open market share purchases. Keen on reaching the 15 per cent level, the engineering firm is reportedly seeking relaxation of the six-month average price rule on the grounds that it would have to shell out a much high price than the current market price if the existing norms are followed.
Satyam shares have fallen drastically since the admission of the fraud by its founder chairman B Ramalinga Raju on January 7. The share price of the IT company fell from Rs 179.10 (as on January 6) to about Rs 55.45, a fall of about 69 per cent.
L&T chairman AM Naik had earlier met the Corporate Affairs Secretary Anurag Goel raising speculations about engineering company’s interest in the beleaguered firm.
