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Last Updated : Sep 24, 2015 12:06 PM IST | Source: CNBC-TV18

Tide Water mgmt confident of fending off takeover attempt

Government-run Andrew Yule, which is the promoter of Tide Water Oil Company (India) Ltd, is confident of fending off a takeover attempt by a minority shareholder (Standard Greases) and ruled out a counter open offer on its part.


Government-run Andrew Yule, which is the promoter of Tide Water Oil Company (India) Ltd, is confident of fending off a takeover attempt by a minority shareholder (Standard Greases) and ruled out a counter open offer on its part.

In an interview with CNBC-TV18, Andrew Yule CMD K Datta said the company has the support of financial institutions and employee trusts, which own another 14 percent, aside of its own 26 percent in Tide Water Oil.

Standard Greases, which owns 25 percent in Tide Water and is also a supplier to the company, has come together with a couple of private-equity funds to come out with an open offer.

Tide Water sells the Veedol brand of lubricants in India.

But in an interview with CNBC-TV18, Datta ruled out an open offer to counter the open offer issued by Standard Greases (the latter's open offer at Rs 16,632 per share is below the last closing price of Rs 17,636).

"Andrew Yule is a government-owned company and we can't decide these things overnight," Datta said, but added he did not feel the need to come out with one. "In any case, we are controlling the company with a 40 percent stake. We are sure we are not under threat. This is not a serious offer."

Datta said he had spoken to state-run insurance companies, which hold stake in the company, and said they had "faith" in the current management of Tide Water Oil.

The company has scheduled a press conference at 4pm today where it will outline its strategy in light of recent developments.

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First Published on Sep 24, 2015 09:17 am
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