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Thursday, Aug 06, 2009
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Business Daily from THE HINDU group of publications Thursday, Aug 06, 2009 ePaper | Mobile/PDA Version | Audio | Blogs |
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Petroleum Corporate - Open Offers Great Offshore flares up on bourses Highest single-day gain of 10.3%. Speculation that of one of the bidders was picking up the shares. 
Varada Bhat Mumbai, Aug 5 In May, when promoter Vijay Sheth lost control of Great Offshore, not many would have thought the company’s share price would almost double in less than three months — from Rs 295 on May 7 to Rs 579 on August 5. On Wednesday, the share rose 10.3 per cent or Rs 52.55. The stock closed at Rs 559.10 on the BSE, when the benchmark index gained 0.46 per cent touching 15,603.83 points, with most of the shipping stocks sailing marginally higher on the bourses. Drive-upThe tug-of-war between ABG Shipyard and Bharati Shipyard for the control of Great Offshore, the Mumbai-based offshore oilfield service provider, has been driving up the stock, and especially so after Bharati made an open offer for a 20 per cent stake on May 30. Over 7,51,933 shares were traded on Wednesday on the BSE, raising speculations that one of the bidders was picking up the shares from the market. Mr Dhananjay Datar, Chief Financial Officer, ABG Shipyard, denied buying any shares on Wednesday while Bharati Shipyard officials could not be reached for comment. On Tuesday, ABG Shipyard hiked its offer price to Rs 520, which is 28 per cent higher than Bharati Shipyard’s revised offer of Rs 405 a share made on July 6. ABG has so far acquired around 9 per cent equity in Great Offshore through a series of block and bulk deals. Bharati, which bought the promoter’s stake of 14.87 per cent in May, has acquired another 5 per cent subsequently. Another offer revision“The market is expecting another revision in offer price. There is also a possibility of one of the bidders buying from the market,” said a shipping analyst from a broking firm. Ms Anita Gandhi, Head of Institutional Business, Arihant Capital Markets, said Bharati Shipyard may anytime soon try to match ABG’s offer price. Resource drainAccording to analysts, both the companies, in the attempt to outbid each other with aggressive strategies, could drain out their internal accruals. “Bharati has an advantage here as it had bought around 15 per cent stake at Rs 315, while ABG might end up paying a higher price for the 32 per cent,” said an analyst with a broking firm. While ABG Shipyard closed 1.71 per cent higher at Rs 208.05 on the BSE, Bharati Shipyard gained 2.67 per cent to Rs 167.20. ABG raises offer price for Great Offshore to Rs 520 Bharati Shipyard ups open offer price to Rs 405 Bharati Shipyard, ABG battle for Great Offshore Bharati Shipyard’s buy of Great Offshore – A new trend setter? More Stories on : Petroleum | Open Offers
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