Monnet raises open offer for Orissa Sponge Iron to Rs370 per share

Monnet Ispat & Energy Ltd has increased the open offer price for Orissa Sponge Iron & Steel Ltd to Rs370 per share from its earlier offer of Rs310 a share.

The latest offer from Monet Ispat is Rs10 above the revised offer of its nearest rival Bhushan Power & steel of Rs360 per share. (See: Bhushan Power and Steel revises open offer for Orissa Sponge)

Besides, another Bhushan group company, Bhushan Energy, is also in the market with open offer at Rs300 per share.

Monnet along with two promoter entities (as persons acting in concert) of Orissa Sponge Iron, is seeking to buy up 20 per cent or 6.1 million shares (of Rs10 each) of Orissa Sponge Iron.

The bid war has, however, helped Orissa Sponge to gain market value and the scrip was ruling at Rs374 on the Bombay Stock Exchange during afternoon trade today.

About 42,838 shares of the company changed hands on the Bombay Stock Exchange.

Meanwhile, the promoters of Orissa Sponge Iron and Steel have decried attempts by some steelmakers to take over management of the company. They said Orissa Sponge was only looking for a technology partner and that they still preferred Monnet Ispat as a partner to revive the loss-making firm.

Bhushan Energy along with PACs (person action in concert) had also said that they would reopen their offer for 20 per cent stake in Orissa Sponge. The offer period of both Bhushan Energy and Bhushan Power is same.