Dalmia will respond to Sheth-Mahindra counter offer
Mumbai: According to Mr. John Band, chief executive of ASK Raymond James, advisors to the Dalmia group on the takeover bid for Gesco Corporation, the Dalmia family will respond to the Sheth-Mahindra counter offer only after studying their offer document in detail.

The Dalmia group, which has made a hostile bid for the Sheth-controlled Gesco Corporation, had originally offered Rs. 27 for the 45 per cent holding with the public, in response to which, the Sheth family, in association with the Mahindra group, made a counter offer of Rs. 36.

As part of its strategy, the Dalmia group is considering coming out with a statement to Gesco shareholders highlighting the difference in the quality of management. The Dalmias, it is learnt, are likely to highlight that the Sheths’ white knight, Mahindra Realty, is a loss-making company and has huge negative cash flows. According to them the quality of real estate assets with Gesco is far superior to that of Mahindra Realty and, hence, Gesco derives no benefit from the Mahindra alliance.
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Stock markets relatively calm
Mumbai: In a day characterised by unusual action from the US presidential elections, the stock markets in Mumbai remained calm and firm.

After a steady opening, the BSE sensex crossed the 4,000-mark on fresh institutional and speculative buying. The NSE S&P CNX Nifty advanced 25.20 points to close at 1,271.95.

Almost all investment banking and FII executives were unanimous in their opinion that the US election outcome would bring in greater stability and, hence, more action from the FIIs.

Shares that saw some action were Dr Reddy's Laboratories, Ranbaxy Laboratories, Glaxo, Novartis Infosys Technologies, NIIT and Satyam Computer.
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BSE to start retail debt trading soon
Mumbai: According to Mr. Anand Rathi, president of the Bombay Stock Exchange, BSE plans to launch order driven system for retail for listed debt instruments.

The system will be order driven and is expected to be in place in trade by the end January 2001. The software and other facilities for this are currently being developed.

This move by the BSE is expected to be of great help to retail investors since it will provide an easy exit option to retail investors of debt instruments. Secondly, by providing a platform for trading in debt instruments, retail investors with very short term investible funds can take advantage of the exchange and earn a higher interest compared to bank or corporate term deposits.
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