Sterlite, Alcan may make hostile bid for Hindalco, say reports
04 June 2007
Mumbai: Canada-based Alcan, sued by a number of companies, including US aluminium giant Alcoa, for a takeover, may team up with Vedanta group company Sterlite for a hostile takeover of Hindalco, India''s largest aluminium maker.
Hindalco, 27 per cent held by the A V Birla Group, is 20 per cent held by FIIs and 12 per cent by institutions respectively. About 10 per cent of the equity is in GDRs while the remaining is with retail investors, which is a fairly large free-float.
Hindalco had in April made a preferential allotment of 14.75 million warrants and shares, to raise money for its Novellis takeover, which would take the promoter holding to about 35 per cent.
Alcan, meanwhile, rejected a $27.6 billion takeover bid from Alcoa, which could have created the world''s largest aluminium company.
Hindalco was also rumoured to be in talks with global mining giant BHP Billiton for a joint bid for Alcan, while Sterlite was supposed to be bidding with Rio Tinto. The story now has turned full circle.
Anil Aggarwal group company Sterlite has always been trying
to increase its market share in India.
Unless the Aditya Birla Group is willing to sell its stake, an Alcan bid for Hindalco will make it highly unattractive for other players and it will be embroiled in quite a hostile bid.