Gesco talking of high counter offer to keep Dalmias’ off
Mumbai: The Sheth-family controlled, Gesco Corporation, which is facing a take over threat from the Delhi-based Dalmia family, is reportedly contemplating a very high counter offer that could be in the range of Rs. 50 per share. The share is, however, trading at Rs 30 on major bourses.

It is understood that the management of Gesco have indicated this price to the financial institutions, whose officials the Gesco management recently met. The last day for making a competitive offer to the shareholders is November 6.

The company management has been trying to convince its existing shareholders and the financial institutions, that Gesco is not into real estate speculation. Instead, it is portraying the company to be a comprehensive real estate services company, which focuses on project development.

The management is understood to have informed the institutional investors that the company has tied up 2 million sq feet of projects in the past few months of which 1 million are in Delhi itself. They have also said that the hostile bid price does not reflect the true price of the company as the benefits of the recent contracts will only now start accruing to the company.
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