Chidambaram expects better bids for IFCI

Mumbai: Finance minister P Chidambaram has justified IFCI's decision to reject an offer from a consortium of Sterlite Industries and Morgan Stanley and said he expected better offers to come as the bidding process restarts.

IFCI, which is offloading 26 per cent of its equity, got a lone bid and that too was conditional, the minister said.

"We got a single bid, a conditional bid. Therefore, IFCI rejected the bid. And in my view that's a correct decision," Chidambaram said on the sidelines of an event making the opening of the 1,000th branch of Vijaya Bank in Bangalore.

IFCI board rejected the conditional bid, which sought management control by the successful bidder after three days of negotiations on December 19.

IFCI shares had plunged more than 23 per cent on December 20 after its board turned down an offer from the consortium led by Sterlite Industries.

The shares have dropped more than 18 per cent since IFCI announced the rejection of the bid, but are still ruling high this year.

"I am sure when a rebid process starts, there will be more bidders," Chidambaram said.

He, however, refused to comment on when the rebid process would begin and said the decision rests with the IFCI board.

IFCI shares closed at Rs81.70, up 4.34 per cent, on the Bombay Stock Exchange on Friday.