Tatas'' ring fencing continues: CNBC
31 Aug 2006
The Tata Group is in accumulation mode. Ever since Lakshmi Mittal succeeded in his bid for Arcelor, the Tatas have made no bones about their intentions of increasing promoter holding in all their companies to prevent a hostile takeover bid, reports CNBC-TV18.
In July this year, the Tatas increased their stake in Tata Steel from 20 per cent to 23.85 per cent through a share allotment; they then increased it to over 27 per cent by exercising the warrant option.
Today, Tata Sons has acquired 2 per cent stake in Tata Chemicals from Hindustan Lever in a block deal on the BSE. The purchase cost the group Rs94.35 crore and pushed their stake in Tata Chemicals to over 30 per cent from the earlier 29 per cent. In the bargain, HLL's holding will drop to 3.55 per cent.
The Tatas are also contemplating increasing their stake in Tata Tea from nearly 29 per cent to 50 per cent. This will be done through creeping acquisitions of 5 per cent every year.
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