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Court upholds Sebi ruling in Castrol case

A Bombay court on Wednesday upheld a Securities and Exchange Board of India's ruling on the date for calculating the open offer price BP Amoco will pay to raise its holding in Castrol India, an official at the market regulator said on Wednesday.

"The court has held that the relevant date for calculating the price under the open offer is March 14, 2000," the official, who asked not be identified, told Reuters.

BP Amoco will have to offer a higher price of Rs 350 per share to buy an additional 20 per cent in its Indian subsidiary, the official said.

BP Amoco and Castrol India officials were not available for comment.

BP Amoco which owns 51 per cent of Castrol India made an open offer last December at Rs 311.91, which was based on the average price over the preceding six months.

Sebi objected to the formula saying that the six months for the purpose of this calculation should be mid-March last year.

BP Amoco acquired its stake in Castrol India as a result of its acquisition of Burmah Castrol Plc, which was announced on March 14, 2000 and completed on July 7.

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