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Grasim submits new demerger plan to L&T
January 28, 2003 17:41 IST
Grasim Industries Ltd has submitted an alternate proposal to Larsen & Toubro before the engineering major decides to demerge its cement business at its board meeting scheduled for Wednesday.
The Aditya Birla Group Company, which has vehemently opposed L&T's cement demerger plans, has said that the L&T board should consider Grasim's "alternate proposal in better interest of all the stakeholders of both the companies".
In a notice to Bombay Stock Exchange, Grasim admitted "it did not have any control over L&T" and it will be entirely a prerogative of the board and shareholders of L&T to decide upon the proposal.
The Grasim board had on Monday discussed their plans for L&T board meeting and later submitted the company's proposal, which includes a suggestion for a vertical split in L&T.
L&T sources confirmed the receipt of the proposal and said, "We will have to study it in detail before a final decision is taken".
The Birlas have opposed L&T's plans to rope in CDC Capital Partners as a strategic investor by offering them 6.8 per cent stake in the company, in its demerged cement business.
Grasim holds just over 15 per cent stake in L&T and had made an open offer for acquisition of further 20 per cent in the company last October.
Subsequently, on Securities and Exchange Board of India's advice, the open offer was put on hold pending investigation on issue of "control" of L&T by the Birlas.
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