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Sebi yet to okay BP's Castrol offer

The Securities and Exchange Board of India has not yet approved a revised open-offer document submitted by Britain's BP Plc to acquire a further 20 per cent stake in Castrol India, a senior official told Reuters on Monday.

"We are still examining the new offer document as there is no clarity on the interest issue," said an official of Sebi.

BP's counsel sought a two-week stay on a government tribunal's ruling last week that BP pay interest charges to Castrol India's shareholders for a delay in making an open offer for their shares.

Clyde D'Mello, associate president of BP International Ltd, the Indian unit of BP plc, told Reuters it has until September 20 to challenge the tribunal's order.

The Sebi official, who spoke on condition of anonymity, said the final offer price would depend on the interest component.

He also said that all Castrol shareholders who hold their shares until the open offer closes will be eligible to be paid interest.

BP gained control of Castrol India as a result of acquiring Britain's Burmah Castrol plc, which owned 51 per cent of the Indian company.

The acquisition was announced on March 14, 2000 and completed on July 7 that year.

That acquisition triggered Indian takeover laws, which required the British oil giant to make an offer to Castrol's shareholders to buy an additional 20 per cent stake at the price averaged over the 26 weeks preceding the announcement date.

BP's initial offer, made in December 2000, was based on the period preceding July 7, when its acquisition of Burmah Castrol plc was completed.

Sebi objected to this, saying March 14, 2000 must be the date used to set the offer price.

BP then submitted a revised document last month after a Bombay court upheld the regulator's ruling, which required the British firm to raise its offer price to Rs 350.02 from Rs 311.91 earlier.

The British oil major's open offer price will increase further if it is asked to pay interest.

Castrol shares have gained 13 per cent in the past month, while the benchmark Bombay index dropped 4.1 per cent.

Its shares closed down 0.31 per cent at Rs 259.20 on Monday, while the benchmark index shed nearly 0.5 per cent.

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