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Friday 29 July 2011

New takeover guidelines to ward hostile bids

SEBI has announced that the creeping acquisition may go on till 25pc level is achieved without going for open offer. Further there is provision for going for compulsorily going for another 26pc through open offer route. I think this sets at rest most of concerns of parties interested in take-overs.

This is also a logical practice and ensure change of guard in a natural manner and leaves the scope for the present managements to make attempts to ward of the hostile take-over moves. The share-holders will benefits in every scenario. The price discovery will be better.

The above will itself be a responsible factor see markets moving out of the present mood of despondency.

Along with a few other sensible announcement, the present SEBI Chairman Mr Sinha has clearly scored over Mr Bhave who was more of a bureaucrat than a market reformer...kbk

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