Thursday, 27 Jan 2011
DJ recently reported that the Indian government is examining whether to remove four of six merchant bankers for state run Steel Authority of India Ltd's follow on public offering after they engaged in rival Tata Steel Ltd's recent share sale.Mr PK Misra steel secretary told Dow Jones Newswires that a decision on the matter is likely in a day or two.He told “We have sought the advice of the Department of Disinvestment on whether to remove the four bankers from handling SAIL's share sale due to a conflict of interest.”
Mr. Misra said even if the four bankers are to be removed it won't delay the share sale process as new managers can be hired shortly.He said that the share sale is possible by the third week of February, adding that the timing of the offering will depend on stock market conditions and how soon the dispute is resolved.
SAIL has served notices on SBI Capital Markets Ltd, HSBC Securities and Capital Markets (India) Pvt Ltd, Deutsche Equities (India) Pvt Ltd and Kotak Mahindra Capital Co, asking them to explain whether handling the share sales of two rival companies isn't a conflict of interest.(Sourced from dowjones.com)
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