The new takeover code is expected to whet the appetite of companies such as ITC to acquire more shares in the companies they currently have only a toe-hold as of now.
ITC, with patience that only predators possess, has for years held on to a sizeable stake of a little less than 15% hotel companies EIH and Hotel Leela, much to the consternation of the Oberois and Nairs, the respective group promoters.
The cigarette maker, which has interests in hotels and consumer goods, has so far restrained from striking, for several reasons.
First, the patriarchs are still going strong and wield a lot of goodwill and clout. Second, the current takeover code posed a hurdle —— increasing stake to or above 15% would have triggered an open offer.
The new takeover code gives ITC more room to buy another 10% — till 25%.
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