Rain Commodities has sought legal intervention to invalidate the preliminary acceptance of a competing bid by Oxbow for Great Lakes Carbon Income Fund.
HYDERABAD: In a new twist to the bidding war for Great Lakes, Rain Commodities has sought legal intervention to invalidate the preliminary acceptance of a competing bid by Oxbow Carbon & Minerals Holdings Inc for Great Lakes Carbon Income Fund.
The Hyderabad-based manufacturer of cement and calcinated petroleum coke (CPC) and Oxbow, the world’s largest trader in CPC, are locked in a battle for the assets of the fund consisting of 73.56% ownership interest in the world’s biggest CPC-maker GLC Carbon USA Inc.
Interestingly, Oxbow holds 5% equity in Rain’s subsidiary, Rain Calcining, which is set to be merged with the parent later this month.
Great Lakes had said late on Tuesday its board of trustees felt Oxbow’s revised offer of $13.50 (Canadian) per unit was superior to Rain’s sweetener at C$13.25 that was made in response to the former’s initial counter offer of C$13.
Rain USA Inc. had acquired 20.23% in GLC USA Inc. in March 2006 that pegged the enterprise value for GLC Carbon at US $656 million. It has been since looking to buyout out the Canadian fund and had entered into an agreement for the purpose at a price of $11.60 per unit.
Rain believes the Fund’s ratification of Oxbow’s latest offer cannot constitute a superior proposal in relation to Rain USA’s holding 20.23% ownership interest in GLC USA, the company said in a statement to the BSE on Friday. Therefore, it has approached courts in Toronto to adjudicate in the matter.
Rain has the option to better Oxbow’s offer by Tuesday or cash out with a $17 million break fee from the fund. The case is posted for hearing on Monday a day before the deadline expires.
Acquiring GLC Carbon is crucial for both Rain and Oxbow as it will give the winner a clear grip on the global CPC market.
The Great Lakes Carbon has about 300 employees at two plants in the US and one in Argentina where it manufactures CPC.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}