The so-called ‘family settlement’ of the Rahul and Shishir Bajaj factions reached a dead-end as a welter of accusations sprang from the latter on Wednesday.
MUMBAI: The so-called ‘family settlement’ of the Rahul and Shishir Bajaj factions reached a dead-end as a welter of accusations sprang from the latter on Wednesday.
The Shishir Bajaj faction took a confrontationist stance by preferring to route the settlement through the courts.
A letter from Shishir’s lawyers declared that they are terminating and ending the family settlement. At the same time, the group took care to fortify its position by buying a 4.5% stake in Bajaj Hindusthan from the markets, taking their personal stake to about 7%.
The two Bajaj factions hold a 40.9% stake in Bajaj Hindusthan. Though the equity is controlled by the Rahul Bajaj faction, the company is run by Shishir Bajaj and his son Kushagra.
The other faction (Rahul and his two sons Rajiv and Sanjiv) have, in the recent past, acquired 45 lakh shares constituting over a 3% stake through Bajaj Auto, which they control.
“This is an effort to destabilise our clients’ decades old management in that company,” Shishir’s lawyers said.
Observers tracking the Bajaj dispute believe that the market purchase was done to prevent and defend a probable move by the Rahul Bajaj faction to shore up their stake further in the sugar maker.
By buying a 4.5% stake, the Shishir Bajaj faction has effectively put a lid on further purchases by the rival faction. Sebi norms state that any promoter acquiring more than a 5% stake in a company in a given financial year will have to make an open offer for 20% equity from public shareholders.
Bajaj Hindusthan shares have steadily appreciated to Rs 170.35 per share on Thursday from Rs 156.55 on July 27, 2007.
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