IFCI's decision to reject bid is correct, says FM

BANGALORE: Endorsing IFCI's decision to reject the Sterlite-Morgan Stanley bid, Union Finance Minister P Chidambaram on Saturday expressed hope of more bids coming in when the rebidding process for stake sale begins.
    
"There was a single bid, a conditional bid. Therefore, IFCI board rejected the conditional bid. In my view that is a correct decision", the Finance Minister said on the sidelines of function to mark the opening of 1000th branch of Vijaya Bank in the city here.
    
"I am sure when the rebid process starts there will be more bidders, who will conform to the RFP documents", he said.
    
He, however, refused to comment on when the rebid process would begin saying that the decision rests with the IFCI board.
    
The IFCI, which had plans to raise money to manage its growing non-performing assets, had turned down a bid from the consortium of Sterlite Industries and Morgan Stanley to buy a 26 per cent stake leading to a fall in its shares in the stock market.
    
IFCI shares yesterday closed at Rs 81.70, up 4.34 per cent on the Bombay Stock Exchange, the highest ever after the deal fell through.
    
The board of IFCI rejected the conditional bid seeking management control by the successful bidder after three days of negotiations on December 19.
    
The Delhi-based financial institution got three bids, of which NRI billionaire Anil Aggarwal-led Sterlite Industries, jointly with global investment banking giant Morgan Stanley, emerged as the front-runner by quoting the highest price.