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Punjab Tractorsí open offer flops

Calcutta, Dec. 8: British investment agency CDCís public offers to buy 20 per cent stake in each of Punjab Tractors, Swaraj Mazda and Swaraj Engines fell flat as the market price of these shares zoomed.

CDC managed to acquire as few as 5,305 shares of Swaraj Engines, 43,206 shares of Swaraj Mazda and 11,976 shares of Punjab Tractors through its offers.

Shareholders of these companies rejected the bids as the shares of these companies had run up to levels much higher than CDCís offer.

CDC ó an arm of the Department for International Development of the British government ó had made these public offers following its acquisition of the Punjab governmentís 23.49 per cent stake in Punjab Tractors.

Though it was required under takeover regulations to make a public offer to buy an additional 20 per cent of Punjab Tractorsí shares only, it made similar offers to shareholders of Swaraj Mazda and Swaraj Engines as well, being firms promoted by Punjab Tractors.

Whereas CDC had offered Rs 153.80 for Punjab Tractorsí shares, the stock has run up to Rs 255. The same is true for the two other companies as well.

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