Race for acquiring Orissa Sponge gets more intense

MUMBAI: The race for acquiring the resource-rich Orissa Sponge has got more intense. Bhushan Steel, the Neeraj Singhal-controlled company, is expected to come out with a counter open offer by Saturday, according to persons familiar with the development.

Bhushan Steel���s offer is the third open offer to the retail shareholders of Orissa Sponge, a company jointly promoted by Dr P K Mohanty and the Bhubaneshwar-based Ipicol. While the Sanjay Singhal-controlled Bhushan Power was the first to come out with an open offer at Rs 300 per share, on Wednesday, Monnet Ispat made an offer at Rs 310.

Saturday is also the last day for submitting counter bids for Orissa Sponge.

Bhushan Steel is being advised jointly by IDFC-SSKI and JM Financial for the open offer, which could likely indicate a close fight for Orissa Sponge���s captive coal mines and iron ore mines.

Monnet Ispat had earlier bought IDFC���s stake of 5%, apart from acquiring another 10% from the promoters, according to people close to the development.