Bhushan bros lock horns over acquiring stake in Orissa Sponge

NEW DELHI: Barely a fortnight after Neeraj Singhal-led Bhushan Steel bought about 15 per cent stake in Orissa Sponge and said it may even acquire it, a firm led by elder brother Sanjay Singhal has teamed up with the promoters of the Bhubhneswar-based company to check any takeover bid.

"We are supporting the present management of Orissa Sponge and we want to come as a strategic partner to them. We will together thwart any hostile takeover attempt," Bhushan Power and Steel (BPSL) CMD Sanjay Singhal told PTI.

BPSL has issued an open offer to pick 26 per cent stake in Orissa Sponge at Rs 300 a share as it looks to have a majority shareholding on the side of the promoters who hold about 41 per cent in the company. BPSL has lined up to Rs 150 crore for the share acquisition.

On the other side, eyeing OSISL's products and raw material reserves, Neeraj Singhal-led Bhushan Steel last month had bought cash-strapped realty firm Unitech's 9.5 per cent holding in the sponge iron producer at Rs 22.30 crore, taking its stake in the firm to about 15 per cent. It has also shown interest in buying the company.

Bhushan Power and Steel is also looking at OSISL as a "good business opportunity" and sees synergies between its Jharsuguda plant and Orissa Sponge (OSISL).